Impact Fee Debate Heats Up

William Sadowski may not be a name most people are familiar with.

But when county commissioners meet Tuesday to discuss reducing impact fees 25 percent, Sadowski's name could be bandied about quite a bit, especially as it relates to down payment assistance for first-time homebuyers.

The state Legislature passed the little-publicized Sadowski Act in 1992 which created a pot of money dedicated to affordable housing in Florida.

The revenue, divided among all 67 counties, is generated through documentary stamps and administered locally through the State Housing Initiatives Partnership (SHIP) program.

Hernando County's share of SHIP funds available for 2008-09 is $1.4 million, according to Donald Singer, executive director of the county's housing authority. Of that $1.4 million, just over $1 million is allocated for down payment assistance.

Because of the need, the county held a lottery this year for that money and about 50 people applied. Singer's department is now processing applications.

On Tuesday, Realtors, builders, business people and others are pressing for commissioners to take advantage of an appropriations bill signed into law June 11 by Gov. Charlie Crist that sets aside $20 million in nonrecurring funds for this fiscal year - which began July 1 - for a 12-month period.

To qualify, Hernando County needs to reduce impact fees by at least 25 percent for a minimum 18 months.

That $20 million would be divvied up among all counties participating in the program which, right now, represents only a few, among them Charlotte County.

The fewer the counties taking part, the bigger pot of money available to participating counties.

So, in theory, Hernando County stands to gain millions in down payment assistance money for low- to moderate-income homeowners, according to Brooksville Realtor Gary Schraut, a proponent of the measure.

Of course, Hernando County will lose some impact fee money, Schraut said. But with an average 20 to 23 home permits expected to be pulled in the next 18 months, the amount of lost impact fee revenue will be negligible, he said.

"If we don't do what we can now to assist families to buy the existing homes on the market, we are going to continue in this slow economic condition that we're in," Schraut said.

Commissioner David Russell agrees, which is why he says he will vote to reduce impact fees. He wants access to that additional money, over and above the existing money from the Sadowski Fund.

"If we're not on the dartboard, we can't play the game and, right now, we're not on the dartboard and we're not eligible for that $20 million," Russell said.

Russell said it is imperative we get contractors back to work and people in homes to spur other business.

"We have spent millions on public transportation in this county that serves less than one-half of 1 percent of our workforce," Russell said. "Why should we shy away from doing something that could impact more than 30 percent of our workforce on something that amounts to less money?"

Commissioners Diane Rowden and Jeff Stabins agree that the economy needs a boost, but reducing impact fees is not the answer. They believe there is $20 to $30 million available statewide through the Florida Housing Finance Corporation for down payment assistance.

There are down payment assistance programs Hernando County could tap into. However, some of those are either nearing completion or are too restrictive.

For example, last week the federal Housing and Urban Development (HUD) said it would end one of its homeowner assistance programs.

"I'm voting against it because of what it will do to our capital improvement program," Stabins said. "That's $1 million to $2 million that the taxpayers of our county just can't afford."

Rowden said she doesn't know how much of the $20 million Hernando County would actually be able to access.

"We need to be working on our infrastructure while we have the downtime," she said, referring to the downturn in construction. "How can you do that if you reduce your impact fees?"

The impact fee discussion is part of Tuesday's county commission meeting, which begins at 9 a.m. Tuesday at the Hernando County Government Center, 20 North Main St. in downtown Brooksville.