Florida’s GOP House and Senate leaders are permanently reducing the state’s Sadowski trust fund’s proportion that goes to affordable housing by two-thirds, redirecting what this year would amount to $280 million to water and flood-mitigation projects and leaving the fund with just $140 million, instead of $423 million–despite a critical housing shortage in the state. Sadowski fund money helps subsidize local governments’ affordable housing efforts.
Raiding the fund isn’t new: since 2001, legislators have skimmed well over $2 billion away from affordable housing, whether to underwrite tax cuts, balance the budget or spend the money on other preferences. This year’s proposal would formalize and maximize the raiding, making it permanent and crippling the purpose of the fund. Flagler County Association of Realtors President Ryan Ford and the local board of realtors is behind the following statement issued by Florida Realtors.
This is your wake-up call, Florida, and we need your help to save affordable housing. Last week, Senate President Wilton Simpson and Speaker of the House Chris Sprowls unveiled legislation, HB 5401 and SPB 2512, to permanently redirect two-thirds of the housing trust funds each year to sea level rise and wastewater infrastructure projects.
That’s some serious money that won’t be available to teachers, firefighters, nurses and other first responders for housing assistance. If this legislation passes, 66% of the $423 million available in the housing trust funds will go toward priorities other than housing.
This is unacceptable.
For nearly 30 years, the State Housing Initiative Program has received $2.6 billion from the housing trust funds that has helped 217,000 households with down payment and closing cost assistance, among other housing programs. A $423 million investment into housing programs next year would create 33,000 jobs and more than $4.9 billion in positive economic impact. That’s sound policy as we seek to restore our economy to a pre-pandemic state.
Monies for the housing trust funds come from a portion of the documentary stamp taxes charged on every real estate transaction. In 1992, Realtors advocated for this tax — 10 cents per $100 of value — on the condition that all monies collected went to housing programs.
But for years, that hasn’t happened.
During years of budget shortfalls, legislators swept more than $2.3 billion collected for the housing trust funds into general revenue. And now, when the people of Florida are experiencing pandemic-related challenges that include a critical shortage of affordable, attainable housing, there’s a plan to permanently reduce these vital “trust” funds to the lowest level of all.
The idea of permanently redirecting two-thirds of the housing trust funds is concerning during a pandemic. Housing has been our refuge, office, childcare and more. Essential workers, our first and last line of defense, would be left with one less option to secure housing, be it down payment or rental assistance.
Florida Realtors is the voice for millions of property owners who have paid into the housing trust funds. On their behalf, know that we appreciate the need to fund other priorities. But affordable housing IS a priority now more than ever in this post-pandemic economy. Affordability housing IS a priority for the elderly on fixed incomes and low-income families. Affordable housing IS a priority for teachers, firefighters, first responders and others who serve our communities. Our essential workers have guided us through the pandemic, and housing trust funds should be available to help them achieve the American dream of homeownership.
In 1992, lawmakers created a dedicated trust fund for housing purposes. HB 5401 and SPB 2512 would permanently change this dedicated funding source.
Visit https://affordablehousingfl.org/ TODAY to tell your elected leaders to honor the intended purpose of the trust funds and support affordable housing by voting NO on HB 5401 and SPB 2512.
MikeM says
Why would teachers, firefighters, nurses and other first responders need housing assistance ?
Retired Realtor says
I agree with you, they make more money than most of Flagler’s renters. Regardless, please go back to the article and vote! It will help everyone!
Bill C says
Hey, Retired Realtor, I challenge you to provide facts that prove your statement that “they make more money than most of Flagler’s renters”. I presented the pay scale for teachers (16-40K), nurse (31-74K), firefighter (22-42K). Nobody said that ALL of these people need help with affordable housing, but what about those at the low end of the pay scale? Bless the teachers, nurses and firefighters who do such a crucial service for the community, much more than lobbyists for the real estate industry.
Bill C says
Answer: they don’t get paid enough. According to ZipRecruiter a teacher’s salary range in Florida is is 16-40K. For a nurse it’s 31-74K. For a firefighter it’s 22-42K.
