2010-27320 Reso RESOLUTION NO. 2010 -27320
A RESOLUTION OF THE CITY OF MIAMI BEACH, FLORIDA,
SUPPORTING ELIMINATION OF THE CAP ON THE STATE AND
LOCAL HOUSING TRUST FUNDS (HOUSING TRUST FUNDS)
AND FURTHER SUPPORTING FULL APPROPRIATION OF THE
HOUSING TRUST FUNDS FOR HOUSING PROGRAMS.
WHEREAS, The William E. Sadowski Affordable Housing Act of 1992 created a dedicated
revenue source for the state and local housing trust funds expressly and specifically to fund state
and local housing programs that assist local governments in meeting the housing needs of its
population; and
WHEREAS, In 2007 -2008, the Legislature enacted a cap on the amount of revenues
collected to be deposited into the Housing Trust Funds of approximately $243 million per year; and
WHEREAS, full appropriation of Housing Trust Fund monies is critically needed to stimulate
our local and state economy; and
WHEREAS, the Florida Housing Coalition has requested that local communities support
efforts to eliminate the cap so that all or a significant portion of funds collected pursuant to the
original Sadowski Act be used for much - needed affordable housing development.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission support elimination
of the cap on the state and local housing trust funds and further support full appropriation of the
housing trust funds for housing programs.
PASSED and ADOPTED this 3rd day of F2b r u gr , 2010.
Mayor
ATTEST:
City Clerk %
INCORF ORATED:
C:\ USERS\ CMGRCROK \DOCUMENTS\2010- 27320.DOC
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APPROVED AS TO
FORM & LANGUAGE
& FOR ECUTION
A omey Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution supporting elimination of the cap on the Sadowski Affordable Housing Trust Fund
Key Intended Outcome Supported:
Increase Access to Affordable or Workforce Housing
Supporting Data (Surveys, Environmental Scan, etc.): 38% of residents rate availability of
affordable _housing as acceptable or the right amount.
Issue:
Shall the City support removal of the statutory cap?
Item Summa /Recommendation:
The William E. Sadowski Affordable Housing Act of 1992 created a dedicated revenue source for the
state and local housing trust funds, to be used expressly and specifically to fund state and local
housing programs that assist local governments in meeting the housing needs of its population.
Funding is derived from a documentary stamp tax on real estate transactions. In 2007 -2008, the
Legislature enacted a cap on the amount of revenues generated that could be deposited into Housing
Trust Funds of approximately $243 million per year; this cap is currently higher than the projected
- revenue for the Housing Trust Funds for fiscal year 2010 -2011.
Housing Trust Fund. monies represent one of the single greatest boosts to the economy, providing
$7.66 million of economic impact for every $1 million of state funding. Full appropriation of Housing,
Trust Fund monies is critically needed to stimulate our local and state economy. The unmet housing
needs of low income Floridians is substantial and the downturn in the real estate market creates .
opportunities for acquiring, constructing, rehabilitating, and preserving .housing to meet these needs.
These opportunities may be lost without Housing Trust Fund monies to assist in these efforts.
Historically, the City has received significant funding from this program; however, in recent' years the
City's share has been reduced as the funding has been limited. The Florida Housing Coalition
requested that local communities support efforts to eliminate the cap so that all or a significant portion
of funds collected pursuant to the original Sadowski Act be used for.much- needed affordable housing
development.
Advisory Board Recommendation:
N/A
Financial' information:
Source of Amount Account
Funds:
2
3
OBPI Total ,,
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Kevin Crowder, Economic Development
Sign -Offs:
ent.Direcfor istant.City Manager City Manager
AGENDA ITEM C7 E
MIAMIBEACH DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www,micimibeachfl.gov
COMMITTEE MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: February 3, 2010
SUBJECT: A RESOLUTION OF THE CITY OF MIAMI BEACH, FLORIDA, SUPPORTING
ELIMINATION OF THE CAP ON THE STATE AND LOCAL HOUSING TRUST
FUNDS (HOUSING TRUST FUNDS) AND SUPPORTING FULL
APPROPRIATION OF THE HOUSING TRUST FUNDS FOR HOUSING
PROGRAMS.
Administration Recommendation
Adopt the Resolution
Analysis
The William E. Sadowski Affordable Housing Act of 1992 created a dedicated revenue source
for the state and local housing trust funds expressly and specifically to fund state and local
housing programs that assist local governments in meeting the housing, needs of its population.
This source is derived from a.documentary stamp tax on real estate transactions. In 2007 -2008,
the Legislature enacted a cap on the amount of revenues collected to be deposited into the
Housing Trust Funds of approximately $243 million per year. This cap is currently higher than
the projected revenue for the Housing Trust Funds for fiscal year 2010 -2011.
Housing Trust Fund monies represent one of the single greatest boosts to the economy,
providing $7.66 million of economic impact for every $1 million of state funding. Full
appropriation of Housing Trust Fund monies is critically needed to stimulate our local and state
economy. The unmet housing needs of low income Floridians is substantial and the downturn in
the real estate market creates opportunities for acquiring, constructing, rehabilitating, `and
preserving housing to meet these needs. These opportunities may be lost without Housing
Trust Fund monies.
Historically, the City has 'received significant funding from this program; however, in recent
years the City's share has been reduced, as follows:
FY 2006/07 $798,763
FY 2007/08 $525,506
FY 2008/09 $552,506
FY 2009/10 $43,691
The cap on the Housing Trust Fund further limits funding. The Florida Housing Coalition has
requested that local communities support efforts to eliminate the cap so that all or a significant
portion of funds collected pursuant to the original Sadowski Act be used for much- needed
affordable housing development. The movement to remove the cap on the Sadowski Fund
- received a boost when on January 20, Senate Appropriations Committee Chairman Alexander
told the press that he would support lifting the cap. He sees using the Affordable Housing Trust
Commission Memorandum
.February 3, 2010
State Housing Trust Fund
Fund money to upgrade existing houses instead of building new buildings thereby get people
into their homes and working quickly.
Conclusion
The Administration recommends- that the Mayor and City Commission adopt the attached
resolution supporting elimination of the cap on state and local housing trust funds and
supporting full appropriation of the trust fund for housing programs.
JMG /HFMC-
T:\AGENDA\2010 \February 3 \Consent \SHIP Memo.docx
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