Hot Issues

Elections Won for Unopposed Candidates

Last Friday was the qualifying deadline for candidates seeking political office.  Although the majority will be contested, there were a few instances where only one candidate filed for the position.  As a result, some lucky office seekers automatically won their election.

Since they are unopposed, the following candidates in the tri-county area have already won office:

 

Orange County

Geraldine Thompson, Florida House District 39

Steve Precourt, Florida House District 41

Bill Segal, County Commission District 5

Martha Haynie, Comptroller

Kat Gordon, School Board District 5

Nancy Robbinson, School Board District 6

 

Osceola County

Cindy Lou Hartig, School Board District 3

Patsy Heffner, Tax Collector

 

Seminole County

David Johnson, Property Appraiser

Don Eslinger, Sheriff

Ray Valdes, Tax Collector

Bob Dallari, County Commission District 1

Brenda Carey, County Commission District 5

Governor Signs HBA Priority Bills
Governor Charlie Crist recently signed two important construction-related bills into law – SB 2860 related to property insurance – a top legislative priority of the Association – and HB 105 regarding secondary metals recyclers.

Property Insurance: considered an "unfinished business" item, the new property insurance law freezes Citizens Property Insurance rates until 2010. Secondary Metals Recyclers: Representative Troutman’s HB 105 requires all metal dealers to keep accurate records of all metal sales, deterring thieves from bringing stolen items to legitimate secondary metal dealers.

State Budget Includes Funding for Study on Conventional Septics
On June 11^th, Governor Crist signed the state’s FY 2008-09 budget.   Although many feared he might, the Governor did not exercise his line-item authority to veto the $1 million for the nitrogen reduction septic tank study, which the HBA championed this year.  

The study, once completed, aims to offer residents of the Wekiva Study Area more flexibility in complying with potentially mandated replacement and maintenance costs from Department of Health rulemaking. Potentially this will produce significant savings to homeowners and future homebuyers that will have low cost alternatives to expensive and unproven performance-based treatment systems.

HBA Campaign School on June 10^th
Open to everyone, the HBA Campaign School is designed to give candidates seeking elective office (and anyone interested in learning how campaigns work) the winning edge.  Highly recommended by several local elected officials, this one-day school is taught by state and national campaign experts who will share their secrets, success stories, and show participants the latest technologies to reach voters.

The school will be held in the HBA’s boardroom Tuesday, June 10th from 8:30 a.m. to 4:30 p.m.  The cost is $10 for HBA members and includes all materials (campaign manual, sample mail pieces, handouts, etc.) and lunch.

Please email Rick McKee if you would like to participate (or learn more) at Rick@HBAofMetroOrlando.com

Legislative Session Review Scheduled for May 28th
The HBA of Metro Orlando will be hosting the FHBA's Legislative Session Review on Wednesday, May 28th from 10:00 a.m. to 3:00 p.m. at our Maitland office.

On May 2nd, the 2008 Legislative Session ended with state lawmakers passing legislation that position Florida's homebuilders for success. David Hart, FHBA's Vice President of Legislative and Governmental Affairs, along with FHBA Governmental Affairs Chair Bill Paul (Tampa) and Vice-Chair Suzanne Graham (Charlotte), will lead this post-session update and will discuss newly approved legislation impacting the homebuilding industry. 

If you are interested in attending this HBA members-only briefing, please RSVP to Robin Erb, FHBA Governmental Affairs Assistant, at rerb@fhba.com or 850/224-4316.

2008 Legislative Session Summary of Home Building Industry Issues 

Affordable/Workforce Housing
In addition to the $243 million appropriated to the Sadowski Affordable Housing Trust Funds, lawmakers appropriated an additional $60 million, of which $22.5 million in non-recurring funds is designed specifically for down payment assistance. The additional down payment assistance is directly linked to a 25 percent reduction in impact fees. (See Impact Fees for more details.)

