Phoenix budget includes new investments in housing affordability, homeless services

Phoenix is planning several new investments in housing affordability and homeless services in the year ahead.

In a policy session Tuesday, the Phoenix City Council voted 9-0 to approve a budget for the next fiscal year.

The budget includes a one-time $6.6 million allocation to the city’s Housing Trust Fund. The council created the fund in 2025. The new investment will nearly double the fund’s size, bringing its total available resources to $15 million.

Councilwoman Ann O’Brien said the Housing Trust Fund allows the city to waive certain fees for affordable housing projects and funds pre-approved housing plans so developers can begin work more quickly.

“We have no time to waste,” O’Brien said. “Every streamlined permit, every waived fee and every pre-approved plan is a family that gets housed faster.”

Pandemic-era federal aid from the American Rescue Plan Act had been paying for a number of homelessness services and heat relief initiatives in Phoenix since 2021. But many of those programs faced uncertain futures since ARPA funds are set to expire at the end of 2026.

The City Council approved $18.4 million to keep those programs running through the next fiscal year — they include the city’s Safe Outdoor Space downtown homeless shelter and the city’s 24-hour seasonal heat relief site.

The council also approved more than $3 million for a flexible financial assistance program for vulnerable Phoenix residents.

“This funding is intended to help prevent homelessness and stabilize housing and food security for low-income individuals and families in light of recent reductions and restrictions in federal funding, which have impacted SNAP recipients, refugees, and other community members,” the proposed budget said.

The City Council will vote to formally adopt the budget in June.