Sadowski Coalition Releases “Economic Analysis of Florida Housing Programs”

 

For Immediate Release                                                      
Tuesday, February 2, 2021

Contact:
Sarah Bascom, sarah@bascomllc.com, 850.294.6636
Kelsey Swithers, kelsey@bascomllc.com, 941.400.8183

Sadowski Coalition Releases “Economic Analysis of Florida Housing Programs”
Seminal Study Calculates Revenue Generated from Florida’s Housing Trust Funds;
Using $423.3M from
State and Local Housing Trust Funds for Housing Generates over $167M Back in Revenue for Florida

Tallahassee, Fla. – The Sadowski Coalition today released the first economic study of the Sadowski Housing Trust Funds that measures the revenue generated for the state by using housing monies for housing. The study, “An Economic Analysis of the Florida Housing Programs,” closely evaluates and quantifies the return on investment for using all the money in the state and local housing trust funds for affordable housing. Among numerous other economic benefits for the State of Florida, the study showed that every dollar used from the state and local housing trust funds for housing returns $0.40 to Florida, which equates to more than $167 million in revenue, if lawmakers appropriate $423.3 million for housing.

The study, prepared by The Regional Economic Consulting (REC) Group, in January 2021, determined and analyzed the economic impact of using the state and local housing trust funds solely for housing, as it relates to Florida’s gross domestic product, employment, output, state and local taxes, and personal income generated through direct, indirect and induced impacts. To view the study, click here.

In detail, the study concluded that by allocating what has collected in the state and local housing trust fund over the past year, $423.3 million, it could create “tens of thousands of jobs, return tens of millions in taxes, and produce billions of dollars in economic impacts on the economy at large all the while providing much-needed housing for thousands of Floridians.” Specifically, Florida would see 47,845 people housed, 33,286 jobs created and an economic impact of nearly $5 billion. With the economic activity created, more than $167 million in taxes would be returned back to Florida, with $86.6 million going back to the state and $80.5 million going back to local governments.

“This study shows us that using the Sadowski trust fund money for housing creates revenue for Florida,” said Jaimie Ross, facilitator of the Sadowski Coalition and president of the Florida Housing Coalition. “With every dollar spent, there’s a 40% return on investment, in addition to producing desperately needed housing. This means that if the Florida Legislature includes $423.3 million for affordable housing in their budget, our state and local governments would see more than $167 million back in revenue.”

“New housing construction creates tremendous benefits for Florida workers, businesses, and the economy as a whole. The Florida Chamber and the Sadowski Coalition have always known that building new housing options for our growing communities would lower the cost of living and increase the number of jobs in our state,” said Christopher Emmanuel, Director of Infrastructure and Governance Policy Florida Chamber of Commerce. “Now, through the work of the Sadowski Coalition and the researchers at REC Group, we have a better idea of the economic impact of these important funds.”

“This study shows that by using the Sadowski trust fund money for housing, Florida is making a smart investment, not just for the Floridians that need housing, but for the revenue that is generated for our state,” said Brewster Bevis, senior vice president of state and federal affairs for Associated Industries of Florida. “We’ve always known that using Sadowski trust fund money for housing had a significant return on investment, and this study confirms that. AIF is hopeful that lawmakers will appropriate the $423.3 million for housing, so this ROI can be realized in Florida.”

“The State and Local Government Housing Trust Funds remain a critical tool in Florida’s effort to solve its affordable housing crisis,” says Cheryl Lambert, 2021 president of Florida Realtors® and broker-owner with Only Way Realty Citrus in Inverness. “This study further amplifies that fact by demonstrating the ability of the trust funds to care for both the wellbeing of Floridians and the economic needs of the state.”

“The impact of using these funds for housing is significant. It’s clear that the benefit of using all the money in the trust funds for housing is not just for those that need housing, it’s also for the state. More than $167 million in taxes would be collected and returned to Florida by using $423.3 million for housing. The same can’t be said if those funds are swept and used for other purposes, and that substantial of a return shouldn’t be ignored,” concluded Ross.

The REC Group is an analytical think tank with expertise in general state and tax policy, constitutional amendments, state trust funds, and other state and local projects, and covers a wide ranging field spanning economic outlooks to demographic and labor market studies. The REC Group uses the latest techniques in econometric modelling and methodologies to produce fiscal impacts that are then applied to pending legislation and government projects, including REMI Modelling, IMPLAN, Cost-Benefit, General Input-Output analysis, and Econometric modelling and analysis, to produce impacts that can come in the form of jobs either created or lost and fiscal impacts examining dollars gained or lost for projects and initiatives. The REC Group has a background in government and their unique perspective coming from the economic unit of the Florida government gives The REC Group firsthand knowledge of the Florida economy.

For more information on the Sadowski Coalition, please visit SadowskiCoalition.org or follow @SadowskiFL. 

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