Shawn Williams believes that Sadowski Funds should be used solely for Affordable Housing.
2020/2021 Governor through a line-item-veto diverted $250 million to Florida's General Fund. By doing this, the Gov. DeSantis:
• Failed to create more than 30,000 Florida jobs,
• Lost over $4.4 billion in total economic output, and
• Approximately $1.1 million in labor income.
2019/2020 Budget diverted $125 million to Florida's General Fund. By doing this, the Legislature:
• Failed to create more than 14,500 Florida jobs,
• Lost over $1.5 billion in total economic output, and
• Approximately $419 million in labor income.
Quick Facts (Florida Housing Coalition, 2019 Home Matters Report)
Florida has an affordable housing crisis.
- 912,967 very low-income Florida households—which include hardworking families, seniors, and people with disabilities—pay more than 50% of their incomes for housing.
- Florida has the third highest homeless population of any state in the nation, with 32,190 people living in homeless shelters and on the streets. This includes 2,817 veterans and 9,422 people in families with at least one child.
- Low-wage jobs are prevalent in Florida’s economy. In many occupations, workers do not earn enough to rent a modest apartment or buy their first home.
Key Economic Benefits (2019 Home Matters Report)
Economic Benefits of Affordable Housing
Affordable housing—like any other housing development—stimulates state and local economies. When a developer creates affordable housing through new construction or rehabilitation, the community gains jobs through direct, indirect, and induced economic impacts1 (see below). For example, each dollar of Sadowski State and Local Housing Trust Funds leverages $4 to $6 in private investment, federal tax credits, and other funding sources. If the Sadowski State and Local Housing Trust Fund monies are fully appropriated for housing in Fiscal Year 2019-20 ($325 mm), the projected economic impact will be:
• More than 30,000 jobs,
• Over $4 billion in total economic output, and
• Approximately $1.09 billion in labor income.2
Once an affordable housing development is built and occupied, the residents create demand for ongoing jobs to meet their needs. Additionally, families living in affordable housing have more discretionary income to spend on food, clothing, and other goods and services, thereby boosting the local economy3.
What is Affordable Housing?
Misconceptions about affordable housing are widespread, with many citizens associating it with large, distressed public housing projects in central cities. That conception of affordable housing simply does not fit reality. Plenty of Public Housing Authorities across the nation, from large to small in size, are well-managed and have quality units. Furthermore, public housing is only
one type of affordable housing. In this report, “affordable housing” refers to privately owned housing that receives a subsidy to bring its rent or purchase price down to a level affordable to a low- or moderate-income family. Except for the subsidy, affordable housing is indistinguishable from market-rate housing—it has the same architectural and landscaping styles and often has basic amenities like energy efficient appliances and community gathering spaces. Substandard housing is, by definition, not affordable housing. The price thresholds for housing affordability will be discussed later in the report.
Affordable housing is also important for employers trying to attract skilled workers to a region. When local housing costs near employment are out of reach for entry-level and mid-level employees, employers may find it difficult to attract skilled workers and may face challenges with employee absenteeism and turnover4,5.
An additional economic benefit of affordable housing comes from the foregone costs of providing social services to persons who are elderly, homeless, or have disabilities. Studies show that home and community-based services for elderly as well as permanently supportive housing for persons with disabilities are significantly more cost-effective than institutionalized care or relying on jails and emergency rooms6,7. An investment in affordable housing is fiscally responsible, with a significant return on investment.
A Note On Terminology
Activities such as housing construction and rehabilitation stimulate local economies in several ways. For affordable housing development, “direct” impacts occur when developers hire workers and purchase materials from local suppliers. The suppliers, in turn, purchase additional materials and labor to fill the developer’s order, producing “indirect impacts”. The workers employed, directly and indirectly, further stimulate the economy by spending their wages locally (“induced impacts”).
Read the full report HERE
1) Wardrip, K., Williams, L., and Hague, S. 2011. The Role of Affordable Housing in Creating Jobs and Stimulating Local Economic Development: A Review of the Literature. Washington, DC: Center for Housing Policy. Via The National Resource Network at:http://www.nationalresourcenetwork.org/en/Document/306097. Retrieved 1/17/18.
2) Sadowski Coalition. 2018. Estimate based on October 2018 revenue projections from the Florida Revenue Estimating Conference, 2016 IMPLAN Sector multipliers, and 2016 affordable housing industry profiles configured by Dr. Julie Harrington (Director, Center for Economic Forecasting and Analysis, Florida State University). An exception is the Total Development Cost multiplier for SAIL, which was adjusted by the Florida Housing Finance Corporation to be configured for an economically viable tax-exempt bond/SAIL structure expected in 2017.
3) Golden, T. 2016. Insufficient Affordable Housing Limits Florida’s Economic Potential. Lake Mary, FL: Florida Policy Institute.http://www.fpi.institute/insufficient-affordable-housing-limits-floridas-economic-potential/. Retrieved 1/17/19.
4) Wardrip et al. 2011.
5) Golden 2016.
6) Houser, A., Fox-Grage, W., and Ujvari, K. 2018. Across the States: Profiles of Long-Term Services and Supports. Washington, D.C.:AARP.https://www.aarp.org/content/dam/aarp/ppi/2018/08/florida-LTSS-profile.pdf Retrieved1/17/19.
7) Shinn, G.A. 2014. The Cost of Long-Term Homelessness in Central Florida. Orlando, FL: Central Florida Commission on Homelessness.http://shnny.org/uploads/Florida-Homelessness-Report-2014.pdf. Retrieved 1/17/19.