Restoring The Trust

The Sun-Sentinel ran an interesting editorial last week on the lack of affordable housing in Florida.

Affordable housing is an interesting and sometimes loaded term.

But the Sentinel offered a practical definition: if you spend more than 30 percent of your income on housing (rent or mortgage) your home is not affordable.

The editorial went on to lament that the state legislature is raiding a fund designed to create more affordable housing to pay for other things including pet projects, staff salaries and tax cuts.

The William Sadowski Affordable Housing Trust Fund has about $322 million socked away for its intended purpose. But Gov. Scott’s 2018-19 budget plan recommends taking $154 million out of the fund for other state expenses. Mind you, these are good times. Imagine what could happen if/when the state falls into a recession.

Ultimately, Scott’s budget is a proposal. It’s now time for the State Legislature to weigh in.

It has been more than a decade since I traversed the hallways of Tallahassee meeting with State Senators and State Representatives and sometimes state department heads. Many of our local elected officials are in Tallahassee this week making the rounds.

Local mayors and city commissioners make the always difficult trek to Tallahassee (conveniently located in a place that’s a long drive for many Floridians with expensive and often ridiculous plane routes that included a stop in Atlanta). I used to wonder if the powers that be wanted to be remotely located so as to avoid the public they were trying to serve. But that’s a cynical view— I’m sure there are plenty of dedicated public servants doing their best to serve the Sunshine State. The proof– as they say– will be determined by the results they produce at the end of the legislative session.

While some of the specific issues we went to lobby for have faded from memory (an ability to design our own stretch of A1A, canker, help with some of our parks, reclaimed water etc. are some issues I remember) two themes seemed to be perennials.

  • Home rule—which is an elegant way of saying: please leave local government alone because we believe that the government closest to the people best serve our communities. Please no unfunded mandates and stop choking off our revenues so you can look good by cutting taxes. Cities and counties have needs, obligations and aspirations that have to be funded—and a partnership with the state would be ideal. And if we can’t partner…well then… don’t hurt us.
  • The Sadowski Fund—Don’t raid it, so you can look good; use it for its intended purpose.


The fund was established in 1992 and uses doc stamp taxes (generated through real estate documents such as titles) to help create affordable housing.

It seemed to work fairly well for about a decade, but than in 2003, the legislature decided to make it a piggy bank to pay for its own budget. Those raids increased during the historic recession that hit Florida a little earlier than most states.

It seems that the practice has become a habit, even during boom times.

Last year, the doc stamp tax generated over $290 million for the affordable housing trust fund. But the legislature grabbed $130 million of those funds to help balance the budget.

For the past 14 years—and if the Governor has his way 15 years—that raid has occurred—even as the legislature has passed tax cut after cut.

While nobody loves paying taxes—they are necessary if we are to have a functioning government. And while tax cuts feel good—the reality is they are often a bait and switch with the onus being placed on local governments to pick up the slack.

Local governments have nobody below them to stick with the bill—other than taxpayers.

That said, we all know there is colossal waste in government operations—at every level federal, state, county and city.

So it is impossible and disingenuous to argue that every dollar raised is needed or spent wisely. It isn’t.


That doesn’t mean that a trust fund set up to provide affordable housing should be raided for other purposes. And it doesn’t mean that the issue/problem doesn’t exist because it does.

Florida has an affordable housing challenge/crisis.

Some might say—“well just wait for the next recession and poof the problem goes away”—but it’s not that simple.

People and families of all ages are having a hard time getting traction in Florida and especially in our communities Boca Raton and Delray Beach.

While long time homeowners are thrilled with the price appreciation they have experienced (often a home is our most significant asset) we must be cognizant that others would like to access our cities because of the quality of life/opportunities we offer.

An “I’m in the boat, pull up the ladder” mentality is not only selfish, it’s short-sighted.

To maintain our quality of life and to be economically sustainable—we need to provide housing options that are attainable for working people and families.

Companies will not be able to locate or grow here if their workers cannot find housing that they can afford. And our children will not be able to live here either.

Economic sustainability is a complicated equation that also requires good schools, excellent health care, recreational options, culture, open space, job opportunities, safe streets, mobility, a clean environment and reasonable taxation.

P.S. that list goes on.

All the more reason why we need quality elected officials and talented staff at all levels of government who see the big picture, know how to create sustainable economies and craft policies that aren’t just politically expedient but also address long term needs.

Raiding the Sadowski fund so you can send out a mail piece that says you cut taxes misses the mark on a slew of levels. It puts off the need to create efficiencies in the state’s operations or grow revenue in other ways and it leaves families struggling to pay their bills and keep a roof over their heads.

Call your legislator and tell them to stop raiding the trust and start solving the problem.

As for local governments, they play a role too.

Nimbyism—(not in my backyard) that prevents the creation of housing opportunities restrains supply.  And if you took an economics course you know what happens next—prices rise.

We are certainly not advocating out of control growth (or unsustainable traffic choking sprawl either) but we are advocating smart growth and new urbanism. Google “Strong Towns” or the Congress for New Urbanism—there are solutions that offer compelling math for taxpayers that back up these philosophies.



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