Use windfall to fund affortable housing
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7/20/2008 - 7/20/08
In response to The New Mexican story titled "City gets $4 million tax windfall," I would like to strongly urge the city of Santa Fe to use these new, one-time-only funds to provide affordable housing options for essential workforce such as police officers, firefighters, emergency workers, hospital workers and teachers.
These monies are significantly more than will be provided by the newly adopted home transfer tax that the city is advancing for the March 2009 election.
In reviewing home sales data from 2008, January through June 30, the Santa Fe Association of Realtors conservatively extrapolates that approximately $331,000 could be collected yearly from the home tax, if enacted by the voters.
These funds will be further eroded by tax collection fees estimated at 5 percent, administrative fees of 10 percent, the hiring of full-time city staff to monitor and enforce the tax (two full-time employees were proposed by the City's Finance Committee), nonprofit and for-profit housing grant administrative fees estimated at 20 percent, and the cost of the March election stated to be $90,000.
Taking into consideration these additional costs, only $48,404 (about 1 percent of the $4 million windfall) would be available in new revenue to support local housing initiatives during the first year of implementation.
This pittance would only provide a handful of Santa Feans with the down payment assistance, or other financial aid needed to help essential workers buy a home.
I urge City Council to use the $4 million windfall to address housing affordability for our essential workers, and put an end to another tax in Santa Fe that will negatively impact homeowners.
The home-transfer tax will not meet the housing needs of the city, is not equitable, will increase the cost of homes and push development into the county creating more sprawl. With the large inventories and lowered prices of homes, the $4 million windfall could be strategically used to immediately empower residents to purchase and retain the hundreds of affordable homes available on the market in Santa Fe.
Let's increase and protect home ownership in Santa Fe.
Mary D. Schroeder is a qualifying broker with Prudential Santa Fe Real Estate and president-elect of Santa Fe Association of Realtors.