MAYOR MANNY DIAZ & COMMISSIONERS BEGIN BOLD AFFORDABLE HOUSING EFFORT

 

Ambitious Plan Would Protect and Preserve Working Class Housing

 

September 12, 2005 - (Miami, FL) - During a press conference held today at the Callahan Plaza Apartment Complex in Miami’s Allapattah neighborhood, Mayor Manny Diaz, Commission Chairman Joe Sanchez and Commission Vice-Chairman Angel Gonzalez announced the beginning of a coordinated effort to change the methodology used by Miami-Dade County’s property appraiser in its valuation of multi-family rental housing for low or moderate income persons.

 

“Unfair appraisals of multi-family rental housing units for low and moderate income persons are driving up property taxes. In turn, this burden is being passed to tenants,” said Mayor Diaz. “We are at a critical stage – in spite of our efforts, the affordable housing market in Miami is being wiped out.  The property appraiser can and should value these properties by their income, not by speculative land costs.”

 

This effort will have a profound impact on reducing rentals costs in all of Miami-Dade County. The property appraiser has several methods by which to base the value of multi-family rental housing for low or moderate income persons, including comparable sales prices and land values.  An option that is currently not being given sufficient weight is basing value on the income derived from these properties.  This option is available to the property appraiser as outlined in existing Florida Statutes.

 

The announcement follows a resolution, proposed by the Mayor and adopted unanimously during a meeting last week of the City Commission, which calls on the property appraiser to base valuation of affordable rental property for low or moderate income persons on the income derived from the property.  The Mayor’s resolution also directs further steps, including urging the State of Florida to amend legislation for this effort and to authorize Miami’s City Attorney to pursue potential legal action protecting renters from inflated and unfair valuation.

 

This effort comes on the heels of Mayor Diaz’s annual budget address in which he announced further reductions to the City’s millage rate, both protecting homeowners from rising property values and delivering an actual reduction in their property taxes. Yet, as a result of the Miami-Dade County property appraiser’s current methods, the value of many affordable rental properties in the City of Miami have tripled in the past few years.

 

“The current method used to appraise affordable rental properties is unfairly affecting our low and moderate income families. Given the additional economic hardships as a result of today’s higher cost of living, we must do everything in our power to protect these residents from potentially irreparable harm,” added Commission Vice-Chairman Angel Gonzalez.

 

“This proposal can potentially serve as a model in addressing affordable housing needs throughout the country,” added Mayor Diaz.

 

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