Florida Housing Coalition: Sadowski affordable housing funds to surge in 2023
By Alex Soderstrom
Tampa Bay Business Journal
Published: Nov 23, 2022

A key source of funds for Florida affordable housing initiatives is expected to get a big bump next year, according to Florida Housing Coalition Inc. CEO Jaimie Ross.

Affordable housing is a major need in Florida, where rents and home prices rose dramatically in the last two years. Research shows improved access to housing translates to stronger economic growth, according to the National Low Income Housing Coalition.

Tallahassee-based housing nonprofit Florida Housing Coalition expects funding for the Sadowski Housing Trust Fund, which is used to fund affordable housing efforts across the Sunshine State, to total $403 million in 2023-2024, Ross said Nov. 17 during the Housing for All Lake County Fourm in Clermont. That would be a big bump from $360 million in 2022-2023.

Enacted in 1992, the William E. Sadowski Affordable Housing Act was originally meant to funnel 24.17% of collected document stamp tax money, after state administrative costs, for affordable housing. The surge in available Sadowski funds is expected because of the increased collection of document stamp tax money during the hot housing market of the past year, Ross said.

Of course, the big question is whether or not that money actually will flow to affordable housing needs. Sadowski funds are meant to go to the State Housing Initiatives Program, which funds projects that create and retain affordable homeownership and multifamily housing, and the State Apartment Incentive Loan program, which provides low-interest loans to affordable housing developers.

But, starting in 2001, the Florida House and Senate started "sweeping" chunks of the Sadowski Act money away from affordable housing for the general budget and economic development. Between 2001 and 2020, the Florida Legislature diverted more than $3 billion from the housing fund, according to a June 2021 Florida Housing Coalition report.

In fact, Osceola County Commissioner Cheryl Grieb previously told Orlando Business Journal the county was lucky to get one affordable housing project funded each year from Sadowski after it was raided by state lawmakers. "I'm happy we get at least one project a year, but the need is much greater than that."

However, the state last year changed the Sadowski fund by reducing the amount of document stamp tax money earmarked for affordable housing by half, according to the Florida Policy Institute. At the same time, Sadwoski funding now is recurring, which means it will be funded every year without any sweeps.

Ross said she isn’t concerned about the state Legislature fully funding affordable housing next year. “I don’t think there’s any question that it will be fully appropriated.”

The funds will be determined when the Florida Legislature convenes for its next 60-day session on March 7, 2023.