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HomeMy WebLinkAbout2/27/1997MINUTES ATTACHED Board of County Commissioners 1840 25th Street s s Vero- Beach, Florida 32960 'toy' Telephone: (561) 567-8000 �M GA):DE D AGENDA AFFORDABLE HOUSING WORKSHOP FEBRUARY 27,1997 9:00 A.M. COMMISSION CHAMBERS COUNTY ADMINISTRATION BUILDING 1840 25TH STREET, VERO BEACH, FL 329( (561) 56748000, Ext. 490 I. INTRODUCTION AND LOCAL OVERVIEW Robert M. Keating, AICP, Director Indian River County Community Development Department H. OVERVIEW OF INDIAN RIVER COUNTY HOUSING ASSISTANCE PROGRAMS Larola Gamble, Director Indian River County Housing Authority III. STATE AND LOCAL AFFORDABLE HOUSING NEEDS ASSESSMENT William O'Dell, Research Associate Shimberg Center for Affordable Housing IV. LOCAL GOVERNMENT AFFORDABLE HOUSING REQUIREMENTS, STATE AFFORDABLE HOUSING PROGRAMS, LOCAL AFFORDABLE HOUSING INCENTIVES Susan Leigh, Executive Director Florida Housing Finance Agency V. OVERVIEW OF LOCAL GOVERNMENT HOUSING ASSISTANCE INITIATIVES IN FLORIDA, STATEWIDE AFFORDABLE HOUSING ISSUES, OPPORTUNITIES, BARRIERS, POLICY INCENTIVES, AND IMPACT OF SUBSIDIZED HOUSING ON A COMMUNITY Wight Greger, Technical Assistance Project Manager Florida Housing Coalition Arthur Fleming, FHC Board Member, Executive Director of the Community Financing Consortium, Inc. VI. DISCUSSION OF ISSUES BOOK M PAGE INDEX TO MINUTES FEBRUARY 27, 1997 SPECIAL MEETING OF BOARD OF COUNTY COMMISSIONERS AFFORDABLE HOUSING WORKSHOP . . . . . . . . . . . . . . . . . 1 I. INTRODUCTION AND LOCAL OVERVIEW . . . . . . . . . . . . 7 II. OVERVIEW OF INDIAN RIVER COUNTY HOUSING ASSISTANCE PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . 8 III. STATE/LOCAL AFFORDABLE HOUSING NEEDS ASSESSMENT 9 - IV. -IV. LOCAL GOVERNMENT AFFORDABLE HOUSING REQUIREMENTS, STATE AFFORDABLE HOUSING PROGRAMS, LOCAL AFFORDABLE HOUSING INCENTIVES . . . . . . . . . . . . . . . . . . . . . . 19 V. OVERVIEW OF LOCAL GOVERNMENT HOUSING ASSISTANCE INITIATIVES IN FLORIDA, STATEWIDE AFFORDABLE HOUSING ISSUES, OPPORTUNITIES, BARRIERS, POLICY INCENTIVES, AND IMPACT OF SUBSIDIZED HOUSING ON A COMMUNITY . . . . . 28 VI. DISCUSSION OF ISSUES . . . . . . . . . . . . . . . . . 33 Thursday, February 27, 1997 The Board of County Commissioners of Indian River County, Florida, met for a Special Affordable Housing Workshop in County Commission Chambers, 1840 25th Street, Vero Beach, Florida, on Thursday, February 27, 1997, at 9:00 a.m. Present were Carolyn K. Eggert, Chairman; John W. Tippin, Vice Chairman; Fran B. Adams; and Caroline D. Ginn. Commissioner Kenneth R. Macht was absent. Also present were Community Development Director Robert M. Keating, William G. Collins, II, Deputy County Attorney, and Patricia Ridgely, Deputy Clerk. The Chairman called the meeting to order and expressed her pleasure at the number of people in attendance. AFFORDABLE HOUSING WORKSHOP The Board reviewed a Memorandum of February 21, 1997: TO: James E. Chandler, County Administrator D B1.0 HEAD CONCURRENCE: Robert M. keaLng, AICP Community Development Director FROM: Sasan Rohan, AICP --5'-W_ Chief, Long -Range Planning DATE: February 21, 1997 SUBJECT: AFFORDABLE HOUSING WORKSHOP It is requested that the data herein presented be given formal consideration by the Board of County Commissioners at its workshop meeting on February 27, 1997. 1 February 27, 1997 BOOK 0 -L{,; lyr At its January 28, 1997 meeting, the Board of County Commissioners reviewed requests for statements of support from developers of six different Low Income Housing Tax Credit Program projects. Because of the number of proposed projects, the Board questioned the need for and impact of so many affordable housing developments. In addition, the Board raised other issues, including allowable density levels, affordable housing density bonus provisions, local government affordable housing obligations, aesthetics, and others. While approving statements of support for each of the six proposed projects, the Board directed staff to schedule a workshop to study affordable housing related issues. The workshop is scheduled for February 27, 1997. In setting up the workshop, staff contacted several housing agencies in the state. These included: the Florida Housing Finance Agency PFA), the Florida Housing Coalition, the Shimberg Center for Affordable Housing, and the Affordable Housing Study Commission, as well as the Indian River County Housing Authority. Each of these agencies has agreed to send a representative to the workshop at no cost to the county. Among the issues to be addressed at the workshop are: • Dynamics of the housing market • Need for affordable housing Number of units • Location • Relationship of affordable housing to subsidized housing • Need for local programs and regulations to support affordable housing projects Affordable housing density bonus Expedited penniitting - Others - • Potential benefits and problems associated with affordable housing projects • Impact of subsidized housing projects on existing non -subsidized market rate housing projects • Local, state and federal housing programs The housing agency representatives attending the workshop will address those and other affordable housing issues. More importantly, these representatives will provide information on how other local governments in the state address affordable housing. As with all workshops, the presenters will be available to address questions raised by the Board or by other workshop attendees. According to the census, Indian River County is no longer a rural area. 1990 census data indicated that Vero Beach and the densely populated area around the city constitute an urbanized area. That urbanization trend is illustrated by past growth and future population projections. The following table indicates the county's historic population growth as well as future population projections K February 27, 1997 M S M a � � WSTORIC POPULATION 1930-1990NUTURE POPULATION PROJECTIONS MIAN RIVER COUNTY YEAR POPULATION NUMERICAL INCREASE % INCREASE 1930 6,724 1940 8,957 2,233 332 1950 11,872 2,915 32.5 1960 25,309 13,437 1132 1970 35,992 10,683 422 1980 59,896 23,904 66.4 1990 90,208 30,312 50.6 2000 111,300 21,092 23.4 2010 132,600 21,300 19.1 2020 154,200 21,600 16.3 Source: U.S. Deparwent of Commerce, Bureau of the Census University of Florida, Bureau of Economic and Business Research Indian River County has experienced tremendous growth since 1930. In recent years, the rate of growth has slowed, however, the county is still growing faster then the state. The county's 1996 population estimate was 102,211. Between 1996 and the year`'2020, the county's population is projected to increase by 51,989, or 51%. As growth occurs, various issues need to be addressed. One such issue is affordable housing. Affordable Housing Every household incurs expenses for the basic necessities of human existence. These expenditures are food, clothing and shelter. In relation to this last item, shelter, or housing as it is commonly referred to, the county is an interested party, as its regulations, policies, and procedures affect the cost of housing. In securing adequate housing, the payment of some minimum price is expected. The difficulty is ensuring that housing costs will not force low income