Issue: Use all Sadowski Affordable Housing funds for Florida housing programs.
The Sadowski Affordable Housing Trust Fund helps the apartment industry by providing money to build and repair affordable apartment homes for Florida’s most vulnerable populations. The Sadowski Act (1992) created a dedicated revenue source to fund Florida’s affordable housing programs. The housing trust fund, which is also known as the Sadowski Fund, is financed by document stamp taxes that are paid on all real estate transactions that take place in the state.
The preservation of the Sadowski fund is important for the Florida apartment industry because the demand for apartment homes continues to rise. Sadowski funds help balance the high demand for new affordable apartment homes across the state by aiding in the construction or refurbishment of affordable units.
How This Impacts the Apartment Industry:
To put this issue in perspective, more than 922,000 Floridians spend at least 50 percent of their income on housing. The access to affordable housing is critical for the future of Florida’s growing economy. In addition, Sadowski funds are reinvested into the community to help Florida’s most vulnerable populations, which include: veterans, the elderly, those experiencing homelessness, and persons with special needs. In general, 30 percent of the funding is used for initiatives such as the State Apartment Incentive Loan (SAIL) program and 70 percent of the trust fund resources are used for single-family housing initiatives (SHIP). In the apartment industry, SAIL funds are used to rehabilitate existing apartments or build new units where additional affordable housing is needed.
The Florida Apartment Association urges the Legislature to use all of the Housing Trust Fund monies exclusively for Florida’s housing programs and to pass SB 306 (Sen. Mayfield) / HB 381 (Rep. Silvers), which will prevent the Legislature from diverting any cash balances in the Housing Trust Fund for other purposes within the state budget.