Workforce
Housing
These funds have been an
unequivocal success in
promoting home
ownership. |
Why Does it Matter? |
Florida’s housing programs are
regarded by many as second to
none, with a track record of proven
results for the dollar. The ”common
thread” for bringing housing
advocates, local governments,
and housing industry groups
together with bi-partisan majorities
in the Legislature remains intact —
the construction of affordable
housing means jobs to thousands of
Floridians each year as we construct
shelters for our families.
Floridians have been pulled
farther away from theAmerican
dream of home ownership by
rising housing values, increased
local taxes and spiraling insurance
rates, to the extent that our
workforce is often unable to find
safe or conveniently located
housing. In turn, employers are
feeling the effect on retaining and
attracting people in the orkforce.
As people must commute further to
work, affordable housing is spread
farther away from areas already
served by existing infrastructure.
|
In 1992, the Florida Legislature
enacted the William E.
Sadowski Affordable Housing
Act and added a new dime to the
documentary stamp tax on real
estate transactions to fund it. This
was increased in 1995 by another
dime, this time from general revenue
funds. These monies, all trust
funded, were deliberately tied to
documentary stamp tax revenues so that as real estate costs and population
increased, so too would the revenues. The Sadowski funds are then split
between the Florida Housing Finance Corporation, which receives 30%, and
Florida’s 67 counties as well as some municipalities, which share the other
70%. The fund is the source of virtually all of Florida’s affordable housing
grant or loan programs at the state level.
In 2006, the Legislature funded the Sadowski program in the amount of
$433 million, while leaving over $500 million, which was due the program,
to be used as general revenue funds. These funds have been an unequivocal
success in promoting home ownership, building quality rental housing, leveraging
public dollars with private investments, and providing an economic
boost to Florida far in excess of the amount of funds appropriated for
housing. Beginning in FY 07-08, the documentary stamp distributions to
the housing trust funds will be further reduced and capped at $243 million
per year, less than they received in 2002. It is essential that the Legislature
repeal this arbitrary cap.
In addition, local governments should be encouraged to implement the
existing requirements for “fast-tracking” affordable housing projects by continuing
to provide full SHIP funding to those governments that comply,
and limiting allocated funds where timely development reviews are not
achieved. This would necessarily entail setting a standard for project review.
Local governments should also be required to promote the regulatory
and financial incentives to foster the development of workforce housing
based on the targeted population’s income, as opposed to the mean cost
of housing in the community. This could include such methods as increased
density and impact fee waivers. It should not be achieved by such methods
as inclusionary zoning or down payment assistance for market-priced housing. |
