On June 27, 1988, The Burlington City Council approved the Housing Trust Fund Ordinance. Its purpose is to assist the City’s nonprofit housing organizations in building more affordable housing. It took four years from the inception (by the Community & Economic Development Office) of the idea to the formation of the Housing Trust Fund, which made its first disbursement in November of 1989. For a full history of the inception of Burlington’s Housing Trust Fund and its first 10 years click here. To see the ordinance click here.
A Housing Trust Fund is a restricted municipal account, established outside of the general budget. Created to provide grants and loans for the preservation and development of low-income housing, any assets it receives do not revert to the General Fund at the end of the fiscal year. In cities across the country, housing trust funds are administered either by an established city agency or by an independent board of trustees. Funding for a housing trust fund can come through dedicated income streams, such as repayments of loans, property taxes, or property transfer taxes; impact fees; sale of city property, the sale of height or density bonuses, and payments in lieu of actual production of housing units through linkage programs; inclusionary zoning; or demolition/replacement programs.