households to forego some of their other basic needs. For that reason, the issue of housing affordability is one which all communities, including Indian River County, must face. Indian River County's adopted affordable housing definition is: "Housing occupied by a household paying housing expenses which do not exceed 30% of the household's gross income. Monthly housing cost for owner -occupied housing shall include mortgage principal and interest, taxes, and insurance. Monthly housing cost for renter -occupied housing shall include contract rent. However, it is not the intent to limit a household's ability to devote more than 30% of its income for housing. Programs and policies of the Comprehensive Plan with regard to affordable housing shall be limited to those households in the very low (less than 50% of median income), low (51-80% of median) and moderate (81-120% of median) income groups." Housing Needs The following table identifies the number and percentage of owner -occupied and renter -occupied households in Indian River County paying more than 30% of their income for housing. In the higher income categories, the payment of more than 30% of a household's income for housing is generally not a problem. Instead, it reflects the household's choice to devote more of its income to housing. In the lower income categories, however, paying over 30% of household income for housing indicates an affordability problem. 3y��. Y s PAGE itis February 27, 1997 - BOOP( 1.03 FAGS,te14 HOUSEHOLDS WITH HOUSING AFFORD ABILITY PROBLEM (1989) OWNER -OCCUPIED HOUSING UNITS HOUSEHOLD INCOME ACCEPTABLE RANGE OF q OF HOUSEHOLDS PAYING MORE THAN CUMULATIVE TOTAL % OF TOTAL HOUSEHOLDS WrrH INCOME RANGE OF PAYING MORE THAN TOTAL SPECIFIND AFFORD ABILITY 3.579 HOUSING COST 30% OF THEM OWNER PROBLEM INCOME FOR OCCUPIED HOUSING COST UNITS 1 Less than 10,000 Less dun $250 988 988 5.22 V 510,000 - 519,000 S250-$500 940 1,928 10.22 Of 1 $20,000 - S34,999 5500 - SB75 947 2,875 15.25 V 535,000 - $49,999 $875 - S1,125 345 3,220 17.08 Over 550,000 More dm S1,125 454 3,674 19.48 1. Total specified owner occupied units 18,848 Source: 1990 Census of Population and Housing As indicated in the above table, 15.25% of owner -occupied households with incomes less than $35,000 are paying more than 30% of their income for housing costs. RENTER OCCUPIED HOUSING UNITS HOUSEHOLD ACCEPTABLE # OF HOUSEHOLDS CUMULATIVE % OF TOTAL HOUSEHOLDS Wl7ii INCOME RANGE OF PAYING MORE THAN TOTAL SPECIFIED AFFORD ABnxrY 3.579 HOUSING COST 30% OF THEIR RENTER PROBLEM INCOME FOR OCCUPY HOUSING COST UNITS 1 Less than 10,000 Less dun 5250 1,326 1,326 14.07 V S 10,000 - 519,000 $250 - $500 11690 3,016 32.02 Of 1 $20,000 - $34,999 $500-$975 603 3,619 38.42 V $35,000 - S49,999 $875 - SIAS 91 3,710 39.39 Over $50,000 More duan $1,125 28 3,738 39.68 �fl11HM• 1 UO/1 !`nnmrc n{'Dnw..1-.:..� ...J v_ ._L_ 1. Total specified Tenter occupied units 9,418 As indicated in the above table, 38.42% of renter occupied households with incomes less than $35,000 are paying more than 30% of their income for rent. The table below identifies the existing and future shortage of affordable housing both for renter and owner occupied. SHORTAGE OF AFFORDABLE HOUSING 1995 ANn 2(M INCOME CATEGORY 1995 2000 OWNER UNITS RENTER UNITS OWNER UNITS RENTER UNITS VLI• Only 4,470 1,202 3,544 823 VLI and LI 1 4,209 1,227 3.579 7% .,.....w. Luaawua C MUSHIg ASSGSURCut Kapon, Unversay oI rionaa, 5nunoorg::cm Ibr Anordabic dousing In a growing areas, even balanced growth will result in affordable housing needs. Because every community creates a need for workers, many of whom are not well paid, there is a corresponding need for affordable housing. While the need for affordable housing continually increases in a growing area, local government regulations often increase the cost of housing and limit the ability of the private sector to meet overall housing needs. 4 February 27, 1997 Local governments cause housing costs to increase through various regulations that they impose upon development. These include density, building heights, environmental requirements, impact fees and others. Although these regulations are necessary to maintain the community's quality of life or to ensure that infrastructure costs are paid by those creating demand, the result is that a disproportionate cost is assessed to lower cost development such as housing units in the affordable range. Comprehensive Plan Requirements Under Florida's comprehensive planning requirements (Sec. 163, F.S. and Ch. 9J-5, F.A.C.), all communities are required, as part of their comprehensive plans, to address the issue of housing affordability. Following is a brief summary of these requirements: • The purpose of the housing element is to provide guidance to local governments to develop appropriate plans and policies to meet identified or projected deficits in the supply of housing for very low, low, and moderate income households. (Sec. 9J-5.010, F.A.C.) • The housing element must contain an inventor+ including the affordable housing needs assessment (Sec. 9J -5.010(1)(c), F.A.C.) • The housing element analysis must include the housing needs of current and anticipated firture residents, including an affordable housing needs assessment. (Sec. 9J -5.010(2)(b), F.A.C.) • The housing element shall contain an objective for creation and/or preservation of affordable housing for all current and anticipated future residents. (Sec. 9J - 5.010(3)(b)1., F.A.C.) • The housing element shall contain the following policies Specific programs and actions to streamline the permitting process and minimize costs and delays of housing, especially affordable housing (Sec. 9J -5.010(3)(c) 2., F.A.C.) Establishment of principles and criteria guiding the location of housing for very low, low, and moderate income households (Sec. 9J -5.010(3)(c) 5., F.A.C.) The utilization of job twining, job creation and economic solutions to address a portion of affordable housing concerns (Sec. 9J -5.010(3)(c) 8., F.A.C.) Confirming current arrangements with other local governments concerning affordable housing (Sec. 9J -5.010(3)(c) 10., F.A.C.) Designating within the county sufficient sites at sufficient densities to accommodate the need for affordable housing (Sec. 9J -5.010(3)(b) 3., F.A.C.) and (Sec. 9J -5.010(3)(c) I I., F.A.C.) Also, section 420.9076, F.S. has specific requirements regarding the provision of affordable housing within the county. Indian River County Comprehensive Plan The county's comprehensive plan has specific objectives and policies related to the provision of affordable housing. These objectives and policies are summarized below. 