Mayor Deegan proposed $7M for affordable housing in the city budget. Only $900K was approved

The cuts impact funding for programs like rental aid, down payment assistance, and eviction diversion

After nearly 14 hours of intense debate, the Jacksonville City Council officially passed a $2 billion city budget, in what’s being called one of the most contentious budget battles in recent memory. (Copyright 2025 by WJXT News4JAX - All rights reserved.)

JACKSONVILLE, Fla. – The City of Jacksonville approved a $2 billion budget early Wednesday that includes just under $1 million for affordable housing, a fraction of what some council members had sought.

RELATED: ‘Never seen a budget this contentious’: Councilmembers react after marathon meeting leads to passed $2B city budget

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Councilman Matt Carlucci, who pushed for a much larger allocation, said he originally asked for $9 million. Mayor Donna Deegan’s proposed 2025–2026 budget also included a total of $7 million for housing initiatives, but nearly all of it was cut during the budget process.

Here’s what was proposed in the mayor’s budget:

  • Local Capital Stack Fund — $2 million
  • COJ Downpayment Assistance (80%-120% AMI Program) — $2 million
  • Attainable Housing JEA Utility Tap-In Fund — $750,000
  • Transitional Housing Pilot Program — $1 million
  • JHA Homelessness Prevention Voucher Program — $750,000
  • Emergency Rental Assistance and Eviction Diversion — $500,000

All of those allocations were eliminated, except for $900,000 of the Local Capital Stack Fund, which was restored.

Carlucci noted that he voted against the millage rate cuts in the hopes of funding some of the above affordable housing programs that he believes would impact more people in the community.

“At one point I had $9 million that got whittled down to $3 million in the Finance Committee, they took that $3 million out and they cut it,” Carlucci said. “I made one last attempt at our marathon meeting the other night during the budget, and I was able to get in $900,000 and look — $900,000, 25-50 new affordable homes. That’s better than nothing.”

Carlucci said much of the funding will now be used as builder incentives. Under the program, the city issues a request for proposals to developers who specialize in affordable housing. Winning bidders can receive awards, Carlucci cited examples of about $40,000, that can help lower the purchase price of homes and bring them into an affordable range for young families and other buyers.

“The city does a request for proposal for eligible builders who specialize in building affordable housing,” Carlucci said. “Whoever wins the bid, maybe one or two builders, then they’re eligible for some of that $900,000... that they can use to reduce the cost of that home. So young people, or anybody but you know, young families that want that piece of the American dream can now afford it.”

Advocates and some council members have said the city needs a larger, sustained investment to address rising housing costs and prevent displacement. Carlucci acknowledged the $900,000 is only a start and said he will continue pushing for the remaining funding.

News4JAX also spoke with officials with the City of Jacksonville regarding the budget and the planned use of the Affordable Housing Development Fund.

There is widespread agreement among the public and city leaders that housing affordability is the top challenge we must address as a community. We thank the Jacksonville City Council for restoring $900,000 in local funding and Councilman Matt Carlucci for sponsoring this amendment, which will support the development of 15-25 new single-family, affordable homes. This investment is an important step in the right direction. Federal funding is not guaranteed, so it is critical that we continue to grow the local resources needed to make housing more affordable for working families in Jacksonville. Mayor Deegan and the Housing Division are committed to continuing this work with the City Council and community partners in the months and years ahead.

Spokesman from the Mayor's Office

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