Two Dade Commissioners Want To Tax Developers To Pay For Low Income Housing

Two Dade commissioners are proposing to take advantage of the real estate boom by taxing developers of large scale projects in Miami to pay for affordable housing.

Xavier Suarez and Barbara Jordan are working on separate proposals for a tax on new development.

Suarez’s proposal would cost $7.50 per square foot for any project that is larger than 100,000 square feet, according to the Miami Times. The funds would be deposited into the Affordable Housing Trust Fund, which would also get an annual $50 million infusion from the county general fund courtesy of Dade property owners.

Jordan is proposing to make mandatory a requirement that developers either pay into the Workforce Housing Trust Fund or build workforce housing. A proposal to make it mandatory was killed in 2007.

The Affordable Housing Trust Fund already receives funding from Documentary Stamp Taxes charged on the sale of commercial properties in Dade. That funding topped out at $48 million in 2014.

 

 

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Danny
5 years ago

The same Affordable Housing that is riddled with corruption. Way to try and get re-elected.

Anonymous
5 years ago

I dont even know what affordable means in Miami anymore.

alex
5 years ago

I know this is a rhetorical question, but I’ll answer it anyway. “Affordable” is a percentage of Area Median Income. Median household income is $42k/yr in Miami-Dade, so if a third of that goes to rent/mortgage, that’s $1,050/month. So, $1,050 is considered “affordable,” which on one hand is kind of expensive, but on the other hand crazy low when most apartments are twice that.

People like to pretend that “affordable” = “poor” when really “affordable” just means a young professional or a lower-middle-class family can live there. When developers are using public infrastructure and utilities to make huge profits off foreign investors, I think they should be held accountable for giving back just a little (and I’m not talking about “creating jobs,” since $15/hour for construction workers is not enough to live in Miami).

Anonymous
5 years ago

Unfortunately Miami has become like New York, LA and DC. There is no relief for the Workforce. Affordable housing is governed by Section 42 of the IRS code (tax credits). The rules created back in 1986 need modernizing. They limit developers to rent to people who earn no more than 60% of the area median income. This should be increased to 120% of AMI along with other changes. That would allow for a broader section of the population to take advantage of the housing. Which by the way, is now developed competitively with market rate.

The tax is ridiculous. All this does is increase the price of housing. The monies deposited into the fund will be granted to developers projects that are already financed only to increase their bottom line. We don’t need additional taxes this will only hurt the affordable population as developers will pass this on. Typical politician.

Finally to your point, developers are already giving back by increasing the tax base, paying impact fees and creating jobs. Impact fees by the way that get squandered for the most part. How much more do you want to take from the business operator?

Anonymous
5 years ago

two idiots with ideas to have more $$$$ vaporize with ZERO benefit to anyone……you want developers to pay to build in Miami after having enough hurdles to jump thru at planning and zoning??…..then put that money toward EXPANDING MASS TRANSIT!!!

Marc305
5 years ago

One of the most idiotic ideas I have ever heard of! If developers have to pay for anything at all it should benefit the community in which they are building, like expanding the Metro, Metromover, or contributing money to Baylink. SMH.

cc
5 years ago

A much better idea would be to have Mr. Suarez and Ms. Jordan pay for the subsidized housing; however, they more eager to spend someone else’s money rather than their own

Anonymous
5 years ago

when you look at the current “leadership” in Miami government its amazing we have electricity……these 2 fools should be advocating business development which would provide jobs TO WORKING PEOPLE who want to better their lives…..instead the same tired principal of taking from good to throw to bad……

David Saul Acosta
5 years ago

Taxing developers/job creators will stagnate Miami Dade’s economic growth and stall/stop large-scale residential and commercial projects. Our county government has lost its focus. We must create jobs, spur growth, and ensure that everyone who works hard and contributes positively to our county, has the opportunity to rise up and reach their God-given potential. Large-scale projects provide jobs, new tax revenue sources, and activate underutilized areas within our county. It is time to stop the foolishness and anti-business populism which has taken ahold in our county commission board. Miami-Dade County should focus on creating a pro-business climate, one which welcomes investment and provides jobs and opportunity for its people.

Anonymous
5 years ago

More money to waste for grossly inept government drones. As a district 7 resident, I know too damn well how incompetent and unaccountable Suarez is to constituent concerns. He needs to get out of politics. He is damaging the county’s interests.

Adam
5 years ago

Affordable housing (and transit) are hugely important for Miami-Dade. The average resident here pays 62% (!) of their paycheck to housing and transportation. That is higher than any other city in the nation.

Yes, subsidized housing take taxes and puts them into buildings where teachers, firefighters, elderly pensioners and poor working families can live. This means that we need to put less money into highways, parking lots, and sprawl to bring those people from other areas to the city.

cec
5 years ago

Affordable housing means stealing money from people who are economically productive and giving it in the form of subsidized housing for people who are not as productive. A brick costs the same whether its is included as an element in a 25 million dollar penthouse as it does in a public subsidized apartment house. The only way “low income housing” is practical is to build it on cheaper land which means not in the center of a city.