photo by: Austin Hornbostel/Journal-World

The Lawrence Community Shelter, 3655 E. 25th St., is pictured Monday, July 24, 2023.

Lawrence voters on Tuesday approved a referendum that will double the city’s affordable housing sales tax to help provide more funding for services to help people experiencing homelessness.

A total of 20,923 voters, or 53.32%, voted “yes” on the ballot initiative to raise the affordable housing sales tax from 0.05% to 0.10%, according to the unofficial results from the Douglas County elections office; 18,314, or 46.68%, voted against the increase.

The approval of the referendum will mean continued funding for a variety of shelter and outreach initiatives, including The Village Pallet shelter community and other shelter options that aren’t night-by-night, as well as mental health and addiction services and addressing people’s immediate needs such as food and water.

Lawrence City Manager Craig Owens said the approval of the tax increase reflects Lawrence’s “deep commitment to addressing our most urgent community needs.”

“Our residents have empowered the City to build on the progress we’ve made in affordable housing and significantly strengthen resources for those experiencing homelessness,” Owens said. “This dedicated, long-term funding ensures that we can move forward with our commitment to A Place for Everyone, including impactful programs that create greater housing stability and community resilience.”

The ballot initiative was approved by the City Commission in August as part of the budget discussions for 2025, as the Journal-World reported. The sales tax increase would add an extra nickel in tax to every $100 in purchases made by consumers in Lawrence.

Lawrence Cares, a nonprofit formed by a group of downtown business leaders, had come out against the increase in late October, citing concerns about a lack of transparency for the funding and a need for more efficiency in addressing the issue of homelessness.

Currently, the city has a 0.05% affordable housing sales tax that voters approved back in 2017 that helps fund programs related to affordable housing. City officials told the Journal-World that the tax has generated $1.25 million per year, which the city can use to acquire land for future affordable housing projects and invest in public/private partnerships that create affordable units.

The city began collecting the sales tax in April 2019 and since then, the affordable housing trust fund has helped create over 700 affordable houses and apartments, according to Justice Matters, a grassroots interfaith organization in Lawrence.

Owens said the city is excited to work with local agencies, advocates and residents on initiatives made possible through the expanded tax, and believes there will be a lasting impact on the availability of affordable housing and emergency shelter options in Lawrence.

The city said collection of the new tax would begin on April 1, 2025, and will continue through March 31, 2035.