Affordable Housing Prepared for: Affordable Housing Committee, Greater Fort Lauderdale Chamber of...

Affordable Housing

Prepared for: Affordable Housing Committee, Greater Fort Lauderdale Chamber of Commerce

Prepared by: Carras Community Investment, Inc. James Carras & Mandy Spangler

Comments: [email protected]

Greater Fort Lauderdale

April 1, 2005

Draft for comment only

mailto:[email protected]




IntroductionLocal Real Estate Market

Introduction

Housing Need

Best Practices

Case Study

Next Steps

• Rapid growth in real estate market:

• Low interest rates

• Reinvestment in central cities

• Aging baby-boomers seeking homes

• Immigration and outside investment

• Deflation of $

• Instability of South America

• Speculation

• Definitions:

• Affordable Housing costs < 30% of a household’s income

• Moderate Income is <120% of median

• Low Income is <80% of median

• Very Low Income is <50% of median

IntroductionDefinitions

Introduction

Housing Need

Best Practices

Case Study

Next Steps

In Broward County: Area Median Income (AMI) is $42,659 (2003)

1/5th of households spend >30% (2000)

Over 160,000 low and very low income families

Housing Need

• Reasons to act now:

• Demand is rapidly increasing housing costs

• Renewed residential investment in central cities

• Increased displacement of current residents

• Disconnect between areas of employment and places with affordable housing

• No new affordable housing is being created

• Developers are encouraged to build high-end residential

• Apartments are quickly converting into condominiums

• Federally funding is being significantly reduced

Critical Time

Introduction

Housing Need

Time

Cost

People

Benefits

Barriers

Best Practices

Case Study

Next Steps

Actual Housing Costs vs. Affordable Costs

Housing NeedHousing Costs

Source: Andy Dolkart, Miami Economic Associates, Inc.Based on 2003 numbers

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000Cost of New Home

Cost of New Condominum

Cost of Existing Home

Cost of Existing Condominum

120% AMI100% AMI80% AMI

Introduction

Housing Need

Time

Cost

People

Benefits

Barriers

Best Practices

Case Study

Next Steps

• “I need housing that is affordable”

• Teachers

• Police Officers

• Firefighters

• Nurses

• Corporate Salesperson

• Restaurant Staff

• Retail Employees

• Service Workers

• Senior Citizens

• Recent College Graduates

Housing NeedPersons Affected

Introduction

Housing Need

Time

Cost

People

Benefits

Barriers

Best Practices

Case Study

Next Steps

• Housing that is affordable ensures:

• Diverse population

• Retention of current residents

• Recruitment and retention of companies/employees

• Reduction in commute times and transportation costs

• Reduction in traffic congestion

• Land preservation

Housing NeedBenefits of Affordable Housing

Introduction

Housing Need

Time

Cost

People

Benefits

Barriers

Best Practices

Case Study

Next Steps

• Reasons why affordable housing is not being built:

• NIMBYism

• Government Regulations

• Exclusive Zoning

• Lack of Federal Funding

• Large cuts proposed to Section 8 and CDBG

• High Building Costs• Land Cost

• Bordered by Everglades and Atlantic• Construction Cost

• Increased since the hurricanes• Building Codes

Introduction

Housing Need

Time

Cost

People

Benefits

Barriers

Best Practices

Case Study

Next Steps

Housing NeedRestrictive Barriers

• Ways to encourage the development of housing that is affordable:

• Utilize good land use practices

• Update local zoning ordinances

• Acquire sources of long-term funding

• Develop partnership models

Best Practices

Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• Infill Development

• Restoration of existing structures or use of vacant land within urbanized areas

• Zero Lot Line (ZLL)

• Additional apartments added to current housing

Advantages: Density lowers land costs

Mixed use reduces infrastructure needs

Reduces sprawl and preserves land

Best PracticesLand

Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• Utilize good land use practices:

• Smart Growth & New Urbanism

• Development of mixed use, dense town centers

• Urban Growth Boundary

• Urban/Rural boundary is created to encourage dense, urban development and land preservation

Advantages: Density lowers land costs

Mixed use reduces infrastructure needs

Green building design lowers energy costs

Reduces sprawl and preserves land

Best PracticesLand

Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• Community Land Trust

• Separates the ownership of the house and the land

• Non-Profit organization owns land for future affordable housing development

• Offers long term leases to individuals, community groups, and businesses

Advantages: Permanent affordable homeownership Provides access to land, the most valued resources in development

Best PracticesLand

Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• Inclusionary Zoning

• Development of a percentage of the market rate units at affordable costs

• Incentives• Density Bonuses• Fee Waivers & Tax Abatements• Fast Track Permitting• Design Flexibility• Limit Requirements

• Alternatives• In-Lieu Payments• Off-Site Development• Land Dedication

Advantages: Permanent stock of affordable units from private market Integrate families of all income levels and eliminate pockets of high poverty neighborhoods

Best PracticesZoning

Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• Update local zoning ordinances:

• Trust Funds

• Funds generated through Real Estate Transfer Tax, Stamp Tax, or Bonds Permanent cash flow

• Double Bottom Line Development

• Investors driven by community development Satisfies both financial and social objective

• Conventional

• HOME, SHIP, CDBG, Low-income Tax Credits Federal allocations

Best PracticesFunding

Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• Acquire sources of long-term funding:

