Orange County Allocates $58.5M to Tackle Affordable Housing Crisis

UPDATE: Orange County Commissioners have just approved a groundbreaking allocation of $58.5 million aimed at combating the urgent affordable housing crisis. This funding, approved unanimously last week, is set for fiscal years 2026 to 2028 and will significantly boost the construction and preservation of affordable housing units across the county.

The robust funding is expected to lead to the creation or preservation of 3,570 affordable units by 2028, with an additional 1,500 units anticipated through various federal and state resources. This initiative aims to address the pressing needs of residents earning between 30% and 80% of the area median income (AMI). For context, an individual earning $59,050 qualifies at the 80% threshold, while a household of four earning $84,300 also meets this criterion.

Orange County initially established the Affordable Housing Trust Fund in 2019 as part of a 10-year action plan to create or preserve 11,000 affordable units by 2030. In a successful track record, the fund has already financed 2,367 units from 2020 to 2025, with an additional 2,590 units funded through external sources, totaling nearly 5,000 units in just five years.

“This closes the funding gap on projects to secure the production and acquisition of affordable housing units,” stated Alyssa Henriquez, Assistant Project Manager for the county’s Housing and Community Development Division. The funding will serve as critical gap financing, allowing developers to launch affordable projects that would otherwise face financial hurdles.

In a recent move underscoring the county’s commitment, voters approved a charter amendment making the Affordable Housing Trust Fund permanent. The fund began with a $10 million investment in 2020, projected to grow by 10% annually through 2030. This means the county expects to invest approximately $17.7 million in 2026, $19.5 million in 2027, and nearly $21.3 million in 2028.

Orange County Mayor Jerry Demings emphasized the importance of collective efforts: “We have been able to close the affordability gap in this community, and we will continue to be able to close that gap.”

The county has also made it easier for developers to pursue affordable housing projects by exempting them from impact fees, which significantly reduces financial burdens. For instance, Banyan Development Group received a $2.2 million exemption for its Barnett Villas project in Pine Hills.

Last year, the county selected five developers to share a total of $20.85 million for affordable apartment projects. One of these projects, the Mariposa Grove, is a planned 138-unit tower in downtown Orlando, currently seeking an additional $10 million in funding from the City of Orlando to commence construction.

As Orange County continues to navigate its housing challenges, the impact of this funding initiative cannot be overstated. The county’s proactive approach not only aims to increase the availability of affordable housing but also seeks to foster community stability and growth.

With groundbreaking events scheduled and additional projects on the horizon, residents are urged to stay informed about developments in their area. The urgency to act on affordable housing has never been clearer, and the county is determined to ensure every resident has access to safe and affordable living options.

For further updates on Central Florida development, stay tuned.