5 February 27, 1997 600W PAGE �F; E00K 10-J FADE TIJ Objective 1, to reduce housing costs and to ensure that affordable housing is available to the very low, low, and moderate income households Policy 1.1, to review all county codes, regulations, ordinances, and policies to determine their impact on housing development costs Policy 1.2, to encourage infill development Policy 1.5, to identify federal, state, and other sources of funding earmarked for low and moderate income housing. Policy 1.7, to encourage the stabilization and redevelopment of older neighborhoods Policy 2.2, to designate land with sufficient density to facilitate a wide variety of housing development Policy 2.5, to provide an affordable housing density bonus through planned development process Objective 4, to provide direct affordable housing assistance to qualified applicants or assist them to secure funding Policy 4.3, to provide a mechanism for the amortization of impact fees for new affordable housing projects Policy 4.4, to establish a housing trust fund Policy 4.5, to request that the state impose a surtax on documentary stamps for local housing assistance Policy 4.6, to enter into interlocal agreements with other jurisdictions desiring to participate in the housing trust fiord • Land Development Regulations The county's Land Development Regulations (LDRs) affecting affordable housing are as follows: Regulations providing up to a 20% affordable housing density bonus for development projects. Regulations allowing for small lot subdivisions with reduced setbacks, lot size, and lot width requirements. - Regulations allowing for accessory single-family dwelling units in all agricultural and residential zoning districts. Regulations allowing multi -family dwelling units in conjunction with commercial development, such as apartments over commercial buildings. Regulations allowing zero lot line subdivisions. Transfer of density provisions allowing density to be transferred from wetland properties to upland properties. Future Land Use Map The county's future land use map allows higher residential densities along major roadways and near recreational facilities, community service centers, employment centers, shopping areas, personal service areas, and healthcare facilities. Within the unincorporated area, 10 units per acre is the highest residential density allowed. Two areas have the 10 unit per acre designation; these are the area east of U.S. #1 from Oslo Road to 17th Street and the Gifford area. The second densest designation allowed by the land use map is M-1, up to 8 units per acre. M-1 areas are located east of U.S. #1 from the hospital commercial node north to 57th Street and along S.R. 60 from 58th Avenue to 100th Avenue. These areas are appropriate for multi -family residential development. Because of their location near commercial activity centers, those areas provide for reduced automobile travel, easy access to employment centers, easy access to other services, and compatibility with the adjacent uses. These areas also serve as potential firture transit corridors. C February 27, 1997 r � � Consistent with the intent of the comprehensive plan, recent affordable housing projects have located in the M-1 and M-2 areas. It is anticipated that future affordable housing developments will also locate in these areas. Local, State and Federal Programs Even though there are many state and federal housing programs, Indian River County participates in only a limited number of them. Of nine state programs, Indian River County participates only in the State Housing Initiatives Partnerships (SHIP) Program and the Low Income Housing Tax Credit (LIHTC) Program. The Low Income Housing Tax Credit (LIHTC) Program is a competitive program, whereby applicants in Indian River County must compete with applicants within 37 small Florida counties (list of counties is attached). Due to limited funding, only a few projects can actually be approved for participation in LIHTC program. For the 1997 fimding cycle, there is $18,000,000 available; 60% of it is allocated for large counties; 30% for median counties, and only 10% ($1,800,000) for all 37 small counties including Indian River County. Following is a summary of housing units provided/assisted through various governmental programs. STATE HOUSING PROGRAMS PROGRAMS 0 OF UNITS *SHIP 175 *URIC [ I.R. APTS (180), KYLES RUN (200), GIFFORD GROVES (60)] 440 TOTAL 616 %ofTotal 1995 Housing Units 1.15% FEDERAL HOUSING PROGRAMS PROGRAMS # OF UNITS 'SECTION 8 CERT F1CATES AND VOUCHERS (WAITING LIST 222) 347 'FARMERS HOME ADMINISTRATION 200 'SECTION 202 (PART OF SECTION 8) go TOTAL 643 % of Total 1995 Housing Units 120% GRAND TOTAL 1259 (2.35% of total housing units) As indicated in the above analysis, Indian River County, like every county in the state, has residents with housing affordability problems. As the county continues to grow, these problems will increase. As required by state law, the county must address the issue of housing affordability. ►i_I_►� I ► I 1 _ 71 . Staff recommends that the Board of County Commissioners review all information provided at the workshop and provide direction to staff. I. INTRODUCTION AND LOCAL OVERVIEW Robert M. Keating, Community Development Director; advised of the format and introduced representatives who had come to make presentations from the perspective of their various agencies. Director Keating expanded on the population charts and other 7 February 27, 1997 BOOK 'AGk f 4 BOOK 1_0J PAGE 73 information in the memorandum and commented on the growth of the county. He reviewed the definition of affordable housing and emphasized that affordable housing does not necessarily mean subsidized housing. He identified the areas on a map of the county showing where future multi -family affordable housing developments are likely to occur. (see memorandum for description of these areas.) Director Keating advised that resident profiles had been requested from the developers of the most recent affordable housing complexes. He reviewed the following chart from Indian River Apartments and pointed out that the numbers indicate there are not a lot of unemployed people taking advantage of subsidized housing living in the complex. INDIAN RIVER APARTMENTS RESIDENT PROFILE Resident Occupation by Major Administrative/Professional 47 Retail Trade 31 Services 61 Medical Services 10 ManufacturinglConstruction .21 Teachers/Students 26 Retired 18 Other (including agricultural and 16 unemployed) Minor -Child 104 II. OVERVIEW OF INDIAN RIVER COUNTY HOUSING ASSISTANCE PROGRAMS Larcla Gamble, Director of Indian River County Housing Authority, reminded the Board that federal housing subsidies have been reduced under the Department of Housing and Urban Development. She explained the two types of subsidies: tenant -based (HUD - Section 8) and project -based (Farmers Home Administration) and related how the reduced HUD funds have affected both. She explained the Kemp & Cisneros program and how affordable housing relates to the program. Ms. Gamble stressed that "subsidy" and "affordable" do not equate to squalor and ghetto. She pointed out that most of the 8 February 27, 1997 people who need subsidy are hard working earning $5 to $7 per hour and cannot afford monthly rent of $500 in addition to other necessary living expenses. The program is to help these people and more affordable housing is needed in Indian River County. Ms. Gamble emphasized that any multi -family housing requires intense management. At the conclusion of Ms. Gamble's presentation, Commissioner Ginn asked if the need in Indian River County was based on any specifics, and Ms. Gamble advised that studies have been done but she did not have the results with her. The studies were done with respect to Disney Resort and the two new malls. Ms. Gamble advised that many of the workers for these three projects