Editorial: Local Governments Should Take Advantage of Slowing Florida Housing Market

Recent housing headlines have been ugly: Foreclosures. Declining Florida mortgage activity. Low sales. Eroding home prices.

The bubbles have left the champagne, leaving a flat taste and an aching wallet for people who joined the Southwest Florida housing market party too late.

“Buy high, sell low” is not what investors had expected, but it’s what many of them are facing.

The end of “irrational exuberance” is never a happy time. But as the market levels off, opportunities arise to help the many people - mostly low- and mid-range workers - who were priced out during the boom.

Headlines aside, prices remain out of reach for many workers on the low end of the scale. For thousands of people, government-sponsored affordable housing help is as necessary today as it was during the height of the market.

Sarasota County has millions of dollars set aside for affordable housing; the city of Sarasota has pledged money as well. Spending some of it to acquire properties in today’s diminished market - taking steps to lock in permanent affordability - could help gain more bang for the buck.

While current housing prices are hardly at bargain levels, some condo-conversions - even new home construction in certain areas - are nearing the point where average workers could afford them.

Governments should stand ready to help. They can either acquire properties for placement in the nonprofit Community Housing Trust, or provide income-restricted down payment aid.

The down payment program (in which the recipient repays the money that helped secure the Florida mortgage loan if the house is resold) already operates here but could assist more buyers if it had more funding.

With the coming mixed-income redevelopment of public housing in north Sarasota, the city and county will have opportunities to subsidize new affordable units there.

But it’s also important to preserve existing, attainable homes in the private sector. Increased Florida home improvement loan funds and grants (repaid on resale) can further this goal.

The local Office of Housing and Community Development has such a program but, again, could help more people if the funding were increased.

Southwest Florida can’t enjoy good services and a good economy if its work force cannot afford to live here. Ways to help are within the community’s grasp - so let’s seize the opportunity.

SOURCE: Sarasota Herald-Tribune