Assembly members say housing‑fund amendments were never operationalized; administration outlines path to implement a fund

Several assembly members told the Aug. 21 committee that prior assembly amendments intended to create a municipal housing fund were not implemented by the administration and therefore lapsed into general fund balance, a shortfall members said they want corrected as the 2026 budget process begins.

Assembly Member Daniel Voland said he believed an earlier amendment created a municipal housing fund, recalling that the proposal might have been $1.5 million and then reduced to $500,000. Voland said he was unsure of the exact figures and asked for clarity: “I think it was member Martinez and member Rivera who brought forward the amendment, and I believe it was $1,500,000. ... I think we admitted it down to 500,000 ... What I've become aware of is that that was never done.”

Why it matters: Funds earmarked for housing that are not operationalized cannot be used by developers or programs and instead revert to general fund balance unless reappropriated. Assembly members said they want a process that ensures future appropriations are implemented and accessible.

Administration response: OMB and other staff told the committee the appropriations were made but not operationalized — there was no follow‑through to create the fund, associated controls and a program structure — so the money lapsed into general fund balance. Staff recommended that if the assembly wants a housing fund to be created, the appropriation should require specific operational steps and timelines (for example, an implementation deadline by a particular quarter and proof of fund setup) so the money is not left dormant.

Members also discussed potential near‑term uses of a reappropriation that has been discussed in committee: the administration said the $1.3 million reappropriation under consideration could be directed in whole or in part to a newly established municipal housing fund, but emphasized the need for a coordinated plan to deploy funds quickly and effectively.

Next steps: Assembly members requested written confirmation of the historic amendments, the amounts involved, and the current status of the funds. The administration offered to coordinate with real estate and development services to draft an operational plan and suggested requiring implementation milestones as part of future appropriations to avoid recurrence.

All quotations and summaries above come from the Aug. 21 Assembly Budget and Finance Committee meeting record.