live in another county because they cannot afford to live in this county. Chairman Eggert thought the biggest misunderstanding in people's minds is the difference between visions of the old lipublic housing projects" and what is now being done with subsidized housing developments. Ms. Gamble invited the Board to take a tour of some of the subsidized housing developments. Commissioner Ginn commented that she has been a mentor to some of the people who live in the projects and was familiar with them. III. STATE/LOCAL AFFORDABLE HOUSING NEEDS ASSESSMENT William O'Dell, Research Associate, Shimberg Center for Affordable Housing, advised that Shimberg is under contract with the Department of Community Affairs to produce an affordable housing needs assessment methodology and reports designed for use by cities and counties that are used for updating Housing Elements in their Evaluation and Appraisal Reports (EARS). Mr. O'Dell presented the following data using the EIMO and pointed out interesting or note -worthy comparisons. Indian River Co. Household Estimates & Projections 1990 - 2010 Indian River Co. Household Estimates & Projections 1990 - 2010 1990 1995 2000 2005 2010 Owner Households 28,561 31,537 34,823 37,357 39,691 Renter Households 9,496 10,380 11,514 12,486 13,294 All Households 38,057 41,917 46,337 49,843 52,985 Elderly Households (65+) 15,333 18,100 19,615 19,652 19,226 Indian River Co. Household Estimates & Projections 1990 - 2010 as a Percent of Total Households 1990 1995 2000 2005 2010 Owner Households 75.0% 75.2% 75.2% 74.9% 74.9% Renter Households 25.0% 24.8% 24.8% 25.1% 25.1% Elderly Households (65+) 40.3% 43.2% 42.3% 39.4% 36.3% 9 February 27, 1997 BOOK IWO FAuL 50,000 50,000 40,000 0 x 90,000 0 z 20,000 10,000 10,000 9,000 8,000 7,000 H 0 m 6,000 rn 0 = 5,000 0 a) E 4,000 z 3,000 2,000 1,000 0 0 SOON PAGE@ Indian River Co. Household Estimates & Projections 1880 - 2010 1990 1995 2000 2005 2010 ■ Owner Households ■ RWft H0USdWWS 13M Households ■ Elderly HauslnWs (W) Indian River Co. Householders by Age $ Tenure in 1990 15-24 25-34 35-44 45-54 55-64 65-74 75+ Age Range 10 February 27, 1997 ® Owner ■ Renter O All M Householders by Age & Tenure in 1990 Age Householders - Number Percent of Total by Category Ranges Owner Renter All Owner Renter All 15-24 264 903 1,167 0.9% 9.5% 3.1% 25-34 2,504 2,776 5,280 8.8% 29.2% 13.9% 35-44 3,846 1,943 5,789 13.5% 20.5% 15.2% 45-54 3,403 1,027 4,430 11.9% 10.8% 11.6% 55-64 5,234 824 6,058 18.3% 8.7% 15.9% 65-74 8,340 945 9,285 29.2% 10.0% 24.4% 75+ 4.970 1.078 6.048 17.4% 11.4% 15.9% Total 28,561 9,496 38,057 100.0% 100.0% 100.0% 65-74 24% 65-74 12% Householders by Age in 1990 15-24 75+ 3% I— 9rlu 75+ 23% 55-64 16% 45-54 12% Householders by Age in 2010 15-24 4% 25-34 ,dillg= 9001h, 13% 55-64 16% 45-54 18% 35-44 15% 35-44 14% February 27, 1997 F� 0 Indian River Co. Households by Income 1990 Households by Tenure 12 February 27, 1997 gee--� r -c 1 P�CaE 1 P� Income Range Owner Renter Owner Renter < $10,000 3,162 1,682 10.9% 18.4% $10,000 -19999 5,191 2,329 17.9% 25A% $20,000 - 34999 7,677 2,844 26.5% 31.0% $35,000 - 49999 5,323 1,266 18.4% 13.8% > $50,000 7.602 1.039 26.3% 11.3% TOTAL 28,955 9,160 100.0% 100.0% Elderly Households (65+) Income Range Owner Renter Owner Renter < $10,000 2,189 708 16.1% 36.1% $10,000 -19999 3,094 460 22.7% 23.4% $20,000 - 34999 3,607 417 26.5% 21.2% $35,000 - 49999 2,020 155 14.8% 7.9% > $50,000 2.717 223 19.9% 11.4% TOTAL 13,627 1,963 100.0% 100.04% All Households Income Range < $10,000 4,844 12.7% $10,000- 19999 7,520 19.7% $20,000 - 34999 10,521 27.6% $35,000 - 49999 6,589 17.3% > $50,000 8.641 22.7% TOTAL 38,115 100.0% 1990 PERSONS PER ROOM - Occupied Housing Units 1.01 or more Share of Share of Occ. Units Florida Persons per Room Occupied Units Indexed to the State (FL=1) Brevard 3,969 2.5% 0.42 Indian River 1,016 2.7% 0.46 Martin 1,315 3.1% 0.53 St. Lucie 2,624 4.5% 0.78 FLORIDA 297,557 5.8% 1.00 12 February 27, 1997 gee--� r -c 1 P�CaE 1 P� 1990 HOUSE HEATING FUEL - Occupied Housing Units No Fuel Florida Used Brevard 1,231 Indian River 456 Martin 490 St. Lucie 495 FLORIDA 75,112 Share of Share of Occ. Units Occupied Units Indexed to the State (FL=1) 0.8% 0.52 1.2% 0.82 1.1% 0.78 0.9% 0.58 1.5% 1.00 1990 KITCHEN FACILITIES - All Housing Units 13 February 27, 1997 BOOK 1-1.00 F1AGE IU A Lacking Complete Share of Share Indexed to Florida Facilities Units the State (FL=1) Brevard 513 0.3% 0.51 Indian River 230 0.5% 0.90 Martin 161 0.3% 0.55 St. Lucie 235 0.3% 0.59 FLORIDA 33,155 0.5% 1.00 1990 PLUMBING FACILITIES - All Housing Units Lacking Complete Share of Share Indexed to Florida Facilities Units the State (FL=1) Brevard 386 0.2% 0.45 Indian River 206 0.4% 0.95 Martin 234 0.4% 0.94 St Lucie 253 0.3% 0.75 FLORIDA 27,957 0.5% 1.00 13 February 27, 1997 BOOK 1-1.00 F1AGE IU A PF - Housing Condition Summary -1999 occupied housing units w ibitlng one or more of the following characterMcs: lacking complete plumbing or kitchen facilities, 1.01+ persons per room, no healing fuel February 27, 1997 a 14 a MOO NO Y� /e� PAGE off .�, Subsiandard Total Occ. Substandard as a Florida Occupied Units Units % of Total Occ. Alachua 3,764 71,258 5.3% Baker 396 5,554 7.1% Bay 1,647 48,938 3.4% Bradford 355 7,193 4.9% Brevard 4,857 161,365 3.0% Broward 39,258 528,442 7.4% Chun 233 3,793 6.1% Charlotte 1,345 48,433 2.8% crus 1,003 40,573 25% Clay 1,290 36,683 3.5% Collier 3,985 61,703 6.5% Columbia 1,081 15,611 6.9% Dade 148,141 692,355 21.4% De Soto 682 8,222 8.3% Dbde 256 3,916 6.8% Doral 13,363 257,245 52% Escambia 4,273 98,608 4.3% Fiogler 324 11,880 Z7% Franklin 299 3,628 82% Gadsden 1,654 13,405 123% Gilchrist 232 3,284 7.1% Glades 255 2885 8.8% Gulf 195 4,324 4.5% Hamilton 356 3,488 102% Hardee 635 6,391 9.9% Hendry 1,138 8,402 13.5% Hernando 1,295 42.300 3.1% Highlands 1.454 29,544 4.9% Hillsborough 17,559 324,872 5.4% Holmes 350 SAW 6.0% Indian River 1,499 38,067 3.90/6 Jackson 719 14,465 5.0% Jefferson 432 3,982 10.8% Lafayette 90 1,721 52% Labe 2,208 63,616 3.5% Lee 5,459 140,124 39% Leon 3,470 74,828 4.6% Levy 623 10,079 62% Liberty 109 1,706 6.4% . - Madison 524 5,522 9.5% Manatee 3,685 911060 4.0% Marion 3.611 78,177 4.6% Martin 1,782 43,022 4.1% Monroe 9.227 33.583 27.5% Nassau 781 16,192 4.8% Okaloosa 1,623 53.313 3.0% Okeechobee 980 10,214 9.6% Orange 14,202 254,852 5.6% Osceola 2,300 39,150 59% Palm Beach 21.694 365,558 5.9% Pasco 3,188 121,674 Z6% Pinellas 11,137 380.635 2.9% Pops 8,146 155,969 52% Putnam 1,516 25,070 6.0% SL Johns 1.441 33,426 4.3% St. Lucie 3,072 58,174 5.3% Santa Rosa 1,046 29,900 3.5% Sarasota 2,958 125,493 Z4% Seminole 3,395 107,657 32% Sunder 716 12.119 59% Suwannee 613 10.034 &1% Taylor 532 6,401 8.3% Union 284 2,658 10.7% Vokasta 4,621 153.416 3.0% Wakulla 458 5,210 8.8% Walton 463 11,294 4.1% Washington 6,443 6.8% FLORIDA 370.739 5,134,869 72% February 27, 1997 a 14 a MOO NO Y� /e� PAGE off .�, OWNER COST DISTRIBUTED BY COST TO INCOME OWNI - TAB Stab ir.xls 226197 NUMBER YEAR STRUCTURE BUILT 5 FEDERALLY SUBSIDIZED HOUSING (as of 9/30195) MONTHLY OWNER COSTS - SPECIFIED OWNER -OCCUPIED HOUSING UNITS* -- - __ .. 