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Affordable Housing Development Loan Funding

At a glance

  • What: Ordinance 2026-0752, a city loan of about 2.8 million dollars toward an affordable housing development of about 180 units (the captions render the developer as "Vestcor" and "Investcorp"; names unconfirmed).
  • Where it stands: the Rules Committee passed it 4-3 as amended on 2026-10-19, and the Neighborhoods committee passed it 7-0 the same day. The Finance Committee passed it 7-1 on 2026-10-20 as a Finance substitute that folds in the Rules amendment and a Diamond amendment paying for the loan from the 4.9 million dollars the council set aside for housing: 1.4 million from the capital stack and 1.4 million from utility tap-in funds (see Affordable Housing Trust Fund).
  • What's next: full council vote the following Tuesday. Lahnen said he will go back to voting no if the Finance amendment fails there. The Office of General Counsel recommended re-referral to give the public notice of the appropriation; the committee declined.
  • Other changes: a 12-month extension and a lower annual distribution limit for the general partner (500,000 to 280,000 dollars).
  • Official minutes (2026-10-20, Finance): borrower is Tori Meadows, Ltd. (the developer the captions render as 'Vestcor'/'Investcorp' is named in the minutes' summary as Vestcor); 2.8 million dollar, 20-year loan at 1 percent interest-only with a balloon at maturity, 180 units at or below 60 percent of area median income, northwest of San Diego Road and Spring Park Road in District 5. The Diamond substitute (2.8 million dollar appropriation from the 4.9 million dollars of Ordinance 2026-504-E, split 1.4 million capital stack and 1.4 million utility tap fees) passed 6-2 (Boylan and Johnson opposed); the bill passed as substituted 7-1 (Johnson opposed). The substitute includes the Rules amendment, which lowers the general partner's annual distribution limit from 500,000 to 280,000 dollars; excess distributions or interest above the limit go to the city to pay down principal. Annual audits are required, the loan is due if the project stops qualifying as affordable housing, and the Public Investment Policy is waived.
  • Official minutes (2026-10-19, Rules): passed 4-3 as amended: Amaro, Boylan, Pittman and Salem in favor; Gay, Lahnen and Clark-Murray opposed (the captions did not identify the no votes). The Lahnen amendment to appropriate 2.8 million dollars from the affordable housing trust failed 2-5 (Lahnen and Gay in favor). Hicks, Affordable Housing Administrator, said the loan funds will not be needed for two more years, when the project is completed; Lahnen opposed unfunded incentives. The Neighborhoods, Community Services, Public Health and Safety Committee vote was 7-0 the same day.
  • Official minutes (2026-10-19, NCSPHS): amended and approved 7-0. Clark-Murray said she had voted no at Rules over Amendment 3 concerns and, after reviewing the funding source and timeline, changed her vote. Delaney said the administration intends to budget the payment; Staffopoulos said the bill has no appropriation and the payment would be identified in fiscal year 2028-29.
  • Official minutes (2026-10-13, City Council): 2026-0752 had its public hearing and was read second time and re-referred; the final council vote is expected on October 27.

Rules Committee, 2026-10-19

  • Amended by voice vote to match the agreement's extension of up to 12 months and attach a revised agreement. The Council Auditor's Office recommended lowering the annual distribution cap for the general partner from 500,000 to 280,000 dollars (10 percent of the general partner's loan, as in earlier agreements); the developer's representative supported it and it carried by voice vote.
  • Lahnen's amendment, re-cast as a substitute at the request of the Office of General Counsel because it adds an appropriation, would have paid for the loan from the housing set-aside (1.4 million dollars each from the capital stack and utility tap-in funds). It failed on a show of hands. Housing staff said that money was also meant for single-family homeownership, and the loan payment is not due until substantial completion, expected between late 2027 and 2029. Amaro and Dr. Salem opposed the substitute; Lahnen said he would vote no on the bill because no funding source is identified and unbudgeted grants and loans would reach about 38 million dollars in fiscal 2028-29.
  • Passed 4-3 as amended; the captions do not identify the other no votes.

Neighborhoods committee, 2026-10-19

  • Passed 7-0 as amended by the Rules amendment. The administration said the payment, due when substantial completion is expected in fiscal year 2028-29, would be included in that year's budget; the bill has no appropriation. All 180 units are at 60 percent of area median income, per a question from Peluso.

Arguments

  • For using the housing money: Diamond and Lahnen said budgeted housing money should pay for housing and that the council has nearly 100 million dollars of unbudgeted grants and loans, including a pending 100 million dollar Jacksonville Housing Authority bond request. Howland supported the substitute as long as it does not slow the project.
  • Against: Boylan called it a bait and switch because the 4.9 million dollars was aimed at home ownership. Dr. Johnson asked whether re-referral and delay would hurt the programs; a Neighborhoods Department official said the capital stack and tap-in programs were about to launch and would wait for new funding if the money were pulled. Gay noted 2 million dollars for down payment assistance is untouched.

Sources

Discussion time

About 40 minutes across 3 meetings (from transcript timestamps; approximate).

Meeting Minutes
2026-10-20 - Finance 15
2026-10-19 - Rules Committee 18
2026-10-19 - NCSPHS 7

Log

2026-10-20 - Finance

Rules amendment adopted; Diamond's amendment to fund the loan from the housing set-aside passed on hands (Dr. Johnson and Boylan opposed); bill passed as substituted 7-1.

Minutes: Diamond substitute approved 6-2; bill approved as substituted 7-1 (Johnson opposed). Counsel recommended filing as a substitute and discussed re-referral because the appropriation was not in the public notice.

2026-10-19 - NCSPHS

Neighborhoods committee adopted the Rules amendment and passed the bill 7-0; Clark-Murray switched to support after a vote against it in Rules; Miller got the administration's commitment to include the payment in the FY 2028-29 budget.

Minutes: amended and approved 7-0; Clark-Murray changed her Rules vote to yes.

2026-10-19 - Rules Committee

Rules amendment and auditor amendment (distribution cap cut to 280,000 dollars) adopted; Lahnen's funding substitute failed; bill passed 4-3 as amended.

Minutes: passed 4-3 as amended; Lahnen appropriation amendment failed 2-5.

2026-10-13 - City Council

Minutes: public hearing; read second time and re-referred.