Stop raiding the housing trust fund

November 23, 2011 | The Florida Times-Union

There’s a smattering of good news on unemployment.

Florida’s jobless rate fell to 10.3 percent in October, its lowest rate in 28 months.

Job growth is continuing, though slowly, with 94,000 jobs being created in the state in the last year, according to the state Department of Economic Opportunity.

But 10.3 percent is too high; the number is not falling nearly fast enough. Worse, the underemployment rate, which includes discouraged workers no longer looking for a job and part-time employees who want full-time work, is 18.2 percent.

One important sector, construction, continues to lose jobs, losing almost 12,000 jobs in the last year.
Since 2006, that sector has declined by 360,000 jobs in the state.

Which brings us to Gov. Rick Scott, the Legislature and affordable housing in Florida.

If Scott and other state officials want to reverse the decline in construction jobs, they could begin by restoring funding to a program created in 1992 and funded by fees on documentary stamp filings.
The fee is still being collected, but instead of being used for its intended purpose — supporting housing — the money is being diverted to the state’s general fund.

Known as the Sadowski Housing Trust Fund, the program pumped more than $100 million into Jacksonville’s housing between its inception and three years ago, according to Wight Greger, former director of the city’s Housing and Neighborhoods Department.

But then the money stopped and affordable housing programs across the state suffered.
Legislators essentially began raiding the trust fund, diverting the money to pay general expenses.
Even with fewer documentary stamp filings, the fund is expected to generate $116.6 million in the coming year.

Housing advocates project that spending the fees as intended could create as many as 9,000 construction jobs, as well as assist many to get into affordable housing.

This will be a tough budget year — all of them are.

But the Legislature should help restore construction jobs by using the fees as intended to boost affordable housing programs.

Not surprisingly, the restored allocation has the support of the real estate industry, builders and bankers.

Scott should take the lead by including that priority in his proposed budget.

There never was a good reason to raid a trust fund designed for affordable housing in this state. But to continue in this economy is an outrage.