What is the SAIL Program in Florida?
The State Apartment Incentive Loan (SAIL) program in Florida is a key state initiative aimed at boosting the supply of affordable rental housing. It provides gap financing through low-interest mortgage loans to developers—including for-profit, non-profit, and public agencies—undertaking the construction or significant rehabilitation of multifamily developments. These loans help developers cover the difference between a project's total cost and its primary funding, making affordable housing projects financially feasible for specific low-income populations.
How the SAIL Program Works
The Florida Housing Finance Corporation administers the SAIL program through an annual competitive application cycle. Developers apply and their proposals are evaluated based on criteria like funding availability, project viability, use of other resources, and the development team's experience.
Key Features of SAIL Loans:
- Loan Duration: Typically up to 15 years, with possible extensions based on housing credit or FannieMae requirements.
- Loan Amount Limits: Generally capped at 25% of the total development cost, with potential for higher limits for non-profit organizations.
- Interest Rates: Rates are set annually, with potential for 0% interest for projects serving specific groups like farmworkers, commercial fishing workers, or the homeless.
- Affordability Commitment: Many applicants commit to keeping units affordable for 50 years, significantly longer than the required 15-year minimum.
Introducing Innovative SAIL and the Live Local Act
The Live Local Act of 2023 introduced the Innovative SAIL program, expanding Florida's efforts in affordable housing. This program focuses on funding innovative, large-scale projects with regional impact. While initially planned with dedicated long-term funding, it now relies on annual legislative appropriations.
Innovative SAIL supports projects that:
- Redevelop existing affordable housing.
- Target urban infill and convert obsolete buildings.
- Include mixed-use development with commercial or retail components.
- Provide housing and services for veterans near military bases.
- Utilize public lands for housing.
- Address the needs of youth aging out of foster care and seniors.
Who Benefits from SAIL?
The SAIL program ultimately benefits very-low-income Florida residents by increasing the availability of affordable rental units. While developers receive the loans, the program requires that units be set aside for specific income-qualified populations. These include: seniors, farm and fishing workers, homeless individuals and families, and very-low-income families. For details on set-aside requirements and target populations, refer to the {Link: Jacksonville DIA website https://dia.jacksonville.gov/doing-business-with-us/doing-business-with-dia/residential-incentives/state-apartment-incentive-loan-program-(sail)}.
SAIL vs. Innovative SAIL: Key Differences
A table outlining the key differences between the traditional SAIL program and the Innovative SAIL program (under the Live Local Act) can be found on the {Link: Jacksonville DIA website https://dia.jacksonville.gov/doing-business-with-us/doing-business-with-dia/residential-incentives/state-apartment-incentive-loan-program-(sail)}. It covers aspects like main objectives, funding sources, beneficiaries, and project types.
Applying for SAIL Funding
Developers interested in SAIL funding must participate in the competitive Request for Applications (RFA) process held annually. The Florida Housing Finance Corporation provides specific guidelines and materials for applicants.
Projects must meet certain set-aside requirements to ensure units are affordable. For example, at least 20% of units must be for residents earning 50% or less of the area median income. Specific requirements for projects using Housing Credits are available on the {Link: Jacksonville DIA website https://dia.jacksonville.gov/doing-business-with-us/doing-business-with-dia/residential-incentives/state-apartment-incentive-loan-program-(sail)}. All procedures are detailed in Florida Administrative Code, Rule 67-48.
Conclusion
In conclusion, understanding what is the sail program in Florida? reveals a vital state effort to combat the affordable housing shortage. The traditional and Innovative SAIL programs provide essential gap financing, enabling developers to create and maintain high-quality, affordable rental properties for various vulnerable groups, including seniors. This ongoing commitment is a key part of Florida's strategy to ensure housing stability for its residents.
For more detailed information, developers and the public can visit the official website of the Florida Housing Finance Corporation.
