Broward County Commission Regular Meeting

MOTION TO DISCUSS Suing the State of Florida for breaking the law and raiding the Sadowski Affordable Housing Trust Fund. (Deferred from September 13, 2018 - Item No. 79) (Commissioner Holness)

ACTION:  (T-12:10 PM)  Following discussion, the Board requested that the County Attorney's Office bring information back to the Board as to potential litigation.  (Refer to minutes for full discussion.)  (See Yellow-Sheeted Additional Material, dated October 9, 2018, submitted at the request of Commissioner Rich.)

VOTE: 6-1.  Commissioner LaMarca voted no.  Commissioner Rich and Vice-Mayor Bogen were out of the room during the vote.

 

Since 2001, $2.2 billion has been diverted from the fund for other, non-related expenditures, including $182 million removed from the fund in the 2018-19 budget.

Discuss the raiding of the Sadowski Housing Trust Fund.

In 1992, the William E. Sadowski Act created a dedicated source of revenue for housing from a portion of documentary stamp taxes on the transfer of real estate. Supported by a coalition of interest groups, including home builders and Realtors®, this landmark legislation provided both the funding mechanism for state and local programs, as well as a flexible, but accountable framework for local programs to operate. Between 1992 and 2001, all of the trust fund money went toward affordable housing programs. Since 2001, $2.2 billion has been diverted from the fund for other, non-related expenditures (Exhibit 1), including $182 million removed from the fund in the 2018-19 budget. Over the last 16 years, legislators have used the money for purposes other than what it was intended, while the supply of affordable housing has continued to lag.

In 2015, 744,662 Florida low-income renters paid more than 40% of their income for housing - up from 35% in 2005, according to the University of Florida's Shimberg Center for Housing Studies. According to the 2017 Home Matters report by the Florida Housing Coalition, 31% of all home owners in Florida and 18% of all renters spend more than 50% of their income on housing - a significant cost burden. The report also notes that Florida has the third highest population of homeless of any state and Florida’s rental stock is particularly stressed. The trust was created to fund affordable housing, so that should be the fund's sole purpose.

This discussion supports the following Commission Goals under the Vision Statement addressing “Offering sustainable, compatible, innovative housing options for all income-levels, including integrated, permanent supportive housing.”

Goal 1: Facilitate a regional approach to growth and redevelopment through coordination and collaboration at the federal, state, and local levels.

Goal 2: Increase the availability of affordable housing of all types, countywide, in every community using effective, uniform criteria, policies and strategies.

Goal 3: Identify affordable workforce housing funding, to include a local, dedicated source of revenue.

Heidi Richards, Chief of Staff, District 9, 954-357-7009