By Florida Influencers Housing Panel  |  The Miami Herald

Influencer Chairman: Annie Lord. 

Influencer Members: Wifredo Ferrer, Kerry-Ann Royes, David Swanson

The Question: How should Florida’s elected leaders help create more affordable housing for low-income and homeless populations as well as housing affordability for the middle class?

 

Summary of the broader survey findings:

In order to support local and state affordable housing programs through a fee on real estate transactions, the William F. Sadowski Affordable Housing Act was adopted in 1992, creating two trust funds for housing. But since around 2003, the funds have been routinely raided by Tallahassee lawmakers for other uses like hurricane recovery and general funding.

When it comes to affordable housing, the state needs to step it up, according to the Florida Influencers. Nearly three quarters (73%) of the Influencers said the state should dedicate 100% of the money in the Sadowski funds to affordable housing instead of other uses.

Influencers also recommended other ways for Florida to help with affordable housing, like subsidies for workforce housing, incentives for developers to build more affordable housing or using public land to sell or lease to developers who commit to building it.

Gov. Ron DeSantis also signed a bill into law this summer that prevents local governments from requiring that developers include affordable housing in their projects unless they got compensation from the government.

Of the 50 Influencers, a majority (58%) said they do not support this new law because by preempting local governments, the state removed one of the most powerful tools to help build affordable housing. Affordable housing is a localized issue, they said, and decisions need to be made by governments close to the communities.

 

Statement summarizing the views of the working group regarding the issue:

Florida is in the midst of a serious housing shortage. Current market conditions discourage building or preserving the affordable housing that residents and our economy need to grow. Currently, the state needs more than 790,000 additional homes that are affordable to low-income renters. While the crisis is most severe for low-wage workers and older adults on fixed incomes, households earning up to about $65,000 a year are also under extreme pressure, often living paycheck to paycheck and being forced to choose between food and the mortgage or rent. To address this housing crisis, the state legislature and the governor must take action, using affordable housing trust funds only for affordable housing and promoting creative incentives for new construction and preservation of affordable housing. Additionally, the legislature and governor should allow local residents and local jurisdictions to identify their housing needs and the ways they wish to address those needs.

 

Potential solutions:

  • Pass legislation that requires all Sadowski Affordable Housing Trust Funds be used only for affordable housing.
  • Create incentives to encourage new construction and preservation of affordable homes.
  • Property tax abatements in exchange for lower rents for longer periods.
  • Incentivize homeownership among first and second-time buyers earning lower incomes
  • Ensure permanent supportive housing for those who experience homelessness is incentivized
  • Promote mixed income and mixed-use communities
  • Amend HB7103, which removed local ability to mandate affordable housing units in new developments:
  • Strike language requiring affordability incentives to “fully offset” the cost of affordability.
  • Change language requiring 30-day permitting process. Instead, incentivize local jurisdictions to expedite permitting for projects that are affordable to those earning up to 120% of median income. Legislators should consult League of Cities and League of Counties to set appropriate time limits for permitting processes, as the 30-day time limit is unrealistic for many jurisdictions. Consider providing operating funds for a limited time to help local jurisdictions pay for staff to conduct expedited permitting.

 

What questions will the governor and legislature need to answer to make progress on this issue?:

  • Ask of residents, cities, and counties: What are your local needs for affordable housing, today and in the future?
  • What are sources of revenue that can cover general expenses other than the Sadowski Affordable Housing Trust Fund? Can partnerships between the public sector, private sector and faith-based institutions contribute?
  • How can you make it more possible for publicly-owned land to be used for affordable housing?
  • What would it take for employers to invest in the housing needs of their employees?
  • What are viable innovations in housing types that meet the needs of all residents? How can you support local jurisdictions in promoting those?

Article last accessed here on December 2, 2019.  A print ready version is available here.