Impact Fees
The leadership of your Association has been very involved in the dialogue and challenges with the Sarasota Board of County Commissioners on the increase in Impact Fees that was implemented in 2007. The Home Builders Association of Sarasota County works with the Coalition of Business Associations in efforts such as these to present a collective voice for the business interests in Sarasota County. Other members of COBA include the Sarasota Area Chamber of Commerce, the Sarasota Area Realtors, Gulf Coast Builders Exchange, the Argus Foundation, and the North Port Contractors Association, among others. This is a unique and historic organization that allows the HBA to significantly leverage its political impact and voice in the community.
On April 23, 2008 with the urging of COBA and your representatives from the Home Builders Association of Sarasota County, the Board of County Commissioners agreed to delay the implementation of the next scheduled increase in Impact Fees for all product categories, residential and commercial. This leaves Impact Fees at the current levels until June 2009, rather than the scheduled increase, which would have gone into affect in June 2008.
May 6 Special Election
The leadership of your Association was very involved in efforts surrounding the proposed Charter Amendment regarding the Urban Service Boundary. After leading the campaign in opposition to the ballot question in November 2007 that implemented the Super Majority requirement for Comprehensive Plan changes in the County, it was also our duty to try and forestall Phase Two of the Citizens’ initiated Charter Amendment proposal requiring a voter referendum for any changes to the Urban Service Boundary.
On May 6, at a Special Election, the voters in unincorporated Sarasota County approved the “Compromise” Charter Amendment, which requires a unanimous BOCC approval for any changes to the Urban Service Boundary, rather than the originally contemplated voter referendum requirement. While a unanimous vote of BOCC is a very high hurdle, it is more favorable than the alternative, which has been a Charter Amendment requiring voter approval for any change to the Urban Service Boundary. Fortunately, the Civic Covenant, negotiated in conjunction with the Compromise Charter Amendment keeps the sponsor of the two original initiatives from bringing any further land use Charter Amendments for at least the next six years. The second matter on the ballot was even more important for the current environment in Sarasota County. The ballot question asked for approval to increase the bond cap, which would allow the County to borrow up to $300 million in order to fast track many of the water projects, road improvement projects and park improvements that have been planned in conjunction with the penny sales tax that was approved in November 2007. This will allow the County to make the improvements now, when the costs are much lower, and improve the traffic issues and public works projects that are so necessary in our County.
State Legislative Update
The State of Florida faces significant challenges with its budget, as much of the revenue that the State takes in comes from sales taxes and real estate transaction fees. Both of these sources of income are under pressure from our soft economy. Additionally, the market for property casualty insurance is in disarray as the insurers cope with regulatory changes implemented by our State government. We are fortunate to have such a strong and competent political affairs team at FHBA in Tallahassee to guide our industry through the necessary lobbying that needs to occur for the changes that are needed.
The FHBA’s position, and those of this Association, on current legislative changes are as follows:
Affordable/Workforce Housing – FHBA supports full funding of Florida’s landmark Sadowski Act – the state’s affordable housing trust fund program. Fully funding the Sadowski Act not only provides more Floridians with housing, it will act as a much needed economic stimulus. FHBA also supports financial incentives, including improvements to the Community Workforce Innovative Program (CWIP) for builders and developers that result in the creation of additional affordable/workforce housing.
Building Code/Mitigation – Research shows that new home construction guidelines outlined within the Florida Building Code are highly successful at reducing property damage and risk during hurricanes. However, new home buyers are not reaping the full value of their low insurance risk on their property insurance rates. The FHBA supports allowing new home buyers to receive a proportionate reduction in their property insurance premiums. Providing a standard affidavit for homeowners to secure property insurance reductions is one way to help homeowners receive the insurance benefits that their new home provides. Additionally, educating consumers and contractors on how to demonstrate approved mitigation techniques will further reduce property insurance premiums.
Growth Management – The FHBA supports improvements to Florida’s Growth Management Act. Many existing concurrency requirements result in undesirable development patterns – specifically sprawl. Ensuring that development can move forward without undue restrictions or burdens that increase the cost of homeownership is vital. Efforts to meet class size reduction, combined with ad valorem tax reduction initiatives, are prompting extraordinary attempts to shift the burden to new home construction. New home construction should not be burdened with existing infrastructure backlog. Builders pay for concurrency and proportionate fair share, yet local governments are not always delivering the level of service in which the exactions are taking place. These should be equal.
Impact Fees – The FHBA supports requiring local governments to recognize that impact fees, which pay for the infrastructure needs of that home, be reduced by the amount of “like” tax revenue generated from the home that will be spent on the same infrastructure needs. Additionally, FHBA supports creating a legal level playing field between local governments and the home builder to ensure local government exactions are equitable.
Onsite and Springshed Protection – The FHBA believes that efforts by state agencies and local governments to mandate homeowner installation and use of expensive, performance-based septic systems to reduce nitrogen impacts to the environment in lieu of conventional, environmentally-friendly and cost-effective sewage disposal systems or other more cost effective passive technologies is unnecessary. These unproven systems result in unnecessary financial burdens on homeowners and most likely actually adversely affect Florida’s environment and water resources. FHBA supports the continued use of conventional septic tank systems that provide an environmentally friendly and cost-effective sewage disposal method for homes that can’t be reasonably served by community sewer systems. FHBA also supports more cost-effective passive technologies to address the minimal nitrogen affects of conventional septic tank systems.
Property Insurance – The FHBA supports increasing competition and capacity in Florida’s insurance markets, which will reduce insurance rates for homeowners and home buyers.
Property Taxes – The FHBA believes that while Amendment 1 will help to jump-start Florida’s real estate market, much more remains to be done, including more relief for commercial property and second homeowners. Further, FHBA supports a broad revenue cap for local government so municipalities don’t simply make-up lost property tax revenues by increasing other fees and exactions.
State – link to FHBA legislative updates:
http://www.fhba.com/index.cfm?referer=content.listAreaSummary&id=73
National: (Subscribe to e-news)
http://www.nahb.org/ereleases.aspx?subscribe=1§ionID=149
