Matthew Rieger

President andCEO HousingTrustGroup CoconutGrove Rieger said a proposed federal bill to increase9percent low-income tax credits would go a longway toward solving the problem.

Tax credits furnish roughly 80 percent of the capital needed to build a typical affordable housing project, Rieger said. The credits provide dollar-fordollar offsets on tax bills, and developers often sell those rights to banks and other entities for the equity needed to build affordable homes and apartments.

“The tax credit is the most important tool we have as developers,” he said.

Aside from the tax credits, Rieger cited a need for more dedicated local resources, including partnerships among cities, counties and nonprofit agencies.

He also implored Florida lawmakers to stop raiding a statewide trust fund created in 1992 to ease what thenlegislators saw as a looming housing affordability issue.

The Sadowski trust was built through a 10-cent increase per $100 on documentary stamp fees on real estate transactions. The money was earmarked for affordable housing programs.

In the past decade, though, lawmakers have taken $1.3 billion of the $1.8 billion fund to cover budget shortfalls and pet projects, Rieger said.

“It’s the definition of wrong,” Rieger said. “We are in a crisis.” while the cost of accounts for about 25 Trella said.

So to turn a standard 10 percent profit, a builder has to keep the remaining costs — marketing, sales commissions, indirect expenses — under15 percent.

“That is a struggle,” said.

While builders must find ways to be more efficient, making housing affordable starts with higher wages fromlocal governments and private employers, Trella said.

His personal opinion is that the economy and the housing industry would greatly benefit if more employers were to take chances and increasewages by 3 to 5 percent.

“To get out of this logjam, we need to deal with the entire subject,” Trella said. “We lose an abnormal amountof college graduates in a lot of fields because they can’t afford to stay and live here. People need to make more money.” land percent, he