• Collaboration of stakeholders from diverse backgrounds within both the public and private sector

• Regional• City/County• Public/Private

Advantages: Information sharing Division of labor Utilize others strengths Improved efficiency and cost effectiveness Mutually beneficial outcomes

Best PracticesPartner

Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• Develop partnership models:

• Regional Partnerships

• California & New Jersey

• Fair Share Housing

• Each municipality is required to determine how to develop their “fair share” of the region’s housing needs

Reduces concentrations of povertyEncourages municipalities to enact policies

• Connecticut

• Consensus Building

• Municipalities that agree on a regional plan receive funding for infrastructure

Cities work in partnership with neighboring municipalities


Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

• City/County Partnership

• A Regional Coalition for Housing, Seattle Implement Regional Housing Trust Fund Created over 1,500 affordable units

• Public/Private Partnership

• Crawford Square, Pittsburgh• Urban Redevelopment Authority (public authority)• Hill District CDC (non-profit)• Hill Project Area Committee (residents)• McCormack Baron & Associates, Inc. (developer)• Urban Design Associates (planner)• City Councilmember (government)

Created 426 units in low-income neighborhood Retained 45% at affordable rates


Introduction

Housing Need

Best Practices

Land

Zoning

Funding

Partner

Case Study

Next Steps

Source: URA

of Pittsburgh

Introduction

Housing Need

Best Practices

Case Study

San Diego

Next Steps

Case StudySan Diego, California

• San Diego, California• Background:

• Population: 1,223,341 (2000)• 324.3 square miles• Large immigration – 25% foreign born• Vacation spot / resort area

• Causes:• Land locked• Historically high costs and low wages

• Current Crisis:• From 2000-2004, median home price doubled, while

median income increased only 10.4%• Average cost of a new home $781,000• Only 11% can afford median priced home • 1/5 of households spend >50% income on housing

Source: San Diego Housing Commission


• City council declared Housing State of Emergency (2002)

• Established affordable housing as a priority

• Affordable Housing Task Force (2002)• Analyzed current crisis and developed recommendations

• Comprehensive Affordable Housing Strategy Collaborative

• Governmental Agencies created partnership• San Diego Redevelopment Agency• San Diego Housing Commission• City Redevelopment Division• Centre City Development Corporation• Southwestern Economic Development Corporation

• Notice of Funding Availability (NOFA) – $55 million• Developers submit proposals for affordable housing

Introduction

Housing Need

Best Practices

Case Study

San Diego

Next Steps


• Inclusionary Zoning Ordinance (2002)• Residential developers of greater than 10 units are required to either set-aside 10% of the units as affordable or pay a fee in-lieu into the housing trust fund

• Condominium Conversion Laws (2004)• Owners converting apartments are subject to Inclusionary Zoning and tenants are offered relocation assistance from owners as well as first right to purchase

• Expedite Program (2004)• Developers of Affordable/In-Fill Housing can pay an optional fee to expedite permitting process

• Rental Assistance

• First Time Homebuyer Assistance

• Property Rehabilitation Assistance

Introduction

Housing Need

Best Practices

Case Study

San Diego

Next Steps


Advantages: 13,000 affordable homes 12,000 rental assistance 1,800 publicly owned affordable units 11,000 units renovated 4,000 homebuyers assisted

Introduction

Housing Need

Best Practices

Case Study

San Diego

Next Steps

Source: San Diego

Housing Commission

• Initiate public outreach and education programs• Affordable Housing Summit (September 2005)

Introduction

Housing Need

Best Practices

Case Study

Next Steps

Next Steps

• Initiate public outreach and education programs

• Develop public/private partnership among stakeholders

• Greater Fort Lauderdale Chamber of Commerce• Broward Alliance for Neighborhood Development (BAND)• Broward Task Force• FAU Design Collaborative• FAU Department of Urban & Regional Planning• Broward Workshop’s Urban Core Committee• Downtown Development Authority• Florida Redevelopment Association (FRA)• Urban Land Institute

Next Steps

Introduction

Housing Need

Best Practices

Case Study

Next Steps



• Determine applicable policy solutions• Land use (Infill Development, Smart Growth, Community Land Trust) • Zoning requirements (Inclusionary Zoning) • Regional policies (Fair Share Housing)

Next Steps

Introduction

Housing Need

Best Practices

Case Study

Next Steps



• Determine applicable policy solutions

• Advocate for policy change• City

• County

• State

• National

Next Steps

Introduction

Housing Need

Best Practices

Case Study

Next Steps




• Advocate for policy change

• Identify long term funding sources• Trust Fund

• Double Bottom Line Development

• Conventional Funding (SHIP, HOME, CDBG, etc)

Next Steps

Introduction

Housing Need

Best Practices

Case Study

Next Steps





• Identify long term funding sources

• Increase ability of residents to own homes while ensuring development of rental units for those who do not qualify as homebuyers

• Educational Events

• Homeowners Fair

Next Steps

Introduction

Housing Need

Best Practices

Case Study

Next Steps





• Identify long term funding sources

• Increase ability of residents to own homes while ensuring development of rental units for those who do not qualify as homebuyers

• Create new affordable units while preserving existing affordable housing

Next Steps

Introduction

Housing Need

Best Practices

Case Study

Next Steps

Affordable Housing Prepared for: Affordable Housing Committee, Greater Fort Lauderdale Chamber of...

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