Media Center - Florida Realtors®

Contact:

Jeff Zipper, Vice President of Communications
407/438-1400, ext. 2314
JeffZ@far.org

Marla Martin, Communications Manager
407/438-1400, ext. 2326
MarlaM@far.org

Florida Realtors® Take Action to Protect Homeowners' Interests

ORLANDO, Fla., November 2003 -- When it comes to homeownership and housing issues in Florida, Realtors® are taking the lead to protect residents' interests and safeguard private property rights.

During last year's Florida legislative session, Florida Realtors and the Florida Association of Realtors® (FAR) fought to keep lawmakers from emptying the state's affordable housing trust fund, established by the William E. Sadowski Affordable Housing Act, and shifting all of that revenue-- about $250 million in fiscal 2002-2003 -- into the state's general fund. For more than a decade, the Sadowski Act has made Florida the envy of affordable housing advocates across the country and has served as a model for other states' programs. The trust fund was established in 1992 when Realtors and a coalition of home builders and other real estate-related business groups agreed to raise the statewide documentary stamp taxes by a dime in order to establish a dedicated funding source to help meet the state's critical need for affordable housing.

Under a program called the State Housing Initiatives Partnership (SHIP), more than 70 percent of these housing trust fund monies go directly to local governments, all 67 counties and an additional 48 cities in Florida. By working to protect the affordable housing trust fund, Realtors are taking a stand to help Florida residents achieve the American dream of homeownership.

On another legislative front, Realtors worked to defeat a proposal that would have replaced impact fees on new homes -- used to help pay for the impact of new development on schools -- with a transfer tax on all real estate transactions. CS/SB 1022 would have placed more of the burden for school construction on existing homes even as it lightened the load for new homes. And while the bill didn't specify a tax rate, any additional tax would have raised Florida's already high closing costs. Homeownership research shows that for every $100 increase in the cost of housing, between 1,575 and 1,880 families are priced out of the market. Thus, an additional real estate transfer tax would have made housing even less affordable across the state, keeping many working families, single moms and others from becoming homeowners.

To get the word out to lawmakers that a real estate transfer tax would hurt homebuyers and sellers across the state, FAR initiated an aggressive grassroots campaign against CS/SB 1022, relying heavily on voice broadcasts, e-mails, a Web site at zapthetax.com and an Internet-based messaging system called the Realtor Legislative Action Center that helped Realtors contact their lawmakers. In a two-week period, Realtors sent some 18,702 e-mails and 186 letters through this system to their state representatives and senators protesting the bill.

"I'm very proud of the way Realtors across this state opposed legislation which would have negatively affected affordable housing, specifically voicing opposition to the thought of eliminating the affordable housing trust fund and fighting against a transfer fee which would have been charged on every real estate transaction within the state," says 2003 FAR President Tom Salomone.

"The unfortunate reality of lawmaking is that, very often, those who will bear the burden of a new law not only don't have a say (in that law) but aren't even aware that the law, which will affect them, is being discussed," he says. "Such was the case with the transfer fee, which would have been an additional charge on each real estate transaction. Realtors realize that they have a moral and ethical responsibility to help the homeowners of Florida, and one could clearly see them taking that responsibility very seriously this past legislative session."

While recent signs such as lower unemployment figures and increased state revenues indicate that Florida's economy is rebounding, lawmakers still face numerous challenging budget needs in the 2004 Legislature, which could once again put pressure on the affordable housing trust fund and create homeownership barriers. Together with private citizens across the state, Florida Realtors will be working to support affordable housing, property rights and other vital quality-of-life issues in the upcoming legislative session.

"Realtors take pride in working to strengthen their communities," Salomone adds. "Making our voices heard to safeguard homeownership and affordable housing is one way we're striving to help build a better future for all Florida residents."

Want to find out how to contact your legislators, track specific bills and keep abreast of what' s happening with the Florida Legislature? Then check out Online Sunshine, the Legislature's official Internet site, at http://www.leg.state.fl.us/.

The Florida Association of Realtors, the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 90,000 members in 70 boards/associations.