Phoenix mayor takes shot at Trump over housing, homelessness grants

Mayor Kate Gallego took a swipe at President Donald Trump at Wednesday’s city council meeting over proposed federal funding cuts that could affect the future of affordable housing and homeless services in Phoenix.

The mayor was lashing out at the possible zeroing out of two federal programs geared towards low- and middle-income communities: the Community Development Block Grant Program and the HOME Investments Partnerships Program. 

The CDBG program “provid(es) decent housing and a suitable living environment … by expanding economic opportunities, principally for low- and moderate-income persons,” according to the U.S. Department of Housing and Urban Development, which administers the grants. HOME, also administered by HUD, provides grants “exclusively for affordable housing activities to benefit low-income households.”

“Those have been great programs for the city of Phoenix,” Gallego said in an unusually terse tone. “And I do want to note that at the moment, the president’s federal budget proposes eliminating those programs or not funding them next year. I certainly hope that does not move forward.”

Gallego did not respond to a request for comment. She also did not respond to questions about the importance of these funds for affordable housing and homeless services in the city and what it might do if the funds aren’t available in the future. 

Gallego made her remark after the council agreed to approve nearly $8 million in funding from these two programs across five meeting items to support homeless shelter and affordable housing development projects around the city.

The city approved $7 million in HOME funds for Affordable Housing Loan Program agreements for four developments in the city in Wednesday’s meeting:

• Resource Housing Group requested $2 million to build the Sunnyside Commons Apartments at 11640 N. 19th Avenue. The development would include 72 affordable housing units and cost an estimated $27,572,736 to build.
• Excelerate Housing Group requested $2 million to build the Alex Apartments at 77 E. Weldon Avenue. The development would include 59 affordable housing units and cost an estimated $25,481,150 to build. 
• Pennrose Holdings requested $2 million to build 2nd and Roosevelt at 1016-1024 N. 2nd Street. This development would include 60 affordable housing units and cost an estimated $26,895,632 to build. 
• Ulysses Development Group requested $1 million to build Wood Street Senior at 1627 E. Wood Street. This development would include 45 affordable housing units and cost an estimated $21,432,982 to build.

In all, the four developments would add 236 affordable units to the market. 

The city also approved adding an additional $809,193 in Community Development Block Grant money to the city’s contract for the Rio Fresco Emergency Shelter, a temporary housing center run by Community Bridges. The additional funding is earmarked for programs that connect residents to services and for facility improvements.