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In the early 1990s a coalition of REALTORS®, members of the building industry and housing advocates came together with the common goal of helping to promote affordable housing in Florida. Housing is affordable when a household - regardless of house hold income -- spends no more than 30% of its income for housing. Any household that spends more is considered cost burdened; most cost burdened households have low incomes.
It was clear to this coalition that for a healthy economy, Florida's growth would need to include affordable housing for the very low, low and moderate income households and that the number of affordable units available to them would have to increase as Florida grew. To accomplish this goal the coalition supported the passage of the Sadowski Act and its funding through a surcharge on doc stamps.
The idea worked. As construction boomed and housing prices increased, revenues from doc stamps grew -- creating increasing funding for affordable housing. The connection between Florida's growth and the resulting need for affordable housing had been made.
However, since 2003 state leaders have tapped into the funds generated through the Sadowski Act and capped the housing trust fund at $243 million with any excess funding diverted for other uses. In fiscal year 2007/08 the projected trust fund revenues are $555 million but over half or $312 million is slated for other uses. The bulk of the Sadowski funds are earmarked for the Local Government Housing Trust Fund (SHIP) and statewide the projected revenues are $384 million but the capped distribution to local governments is estimated at $166 million; the proposal is to divert $218 million for other uses.
The chart below illustrates the local impact of the cap - all figures are in millions.
|
LEE COUNTY |
Projected New Trust Fund Revenue FY07/08 |
Proposed Trust Fund Cap
FY07/08 |
Difference (Local shortfall)
FY07/08 |
|
Unincorporated |
$ 7.4 |
$3.1 |
$4.3 |
|
Cape Coral |
$ 2.7 |
$1.1 |
$1.6 |
|
Ft Myers |
$ 1.2 |
$0.5 |
$0.7 |
|
Grand Total |
$11.3 |
$4.7 |
$6.6 |
The SHIP program is designed to foster partnerships so that it funds only a portion of the total housing built or sold. The vast majority of the funds come from private sector investment and federal programs. For example a homebuyer may be able to afford a $150,000 mortgage but a modest unit can cost about $180,000. The SHIP program provides assistance to the homebuyer to bridge the gap between what can be borrowed and the cost of housing. In this example $30,000 of SHIP funds (secured through a no interest deferred payment mortgage that is paid back only if the home is sold within 15 years of purchase) leverages a $150,000 loan from a bank or a mortgage company.
"Support Home Ownership for All"
The main purpose of the "Support Home Ownership for All" specialty license plate is to fund workforce housing programs which will serve as housing assistance to our states' workforce to better afford housing in the areas they serve. The license plate cost an additional $27 (which includes a $2 processing fee for DMV). You can purchase the license plate online through FAR's website click here. Or at local Tax Collectors Office.
For any questions contact Vani Ungapen at Vaniu@far.org.
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