246 Coat -to -Income Retia Feflsmere Share by Decade Orchid Sebastian Vero Beach Unincorporated Total Number of Households Public before Florida 1980's 1970's 1960's 1950's 1940's 1940 Brevard 42.4% 21.2% 23.3% 9.8% 1.7% 1.5% Indian River 44.3% 29.2% 12.0% 9.0% 2.9% 2.7% Martin 43.1% 35.9% 11.4% 6.0% 1.4% 2.2% St. Lucie 49.7% 27.7% 10.5% 7.6% 2.2% 2.3% FLORIDA 35.0% 29.3% 16.3% 11.7% 4.0% 3.7% OWNER COST DISTRIBUTED BY COST TO INCOME OWNI - TAB Stab ir.xls 226197 NUMBER AND PERCENT OF SPECIFIED OWNER -OCCUPIED HOUSINGUNITS* PAYING 30% OR MORE OF THEIR INCOME FOR OWNER COSTS huffan River Co 5 FEDERALLY SUBSIDIZED HOUSING (as of 9/30195) MONTHLY OWNER COSTS - SPECIFIED OWNER -OCCUPIED HOUSING UNITS* -- - __ .. 246 Coat -to -Income Retia Feflsmere Indian River Shores Orchid Sebastian Vero Beach Unincorporated Total Number of Households Public 9 14 0 132 As a % of 711 1,036 Vero Beach Unincorporated 35%+ 20 Housing Section 8 Section 8 332 Est. 1995 1995 Est. Florida 202 207/223 221 232 236 515 514/516 Units New CedJVou. Total Households Households Brevard 286 0 484 0 182 0 0 1,581 142 797 3,472 181,818 1.9% Indian River 80 0 0 0 0 165 200 0 0 347 792 42,757 1.9% Martin 99 0 0 0 0 32 60 70 0 50 311 48,049 0.6% St. Lucie 0 0 0 0 0 0 0 850 60 732 1,842 67,829 2.4% FLORIDA 11,642 5,298 17,042 2,129 11,679 15,268 3,742 45,749 4,514 64,925 181,986 5,640,875 3.2% OWNER COST DISTRIBUTED BY COST TO INCOME 228!97 OWNI - TAB Stab ir.rds OWNER COST DISTRIBUTED BY COST TO INCOME OWNI - TAB Stab ir.xls 226197 NUMBER AND PERCENT OF SPECIFIED OWNER -OCCUPIED HOUSINGUNITS* PAYING 30% OR MORE OF THEIR INCOME FOR OWNER COSTS huffan River Co 5 0 MONTHLY OWNER COSTS - SPECIFIED OWNER -OCCUPIED HOUSING UNITS* -- - __ .. 246 Coat -to -Income Retia Feflsmere Indian River Shores Orchid Sebastian Vero Beach Unincorporated Total Number of Households 30-34% 9 14 0 132 170 711 1,036 Vero Beach Unincorporated 35%+ 20 105 0 332 509 1,672 2,638 $10,000-19999 Not Computed 0 14 0 26 36 138 214 Total Households 22.9% 219 560 0 2,958 3,438 11,671 18,646 Percent of Households (excl. 30-34% 4.1% 2.6% 0.0% 4.5% 5.0% 6.2% 5.60/0 Not Computed) 35%+ 9.1% 1920/0 0.0% 11.3% 15.0% 14.5% 14.20/a Total 1320A 21.896 0.00/0 15.896 20.0% 20.7% 19.7% OWNER COST DISTRIBUTED BY COST TO INCOME OWNI - TAB Stab ir.xls 226197 RENTAL COST DISTRIBUTED BY RENT TO INCOME RNTI - TAB Stab Iritis PAYING 30% OR MORE OF THEIR INCOME FOR GROSS RENT __. _... .,..o PERCENTAGE OF HOUSEHOLDS PAYING 30% OR MORE OF THEIR INCOME FOR 23 59 5 0 MONTHLY OWNER COSTS - SPECIFIED OWNER -OCCUPIED HOUSING UNITS* -- - __ .. 246 ..,u,wu, Taira 418 Not Computed BY LEVELS OF INCOME IN 1989 37 7 0 186 1,102 1,584 Indian River County 205 115 Income Fellsmere Indian River Shores Orchid Sebastian Vero Beach Unincorporated :ant of Households (excl. County Total < $10,000 23.5% 100.0% 0.0% 61.3% 77.5% 54.9% 60.3% $10,000-19999 30.9% 70.6% 0.0% 21.5% 30.0% 35.9% 31.7% $20,000 - 34999 3.4% 65.4% 0.0% 13.6% 14.5% 22.9% 19.7% $35,000 - 49999 0.0% 26.4% 0.0% 4.0% 12.1% 9.8% 9.3% > $50,000 10.50/0 14.8% 0.00/0 1.9% 8.5% 8.00/0 82% RENTAL COST DISTRIBUTED BY RENT TO INCOME RNTI - TAB Stab Iritis PAYING 30% OR MORE OF THEIR INCOME FOR GROSS RENT __. _... .,..o 15 February 27, 1997 226/97 BOOK -1FAGS "4 wt 0-#W 35%+ 23 59 5 0 - 78 -- - __ .. 246 ..,u,wu, Taira 418 Not Computed 14 37 7 0 186 1,102 1,584 d Households 205 115 0 55 156 326 :ant of Households (excl. 30-34% 12.0/0 4.6% 0 783 3,124 5,181 Computed) 35%+ 30.9% 34.3% 0.0% 0.0% 10.7% ° 8.11% 8.6% Total 42.9% 38.9% 0.0°A 25.5% 38.3°A 37.1% is tet 32.6% ,. 15 February 27, 1997 226/97 BOOK -1FAGS "4 BOOK 1-001 PAGE 7 4 . Indian River County Cost Burden Table - number of households paying 30% or more of income towards housing costs RENTAL COST DISTRIBUTED BY RENT TO INCOME Renter Households RNTI - TAB Stab_Ir.)ds 226/97 PERCENTAGE OF HOUSEHOLDS PAYING 30% OR MORE OF THEIR INCOME FOR GROSS RENT 1995 2000 2005 BY LEVELS OF INCOME IN 1989 1990 1995 2000 2005 SPECIFIED RENTER -OCCUPIED HOUSING UNITS" < $10,000 1,907 2,174 2,497 Indian River County 3,050 1,554 1,821 Income < $10,000 Fellsmere Indian Rtver Shores Orchid Sebastian Vero Beach Unincorporated 2,477 County T $10,000 -19999 92.5% 100.0% 0.0% 81.8% 66.1% 89.8% 95.1% 92. $20,000 - 34999 100.0% 0.0% 100.0% 6.8% 73.0% 71.6% 73. $35,000 - 49999 52.4% 0.0% 31.2% 0.0% 16.4% 21.6% 21. > $50,000 28.6% 0.0% 0.0% 0.0% 0.0% 2.0% 11.1% 7. 852 0.0% 0.0% 82% 1.0% 2. Indian River County Cost Burden Table - number of households paying 30% or more of income towards housing costs 100% 90% 80% V 70% 0 r H 60% O 2 0 50% 0 CD G 40% m 2 a 30% 20% 10% 0% Indian River County - Percentage of Households Paying More than 30% of Income Towards Housing Costs by Income Category in 1990 < $10,000 $10,000 -19999 $20,000 - 34999 $35,000 -49999 > $50,000 Income Range 16 February 27, 1997 ®Owner ■Renter Owner Households Renter Households Income Range 1990 1995 2000 2005 2010 1990 1995 2000 2005 2010 < $10,000 1,907 2,174 2,497 2,781 3,050 1,554 1,821 2,078 2,302 2,477 $10,000 -19999 1,646 1,833 2,072 2,311 2,562 1,716 1,961 2,156 2,327 2,496 $20,000 - 34999 1,512 1,666 1,851 2,035 2,246 597 677 737 794 852 $35,000-49999 495 545 608 671 741 92 106 116 124 131 > $50,000 623 697 787 872 956 29 34 38 42 44 TOTAL 6,183 6,915 7,815 8,670 9,555 3,988 4,599 5,125 5,589 6,000 100% 90% 80% V 70% 0 r H 60% O 2 0 50% 0 CD G 40% m 2 a 30% 20% 10% 0% Indian River County - Percentage of Households Paying More than 30% of Income Towards Housing Costs by Income Category in 1990 < $10,000 $10,000 -19999 $20,000 - 34999 $35,000 -49999 > $50,000 Income Range 16 February 27, 1997 ®Owner ■Renter 2,000 1,800 1,600 H 1,400 'o 0 = 1,200 d N 7 O = 1,000 0 a 800 E Z 600 400 - 200 0 Indian River County - Number of Households Paying More than 30% of Income Towards Housing Costs by Income Category In 1990 < $10,000 $10,000 -19999 $20,000 - 34999 $35,000 - 49999 ".$50,006* Income Range Regional & State Cost Burden Table - percentage of households paying 30% or more of income towards housing costs Owner Households -1990 Renter Households -1990 Income Range Indian River Brevard Martin St. Lucie Florida Indian River Brevard MarBn St. Lucie < $10,000 60.3% 67.6% 58.8% 62.5% 62.4% 92.4% 88.0% 93.9% 88.7% $10,000 -19999 31.7% 43.3% 33.0% 41.6% 39.9% 73.7% 72.4% 72.2% 77.0% $20,000 - 34999 19.7% 25.8% 27.7% 24.1% 26.6% 21.0% 17.3% 24.6% 24.0% $35,000 -49999 9.3% 10.5% 14.9% 8.0% 11.9% 7.3% 2.2% 4.7% 2.6% > $50,000 8.2% 4.8% 6.4% 2.6% 5.7% 2.8% 0.5% 0.0% 0.0% 17 ®Owner ■Renter Florida 86.9% 70.6% 22.0% 4.7% 1.2% February 27, 1997 � - ,-j B9�ll(Ud 100% 90% 80% BOOK 1-00 FACE Its Region & State - Percentage of OWNER Households Paying More than 30% of Income Towards Housing Costs by Income Category in 1990 p 50% 0 a► d 40% 00, 30% 20% 10% 0% 100% 90% 80% fl 70% < $10,000 $10,000 -19999 $20,000 - 34999 $35,000 -49999 > $50,000 Income Range ® Indian River ■ Brevard 0 Martin i3 St. Lucie ■ Florida Region & State - Percentage of RENTER Households Paying More than 30% of Income Towards Housing Costs by Income Category in 1990 . 