Miami-Dade Legislative Item
File Number: 090516
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File Number: 090516 File Type: Resolution Status: Withdrawn
Version: 0 Reference: Control: Housing & Community Development Committee
File Name: URGE LEG INVEST FLA RETIREMENT SYSTEM IN AFFORDABLE HOUSING Introduced: 2/25/2009
Requester: NONE Cost: Final Action:
Agenda Date: Agenda Item Number: 11A
Notes: NOTE TO CAO: Item in Commissioner's Folder Title: RESOLUTION URGING THE FLORIDA LEGISLATURE AND THE STATE BOARD OF ADMINISTRATION TO EXPLORE INVESTING SOME FLORIDA RETIREMENT SYSTEM FUNDS IN AFFORDABLE HOUSING TO THE EXTENT PERMITTED UNDER FEDERAL LAW
Indexes: AFFORDABLE HOUSING
  LEGISLATURE
Sponsors: Audrey M. Edmonson, Prime Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Housing & Community Development Committee 3/11/2009 2C Withdrawn
REPORT: Assistant County Attorney Cynthia Johnson-Stacks read the foregoing proposed resolution into the record. It was moved by Chairwoman Edmonson that the foregoing proposed resolution be forwarded to the Board of County Commissioners (BCC) with a favorable recommendation. This motion was seconded by Commissioner Sorenson, for discussion. Commissioners Martinez, Rolle, Souto, and Vice Chairwoman Jordan spoke in opposition to this resolution and expressed their concerns with how this legislation would affect employees’ retirement plans and the level of risk involved. Chairwoman Edmonson withdrew the foregoing proposed resolution and resumed the Chair.

County Attorney 2/25/2009 Referred Housing & Community Development Committee 3/11/2009

County Attorney 2/25/2009 Assigned Jess M. McCarty 3/4/2009

Legislative Text


TITLE
RESOLUTION URGING THE FLORIDA LEGISLATURE AND THE STATE BOARD OF ADMINISTRATION TO EXPLORE INVESTING SOME FLORIDA RETIREMENT SYSTEM FUNDS IN AFFORDABLE HOUSING TO THE EXTENT PERMITTED UNDER FEDERAL LAW

BODY
WHEREAS, finding affordable housing continues to be difficult for low and moderate-income families in Miami-Dade County and across the State of Florida; and
WHEREAS, federal housing programs, especially those that typically serve individuals with the lowest incomes, have experienced significant budget reductions in recent years, placing increasing pressure on state and local governments to provide affordable housing assistance; and
WHEREAS, the State of Florida receives documentary stamp tax revenues on deeds and mortgages, a portion of which are deposited into the State Housing Trust Fund and the Local Government Housing Trust Fund for the purpose of funding affordable housing; and
WHEREAS, during the recently-concluded 2009 Special Session A, the Florida Legislature diverted $190 million from affordable housing funds administered by the Florida Housing Finance Corporation (FHFC) to the state’s general revenue fund to help close a $2.3 billion budget gap; and
WHEREAS, housing expenditures are heavily leveraged with private sector equity, bank loans, and federal funds, bond allocation, and tax credits; and
WHEREAS, FHFC estimates that, on average, each $1 million of state funding creates over $6 million of housing, over $10 million in total economic activity, and hundreds of jobs; and
WHEREAS, the Florida Legislature will return in March for the 2009 regular session, and current projections indicate that the Legislature will need to close another budget gap as high as $5 billion; and
WHEREAS, there is still approximately $100 million left in Florida’s affordable housing trust funds after the recent $190 million fund diversion, all or part of which is highly susceptible to being diverted by the Legislature during 2009 regular session; and
WHEREAS, it is imperative that new sources of revenue be found to fund affordable housing; and
WHEREAS, the Florida Retirement System (FRS) Pension Plan and FRS Investment Plan, which together represent approximately three-fourths of the $124 billion in assets managed by the SBA as of October 31, 2008; and
WHEREAS, the State Board of Administration (SBA) has responsibility for the oversight of FRS, and consists of the Governor, the Chief Financial Officer and the Attorney General, and
WHEREAS, FRS receives employer contributions from approximately 950 employers, including the state, counties, school districts, universities, community colleges and some cities, with the state share of FRS totaling approximately 25 percent of total annual contributions and the remainder coming from other government sources; and
WHEREAS, investment decisions for the FRS Pension Plan are made by fiduciaries hired for that purpose by the state, while investment decisions for the investment plan are made by individual employees who may design their own portfolios based on participating offering companies; and
WHEREAS, the State of Florida has adopted federal fiduciary standards for management of the FRS funds, including the Employee Retirement Income Security Act of 1974 (ERISA), which is regulated by the U.S. Department of the Treasury and is the Florida standard for management of FRS funds; and
WHEREAS, the Trustees of the SBA and all fiduciaries who manage Florida FRS funds are bound by law to follow the standards established in ERISA, and the SBA investment managers are contractually bound to follow all applicable federal and state laws in performance of their services to the state; and
WHEREAS, if even a small part of the $124 billion in assets managed by the SBA on behalf of Florida public sector employees is invested in affordable housing in Florida, a substantial number of affordable housing units could be built; and
WHEREAS, investing some of the funds managed by the SBA in affordable housing also could put these funds back into the communities where they are generated and create jobs and economic activity that could improve local economies in Florida,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:
Section 1. Urges the Florida Legislature and the State Board of Administration to explore investing some Florida Retirement System funds in affordable housing to the extent permitted under federal law.
Section 2. Directs the Clerk of the Board to transmit certified copies of the resolution to the Governor, Attorney General, Chief Financial Officer, Senate President, House Speaker, Chair and Members of the Miami-Dade State Legislative Delegation and the Executive Director of the State Board of Administration.
Section 3. Directs the County's state lobbyists to advocate for the legislation set forth in Section 1 above, and authorizes and directs that the 2009 and 2010 state legislative packages be amended to include this item.



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