City council looks to housing trust fund to fill need for low income housing
Earlier this month members of The Winston-Salem City Council continued talks about creating a housing trust fund to help address the need for affordable housing for low- and moderate-income citizens.
Talks initially began last month when Mayor Allen Joines asked city staff to review best practices for establishing a housing trust fund. A trust fund is an estate planning tool that is a legal entity that holds property or assets for a person or organization.
Although the talks are still in the early planning stages, Mayor Joines has already identified a $5,000,000 commitment from a community partner and city staff has tentatively identified another potential $5,000,000 in ARPA (American Rescue Plan Act) and bond funds.
On Oct. 9 the Community Development/Housing/General Government Committee discussed a resolution that would give city staff permission to do more research and report back to city council with recommendations for creation, administration, management and structure of the fund. Mayor Joines and several council members also had the opportunity to share their thoughts on the matter.
Joines said developing an endowment would give the city extra ability to close deals. He also mentioned that other cities in North Carolina have established housing trust funds that have been successful.
According to their website, the Housing Trust Fund established by the City of Charlotte has allocated $218.8 million to affordable housing since 2001. And between 2001 and 2019, the City of Asheville Housing Trust Fund has created approximately 1,300 units.
“This would give us a little extra ability to do deals and to close deals quickly by taking out some of the bureaucracy of city government as possible,” Joines said. “I’m very much in favor of this. I think this is a good next step.”
Councilmember Barbra Burke, who represents the Northeast Ward, said that although we do have very serious affordable housing needs, more research needs to be done before they make a decision.
“I don’t think we’re ready to make a decision on whether or not we need to establish this housing trust fund. I believe we need more information, we need more research, we need more details,” Burke said. “They’re too many unanswered questions for us to move forward. We do have needs, but I also think we have greater needs for more information at this time.”
Councilmember Jeff MacIntosh, who represents the Northwest Ward, said he was torn between being excited and also the need for more information. He said, “But we can’t let perfect be the enemy of the good.” MacIntosh said while the council waits on more information, the cost of housing is steadily rising.
“The longer we wait, the less housing our pool of money buys. I think we’re going to come to a place where the council is going to be happy, but we need some sense of urgency behind it,” MacIntosh continued. “We’ve studied and studied and studied and watched the cost of housing go up dramatically.”
South Ward Representative Councilmember John Larson said the fund was a good idea and he applauded Mayor Joines for finding private funding to support the effort.
“I think the idea of establishing this fund is an important part of the process of embracing partnership with the corporate world outside of City Hall,” Larson said.
In Monday’s vote (Oct. 16), the city council approved the trust fund 7-1, with the opposing vote belonging to Couniclmember Burke, who wanted to hold off approval for more research.