Building Code/Mitigation (Energy)
The Florida Building Code is the one regulation that touches every single builder in the state. The importance of this document is not lost on anyone within the industry. Under new legislation passed this session, builders will soon enjoy two different paths to achieving energy efficiency - the Florida Energy Code and, eventually, the International Energy Conservation Code.  Additionally, future increases in energy efficiency must be based on a true cost-benefit analysis. This legislation also repeals an ill-conceived Coastal Code Plus standard as adopted by the Florida Building Commission that poses potentially negative consequences. It amends current wind maps, and allows for new wind maps to be adopted with new code updates, and it increases public input and citizen testimony before voting on changes to the Code.

Impact Fees
Impact fees will be reduced by 25 percent if counties and municipalities wish to obtain down payment assistance dollars for their affordable housing programs. Under specific language within the 2009 budget, the 25 percent impact fee reduction must be for a period not less than 18 months and have occurred not more than 12 months prior to the adoption of the state's 2009 budget in order to be eligible for the funding. Local governments, which impose no impact fees or wave impact fees entirely for homeownership purposes may also qualify.

Onsite & Springshed Protection
Lawmakers have set aside $1 million from the Water Protection and Sustainability Program Trust Fund for the Florida Department of Health (DOH) to develop cost-effective nitrogen reduction strategies - an anticipated three-year project designed to develop passive strategies for nitrogen reduction that complement the use of conventional onsite wastewater treatment systems. The DOH's Research Review and Advisory Committee will spearhead this project which will include: 1) a comprehensive review of existing or ongoing studies on passive technologies, 2) field-testing of nitrogen reducing technologies at actual home sites for comparison of conventional, passive technologies and performance-based treatment systems to determine nitrogen reduction performance, 3) documentation of all capital, energy and life-cycle costs of various technologies for nitrogen reduction, 4) evaluation of nitrogen reduction provided by soils and the shallow groundwater below and down gradient of various systems, and 5) development of a simple model for predicting nitrogen fate and transport from onsite wastewater systems. A progress report will be presented to the Governor, Senate President and House Speaker on February 1, 2009, and include recommendations for funding additional phases of the study. Additionally, the DOH will provide a report to the same elected officials by October 1, 2008 which identifies the range of costs to implement a mandatory statewide five-year septic tank inspection program to be phased in over 10 years in accordance with the Department's procedure for voluntary inspection, including use of fees to offset costs. From the research fees collected, $150,000 will be used by the DOH to provide a statewide inventory of onsite treatment and disposal systems.

Administrative Procedures Act
For the second year in a row, FHBA was successful in passing legislation that will reduce and eliminate unlawful state agency non-rule policies. Over the years there have been increased activities by state agencies to try and implement and apply unlawful, non-rule or desk-drawer policies on development. These are agency policies that have not gone through the formal transparent rulemaking process. Under just-passed legislation, state agencies must formally go through the rule making process and formally adopt desk-drawer agency policies. It provides incentives for agencies to go through the rule-making process and penalties for those that do not.

Florida Forever
Under legislation passed extending the Florida Forever successor program beyond its 2010 expiration, threatened wildlife species can now be relocated to state conservation lands from development sites. This component of the legislation was supported not only by FHBA, but also by state agencies and environmental groups. The legislation will reduce the cost of mitigating for imperiled species and conversely reduce the cost of developing land. It's good for the environment and for home builders.

Property Insurance/Mitigation
Considered an "unfinished business" item by FHBA members, lawmakers passed a property insurance/mitigation bill that provides hurricane mitigation premium credits that are tied to a uniform home rating scale. Additionally, it freezes Citizens Property Insurance rates until 2010, and provides for a capital build-up incentive program design to reduce the state's exposure. Finally, this bill moves towards market-based response, and addresses various issues relating to rate filings.

While FHBA members found tremendous success on its top priorities, growth management and property taxes were the only two items that didn't survive the 60-day Legislative Session.