Ron says
Maybe the Florida Realtors Association should protect single family neighborhoods from investors turning homes into transient public lodging establishment businesses.l, AKA Vacation rentals. This would increase available housing for permanent residents.
Devrie Paradowski says
Hi Ron,
The way jurisdictions use SHIP funding for programs such as down payment assistance or home rehabilitation often requires recording a mortgage which requires the homeowner to maintain a homestead exemption for the term of the mortgage, which can be anywhere from five to thirty years. In short, the homeowners or home buyers must live in the home and not rent it out for that mortgage term.
So SHIP funding, particularly for single family housing, mitigates the problem you are speaking about.
Retired Realtor says
Realtors are not at liberty to control what buyers do after they purchase the property, and buyers’ do not have to tell Realtors what their interest in the property is. Please go back to the link and vote!
Devrie Paradowski says
I think it’s important to understand how this funding impacts the community and how many jurisdictions use this funding.
Most of the funding is used to preserve housing or create housing through construction–primarily single family housing. It’s been a requirement of the funding, so this means the funding is used to rehabilitate homes of lower income homeowners (top to bottom)–and this benefits the community immensely by keeping older homes decent and affordable, not only preserving the wealth and potential for economic contribution of the family who owns the home (oftentimes seniors, people with disabilities and families), but it helps the community preserve and strengthen the affordability of the community’s single family housing inventory.
So many people misunderstand this funding to be the rental assistance or low-income housing funding. While this type of housing assistance is certainly part of the spectrum in housing affordability, it is NOT the primary focus of SHIP funding.
Also, to really understand how it started, or why that additional tax on document stamp taxes originated, please understand that this was a community planning issue–a growth management solution for housing! The initiation of this funding started specifically to address what many local governments saw as an unfunded mandate. Local governments are REQUIRED to plan for housing current and anticipated residents of all economic segments.
The funding helps local government get stakeholder input on the incentives for housing developers through a statutorily required housing committee. The primary locus is to incentivize housing development that is affordable while preserving the quality of life for all residents–from low income residents to higher income residents.
The funding is more than just assistance. It helps the community develop the input, partnerships and collaboration to address the housing stock, something that has a three-fold positive economic benefit to all of the residents in the local community.
Retired Realtor says
I agree 100 % It is very important. Please share your wisdom with others and share! Hopefully more inventory and affordable housing will help provide affordable rent and ownership.
Devrie Paradowski says
Thank you for your input, Retired Realtor.
Cary says
There is affordable housing in Daytona north which would work for most people. You buy there and build equity. After you pay it off you then sell and get into a better more expensive area. All done by you with no hand out from others.
Devrie K Paradowski says
If you look recently at the housing cost in Daytona North, it’s up there, even for older mobile homes. Someone who has only saved a few thousand dollars will have a difficult time even buying one of those homes. Lending options are even smaller for older mobile homes. VA lending won’t approve most of the homes, let alone FHA. There’s a board where people are talking about not being able to get financing on mobile homes. Rentals are hard to find out there, and the commute for most new families is still costly, with many homes being a good 15 to 20 mile just to the City of Bunnell, so that doesn’t include work commutes and commutes to school activities, etc.
Michael says
Affordable housing??? The market dictates the prices, please do us all a favor and get your unAmerican muslim ass out of here
tom dooley says
But,but,but what about the environment? The green new deal, climate change aka global warming aka the next ice age, sea level rise. We finally got a republican Governor that actually wants to clean up Florida’s environment which is one of the things he ran on and now no one wants it? The environmentalists and earth justice should be all over this but thats right they can’t because he’s a republican. I agree wages should go up but the governor is getting ready to give teachers and first responders another $1,000 dollars and no one else. What about the “other essential workers” and poor people who don’t make that much that had to work shouldn’t they get a $1,000 dollars too? Both can be done. Look into what he will be taken care of first before complaining. The ship fund has been available for years and its time to clean up Florida waters and environment too. I agree we also need more housing but where will all the people that keep coming down here live and how can we keep the environment clean? It’s a tough balance but if we pull together we can get r done!
capt says
In this state, nobody is going to stop progress and that means almost 1000 new residents or out of state home buyers each day. And that means building something for these people to live in. And nothing is going to change that unless Tax laws are changed.