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As part of the AHAC's analysis, the 28/36 rule was applied to varying income ranges starting with a single minimum wage job earning just under $18,000 per year up through a household earning $75,000 per year to determine maximum monthly housing payments by income category. That maximum housing payment information was compared to the development sales and rental prices for new single family and town home units currently available for sale and to newer rental project rent rates. This analysis found that there are currently no new single-family home or townhome purchase, options for households with annual incomes below $65,000 and found similarly that r there are no market rate rental apartment complexes options for households earning Less than. $50,000 to $55,000 per year. To quantify the issue, approximately 52%, or 30,000 households in Indian River County do not have a high enough income (assuming a FHA Mortgage with 3% down payment) to afford the lowest priced market rate new home option currently available in the County or to rent a market rate apartment. The problem gets worse when looking at projections to the future. Based on Census and County growth projections there will be a need for over 5,000 new housing units by 2030 that will not be built by developers of market rate developments (homeownership or rental). The AHAC found that the reason that new homes are not being built to be sold to households with annual incomes of less than $65,000 and why apartments are not being developed to address income ranges below $50,000 to $55,000 is purely economics. As evaluated in detail by the AHAC, the hard costs (land, overall site development costs, and building construction costs) and soft costs (impact fees, design and engineering costs, etc.) when combined drive the sales price of homes and rental rates of apartments to costs only sustainable by higher income groups. The AHAC reviewed potential options for reducing development costs and incentivizing affordable housing development (beyond the County's current methods) and on January 22, 2020, the AHAC completed its list of recommendations for BCC consideration (Attachment 1). That list includes recommendations for setting affordable housing development targets, revising the County's expedited permitting process and Land Development Regulations, reducing or eliminating impact fees, identifying vacant land and encouraging redevelopment opportunities, advocating for increased funding; and requesting municipalities within the County to review and modify their regulations to encourage affordable housing. At this time, the AHAC requests the BCC review and consider the list of recommendations and provide direction to staff and the AHAC. ANALYSIS The AHAC's 15 recommendations, along with a brief description and actions needed for implementation, are listed on Attachment 1. While some of these recommendations are straightforward and easy to implement, such as adopting targets and meeting regularly, others, such 107