Florida Housing Coalition Sadowski Affiliates Webinar March 1, 2018

It’s Free. Thanks to support from To join, email your contact information to Johnitta Wells at: Wells@flhousing.org

Presenters Jaimie Ross President & CEO, Florida Housing Coalition; Facilitator, Sadowski Coalition Mark Hendrickson Executive Director, Florida ALHFA; FHC Board Member

Agenda Update on Appropriations Process for Sadowski Trust Funds from February 22 Next Steps in Appropriations Process Update on HB 987 and SB 1328

Legislative Process Legislative Session began January 9 March 9 still expected to be final day Allocations are done Appropriations are being negotiated between House and Senate

Difference Between Senate and House: We won’t know until tonight about changes PROGRAM SENATE HOUSE Hurricane Recovery: State Apartment Incentive Loan (SAIL) targeted to counties with damage Lines 2225 & 2226 $90,000,000 $123,630,000 Monroe County Land Authority Line 2224 $10,000,000 $0 Florida Housing Finance Corporation (FHFC): SAIL, SAIL Workforce & Other Line 2225 $114,050,000   SHIP Line 2226 $103,800,000 Homeless $3,800,000 Training & Technical Assistance $450,000   $500,000 TOTAL HOUSING $322,100,000 TOTAL SWEEP $182,000,000 Housing TF $ Neither Swept nor Appropriated $16,470,000

What’s Next in Appropriations Process? Budget Allocations: This is when the decisions are made by the Appropriation Chairs in House and Senate and House Speaker and Senate President. Budget Allocations are now Done. We know what House offers- we don’t know what Senate offers. Process of offers between the two chambers as how allocations will be decided. Following that, lawmakers head into final budget negotiations, typically using budget conference committees. May be another opportunity to advocate- we will let you know.

Sadowski Housing Trust Fund Advocacy Sadowski Coalition Member Call to Actions- Suspended. In interest of our culture in meaning what we say when we say “NOW is the time”. Thank you to all of you who took action when asked. You are GREAT! All Op Eds were turned into letters and were hand-delivered to leadership. Those included letters from AARP, Volunteers of America, Florida Housing Coalition, Arc, Realtors (all written by those organizations- not the same letters- but the same message- use all the housing trust funds for housing) Thanks to all who contacted their legislators.

In Today’s News House and Senate Agree on Funding Plan for Public Schools The new dynamic has also resulted in the Senate moving toward the House on using unspent money in various trust funds to pay for other programs and initiatives. The original House proposal shifted, or “swept,” nearly $400 million out of the trust funds, including $182 million out of affordable housing programs. The Senate’s budget bill only swept $124 million and did not touch the housing funds. Bradley said the new budget demands have changed the Senate’s position. “Because of Parkland, we've swept a lot of trust funds,” Bradley said. “And affordable housing, there just isn't enough money there to maintain the Senate's position of not sweeping that fund.”

Sadowski Housing Trust Fund Advocacy

Major Housing Legislation CS/CS/HB 987 Representative Rep. Bob Cortes (R, District 30- Parts of Orange, Seminole counties) Passed favorably out of all committees; Now on 3rd Reading SB 1328 Senator Keith Perry (R, District 8- Consists of Alachua, Putnam counties and part of Marion county) Passed Favorably Full Appropriation on February 27; Ready for Senate Floor

What’s Happening with HB 987 Amended to include provision that would prohibit FHFC from requiring an affordability period longer than 30 years on 9% Housing Credit deals unless FHFC “affirms at the time of the initial credit underwriting that the project will remain economically feasible beyond such period”. This is a “poison-pill”, as no one can “affirm” that a deal will be economically viable next year, let alone in 30 years. It is designed to lower the affordability period so that developers can convert developments to market rate housing, allowing them to either raise rents massively, or sell at a tremendous windfall price

What’s Happening with SB 1328 Passed Favorably Full Appropriation on February 27; Ready for Senate Floor Most amendments were designed to conform the language in this bill to that of HB 987 Amendment also included the language prohibiting FHFC from requiring affordability period beyond 30 years for 9% Housing Credit deals, unless FHFC affirms project feasibility

Important improvement to Surplus Lands Law The Florida Housing Coalition worked with FHFC to prevent properties from being kept off the surplus lands law with this amendment: A property in an area suitable for residential development may be found to be suitable for use as affordable housing even if the property doesn’t meet one or more of the criteria listed above *included in at least one special district is one of the criteria– with this amendment, the property doesn’t need to meet that criteria or any others listed.

Affordability Period Issues There is no public purpose criteria more important than long term affordability. Allowing developers to receive massive public subsidies so they can build housing designed to last in prime areas of our communities– and then convert to market rate rents after only 30 years is travesty. FHC led the fight to keep FHFC from making this change. When the developers couldn’t get FHFC to capitulate to their position, they decided to end run FHFC and go to the legislature. The federal law that governs Housing Credits requires that a preference be given to developments that “serve qualified tenants for the longest periods”. We believe that the legislation as drafted violates s. 42 and could jeopardize the entire allocation of 9% Housing Credits to Florida

From Senate Bill Analysis The bill limits the term of any for agreement for a multifamily rental project to the period of time required in federal law for the “extended low-income housing commitment” or extended use period. This effectively limits any agreement entered into by the FHFC for a multifamily rental project to 30 years. However, if the FHFC affirms at the time of the initial credit underwriting that the project will remain “economically feasible” beyond 30 years, then the agreement may be longer. The term “economically feasible” is not defined.

HHRP Program in Both Bills FHFC will administer an HHRP for homeownership based on needs from hurricanes- using same income eligibility as SHIP- with an increase to 15% for admin FHFC will administer an HHRP for rental to leverage federal funds (similar to SAIL) FHFC will do emergency rulemaking for this HHRP program

SB 1328 & HB 987 – Similar but Not Identical

Sadowski Affiliates Are Readying for the Future!

Get Out the Vote

Contact Information For Assistance, contact: Jaimie Ross (850) 212-0587 Ross@flhousing.org

FHC Statewide Annual Conference AUGUST 27-29, 2018 Rosen Centre Hotel, Orlando Members Receive $200 Discount To become a member, contact Johnitta Wells at wells@flhousing.org.