Jacksonville City Council voted Tuesday to deny a request to draw nearly $3 million from the city’s brand‑new affordable housing trust fund for a loan to the proposed Tori Meadows apartment development. The council approved Ordinance 2026‑0752, but without a financing plan for the loan, which is due in two years.
Council members raise fiscal caution
Finance Committee Chair Will Lahnen warned that using the trust fund for the loan would add to Jacksonville’s growing unfunded incentive commitments. He noted that the city already has $35 million in budgeted incentive payments scheduled for the 2028‑29 fiscal year. “Passing this, we’re now up to $38 million of unfunded financial commitments two years from now,” Lahnen said, emphasizing the need for a clear budgeting strategy.
Council member Ron Salem echoed the concern, noting that it is unusual for a budget line item to be altered just weeks after approval. “I have never seen in my seven years here where something passes in the budget, and then two weeks later we’re changing it,” Salem said, calling the move a “bad look for the council.”
Trust fund’s intended purpose
The $4.9 million affordable housing trust fund, created by Mayor Donna Deegan’s $2 billion budget proposal, is earmarked for three specific uses: $2 million for down‑payment assistance to low‑income homebuyers, $1.4 million for capital‑stack funding to lower developer costs and home prices, and $1.5 million to cover utility connection fees for attainable housing.
Council member Matt Carlucci argued that diverting the fund before its core programs are operational amounts to a “bait and switch” on families seeking homeownership. “Families trying to buy a home deserve a helping hand—not a bait and switch,” Carlucci wrote, stressing the fund’s role in supporting owner‑occupied housing rather than rental projects.
Developer loan details
The Tori Meadows project, a Vestcor Inc. subsidiary, would provide about 180 affordable units on an 8.74‑acre site at San Diego and Spring Park roads in the Spring Park neighborhood. The loan terms call for a $2.8 million loan at 1 percent interest, with a 20‑year repayment period.
While the loan itself is low‑cost, council members questioned how the city will recoup the principal when it comes due. The Finance Committee’s substitute bill, which would have authorized the trust fund loan, was defeated 15‑3, with Lahnen, Councilmember Mike Gay and Chris Miller voting against it. Councilmember Rory Diamond was absent for the vote.
Looking ahead
Mayor Deegan’s administration is seeking to formalize the trust fund as a permanent city program. Ordinance 2026‑0858, slated for consideration before year‑end, would codify the fund and establish oversight through the Housing and Community Development Division chief.
Additionally, Ordinance 2026‑0885 proposes a $200,000 developer fee to expedite permitting, with 10 percent earmarked for the trust fund and the remainder supporting the city’s building inspection fund.
Future financing options for Tori Meadows include Resolution 2026‑0877, which would authorize $31.2 million in multifamily housing revenue bonds from the Jacksonville Housing Finance Authority. Those bonds, funded by state dollars, have precedent in prior council approvals.
Public input was evident on Tuesday, as residents gathered at City Hall to voice opposition to using the trust fund for the loan. “It disturbs me that you want to spend that money even before we implement the affordable housing trust fund as planned,” said community member Carole Hawkins.
The council’s decision reflects a commitment to fiscal responsibility while preserving the trust fund’s original mission to help families achieve homeownership and build equity for future generations.
Original reporting: Jacksonville Today — read the source article.
