“We hear about it everyday.”
That’s Mayor Donna Deegan talking in April about Jacksonville’s lack of affordable rental housing, a deepening community-wide challenge that destabilizes families and neighborhoods alike. The lack of affordable rents is arguably one of Jacksonville’s most pressing and daunting human challenges. It’s not good for any of us.
Simply put, local rents outstrip folks’ wages. It’s a supply issue and a lagging-wage issue. Studies show that half of Duval county renters are “cost-burdened,” meaning they spend more than 30% of their income on housing, making it in turn difficult for some of our neighbors, friends, and family members to afford other life necessities. Think clothing, food, medicine, school supplies, gasoline.
About 82,000 Duval County households find themselves in this situation. That’s 20% of roughly 396,000 households. These working folks are always robbing Peter the house purse to pay Paul the landlord.
A promising jump start
Mayor Donna Deegan understands this challenge and has proposed using public dollars to help increase supply. Her 2024-25 budget includes $10 million designed to incentivize home builders to construct 500 to 1,000 affordable housing units.
Designed as loans, not grants, these dollars will be matched with $30 million from private donors, including philanthropic foundations, and administered by Self-Help Ventures Fund, a community development financial institution with a Jacksonville presence and expertise in lending to affordable housing developers.
This should be a slam dunk for City Council: $10 million triple-matched by private dollars, a third-party nonprofit experienced lender with a track record, and loans that will revolve over 20 years and be repaid to the city’s coffers.
As uses for public dollars go, what’s not to like?
Helping Jacksonville workers, apparently
Last week, City Council’s Finance Committee removed this innovative $10 million budget item from Deegan’s proposed $1.9 billion budget, with committee Chair Ron Salem and member Rory Diamond, according to the Florida-Times Union , calling the idea “half-baked.” They indicated, however, that City Council could entertain the proposal at a later date if the mayor brought legislation forward.
WOW.
This from City Council members who don’t hesitate to incentivize housing for those who can afford it.
Take for example just two Downtown Jacksonville housing projects, the Related Group’s 24-story luxury apartment tower on the St. Johns’ Southbank, and Gateway Jax’s Pearl Street District development in Downtown’s urban core. As reported, these projects do not include any affordable rental units.
Related Group’s $202 million project will receive $59 million in what are essentially public dollar grants, with Pearl Street District’s $500 million project receiving $100 million.
Pennies on the dollar
Comparatively speaking, the mayor is asking for a pittance, pennies on the dollar, $10 million on a $1.9 billion budget. A mere $10 million in what will be loans, not grants, matched 3:1 with private dollars, and repaid in 20 years. And designed to address a critical community need.
Not to mention, the mayor’s proposed partnership includes exceptionally reliable entities whose expertise is widely known and respected: Self-Help Ventures Fund, the Community Foundation for Northeast Florida, and the Jessie Ball duPont Fund among them.
Keep hope alive
Despite the Finance Committee’s pathetic decision, all is not lost.
City Council members not on the Finance Committee may attempt to restore the mayor’s $10 million housing loan fund, something at-large council member Matt Carlucci says he intends to do.
Let’s help him.
The mayor’s proposed housing loan fund is an innovative idea that addresses one of our most daunting local challenges. It deserves a chance to prove itself.
Tell City Council’s Finance Committee to get on board, and restore the funding.
http://apps2.coj.net/City_Council_Public_Notices_Repository/Council%20Member%20Roster%202024%2007%2001.pdf
Sources:
This column is published under a partnership with JaxLookout .
The post OPINION | Deegan’s affordable housing loans should be restored in city budget appeared first on Jacksonville Today .
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