Phoenix is moving forward with a new strategy to accelerate the creation and preservation of affordable housing. The City Council has approved a policy establishing how the city’s Housing Trust Fund will operate — from what types of projects can be financed to how funding decisions will be prioritized.
The fund, created in May 2025, currently holds $3.48 million and is expected to grow as new revenue sources are identified. City leaders say the updated policy gives Phoenix a clearer roadmap for addressing a severe shortage of affordable rental units — a deficit estimated at nearly 60,000 homes, especially for very low-income families.
Under the new guidelines, the Housing Trust Fund can support several types of initiatives, including down payment assistance, community land trust programs, acquisition and preservation of existing homes, short-term development loans, redevelopment of city-owned properties, public-private partnerships and innovative community-driven housing models. The goal is to direct funding to projects that create long-term affordability and respond to the city’s most pressing needs.
Phoenix has made notable gains in housing production in recent years. The city surpassed its Housing Phoenix Plan goal — 50,000 units by 2030 — more than five years ahead of schedule, reaching over 61,000 created or preserved units by September 2025. Roughly one-fifth of those units are considered affordable for low-income households.
Officials say the new Housing Trust Fund policy strengthens Phoenix’s ability to make targeted investments and maintain momentum on affordability efforts. Several council members also emphasized the need for a permanent, dedicated revenue stream to ensure the fund can operate at scale in future years.
The current balance of the fund is supported by a mix of revenue sources, including ARPA interest earnings, GPLET contributions and payments tied to rezoning projects.
More information about the Housing Trust Fund and Phoenix’s broader housing initiatives is available through the City of Phoenix Housing Department.