Property Taxes
Despite all the rhetoric that more would be done on property taxes after the passage of Amendment 1, the issue never picked up steam in the Florida Senate. FHBA thanks Speaker Marco Rubio and the Florida House of Representatives for passing several property tax reform measures. Despite their great efforts, the measures were not taken up by the Senate.

However, the Taxation and Budget Reform Commission (TBRC) approved a measure that would provide a 25 percent savings on property taxes if voters approve the plan during the November election. 

The Commission, which has the power to put constitutional amendments before voters, developed a measure that swaps a third of a homeowner's property tax bill for a penny increase in the sales tax. Specifically, this amendment calls for abolishing the portion of property taxes that pay for schools - the Required Local Effort - by 2010. An estimated $9.6 billion portion of property taxes the state requires to pay for schools would be eliminated. School districts could continue to levy other property taxes if they have been approved by voters in the past. This measure will appear as a proposed constitutional amendment on the November ballot.

Growth Management
Growth management was alive and well throughout session, but died on the final day of session because of a stalemate between the House and Senate.

The Senate's growth management bill included much-desired school concurrency language that would have gone a long way toward allowing portables to be counted as additional capacity. Furthermore, it included an impact fee amendment that would have changed the law defining how judges could consider legal challenges to impact fee increases by local governments. Currently, local governments get the benefit of the doubt and a legal challenge to the methodology or amount is nearly impossible to win. The amendment would have leveled the playing field by requiring judges to give neither side deferential treatment in rendering an opinion. Finally, the industry would have received a fair shot.

Study on Conventional Septics Awaits Governor's Signature
By Representative Bryan Nelson

The 2008 legislative session has officially concluded, and despite a year filled with difficult budget implications, we were able to succeed in passing some of our top priorities on to the Governor for his signature, including funding for a needed study on traditional septic tank improvement.

Proviso language providing much needed research on conventional onsite sewage treatment and disposal systems was included in the Legislature's final conference committee report on the fiscal year 2008-2009 General Appropriations Act.

The study, once completed, aims to offer residents of the Wekiva Study Area more flexibility in complying with potentially mandated replacement and maintenance costs from Department of Health rulemaking. The proposed rule would require homeowners to replace failed systems with a $15,000 - $20,000 performance based system that can cost hundreds of dollars each year to operate.

Residents that were slated to be required to replace their current septic systems with expensive performance-based systems would benefit significantly. The language included in the state budget provides for needed research into cost-effective methods to reduce nitrogen in Florida's waterways by looking at ways to improve existing septic systems.

Residents that could be affected by rulemaking from the 2004 Wekiva Parkway and Protection Act could have a variety of more cost-effective methods for nitrogen reduction available to them upon completion of the study.

The budget language also directs the department to prepare a report on the best way to establish a mandatory statewide inspection program for onsite sewage treatment and disposal systems, aimed at prolonging system functionality and preventing pollution incidents.

State Representative Bryan Nelson represents House District 38 in the Florida House of Representatives.

Congressional Visits Scheduled for April 30th
Early next week, HBA leaders travel to Washington, DC for the NAHB Spring Legislative Conference. On Wednesday, April 30th, Association leadership will meet one-on-one with Central Florida's Congressmen to advocate industry legislation including a Homebuyer Tax Credit, expansion of the Mortgage Revenue Bond Program, FHA Modernization, and GSE reform.

Legislative Visits Have Impact
Shortly after HBA leaders returned to Orlando from the State Capitol, the Senate Growth Management Bill was unveiled and included language addressing several of our local Association's priorities. This is clear evidence our local HBA leaders made a positive impact in their recent legislative visits. Please be sure to thank our members who made the trip to Tallahassee.

