At our next commission meeting, our commissioners will likely approve the State Housing Initiative Program (SHIP) for next year. I am writing this to ask them not to do so, and offer an unorthodox yet very viable alternative. I realize this idea will be summarily rejected due to the mentality of if we do not spend the money, someone else will, but I’ll offer another choice.
As many are aware, our federal debt is at an all-time high and there is considerable controversy as to raising the federal debt ceiling again. Our Florida Legislature, who unlike Congress must have a balanced budget, struggled with funding. That is something of which those of us involved in the battle to keep JCI open were very aware.
At the County Commission meeting on July 7, 2011, the County Coordinator announced the county had received a SHIP grant for $350,000. Our Coordinator stated that all funds from the prior grant had been spent to the penny, and that about 100 families participated in the program in the county. He also stated this grant made the county the largest homebuilder in the county. Since a grant usually entails the use of my tax dollar, I performed some research into the SHIP.
I learned it is a component of government known as the Florida Housing Finance Corporation. According to state records, only 36 active units (homes) have been funded in my county since 1982- this is a ratio of just over 1 per year. This conflicts with the data from our coordinator. I will utilize his best-case numbers.
Let’s keep in mind the numbers stated above- about 100 families and $350,000. In absolute numbers, this means up to $35,000 per family under this program alone (there are no doubt administrative costs that would reduce this based upon the poor example of the CDBG). SHIP money is not for purchasing homes outright though.
SHIP money is regulated under Title XXX (30), Social Welfare, specifically Part VII of Chapter 420 of the Florida Statutes. There are currently 30 definitions in the beginning of the law. Section 420.9072 spells out the purpose of SHIP- providing funds to counties to create local housing partnerships among other things such as increasing housing-related employment.
Incidentally, this money is authorized under s. 201.15(9) and (10) depending on the county charter, “Distribution of taxes collected” in case there is a question where it originates. Chapter 201 deals with excise taxes on documents, which are collected during mortgage transactions, commonly called “doc stamps.”
It is no wonder that our 2010 federal budget of nearly $4 trillion has a large component of mandatory “entitlement” spending (well over half, or over $2 trillion, falls into this category). According to the Congressional Budget Office (CBO), in 1970 this was $72B ($399B in 2010 dollars). In 1990, it was under $625B ($1 trillion in 2010 dollars), so it has more than doubled in 20 years. As noted above, the state will assist you with the purchase of a home. The state (more correctly we as taxpayers) also do so with the purchase of food and medical needs.
I learned more in a follow-up interview with our County Coordinator. The SHIP money is used for closing costs and down payments. The homes must meet a minimum standard, currently about 1,000 square feet and a very basic design. The SHIP money is used in conjunction with CDBG (Community Development Block Grants). “CDBG money” comes from the federal Department of Housing and Urban Development, or HUD, which of course originates with the taxpayer.
The CDBG is worthy of a separate review, and I have done so. Like other multi-level government programs, it wastes 40% of all tax dollars on overhead, and this year we saw a $65,000 home ending up costing the taxpayer over $75,000 when several existing homes on the market were available for under $50,000.
The solution to this problem lies within our own area. Our friends, neighbors, and churches can and have helped those in need. Recently, our library raised $10,000 in one day. What is more important to us- our library or helping those genuinely in need? A fellow named Jesus is fairly well known to those in our community. Almost 2,000 years ago in Matthew 25:34~40, he spoke about helping those in need. Our Commissioners are also well known in the community. They must use their position to educate those in our community as to the needs of some of our less-fortunate citizens, and to solicit the help needed.
Next, just as our Commissioners have voted to put forth a ballot initiative for tax credits for new businesses to spur economic development, our Florida Constitution in Article 7 Section 10 allows (does not prohibit) them to do so for property tax credits to taxpayers (not businesses) that contribute to the needy. The taxpayers would reap a double benefit here by not being taxed by the IRS on this charitable contribution. While this is an outside the box idea, it is very viable in that the county can perform the work more efficiently (lower cost and time) than by doing the same thing via state funding. The property owners would receive a direct tax reduction. As of 2009, there are about 3,800 owner-occupied homes in Jefferson County. If we gave a tax credit of $200 to just half of these, we’d raise $380,000- more than SHIP would “give” us. Would the average homeowner in Jefferson County give a tax-deductible $20/month for this? I would. We can make this work and get other counties to do so. We’ll be able to cut state spending not at the conventional wisdom point of the Legislature, but instead at the end-user point.
We can best help those in need by looking to ourselves first, and keeping the inefficient levels of government out of our wallet.