The discussion of the 2026 Housing and Redevelopment Authority (HRA) budget was a focal point of the meeting. The proposed budget seeks to support the city’s strategic plan by focusing on creating a vibrant downtown, diversifying the tax base, and maintaining housing affordability.

A significant challenge addressed was the shortfall in the Section 8 program, which may require a substantial transfer from the general fund to cover administrative costs. Despite stable personnel costs, the administration budget is set to increase by 7.3% to address this issue, exacerbated by a reduced number of voucher holders finding housing within the city. The ongoing impact of federal funding consolidation, particularly with CDBG funding, was also discussed.

The authority celebrated the approval of funding for the ‘Bring It Home’ program, set to commence in 2026. This initiative will support program administration and deepen housing affordability. Additionally, the housing rehab program budget is proposed to increase to accommodate a rising demand for loans, with staffing adjustments planned to boost the capacity of housing services.

A detailed review of the authority’s financial position revealed $2.8 million currently available for various projects, with an additional $2 million expected from the closure of certain tax increment financing (TIF) districts. These funds are projected to enhance the city’s tax capacity for 2026. The authority has secured seven grants totaling $3.3 million for housing projects, set for expenditure in 2025 and 2026. The implementation of housing choice voucher programs, including HOTMA and the Inspire program, was also noted, with approximately 270 households receiving rent assistance.

Challenges persist in the first-time home buyer program, where high interest rates and a tight housing market have led to reduced activity. Only four loans have been issued in 2025, compared to the typical 10 to 11 annually. This slowdown presents an opportunity for the authority to focus on program evaluation and the implementation of other projects. Financial challenges related to developing duplexes on vacant lots were acknowledged, prompting the search for new construction partners.

The meeting also addressed the anticipated transfer increase from the housing redevelopment general fund to the Section 8 division, rising from $38,000 to around $70,000. The upcoming decertification of two TIF districts is expected to result in a $360,000 decrease in the housing and redevelopment fund, impacting future programming capacity. Despite maintaining full staffing, the authority continues to face capacity challenges, leading to a grant application aimed at increasing the hours of part-time housing specialists.

Discussions included future plans for 2026, focusing on collaboration with the finance department to assess the impacts of the reduced 4D tax rate and ongoing evaluations of housing programs. The authority’s legislative advocacy concerning housing trust funds and special legislation was highlighted, emphasizing efforts to enhance funding mechanisms for future projects. The successful securing of a $1 million two-year award for the “Bringing It Home” initiative aims to support deeper affordability in housing units.

A contract with the Center for Energy and Environment (CEE) was also discussed. The CEE, which has provided loan and remodeling advising services since 2017, manages the community fix-up fund offering home rehabilitation loans at reduced interest rates. Due to early exhaustion of budgeted funds for 2025, a proposal was made to amend the contract, adding $50,000 to the fix-up fund and increasing the interest rate from 3% to 5%. This adjustment aims to balance loan availability with financial sustainability.

Additional announcements included a transition to a new HR attorney, Ron Batty, and an upcoming open house for the Penn Avenue reconstruction. The authority plans to transition its agendas to a new management system, Civic Plus, to improve operational efficiency.