HBA Leaders Meet with Area Legislators
After traveling to Florida's Capitol in early April, Association leaders met one-on-one with Central Florida legislators to advocate industry legislation in the 2008 Legislative Session. The top issues covered included Affordable Housing, Building Code/Energy Code, Growth Management/Impact Fees, Onsite and Springshed Protection, and Property Tax Reform. The message Association leaders conveyed included:

Message to Legislators on Affordable Housing
With the Legislature in need of $3 billion to balance the budget, the Sadowski Act funds are being eyed as a target. The available Sadowski Act funds should be used for their intended purpose, affordable housing. This fund has already contributed $96 million to general revenue due to the effects of the cap. Please use these funds solely for affordable housing.

Building Code/Energy Code Message to Legislators
The state needs to adopt the International Energy Conservation Code as an alternative to the existing Florida Energy Code. However, mandates to increase the energy code must be accompanied by a true cost benefit analysis for the homeowner to benefit.

Growth Management/Impact Fees Message to Legislators
Changes need to be made to the Growth Management Act that address transportation concurrency, school concurrency and impact fees that will result in a less burdensome process. Further changes to impact fees should include burden of proof and benefit tests. In addition, new development must not be charged for the cost of existing facility deficits.

Onsite and Springshed Protection Message to Legislators
The homebuilding industry supports the provisions in Representative Bryan Nelson's HB 975 relating to Onsite and Springshed Protection. There should not be any expansion of complex costly performance-based septic tank treatment systems until a study is completed.

Property Tax Reform Message to Legislators
Property tax reform continues to be one of the Home Builders Association's top issues. We thank the House members for supporting legislation by Representative David Simmons and we strongly urge the Senate members to adopt this legislation.
 

Priority Legislation Moves Forward
The Florida Legislature has just completed week four of the 2008 Legislative Session and one of the Association's seven priority issues- Onsite and Springshed Protection- has cleared an important legislative hurtle. The House Environmental Protection Committee unanimously approved the important onsite wastewater treatment system bill HB 975.

To address efforts by state agencies to mandate the installation of expensive, untested, septic systems that could add up to $20,000 to the cost of new homes in areas like the Wekiva Basin, Apopka's Rep. Bryan Nelson filed HB 975. Supported by the HBA, this legislation would require the Florida Department of Health to conduct a study to evaluate sewage systems, provide regular inspections of these systems, and establish a grants program offsetting the cost of the systems to low-income property owners.

Background Information
These unproven systems result in unnecessary financial burdens on homeowners and most likely actually adversely affect Florida's environment and water resources. The Association supports the continued use of conventional septic tank systems that provide an environmentally friendly and cost-effective sewage disposal method for homes that can't be reasonably served by community sewer systems. In addition, the HBA also supports more cost-effective passive technologies to address the minimal nitrogen affects of conventional septic tank systems.

Let Us Vote Is Half Way There
On Monday, Let Us Vote turned in over 25,000 signed petitions, about half the number needed to get the elected school board chairman decision in front of voters on the August primary election ballot. If successful, Orange County voters would decide whether or not to add an additional school board member that would be elected countywide and serve as Chairman.

Orange County Rolls Out The Green Carpet
On Tuesday, March 4th; the Orange County Commission approved a plan to streamline the permitting process for development projects, which incorporate recognized green building standards. No specific threshold was established to receive the expedited service, as county officials desire flexibility in rewarding green builders and developers for what they are able to fit in.

City of Kissimmee Will Host Public Input Meeting Regarding Proposed C.R.A.O. Design Manual
The City of Kissimmee Development Services Planning Division will host a public input meeting regarding the proposed City of Kissimmee Design Manual for the Community Redevelopment Agency Overlay (C.R.A.O.) District. The meeting will be held on Monday, March 3 in the Commission Chambers of Kissimmee City Hall located at 101 N. Church Street in Kissimmee.

Design professionals, such as engineers, architects, planners, etc., are encouraged to attend from 2:00 p.m. - 4:00 p.m. Business owners, residents and real estate brokers are encouraged to attend from 6:00 p.m. - 8:00 p.m.

Osceola Discards School Impact Fee Study
Osceola County Public Schools has decided to discard a school impact fee study recently done by Henderson, Young and Associates. After reviewing the Association's concerns regarding the study's data, the School District's Assistant Superintendent explained, "we believe it's best not to implement it at this point mainly because the data is old and trends have changed."

