By: The Florida Times-Union | Gainesville Sun
Florida has an affordable housing problem.
More than 900,000 households in Florida must pay more than 50 percent of their income for housing; they are one missed paycheck from being homeless.
Private industry simply can’t afford to build affordable housing without help from incentives.
So what if Florida had a program that tapped into the housing market for those incentives?
What if the program provided more revenue as housing prices increase, thus dealing directly with the housing crisis?
What if the program had a coalition of parties — government, the business sector, environmentalists, faith-based groups, leading nonprofits and more — working together in collaborative fashion?
What if the program created badly needed jobs in the construction industry?
It sounds unreal.
But there actually is such a program in Florida — and it’s been around for more than 25 years.
The Sadowski Fund was created in 1992, and it has built a tremendous record for being highly efficient and scandal-free.
There are more than 30 statewide organizations involved in the Sadowski Fund, including AARP of Florida, the Florida Chamber of Commerce, the Florida Association of Counties, Habitat for Humanity of Florida and the Florida Home Builders Association.
The program’s funds come from documentary stamps on housing sales; as housing prices increase, so does the revenue from documentary stamps — which in turn makes more money available to help build affordable housing.
One of the great things about the Sadowski Fund is that it is sustained through a revenue source that draws little controversy. In fact, Floridians largely have no problem with user fees — and the Sadowski Fund is a great example of how those funds can make a huge difference both in Jacksonville and across Florida.
For example:
- An estimated $328 million in documentary stamp revenue would produce 28,000 jobs in Florida — and it would have an economic impact of more than $4 billion on the state.
- For every $1 provided from the Sadowski Fund, there is a $4 economic impact generated in return from private sector loans and equity.
- Other states have looked to the Sadowski Fund as a model in their efforts to create more affordable housing for their citizens.
In recent years, however, the Florida Legislature has been sweeping much of the Sadowski Fund’s revenue into the general fund — a bad habit that has needlessly hurt the state’s ability to deal with the current affordable housing crisis.
Floridians need Gov. Ron DeSantis to put an end to that.
Since taking office earlier this month, DeSantis has shown an admirable desire to embrace thoughtful, common-sense pragmatism.
Let’s hope DeSantis sees the clear value of the Sadowski Fund — a program that works well for people, the private sector, nonprofits and government — and can impress upon Florida’s lawmakers that the time has come to stop raiding it.
The Florida Legislature just needs to leave the Sadowski Fund alone — and let it do the great things it has proven it can do.
Article last accessed here on February 5, 2019. A print-ready version is available here.