Governor's Budget Fully Funds Sadowski Fund
On Monday, November 18, 2019, Governor Ron DeSantis released his FY 2020-21 budget, which called for full funding of the Sadowski Affordable Housing Trust Fund at $387 million. Over the years, billions of dollars have been moved out of the Trust Fund – or “swept” – to meet other State purposes. The Governor’s support for full funding is a welcome step towards ensuring the maximum amount of State funds are available to support affordable housing.
The Sadowski Trust Fund was created in 1991 to support programs directed at providing housing options for low- and moderate-income families. It is funded through a surcharge on all real estate transactions in the State.
Sadowski funds are used to support two main programs. The State Housing Initiatives Partnership (SHIP) receives 70% of the funds, and monies are distributed to local governments across the State to produce and preserve affordable homeownership and multifamily housing. The State Apartment Incentive Loan (SAIL) program receives 30% of the funds, and monies are used to provide low-interest loans on a competitive basis to affordable housing developers to repair or build new apartment buildings. If the Governors budget is adopted, SHIP would receive $267.2M and SAIL would receive $119.8M.
The Governor’s Budget serves as a statement of the administration’s priorities, but it is only one step in the legislative process that will determine whether Sadowski funds will be swept. Next, the Florida legislature convenes on January 14, 2020, and will have 40 days to pass legislation, including annual spending bills, referred to as appropriations bills.
The Senate and House each have an appropriations committee that craft separate appropriations bills for each body. Once appropriations bills are completed by each chamber, the Senate and House will appoint select members to a conference committee to work any differences in their appropriations bills, and produce a conference report which becomes the legislature’s General Appropriations Act. The General Appropriations Act is then sent to the Governor for review and signature.
Support for full funding of the Sadowski Trust Fund will be one of our priorities during the 2020 FAA Legislative Conference in Tallahassee from January 27-29. If you have not already, please register to participate in this year’s Legislative Conference and use your voice to support the Sadowski Fund.