The updated School Impact Fee ordinance will move forward without a fee increase, although some revisions are expected such as moving collection of the fee from CO to permitting.

BUILD-PAC Suspends Contributions to Congressional Candidates
On February 12th, the National Association of Home Builders' Political Action Committee, BUILD-PAC, and its 150-member Board of Trustees representing all 50 states, agreed to cease all approvals and disbursements of BUILD-PAC contributions to federal congressional candidates and their PACs until further notice.

The President of the National Association of Home Builders (NAHB), Brian Catalde, said, "This extraordinary action was taken because the NAHB BUILD-PAC Board of Trustees felt that over the past six months Congress and the Administration have not adequately addressed the underlying economic issues that would help to stabilize the housing sector and keep the economy moving forward. Housing and related industries account for more than 16 percent of the Gross Domestic Product. More needs to be done to jump-start housing and ensure the economy does not fall into a recession. This action will remain in effect until further notice."

Hometown Democracy Derailed
On February 1st, we won a major victory when the Division of Elections announced that the Hometown Democracy Amendment had not qualified for the 2008 ballot, falling short by 65,000 signatures. By rallying our membership and raising the necessary funds, the HBA and other coalition organizations successfully derailed Hometown Democracy in 2008, avoiding a massively expensive presidential election year battle. In addition, we have helped build a formidable campaign organization that will go on to defeat the amendment in 2010.

School Board Says Yes to FISH Capacity
At their January 28th work session, the Orange County School Board decided to go with the Stakeholders Committee recommendation to use FISH* capacity, not to exceed core, as the method of measuring school capacity for concurrency purposes. In addition, board members were very amiable to the Association's request to provide the data and underlying assumptions upon which the school concurrency process is based, once it has been complied by OCPS staff. Association leaders applauded these actions by the school board.

NOTE: The Florida Inventory of School House (FISH) Capacity is the official statewide measure of capacity and is considered by many as more objective and less prone to manipulation.

Voters Say Yes to Amendment 1
The passage of Amendment 1 will do the following:

Allow homesteaders to transfer up to $500,000 of their Save Our Homes benefit to another home,

• Increase the homestead exemption for residential property that applies to all tax levies except schools,
• Create a new $25,000 tax exemption on tangible personal property for businesses, which mostly means office equipment, and

Limit future assessment increases on non-homesteaded property to 10 percent, excluding school taxes.

New Orange County School Impact Fee Rate Effective January 28, 2008
In two weeks, the revised Orange County School Impact Fee rate takes effect. The $4,829 fee increase (from $7,000 to $11,829 for SFR) will be applied to any building permit issued on or after January 28, 2008. Please note that the last business day for the old School Impact Fee rate will be Friday, January 25th.

Brainstorming with Congressman Mica
At a January roundtable discussion, HBA leaders spent well over an hour with Congressman John Mica brainstorming on how the federal government could help reinvigorate the housing industry. Ideas discussed included FHA modernization, allowing GSEs into the jumbo market, and new homebuyer tax credits. Congressman Mica promised to do his best to make sure housing and homebuilding are addressed in any economic stimulus package Congress moves forward.

New Law Improves Energy Efficiency
The Energy Independence and Security Act, recently signed into law by President Bush, will affect the home building industry with its inclusion of renewable energy and green building provisions. According to a summary of the bill provided by Energy Priorities magazine, the legislation improves the efficiency requirements of consumer appliances such as dishwashers, clothes washers, and refrigerators, and requires the implementation of energy-efficient lighting.  

Title X of the Act details the Energy Efficiency and Renewable Energy Worker Training Program developed to create a workforce of "green collar" laborers skilled in the installation and maintenance of solar equipment. Funding to support research for advanced energy technologies, including marine renewable energy, geothermal energy, and hydrogen energy will be made available.