Housing Stimulus Bill Represents Victory for Industry

7/31/2008 - After months of negotiations, President Bush signed what many are calling the most significant housing legislation (H.R. 3221) in a generation on July 30, 2008. The bill has been one of our top priorities this year, and we are happy to report that as a result of our aggressive multi-month campaign, the final version represents a tremendous victory for the apartment industry and NAA/NMHC's Government Affairs program.

The measure includes several important victories for the apartment industry and represents what NAA/NMHC have long called for-a balanced approach to housing policy. Specifically, the measure trims several homeownership incentives and balances new single-family incentives with expanded rental housing incentives.

Detailed Report

Apartment Rents Fall on Florida's Treasure Coast

Digested From "Weakened Housing Market Causing Rent Prices to Fall" TCPalm (FL) (07/25/08) by Monique Mattiace

Amid continued weakness in the housing market, the average rent at an apartment community on Florida's Treasure Coast has declined. In the second quarter, RealFacts reports that the average two-bedroom, two-bath unit was going for $946 a month, an asking price $100 less than in the same period a year ago. The RealFacts report was not a surprise to housing analysts. Brad Hunter, director of Metrostudy's South Florida market, states, "The reason the rent is coming down is that there are so many single-family homes being rented for cheap." The biggest decrease was measured in the Port St. Lucie area where one-bedroom, one-bath apartments dipped 12 percent. Two-bedroom units, meanwhile, were off 9.6 percent. Since 2007, apartment occupancy has dropped 2 percent in the Treasure Coast area. According to RealFacts, the average monthly rent for all apartments in Florida is $968. The priciest place to rent is in Miami, where the average rent goes for $1,194 a month. The most affordable apartment markets are Palm Bay and Pensacola. Naples, meanwhile, posted the largest drop in rents (10 percent). Read the entire story at:

http://www.tcpalm.com/news/2008/jul/25/weakened-housing-market-causing-rent-prices-fall/

Early Lease Termination HB-1489

It is with great pleasure and pride for our industry that we announce Governor Crist has signed the Florida Apartment Association's (FAA) Early Termination Bill (House Bill 1489). The passing of this legislation is the culmination of years of persistence, diligence and patience.

The law change allows the landlord to offer tenants two options:

1. Limiting damages if the tenant skips (liquidated damages) or giving the required notice and paying a fee to terminate early (termination fee.)

2. Paying rent until the unit is re-rented or the end of the lease, whichever occurs first. The landlord benefits because if the tenant skips, the landlord can charge the liquidated damages. The tenant benefits because, if the tenant provides the required notice and pays the termination fee, the tenant can leave without breaching the lease.

This success would not have been achieved without the unrestricted communication with the Governor and our law makers. The FAA must continue to foster positive political relationships and impose our political relevance on Capitol Hill. Please assist in this endeavor by donating to the Apartment Political Action Committee (APAC) today by contacting the SEFAA office.

Thanks to our industry leaders who worked tirelessly to achieve this accomplishment. We also wish to thank our bill sponsors, Representative Pat Patterson and Senator Dave Aronberg.

Information addressing the background of the law, how it effects leasing practices, frequently asked questions and an action plan.

Affordable Housing Up for Debate in Coral Gables, Fla.

Digested From "Gables Commission OK's Affordable Housing Project"

Miami Herald (04/24/08) P. 4; by Elaine De Valle

Florida law requires Coral Gables to produce 437 affordable housing units during the next decade, which is proving to be a challenge for a city with high property values. State guidelines base affordable housing rates on neighborhood median income, meaning that the 35 affordable units slated for construction near the upscale Village of Merrick Park shopping complex will have monthly rents of $1,500 for one-bedroom units and close to $1,800 for two-bedroom units. However, local real estate consultant David Dabby and others are concerned that these rents do not differ much from market rates, coming in at about $1.67 per square foot for the one-bedroom units. Dabby states, "In today's market, for a brand new rental apartment, developers will try to average like $1.90 or $2 per square-foot, so in that sense it's a little below market. But in any building, the range is going to be $1.70 to $2.30." Meanwhile, Coral Gables planner Javier Betancourt says an affordable housing ordinance is in the works that would require developers to set aside low-cost units or pay for affordable units to be erected in other locales. Read the entire story at: naahq.informz.net

Deceased Tenant Law Signed

On June 15, 2007, Governor Charlie Crist signed Senate Bill 400, the Florida Apartment Association’s bill addressing the disposition of a unit and personal property following the death of a tenant.

FAA promoted this legislation because Florida law did not address the death of a resident or the abandoned property issues. In many cases, a Probate Estate is never opened, the unit is tied up, and any property cannot be discarded. The following provision has been added to section 83.59 of the Florida Statutes, “Right of Action for Possession”, and is now in effect:

(d) When the last remaining tenant of a dwelling unit is deceased, personal property remains on the premises, rent is unpaid, at least 60 days have elapsed following the date of death, and the landlord has not been notified in writing of the existence of a probate estate or of the name and address of a personal representative. This paragraph does not apply to a dwelling unit used in connection with a federally administered or regulated housing program, including programs under s. 202, s. 221(d)(3) and (4), s. 236, or s. 8 of the National Housing Act, as amended.

FAA recognizes the efforts of its general counsel, Harry Heist, and its Tallahassee lobbyists, Ron Book and Kelly Mallette, for crafting the language and shepherding the bill through the legislative process .

Please take a moment to thank our Senate and House sponsors:
Senator Gwen Margolis (D-Bay Harbor Island); Senate Bill 400
District Office: 305-993-3632; margolis.gwen.web@flsenate.gov
Representative Bill Galvano (R-Bradenton); House Bill 647
District Office: 941-708-4968; bill.galvano@myfloridahouse.gov