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Cambridge’s Community Development Department proposed a new model for city-funded housing vouchers that would aid cost-burdened tenants, particularly those ineligible for federal assistance, during a City Council committee meeting Tuesday.

Though the Cambridge Housing Authority issues two types of federally-funded vouchers — tenant-based and project-based — to low-income residents seeking housing, the Council asked in April whether it would be feasible for the city to fund its own vouchers to address a severe affordable housing shortage.

The CDD’s proposal would specifically target low-income residents who are not eligible for either form of voucher — either because they don’t meet income requirements, or due to their immigration status.

The Council requested that the CDD come up with a project-based voucher system, where the vouchers are permanently attached to affordable units. The CDD’s proposed model, however, would be a program-based system, where the voucher is granted to a tenant until it is no longer needed, at which point it becomes available for other tenants.

“It would be something that would be issued to the program, and if the resident moves, they would not necessarily take that subsidy with them,” said Christopher Cotter, the CDD Housing Director.

“If they move, the subsidy would not remain with the unit. It would come back into the pool and be used to assist another household,” he added.

The proposal to ramp up spending on affordable housing comes as Cambridge officials have sounded the alarm about the city’s rising budget. Cotter said that the amount of vouchers distributed by the CDD has not been set, but that the program would be a part of the agency’s yearly budget request.

“This is going to be an annual part of the budget request that the Council will see to continue the operation of that program for so long as the tenants need those subsidies,” Cotter said.

One prong of the proposed model would target renters in fixed-rent affordable units who are still paying at least 35 percent of their income toward housing costs.

“The idea would be to deepen the affordability, to meet the resident where they are,” Cotter said.

The second prong prioritizes households who are at the top of the CHA waitlist, but are unable to accept housing or assistance because they do not qualify for federal assistance — especially those who do not qualify due to immigration status.

These vouchers would function similar to existing CHA tenant-based vouchers — providing rental assistance administered by the CHA that can be applied to any unit in Cambridge.

The CDD faces a long road to implementing the pilot program. Cotter said the agency will turn its focus to finalizing the program’s details before presenting the Council with a final proposal. But during the meeting, Councilors seemed pleased with the CDD’s initial steps.

“I’m optimistic about the direction we’re heading,” said Councillor Sumbul Siddiqui.

—Staff writer Laurel M. Shugart can be reached at laurel.shugart@thecrimson.com. Follow them on X @laurelmshugart or on Threads @laurel.shugart.