By John Lyon
Arkansas News Bureau
LITTLE ROCK — A bill that seeks to expand access to affordable housing in Arkansas will go before a Senate committee this week, the bill’s sponsor said Monday.
Sen. Joyce Elliott, D-Little Rock, said she plans to present Senate Bill 396 in the Senate Insurance and Commerce Committee on Thursday. The bill would create a state trust fund to aid needy Arkansans with housing costs such as rent and down payments, though a funding source has not yet been identified.
Elliott said Arkansas is one of 12 states without a housing trust fund. The economic downturn has increased the need for the fund, she said.
“It used to be that you and I thought we were many more degrees separated from not having a home, until we have been faced with this terrible crisis. It could be any one of us at any time, it seems these days,” Elliott said at a news conference.
The Arkansas Development Finance Authority would administer the fund. An appropriation bill that would provide general revenue funding has been filed separately, but at this time it is a shell bill, with details to be filled in later.
“For this to be sustained over the years, we think it needs to have about $10 million to $15 million per year … but we could get started with $3 million to $5 million, I think, easily,” Elliott said.
Elliott said government would provide most of the money, but the private sector would be encouraged to contribute. She acknowledged that funding may be difficult to find in the current economic climate.
“At this point we have our minds open to all funding sources,” she said. “It’s tough times. We know for sure, though, that there are people out there who are in the private sector who have wanted to do something to be helpful, and this is my invitation to you, because you didn’t have the mechanism before to help those who are most vulnerable.”
Elizabeth Small, president of Little Rock-based developer PDC Companies, spoke at the news conference in support of the bill.
“This is not a handout. … This is a leveraging vehicle that is going to be great for economic development in our entire state,” Small said.
Elliott said 71 organizations have endorsed SB 396, including AARP, the Affordable Housing Association of Arkansas and Arkansas Advocates for Children and Families. Co-sponsors of the bill include Sen. Steve Bryles, D-Blytheville, and Reps. Wilhelmina Lewellen, D-Little Rock, and David Rainey, D-Dumas.
