Phoenix Adds $6.6 Million to Housing Trust Fund to Cut Fees and Speed Permits

Phoenix City Council finalized the FY2026-27 budget with $8.1 million aimed at reducing fees and permitting barriers that have made affordable housing harder to build. The city faces a shortage of about 59,000 affordable units and says its processes have contributed to the problem. $6.6 million goes to the Housing Trust Fund, including $2 million to waive or reduce plan review, permit, and inspection fees for affordable units serving households under 50% of Area Median Income. $1 million supports a competitive program creating a library of pre-approved, code-compliant housing plans to cut timelines and design costs. $3.6 million supports affordable construction, home preservation, and partnerships. $1.5 million supports improvements to planning and development procedures, including layout, signage, check-in processes, and potential permitting technology.

"Phoenix is putting $8.1 million toward cutting the fees and permitting red tape that have long made affordable housing harder to build in the city. The Phoenix City Council voted on May 20th to finalize the FY2026-27 budget, including $8.1 million in investments consistent with District 1 Councilwoman Ann O'Brien's Housing Solutions Plan. Final budget adoption is expected in June."

"The backdrop is stark: Phoenix is short roughly 59,000 affordable units, and city officials say their own processes have been part of the problem. "Fees don't build homes. They just make them more expensive," O'Brien said, arguing that confusing permitting turns away the developers the city needs most. "And a confusing permitting process turns away the very developers we need.""

"Of that, $2 million will waive or reduce plan review, permit, and inspection fees for affordable units serving households earning less than 50% of the Area Median Income. Another $1 million funds a competitive process to build a library of pre-approved, code-compliant housing plans tailored to Phoenix's neighborhoods. Builders who use those designs can reduce timelines and lower design costs. The remaining $3.6 million supports affordable construction, home preservation, and partnerships with nonprofit and private developers."

"The final $1.5 million goes to the Planning and Development Department-improving physical layout, signage, check-in procedures, and potentially the city's website and permitting technology. "These investments signal to residents and the development community that Phoenix is serious about getting housing projects done efficiently and professionally," O'Brien said."

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