habitat4humanity.org Affordable Housing Policy Suggestions for Florida State Legislature Candidates About Habitat for Humanity of Lee and Hendry Counties Since 1982, 1,750+ families in need of a hand up have partnered with Habitat Lee and Hendry to build or improve their home. Habitat homeowners, alongside volunteers, help build their own home and pay an affordable mortgage. Through volunteering, financial or material donations, everyone can help Lee and Hendry county families achieve strength, stability and independence. Through shelter, we empower. For more information, visit www.habitat4humanity.org. ON THE COVER: Habitat Homebuyers Didier and Yeny at their Fort Myers Home Dedication in 2018. AFFORDABLE HOUSING POLICY SUGGESTIONS 3 Why is affordable housing important to Florida residents? In Southwest Florida and stability associated with an Conversely, if our state and throughout the United States, affordable home and often forced local governments prioritize families are spending too much to make impossible decisions. the development of affordable to cover the cost of their home. Their choices are between putting housing, we can create As rent and homeownership quality food on the table, having communities of opportunity, cost skyrocket, wages largely access to medical care, owning promoting sustainable growth remain stagnant—resulting in an reliable transportation, or simply that benefits all residents and untenable situation where many keeping a roof over their heads. stakeholders. An adequate supply families are forced to stretch each of affordable housing is vital to paycheck to its absolute limits. At Habitat for Humanity, we creating an energized economy believe these are choices that no and healthy communities. Though For a home to be considered family should have to make. a strong economy doesn’t always affordable, the annual costs must guarantee an adequate supply of amount to 30 percent or less of Simply put, if not affordable homes, an adequate the household income. However, thoroughly addressed, supply of affordable homes does today in Florida, nearly one million Florida’s affordable serve as the foundation for a households are spending over 50 strong and resilient economy. percent of their limited income on housing challenges a place to live, including 52,000 in threaten the quality of As the leading provider Lee County. life for millions of low to of affordable housing, we understand there in no silver The majority of these families moderate-income families, bullet for statewide affordable are just one missed paycheck while also hindering housing challenges. However, or medical emergency away statewide economic we’ve identified three key from financial ruin and (or) policy subthemes and specific homelessness. They are denied growth. policy initiatives that would the personal and economic As families struggle to find quality largely mitigate our affordable homes due to excessive costs and housing problems and provide limited supply, an unnecessary opportunities to hardworking drag is placed on the development families. The three policy of local economies. Consumer subthemes we’ve identified are: spending is limited, tax-bases • Increasing Supply and are constrained, job creation is Preserving Current slowed, and out-of-state investors Affordable Housing become weary. • Optimizing Land Use for Affordable Housing Danay and her daughter, Adele, celebrate • Developing Communities of achieving the American Opportunity Dream of homeownership at their home dedication ceremony. AFFORDABLE HOUSING POLICY SUGGESTIONS 4 Supply and Preservation of Affordable Housing As one of the fastest-growing for individuals with special needs. partnerships that improve the states in the union, with an Sadowski Funds also support quality of life for low to moderate- economy driven by agriculture and the State Apartment Incentives income families. tourism, many Florida workers Loan or SAIL program, which are of modest means. This rapid offers low-interest loans on a (3) Amend the Florida population growth has pressured competitive basis to affordable Impact Fee Act to Promote an already constrained affordable housing developers and is Affordable Housing housing market, and the current crucial to securing private sector demand cannot be met by investments. It’s important to Development nonprofit and private developers— note that the Sadowski Affordable Perhaps, the most significant given regulatory and market Housing Trust Fund has a barrier to the development of conditions. These conditions have dedicated revenue stream through affordable housing in many resulted in a severe shortage the documentary stamp tax paid counties and municipalities are the of affordable housing units for on all real estate transactions, methods in which impact fees are households earning less than the meaning general revenue is not assessed. Though impact fees are area median income (AMI). required to fully appropriate the not inherently bad and do serve as trust fund. a critical revenue stream for many In addition to expanding resource local governments, they often are allocation for affordable housing (2) Increase Funding for levied and assessed in a manner developments, several policy Tax Credit Programs that that disproportionately affects solutions can assist in creating affordable housing development. market feasibility for private Leverage Private Capital In order to stimulate private sector developers looking to build Tax credit initiatives like the investments in affordable housing affordable units and ensure Community Contribution Tax and keep production costs low for production costs are tenable Credit Program (CCTCP) are nonprofit developers, the state for nonprofit developers. Our an excellent way for nonprofit government should work to ease recommendations to increase affordable housing developers to the burden of impact fees by the supply and preservation of expand services by leveraging amending the Florida Impact Fee affordable housing include: state funds with private capital. Act. The CCTCP encourages private (1) Fully Appropriating sector participation in community the Sadowski Affordable improvement projects by providing Housing Trust Fund up to a 50 percent tax credit on contributions made to approved The Sadowski Affordable nonprofit organizations. Tax credit Housing Trust Fund finances programs have been an effective two programs that are key to tool for the state government expanding statewide affordable to facilitate community-based housing development. The State Housing Initiatives Partnership Air Force Veteran, or SHIP program is used for affordable home construction, Mark, and his wife land acquisition, down-payment Teresa purchased their assistance for low-income Cape Coral Habitat households, and retrofitting homes home in April. AFFORDABLE HOUSING POLICY SUGGESTIONS 5 Optimizing Land Use for Affordable Housing Zoning restrictions and high land developments needed to meet consistency and feasibility for prices can make it prohibitively market demands are often affordable housing developers. difficult to build or preserve constrained. By passing statewide affordable homes in opportunity- legislation that codifies the ability (3) Ensure land connected communities. In some of counties, municipalities, and development and home towns and city neighborhoods, special districts to approve affordability by utilizing zoning ordinances ban small- affordable housing developments lot dwellings, accessory-unit on any parcel of land zoned recommended standards in dwellings, or multifamily housing. for residential, commercial, FEMA flood maps In other communities, strict or industrial use—the state The Federal Emergency zoning limits and discretionary legislature can optimize land use Management Agency (FEMA) approval processes can drive up for affordable housing. creates and continually updates the time, risk, and cost of building detailed flood maps that states, affordable homes to the point that (2) Support a Standardized, and localities use for administering development is no longer viable. Efficient, and Streamlined building codes, insurance matters, In redeveloping and strong-market Land Use Approval and growth management. These neighborhoods, high land prices FEMA maps offer guidelines can pose an even more significant Process regarding safety and elevation barrier to affordable homes, as The prevalence of highly recommendations; however, some intense competition increases discretionary and politicized localities in Florida have passed land costs and makes viable land use approval processes additional and burdensome development opportunities scarce. throughout Florida create an ordinances commonly referred Our recommendations to optimize unnecessary barrier for affordable to as FEMA +(x’) that require land use for affordable housing housing developments. In many affordable housing developers include: municipalities, the system of to add additional fill to raise land use approvals increases elevations beyond the FEMA (1) Empower Counties, the time, cost, and risk involved standards. For many developers, Municipalities, and Special in building affordable housing, FEMA + ordinances make Districts to Approve often giving special interests affordable housing development Affordable Housing multiple opportunities to delay the financially unviable. Adding an construction of critically needed Development amendment to the Florida Building affordable housing. By establishing Code that encourages localities to In communities throughout a statewide