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Cincinnati City Council’s Budget, Finance and Governance Committee advanced an ordinance proposing $5 million for affordable housing initiatives and $2 million for the city’s pension fund from approximately $23 million in carryover funds. The proposal also includes funding for special events, unforeseen operating expenses and capital project reserves. Council members are debating whether the remaining money should be limited to capital projects or provide greater flexibility for needs such as rental assistance.
Cincinnati affordable housing initiatives could receive $5 million from the city’s fiscal year 2026 carryover budget under an ordinance advanced by City Council’s Budget, Finance and Governance Committee on Monday, Oct. 19.
The proposal also directs $2 million toward the city’s pension fund as council members consider how to distribute approximately $23 million left over from the previous fiscal year.
Cincinnati affordable housing funding advances through Council
The proposed $5 million allocation would support affordable housing initiatives through the Cincinnati Development Fund. The ordinance also provides $2 million for the Cincinnati Retirement System.
The allocations are part of the city’s carryover budget process, which distributes unspent funds among designated accounts, reserves and other priorities.
The ordinance includes $500,000 for a special events fund and another $500,000 to cover unforeseen operating expenses during the coming year.
Council members are also considering how to allocate approximately $3 million remaining after the proposed transfers and other designated uses.
Council debates how to spend remaining carryover funds
Cincinnati’s carryover spending policy, approved earlier this year, generally directs the remaining funds toward capital expenses. These expenses are divided between city-owned assets and community projects.
Under the policy, approximately $3 million would be divided between an Infrastructure and Capital Project Reserve for city-owned assets and a Housing and Economic Development Project Reserve for community projects.
However, the policy does not prevent Council from considering other uses on a case-by-case basis.
Vice Mayor Jan-Michele Lemon Kearney has called for greater flexibility in allocating the money. She said the city could consider directing some funding toward operational needs and rental assistance.
Budget Committee Chair Jeff Cramerding said Council would discuss the remaining funds over the coming weeks. He also said he planned to release a timeline for those discussions by the end of the week.
Cramerding emphasized the need to move forward efficiently while allowing time for a thorough review of spending priorities.
Final vote expected on carryover budget ordinance
The ordinance advanced by the Budget, Finance and Governance Committee was expected to receive a final City Council vote on Wednesday, Oct. 21.
The measure would formalize transfers to reserve accounts and the affordable housing and pension funds while establishing the additional allocations.
The outcome of the final vote will determine whether the proposed transfers receive full Council approval. Further discussions could also shape how the city uses the remaining carryover funds.
The debate comes as Council weighs infrastructure investments against other community needs, including housing assistance and operating expenses.
FAQs
Who could benefit from Cincinnati’s $5 million affordable housing allocation?
The funding is intended to support affordable housing initiatives in Cincinnati. The specific beneficiaries will depend on how the Cincinnati Development Fund uses the money and which projects receive support.
Can Cincinnati use the carryover funds to help renters facing eviction?
Potentially, depending on how City Council allocates the remaining funds and whether the money can be directed toward rental assistance. Vice Mayor Jan-Michele Lemon Kearney has cited rental assistance as one possible use for funding outside the city’s usual capital spending approach.
What does Cincinnati’s carryover budget mean?
A carryover budget refers to money remaining from a previous fiscal year that the city can allocate according to applicable budget rules and policies. Cincinnati uses a process known as the waterfall to direct these funds toward designated obligations, reserves and other spending priorities.