50% m rn 40% m a 30% 20% 10% 0% < $10,000 $10,000 -19999 $20,000 - 34999 $35,000 - 49999 > $50,000 Income Range 18 February 27, 1997 M Indian River ■ Brevard ❑ Martin a St. Lucie ■ Florida rI IV. LOCAL GOVERNMENT AFFORDABLE HOUSING REQUIREMENTS. STATE AFFORDABLEHOUSING PROGRAMS, LOCAL AFFORDABLE HOUSING INCENTIVES Susan Leigh, Executive Director, Florida Housing Finance Agency, presented a FHFA folder of information to the Board members and others. (CLERK'S NOTE: This booklet, which includes a 1995-96 annual report, has been placed in the backup file of the meeting.) Ms. Leigh then reviewed the following in an informative and comprehensive narrative. Florida Housing Finance Agency 227 forth I3ronough St., Suite 5000 Tallahassee, Florida 32301-1329 (904) 488-4197 AGENCY PHILOSOPHY: • The Agency does not build housing, our private sector partners do. The FHFA programs are based upon the principal that the private sector is the primary producer of affordable housing. with state and local incentives leveraged as loans, whenever possible, to encourage public/private partnerships. To ensure that state monies are spent ort housing instead of administration, local governments should be rewarded for providing incentives and financial assistance for the production of affordable housing, particularly mixed income projects. POLICY FORMULATION: • The unique Board structure accomplishes its statutory obligations through private sector input, a critical component of public/private partnerships. A nine (9) member Board comprised of eight (8) representatives from various designated housing -related industries is appointed to four-year terms by the Governor and is subject to confirmation by the Florida Senate. The ninth position is reserved for the Secretary of the Department of Community Affairs. who serves as an ex -officio, voting member of the Board. PRIVATIZATION: • The Florida Housing Finance Agency IS the model public/ private partnership citizens are demanding from their government. The Agency, since its creation in 1980. has stressed the maximization of production and the minimization of overhead. With hundreds of partners. FHFA receives input from individuals and organizations representing housing advocates. developers, bankers, investors, attorneys, the real estate industry, construction. labor, and the elderly. As a result. the Agency generates income to pay for its efforts without general revenue. FLEXIBLE TOOLS - A MUST FOR SUCCESS: • To cause private sector developers to carry out state and federal initiatives, products must be readily, adaptable to rapidly changing market conditions. es Developers will dedicate significant resources to affordable housing only if they are assured that appropriate financial assistance will be provided by their public sector partners and made available when and where needed. Fluctuating interest rates, sunsetting federal and state programs, and finite resources/subsidies necessitate an on-going re-evalua- tion of program structures to ensure the continual existence of these public/privatc partnerships. ACCOUNTABILITY • The Agency employs a "Big 6" accounting firm to audit vearly activities. State audits, monthly financial reports and public meetings, and a detailed annual report to the Governor are also provided as documentation of the Agency's progress and proceedings. 12 FHFA programs are structured to be financially self-sufficient. Therefore, maximum effort is placed on ensuring the cost effectiveness of projects for all panics involved. The nine member Board reviews and approves all Agency activities on a monthly basis and contracts for all services, including banking and legal. high arc awarded through competitive bids using the states Request for Proposals (RFP) process. which THE BOTTOM LINE: BENEFITS TO FLORIDIANS - Private sector partners infuse private sector monies to leverage state funds. - Privatization of Agency resources eliminates need for general revenue for FIiFA administration. - Flexibility maximizes responsiveness to diverse communities. - Permanence of FHFA alloys private sector to make long-term commitment of resources to affordable housing - Svncrcy created by private sector partnerships creates new and improved "+yaws of doing business." Provides important stimulus to the state economy. 19 February 27, 1997 BOOK J 'J ma"Vii I r BOOK 1.00 FAGS. 740 Program Inception Year Num ber ofUniti Produced Multifamily Mortgage Revenue . 1980 35,000 —Bonds Single Family Mortgage. Revenue -1980 25000 .Bonds. tow income Housing Tax Credit 7 -1997 40.000, -.State Apartment Incentive Loan .1989. 11,359 -,Home Owners Assistance 1988 3.000 Do -.-.m PaYrnint Assistance' re-develpment Lon p-rogram 1992 3x76- State Housing Initiatives 13,000 .Partmerships HOME Investment Partnership 1992 5,000 Florida Affordable Housing :1992 1.000Guarantee Program HLID'Risk Sbarirfa.prOPram :-,P ' 1-992. 3.000 State mel -1993 1.500HurricaneRecover3rand 'o Rebuilding,:i wre larpied sperificaltii-to Dod, Counn-for Hu'ricaneAn&ew dev=aaan ..Florida'S Guarantee Program.was created by the. enactment of the 'William E. Sad '.,ski Affordable Housing �-A6-ta:M,j the o%N Void ofmortgage credit enhancement -for-both -single family and multifamily affordable bousing transactions, -The Act ' ct now authorizes the issuance Of up to $200 million in revenue bonds 10 capitalize the fund. 'FloiiC12'Wastselected -to b­ e-aparticipant in the. HUD Multifamily Risk-Sharina:Pilot Program allowin-the Agency W'.use-- its- 0�In-'analysis: criteria 'to. evaluate . affordable' housing transactions insurind P : * * ­ ; 'ih * . ,ns actions for FHA mortgagge - loan c-A-Unev's success, HUD has a,%N,�Tded FHFAmultiple- allocations a ons of risk -sharing units. 20 February 27, 1997 I 'C" 7� U—N! n State Apartment Incentive Loan Program (SAIL) Project Information KEY: _ ^ N • Now R -RchdAbsom F • Fam1y E • 84 ty '1 • Nomdm SRO (Skye Room Oaayawyl '2- PAmulm FamWa Farm-Famwvaka W.Vary lav twee DtlDOiu me Closed - Dale of Loan Closing Completed - Date of last disbursement au0rorizaticn Credit Urnderw wing - Date of Invitation into credit underwriting 1 1 1 Set -Aside ent Evc TOW Avenge Cost Per Unit Bedroorni SAIL irafil Anticipated Status of Project SAIL Per UnIUSAIL As of June 30,1996 Unit Set -Aside on- "Place In or Protect Develooer TV" unitscounty t o Dat Indian River Grace's Landing Beth Carpenter W WE 70 $4.410,000 $475,000 $63,000 ':::>: ';_:::" 1 BR 56 100% @ 60% No Dec 97 Commitment 01/14/97 Sebastian 58,786 28R 14 Elderly Letter f97s440 Issued Kyle's Run Paula Ryan VII NT 200 $11,570,000 $1,550,000 557,6150 1 BR 30 20% @ 40% No Dee 96 Closed 02/29196 Sebastian V r $7,750 2 OR 110 60% @ 60% Completed 11!04/96 s 30R 60 Famov Sandy Pines Jackie McPhillips VI N -F 45 $4,225,927 5602,842 $93,909 40R $324-558 40R 45100% No Nov. 94 Closed 03109M Sebastian $13,396 Completed 08/10/95 awsaNs sunset Thomas Flynn VIII WE 36 $1,922,268 $315,000 $53,396 :; 1 OR 30 40% @ 60% No July 96 Board Meeting 12/13/96 Gilford $8.750 2 BR 6 50%@W% 12/13196. closing Elderly date ezlended 09684t4 to 04/14/97 KEY: _ ^ N • Now R -RchdAbsom F • Fam1y E • 84 ty '1 • Nomdm SRO (Skye Room Oaayawyl '2- PAmulm FamWa Farm-Famwvaka W.Vary lav twee DtlDOiu me Closed - Dale of Loan Closing Completed - Date of last disbursement au0rorizaticn Credit Urnderw wing - Date of Invitation into credit underwriting 1 1 1 ROOK 100 PAGE f4. i Bond Closings for Calendar Year 1996 as of Sept. 30, 1996 Bond Type # of Units # of Transactions Total Dollar Amount Multifamily 4,137 l8 $172,485,000 Single Family 1,800 (estimated) 2 $101,575,000 Notes: In addition, three (3) remarketings were