CITY OF TALLAHASSEE
CITY COMMISSION AGENDA ITEM
ACTION REQUESTED ON: September 10, 2009
SUBJECT/TITLE: Adopt Resolution 09-R-30 to Support Allocating All State Affordable Housing Trust Funds for Affordable Housing Programs
TARGET ISSUE: Affordable Housing
STATEMENT OF ISSUE
In 2007, the State Legislature capped the State Affordable Housing Trust Fund, diverting all but $273 million annually to the State general fund. In State Fiscal Year 2008-2009, the Legislature went even further, diverting $440 million from the Trust Fund and leaving the State Housing Initiatives Partnership (SHIP) program without funding for Fiscal Year 2009-2010. The City of Tallahassee previously received approximately $1.5 million per year in SHIP funds that were used for ownership and rental housing rehabilitation programs, down payment assistance, acquisition-new construction programs and more. In lieu of SHIP funds, the City will receive $254,518 in Florida Homebuyer Opportunity Program (FLHOP) funds for first-time homebuyers, which is only about 17% of State funds received in previous SHIP distributions. Resolution No. 09-R-30 supports a coordinated Statewide effort to influence the State Legislature to repeal the cap on the Affordable Housing Trust Fund and to appropriate all the funds dedicated for affordable housing as they were intended.
RECOMMENDED ACTION
Adopt Option 1. Adopt Resolution 09-R-30 to repeal the cap on the State Affordable Housing Trust Fund and to encourage appropriation of all Trust Funds for affordable housing programs.
FISCAL IMPACT
There is no fiscal impact to adopt this Resolution.
Carrie Blanchard, Chief of Staff to the Mayor
Thomas H. Lewis, Economic & Community Development
Anita Favors Thompson, City Manager
For information, please contact: Joyce Martinez, Housing Administrator, 891-6500
SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES
The State’s Affordable Housing Trust Fund was established in 1992. The Fund was developed to address needs created by the housing market while allowing local governments to establish their own programs to meet their unique needs. Revenue from the documentary stamp tax was dedicated to the State Housing Trust Fund, connecting the prosperity of the real estate market to the housing needs of households that were unable to attain safe, decent, and affordable housing. In 2007, the State Legislature had enacted a cap on Affordable Housing Trust Funds ($273 million) and diverted all funds above the cap into the general revenue fund. The cap was not created because Florida had an adequate supply of affordable housing to meet the need of its residents, but because the State had other priorities.
Although affordable housing advocates strongly opposed the cap, the State Legislature continued to deny the importance of the Affordable Housing Trust Funds to meet housing needs. During the State’s 2008-2009 Fiscal Year, $440 million was diverted from the Affordable Housing Trust Fund to be used for general State needs. $250 million was diverted during the 2008 legislative session and $190 million was diverted during the 2009 special session. This left the State Housing Initiatives Partnership (SHIP) program without funding for Fiscal Year 2009-2010. The City of Tallahassee had previously received approximately $1.5 million per year in SHIP funds to benefit households earning up to 120% of area median income. Nearly all of Tallahassee’s funds are used for households earning 80% of area median income or less. Programs included down payment assistance for first time homebuyers, housing rehabilitation, acquisition and new construction and more. Besides the loss to Tallahassee residents in need of housing assistance, the Florida Housing Coalition estimated the loss of affordable housing assistance Statewide would result in the loss of $3.37 billion in economic activity and 33,000 jobs. The State faces a high rate of foreclosures, displacements, and a growing homeless population, but the Legislature did not choose the affordable housing assistance as a funding priority.
Several organizations are working to repeal the cap on the Trust Funds and to advocate using all Trust Funds as they were intended for the purpose of affordable housing. The Sadowski Workforce Housing Coalition is a partnership of organizations that support affordable housing, including the Florida Chamber of Commerce, Florida Association of Realtors, Florida League of Cities, Florida Association of Counties, Florida Bankers Association, Florida Home Builders Association, and many more. Resolution 09-R-30 supports the Sadowski Coalition’s efforts to influence the State Legislature to repeal the cap on the Affordable Housing Trust Fund and to fully appropriate Trust Funds for local affordable housing needs.
OPTIONS
Option 1. Adopt Resolution 09-R-30 to repeal the cap on the State Affordable Housing Trust Fund and to encourage appropriation of all Trust Funds for affordable housing programs.
Pros:
1. The City of Tallahassee’s Resolution will be added to resolutions from other cities and counties in Florida, creating a greater impression to encourage legislators to make affordable housing a priority.
2. The City will demonstrate its commitment to providing affordable housing assistance to its low-income residents.Cons:
1. None identified.
Option 2. Do not adopt Resolution 09-R-30 to repeal the cap on the State Affordable Housing Trust Fund and to encourage appropriation of all Trust Funds for affordable housing programs. Give staff alternative direction.
Pros:
1. None identified.Cons:
1. The City of Tallahassee’s Resolution would not be added to resolutions from other cities and counties in Florida, and would not contribute to the effort to persuade legislators to make affordable housing a priority.
2. The City would not demonstrate its commitment to providing affordable housing assistance to its low-income residents.
ATTACHMENTS/REFERENCES