April 23, 2007

Conference of Mayors Vice President Miami Mayor Manny Diaz sent a letter on April 11 to the chief legislative leaders in Florida, Senate President Ken Pruitt and Florida Speaker of the House Marco Rubio, urging them to “Scrap the Cap” on the Sadowski affordable housing funds and to adjust the just value assessment for affordable housing properties.

Joining Diaz in the push are Jacksonville Mayor John Peyton, Tampa Mayor Pam Iorio, St. Petersburg Mayor Rick Baker and Hialeah Mayor Julio Robaina, united as the mayors of Florida’s most populous cities. The mayors are calling on all Florida mayors to unite in urging the state’s legislative leaders to recognize the importance of affordable and workforce housing to the strength of state’s cities – the drivers of the state’s economy as cities are nationally.

Led by Conference President Trenton Mayor Doug Palmer, Affordable Housing is a key element of the U.S. Conference of Mayors’ 2007 10-Point Plan, Strong Cities, Strong Families for a Strong America, the policy priorities of the nation’s mayors. Affordable housing was first identified as a crisis issue during the Conference presidency of Boston Mayor Thomas M. Menino from 2002 – 2003. Menino’s leadership was key to raising national and congressional awareness of the developing housing crisis. As the U.S. Congress deliberates the adoption of the Conference’s priorities, affordable housing problems continue unabated throughout the country.

The text of the letter follows:

“Dear Mr. President and Mr. Speaker:

“As we enter the final weeks of the 2007 legislative session, let us call your attention to an issue that is still very pressing to those of us in local government: the production and availability of affordable and workforce housing.

“We all know that the median housing prices continue to rise in our state, making the reality of home ownership more difficult not only for poor Floridians, but for working professionals and families. Our cities have done everything possible to increase the availability of affordable and workforce housing, including achieving great success in leveraging existing funds toward construction.

“While cities are increasingly constrained by budgetary pressures and are now being asked by the state to do more with less, the state continues to divert funds intended for affordable and workforce housing into other areas.

“It is now time for the state to fulfill its part of the bargain by scrapping the cap on Sadowski Funds and using the money for its intended purpose. The state also needs to amend Florida Statutes Chapter 193 to provide for the just valuation of affordable housing properties.

“According to the Florida Housing Coalition, removing the cap on Sadowski Funds would provide an additional $170.9 million for affordable home ownership and rental production in FY ’07’08 and estimated additional $337 million in additional revenues annually on average for the next 10 years. This additional revenue is estimated to generate additional over 11,000 housing units; $1.77 billion in economic activity, over 18,000 additional jobs; and $16.8 million in additional sales tax revenue in FY ’07’08 alone. Florida has already lost $521 million of federal tax-exempt bonds and tax-credit equity since the cap was instituted two years ago.

Rising property values have also caused existing affordable housing units to experience increased property tax assessments due to property appraisers placing greater emphasis on highest and best use in calculating just values on properties. This places owners in the position where they have to absorb the higher costs, increase rents, or sell the property. Amending Chapter 193 to direct property appraisers to base just valuation on other factors such as income produced would serve to ameliorate this condition.

We urge you take these steps toward honoring your commitment to the millions of Floridians who need your help to achieve the American Dream of home ownership.

Bill Sadowski was a great Floridian and a personal friend and mentor. Let us do justice to his memory and honor to his legacy.”

Signed, Miami Mayor Manny Diaz