accomplished. Also. there are currently only two employees dedicated to both the multifamily and single family programs Estimated Funding Sources for 1997 Program Source of Funds Amount HOME HUD S 18.898.000 HOME Match State Appropriation from Documentary Stamps' $ 2,000,000 ' State Apartment Incentive State Appropriation from Loan Program (SAIL) Documentary Stamps' $26.600.000 Documentary Stamps' SAIL Trust Fund2 $5.000.000 Florida Affordable Housing State Appropriation from Guarantee Program Documentary Stamps' 52.000.000 State Appropriation from Bonding Authority $200,000,000 Predevelopment Loan State Appropriation from Program (PLP) Documentary Stamps' $2.000,000 PLP Trust Fund2 -0- 0 -Homeownership Homeownership Assistance State Appropriation from Program (HAP) Documentary Stamps' $4.000,000 HAP Trust Fund 5550.000 State Housing Initiative State Appropriation from Partnership Program (SHIP) Documentary Stamps' 588,331.488 LIHTC Dept. of Treasury Federal Tax Credits3 518,000.000 Tax Exempt Bonds S159.375.000 Multifamily Mortgage Federal Tax Code New Issue To be decided Revenue Bonds Revenue Bonds Refundings To be decided Single Family Mortgage Federal Tax Code New Issue To be decided Revenue Bonds Revenue Bonds Refundings To be decided Total All Programs $526.754.488 1) The amount offunding available for programs funded by Documentary Stamp Tar proceeds are conditioned upon actual collec- [ions. 2) The amount of funding mailable for programs funded from !rust funds are conditioned upon receipt of loan repayments. 3) 1995 base per capita allocation and national pool allocation. 01/97 22 February 27, 1997 1 1 1 "CC FLORIDA HOUSING FINANCE AGENCY State Housing Initiatives Partnership Program J Highlights of Indian River County SHIP Program Mr Annual Allocation Local Housing Assistance Program Fiscal Year Total The county SHIP Program is administered by the Indian River County Community Development Dept., Sasan Rohani, AICD, 1992-93 $250,000 Chief of Long Range Planning. 1993-94 250,000 The 1994-95 through 1996-97 Housing Assistance Program 1994-95 250,000 includes the following strategies: 1995-96 565,773 Home Ownership Programs 1. Impact Fee Grants with Construction N 1996-97• 632,136 2. Housing Rehabilitation Total $1,947,909 3. Downpayment Assistance with Construction Accomplishments Rental Programs 1. Impact Fee Grants and Loans Units Produced or Assisted 2• Rehabilitation Fiscal Year Very Low Low Moderate Total The county's current Housing Assistance Plan expires on June 30, 1992-93 13 17 1997. In order for the county to be eligible to receive funds in 11 41 Fiscal Year 1997-98 they must submit a new Housing Assistance 1993-94 12 18 7 37 Plan by May 2; 1997. 1994-95 11 13 6 30 1995-96• 21 33 4 58 aa* 1996-97• 23 36 5 64 Total 80 117 33 230 Projected rn 'o - 1 1 1 �4 BOCK PAGE I'� STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM SUMMARY OF REQUIREMENTS ADMINISTRATION OF Chapter 420, Part VII, F.S. PROGRAM Rule Chapter 91-37, F.A.C. FUNDS AVAILABLE In fiscal year 1996-97, $86.5 million is appropriated. Funds are allocated on a population -based formula. The minimum allocation is $250,000 and the largest allocation is $5 million. Funds are disbursed monthly to eligible communities as documentary stamp revenues are deposited into the Local Government Housing Trust Fund. Total actual disbursements are dependent upon documentary stamp collections. ENTITLEMENT SHIP channels revenues directly to Florida's 67 counties and 43 TO COUNTIES AND CITIES cities that are eligible for federal Community Development Block Grant (CDBG) moneys as an entitlement community. REQUIREMENTS A local government must: FOR PARTICIPATION 1. Establish a Local Housing Assistance Program by ordinance. 2. Submit and recieve approval of a Local Housing Assistance Plan. 3. Submit a Local Housing Incentive Plan within 12 months after adopting the ordinance. 4. Submit by November 15 of each year, a report of the local government's affordable housing programs and accomplishments. TARGETING OF FUNDS 1. Minimum of 65% of funds must be spent on eligible homeownership activities. 2. Minimum of 75% of funds must be spent on eligible construction activities. 3. 5% of SHIP funds may be used for administrative expenses. If a local government makes a finding of need by resolution a local government may use up to 10%. SET-ASIDE OF UNITS 1. At least 30% of the units produced must serve very -low-income households (up to 50% of median income). 2. At least 30% of the units produced must serve low-income households (51% to 80% of median income). 3. The remaining units may serve moderate -income households (81 % to 120% of median income) or any combination of very -low, low, and moderate. ELIGIBLE APPLICANTS SHIP funds assist households with very -love, low and moderate incomes. Nonprofit or for-profit agencies may apply on behalf of the targeted population. Application is made directly to the appropriate local government. 24 February 27, 1997 I—_ J STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM SUMMARY OF REQUIREMENTS AFFORDABILITY Local governments must assure that monthly rents or monthly mortgage payments, including taxes and insurance, do not exceed 30% of the area median income limits, unless the first mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30% benchmark. ELIGIBLE HOUSING SHIP funds assist only housing that is designed to meet the standards of Chapter 553, F.S. SHIP funds may not be used to assist mobile homes or manufactured housing; however, manufactured buildings with the Department of Community Affairs insignia are permitted. MAXIMUM PURCHASE Must not exceed 90% of the Median Area Purchase Price as PRICE OR VALUE established by the U.S. Department of Treasury. ELIGIBLE ACTIVITIES The SHIP program provides flexibility for a local government to design affordable housing strategies in response to local needs based, in part, on the local government comprehensive plan. FORMS OF ASSISTANCE Local governments provide assistance in the form of grants, deferred payment loans, or direct loans. The terms are locally established. Local governments must provide for recapture of funds in event of default. Recycling of funds is encouraged. MATCH REQUIREMENT No match is required for SHIP; however, public/private leveraging is strongly encouraged. 