December 23, 2015 | Orlando Sentinel
Editorial
Lately Florida is setting the pace for America on jobs. Figures released last week, and touted with justifiable pride by Gov. Rick Scott, show the Sunshine State led the nation in employment growth in November.
But when it comes to affordable housing, Florida is lagging behind. Nearly a third of renters in the state spend more than half their incomes on housing — the largest share in the nation, according to a recent report from Enterprise Community Partners. Many of those Floridians could wind up homeless simply by missing a paycheck or suffering another financial setback.
And while Scott continues to push job creation — it’s the rationale behind his proposals for $1 billion in mostly business tax cuts and a $200 million-plus increase in business incentives — his latest budget plan would pilfer trust fund dollars intended to expand the inadequate supply of affordable housing in Florida.
It’s up to state legislators, led by Senate President Andy Gardiner and House Speaker Steve Crisafulli, to make up for the governor’s indifference to affordable housing when they convene for their annual session next month and begin writing the state budget that will become law.
In Florida, the need for affordable housing ranges from low-income families on the verge of homelessness to moderate-income families led by nurses, teachers, police, firefighters and other essential workers who struggle on their modest salaries to find homes near their jobs.
In 1992, state lawmakers recognized this need and agreed to increase the documentary stamp tax paid on real-estate transactions to dedicate the additional dollars to affordable housing programs. Seventy percent of that money goes to a local government trust fund to support programs in all 67 counties and the state’s larger cities. The remaining 30 percent is earmarked for another trust fund for state-administered programs.
Uses for these dollars include rehabilitating existing houses and apartments, building new housing units, and providing down payment and closing cost assistance to first-time buyers. There is enough flexibility in the programs to respond to the diverse needs of communities across Florida.
But since the Great Recession, governors and legislators have used the affordable housing trust funds as a piggy bank to pay for other programs or cover tax cuts. At a time when job creation is supposed to be the top priority in Tallahassee, it’s hard to think of a more counterproductive maneuver.
Typically, every dollar spent from the affordable housing trust funds draws an additional $4 to $6 in private financing, according to the Sadowski Housing Coalition. The nonpartisan coalition, formed in 1991 to promote funding for affordable housing, includes business and local government groups; advocates for the homeless, veterans, the elderly and Floridians with special needs; and faith-based organizations.
State economists have projected that the share of documentary stamp taxes earmarked for the affordable housing trust funds would leave almost $324 million in those accounts next year, with nearly $227 million for the local fund and more than $97 million for the state fund. Investing those dollars as they are intended to expand affordable housing would create 32,600 jobs and pump $4.6 billion into Florida’s economy, according to the Sadowski Coalition.
But Scott’s budget calls for diverting $172 million from the local trust fund for other purposes in his budget. Draining those funds would decimate dollars for local programs, including in Central Florida. It also would deplete a source of dollars that could otherwise be the cornerstone in a badly needed state strategy to reduce homelessness.
Scott’s budget is only a proposal. Legislators will draft and approve the final spending plan. If they are truly committed to meeting Florida’s urgent need for affordable housing and strengthening the state’s economy, they’ll leave the trust funds alone.
Article last accessed here on December 24, 2015.
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