Politico
By: Matt Dixon
TALLAHASSEE — Sweeping affordable housing legislation proposed after Hurricane Irma devastated the industry was loaded up with a series of amendments on Tuesday that could help win support and stir controversy.
The biggest change was an amendment that removed a five-year ban on local governments collecting so-called mobility and impact fees tied to the construction of affordable housing. Developers pay those fees to local governments to help them fund infrastructure and transportation changes needed to help with growth.
The provision was originally put in the bill by state Rep. Bob Cortes (R-Altamonte Springs), who is sponsoring the bill, to incentivize developers to focus on affordable housing. But it was initially opposed by organizations that represent local governments,who rely on revenue collected from those fees; now those groups, including the Florida Association of Counties, support it.
The biggest fight of the day was over an amendment proposed by state Rep. Evan Jenne (D-Dania Beach). The language was the content of separate legislation filed by state Rep. Sean Shaw (D-Tampa) that would no longer allow the Legislature to use funds from affordable housing trust funds to fill gaps in other areas of the budget.
“It would make sure the money in the trust fund went and stayed for affordable housing,” Jenne told the House Transportation and tourism Appropriations Subcommittee.
He filed Shaw’s bill as an amendment because it’s not likely to get a hearing in the House this year, and he wanted the issue discussed. Because he did not want the measure, which could cost up to $180 million, to bog down the housing bill, he withdrew the amendment in the face of opposition from some Republicans concerned the money would have to be drained from other areas of the budget.
The committee also adopted a proposal that could rekindle a fight over whether a Miami affordable housing developer should get taxpayer dollars from the Florida Housing Finance Corporation.
A similar fight erupted last year when House budget chief Carlos Trujillo (R-Miami) got language in the state budget that banned Pinnacle House Group from getting state funds in the current year budget. The language did not name the company but barred state funds from going to any company found guilty of or that signed deferred compensation agreements tied to fraud charges.
That language roped in Pinnacle, which agreed to a deferred prosecution agreement with federal prosecutors, and was fined $1 million and returned $4.2 million in funds after an investigation into whether company affiliates inflated costs.
Last year’s provision only lasted for one year, while the amendment tacked onto the housing bill would place the language in state law. It means that Pinnacle or any other company in the future in a similar situation could not get state funds. Last year’s measure was pushed by Trujillo, who said a punishment imposed by the Florida Housing Finance Corporation on Pinnacle was initially not tough enough. He responded with a “yes” when asked by POLITICO on Tuesday if he was involved in the amendment.
State Rep. Joe Geller (D-Aventura) said he thought the language was too broad and could capture developers who were just accused of fraud but voted for the amendment.
Provisions that remained in the bill after the House panel passed several amendments include sending 20 percent of money in state affordable housing trust funds to hurricane recovery programs. The Florida Keys, which already had affordable housing shortages, was decimated by last fall’s massive hurricane, so much of the money would expect to be spent in that region. This year, the total amount would be roughly $60 million under this provision.
The bill also requires the state to develop a database of land that could be used for affordable housing and that land to the county or city that owns it for the development of permanent affordable housing.
The plan has one more stop in the House. The Senate version, now very different after the amendments were added to the House bill, has two remaining stops.
Article last accessed here on February 14, 2018.