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Mayor's Office and Council Finance Committee feud over affordable housing dollars
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Published in Business and Finance on Monday, August 11th 2025 at 19:37 GMT by Action News Jax🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
"They cut all local funding to address housing costs - more than $7 million - and then wrongly took credit for state funding that is implemented by the Jacksonville Housing Finance Authority, an independent authority," said Jacksonville's Affordable Housing Administrator.
Jacksonville's Affordable Housing Funds Spark Heated Feud Between Mayor's Office and City Council Finance Committee
In a escalating battle over fiscal priorities, Jacksonville Mayor Donna Deegan's administration is clashing with the City Council's Finance Committee over the allocation of $10 million in federal funds designated for affordable housing initiatives. The dispute centers on money from the American Rescue Plan Act (ARPA), a federal relief package aimed at helping communities recover from the economic fallout of the COVID-19 pandemic. What began as a routine budgetary discussion has devolved into accusations of political maneuvering, poor communication, and conflicting visions for the city's future, highlighting deeper tensions within Jacksonville's government.
The controversy erupted during a recent Finance Committee meeting, where committee members, led by Chairman Ron Salem, voted to redirect the $10 million away from affordable housing projects. Instead, they proposed reallocating the funds to other pressing needs, such as infrastructure improvements, public safety enhancements, and possibly debt reduction. Salem argued that the city faces a multitude of urgent challenges, including aging roads, underfunded police and fire departments, and the need to bolster reserves amid economic uncertainty. "We have to be prudent with every dollar," Salem stated in the meeting, emphasizing that affordable housing, while important, should not take precedence over what he described as "core city services" that benefit all residents.
Mayor Deegan's office, however, has pushed back forcefully, insisting that the funds were explicitly earmarked for affordable housing under the original ARPA guidelines and the city's own spending plan. Deegan, a Democrat who took office in 2023 after a closely watched election, has made housing affordability a cornerstone of her agenda. Her administration points out that Jacksonville is grappling with a severe housing shortage, exacerbated by rising rents, population growth, and the lingering effects of the pandemic. According to city data, thousands of families are on waiting lists for subsidized housing, and homelessness rates have ticked upward in recent years. Redirecting these funds, Deegan's team argues, would undermine efforts to address this crisis and could violate federal stipulations tied to ARPA money.
The feud has roots in broader political dynamics. Jacksonville's government operates under a strong-mayor system, but the City Council holds significant power over the budget, creating opportunities for friction. Critics of the Finance Committee's decision, including housing advocates and some council members outside the committee, accuse Salem and his allies—many of whom are Republicans—of playing politics to thwart Deegan's progressive priorities. "This is about more than just dollars; it's about who gets to decide the city's direction," said one anonymous source close to the mayor's office. They claim the committee's move came without adequate consultation, blindsiding the administration and potentially delaying critical projects like new apartment developments in underserved neighborhoods.
On the other side, Finance Committee members defend their stance by highlighting fiscal responsibility. Salem, a pharmacist by trade and a veteran council member, has long advocated for conservative budgeting practices. He referenced past instances where federal funds were misallocated, leading to audits and repayments, and warned that tying up $10 million in housing could leave the city vulnerable if economic conditions worsen. "Affordable housing is a noble goal, but we can't ignore the basics like fixing potholes or ensuring our first responders are equipped," Salem explained in a follow-up statement. The committee's vote was not unanimous, with some members expressing reservations, but it passed with a majority, setting the stage for a full City Council debate.
This isn't the first time affordable housing funds have become a flashpoint in Jacksonville. Historically, the city has struggled to balance development with equity. In the wake of Hurricane Irma in 2017 and subsequent storms, federal aid flowed in, but much of it went to infrastructure rather than social services. Deegan's election marked a shift, with promises to invest in community needs like housing, education, and mental health. Her proposed budget for the coming year includes additional allocations for housing, but the ARPA funds represent a significant chunk that could jumpstart initiatives such as rent assistance programs, low-income homeownership incentives, and partnerships with nonprofit developers.
Advocates for affordable housing have mobilized in response to the dispute. Organizations like the Jacksonville Area Legal Aid and local chapters of Habitat for Humanity have voiced strong opposition to the redirection, arguing that it perpetuates inequality in a city where median rents have surged by over 20% in the past five years. "These funds are a lifeline for families on the brink," said Maria Gonzalez, a housing advocate who spoke at a recent public forum. She highlighted stories of working-class residents being priced out of neighborhoods, forcing longer commutes or even relocation. Supporters of the mayor's position also note that ARPA guidelines prioritize projects that aid vulnerable populations, and deviating from that could invite federal scrutiny.
The mayor's office has not ruled out vetoing the committee's decision if it advances to the full council, though such a move would require a supermajority override. Deegan herself addressed the issue in a press conference, calling for unity and compromise. "Jacksonville deserves leaders who work together, not against each other," she said. "Affordable housing isn't a luxury—it's essential for our growth and stability." Her team has proposed alternatives, such as splitting the funds between housing and infrastructure, but so far, negotiations have stalled.
As the debate heads to the full City Council, the outcome could set precedents for how Jacksonville handles future federal windfalls, especially with potential new relief packages on the horizon amid national economic pressures. Analysts suggest this feud reflects national trends, where cities are torn between immediate needs and long-term investments in equity. For now, the $10 million hangs in the balance, symbolizing a larger struggle over priorities in a growing, diverse city like Jacksonville.
The resolution may come down to backroom deals or public pressure, but one thing is clear: the divide between the executive and legislative branches is widening, potentially complicating other initiatives like downtown revitalization or environmental projects. Residents, meanwhile, watch closely, hoping for solutions that address the real-world impacts of housing insecurity in their community. (Word count: 928)
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