25 February 27, 1997 BOOK �FhG DOCK .1 Z) FAGS ►� � SUMMARY OF THE STATE APARTMENT INCENTIVE LOAN (SAIL) PROGRAM ADMINISTRATION OF Rule 9I-48, Florida Administrative Code, and Section 420.5087. PROGRAM Florida Statutes. ELIGIBLE APPLICANTS Any person or public entity, public or private, for-profit or not-for- profit, proposing to build or rehabilitate affordable rental housing. HOW TO APPLY Submit Combined Cycle Application for SAIL/HOME/LIHTC. FUNDS AVAILABLE Anticipated preliminary amount of 518,525,000 in fiscal year 1997-98. " TARGETING OF FUNDS SAIL Program generally has one funding cycle a year and is open for a minimum of 60 days. Each year funds are offered to applicants in the following categories: family, elderly and commercial fishing and farm workers in the large-, medium-, and small -sized counties. TYPE OF CONSTRUCTION New construction, substantial rehabilitation or combination of acquisition and substantial rehabilitation. MAA'I11IUM REQUEST the SAIL loan cannot exceed 25% of the total Fmost, project e not-for-profit and public sponsors and sponsors occupancy of a minimum of 80% of qualified ishing workers and farmworkers may be eligible to mit, as specified in Rule 91-48, F.A.C. TERMS OF THE LOAN SAIL loans are secured by low-interest second mortgages and in some cases first mortgages. The loans are typically for IS years, but can be extended under some circumstances. SAIL loans are non - amortized with the following interest rates: (a) Three percent interest on loans to projects that maintain an 80% occupancy of residents qualifying as commercial fishing workers or farmworker over the life of the loan. Payment of the three'pereent loan shall be based upon the actual project cash flow and may be deferred as set forth in Rule 91-48, F.A.C. (b) Nine percent simple interest with a mandatory payment of the three percent base and the remaining six percent based upon the actual project cash flow and may be deferred as set forth in Rule 9I- 48, F.A.C. 4INIMUM SET-ASIDE MQUIREMENT 20% of the units at 50% of the area or state median income, adjusted for family size; however, projects using Low Income Housing Tax Credits may use a minimum set-aside requirement of 40% of the units at 60% of area median income. ?INIIVIUM TERM OF 15 years, but sponsors usually commit to 50 years. ET -ASIDE ITHER SAIL Loan Program can be used in conjunction with other state and federal programs. 26 Februar 27, 1997 SUMMARY OF THE LOW-INCOME RENTAL HOUSING TAX CREDIT (LIHTC) PROGRAM !ADMINISTRATION Rule 91-48, Florida Administrative Code, and Section 420.5099, SOF PROGRAM J Florida Statutes. ELIGIBLE Any person or public entity, public or private, for-profit or not -for - APPLICANTS I profit, proposing to build or rehabilitate affordable rental housing OW TO APPLY I Submit Combined Cycle Application for SAIL/HOME/LIHTC. IFUNDS AVAILABLE I Anticipated allocation authority of $18,000,000 in cycle year 1997. TARGETING OF i The LIHTC Program has one application cycle per year, open for CREDITS a minimum of 60 days. Each year credits are allocated to applicants in the following categories: projects in large, medium and small -sized counties. In addition, projects with funding from Rural Development and projects electing to set-aside units for elderly residents or large families, in rural areas or urban in -fill areas will be targeted during the 1997 application cycle. (TYPE OF CONSTRUCTION New construction, substantial rehabilitation or combination of acquisition and substantial rehabilitation. IMAXIMUM REQUEST- For the 1997 application cycle, requests will be limited to no more than: Total Tax Credits to be Issued - Large County: $1,500,000 ($1,950,000 if in DDA or QCT) Briarwood at Vero Beach - Medium County: $1,200,000 ($1,560,000 if in DDA or QCT) 45 - Small County: $750,000 ($975,000 if in DDA or QCT) $710,241.10 In addition, all projects will be limited to a request that equals no more Sandy Pines than $5,850 ($7,605 if in DDA or QCT) in tax credits per unit to be i i produced. MINIMUM SET-ASIDE iREQUIREMENT 20% of the units at 50% of the area median income, adjusted for family size; or alternatively, 40% of the units at 60% of the area 61 median income, adjusted for family size. i MINIMUM TERM OF SET-ASIDE 30 years, with an option to convert to market rent after the 15th year ! of compliance. Most Indian River Apartments applicants commit to waive the option to convert and to set-aside low-income units for 50 180 i years. OTHER ; Low -Income Rental Housing Tax Credits can be used in conjunction ! with other state and federal programs. INDIAN RIVER TA3' REDIT SUMMARY February 26, 1997 -: ;zct Name Year Allocated Units Annual Tax Credits Issued Total Tax Credits to be Issued Project Cost Briarwood at Vero Beach 1989 45 $71,024.11 $710,241.10 $1,961.093 Sandy Pines 1993 45 $452,461.75 $4,524,617.50E$4.384.467 Gifford Groves 1993 61 $544,517.23 $5,445,172.30,117,814 Indian River Apartments 1994 180 $1,181,929.00 $11,819.290.00 $11,449,653 Total 331 $2,249,932.09 $22,499,320.9 522,913,027 Note: The 1993 projects were single family dwellings. 27 February 27, 1997 0 0 K %E' 1 t* BOOR Director Keating advised the Board that the Sadowski Act program is more familiarly known by them as the SHIP program. We have been working with Ms. Leigh's agency extensively the last four years on this program. They manage it for us and give technical assistance. The SHIP program takes people out of rental and into home ownership. He explained that we are required to use 65% of the funding ($1/2 million annually) for home -ownership; 75% of that for new construction or rehabilitation; also the County is required to allocate 30% to very low incomes and 30% to low incomes. He felt it was a very good program and the County has a good relationship with the lenders, many of which were represented today. V. OVERVIEW OF LOCAL GOVERNMENT HOUSING ASSISTANCE INITIATIVES IN FLORIDA, STATEWIDE AFFORDABLE HOUSING ISSUES. OPPORTUNYIM, BARRIERS, POLICY INCENTIVES, AND IMPACT OF SUBSIDIZED HOUSING ON A CONDIUNITY Arthur Fleming, Florida Housing Coalition Board Member, the Governor's Affordable Housing Study Commission Board Member, described the workings and membership of the Coalition. He advised he actually is employed as Executive Director of the Community Financing Consortium, Inc., a 17 -member bank consortium which acts as lenders for affordable housing programs. He --.recounted the growing numbers of these consortiums. Mr. Fleming spoke of the traditional role of lending institutions and contrasted it with lending from the private sector and how the lenders of affordable housing developments become stakeholders in the community and the state of Florida. He described the Board's role as a "quasi -banker" and a regulatory agency in the new process. Mr. Fleming narrated a presentation of the following four rehabilitation and new construction projects which have been accomplished through affordable housing programs elsewhere in Florida. 28 February 27, 1997 CASE STUDY: MIXED -USE CQUISITIONIREHABILITATIO HARRIS MUSIC BUILDING APARTMENTS LOCATION: Downtown West Palm Beach, Florida HISTORY: Originally built in 1907 as the Palm Beach Mercantile Company 1. Building NEW MIXED-USE: Re -developed into a six story, 41,250 sq.ft. building Residential: thirty-eight (38) one -bedroom apartments Retail: 5,000 sq.ft. of ground level retail. A bookstore will occupy the ground level space. RENT STRUCTURE: 100% of the units affordable to persons earning 60% or below 9f Palm Beach County median income. Each unit $429Jmonth COST STRUCTURE Acqusition 500,000 Rehabilitation 1,281,300 Development do Soft Cost 342,985 Legal; Impact Fees; Appraisals; SOURCE Accounting; Architectural; Taxes; DESCRIPTION Insutance; Loan Foes; Marketing; Community Financing Start-up; Reserves; Engineering 387,169 TOTAL 2.511,454 TOTAL 2,511,454 9% 1520yr. 3% 15yr. 5% 15yr. DEVELOPER Harris Housing Limited Partnership (General Partner is Boston Capital Properties, Inc.) February 27, 1997 'FINANCING STRUCTURE (Closed February 1994) SOURCE niE DESCRIPTION AM0[il!rT Community Financing Consortium, Inc. LOAN 1st MORTGAGE 665,000 City WPB (section 108) LOAN 2nd MORTGAGE 495,000 WPB(DDA LOAN 3rd MORTGAGE 200,000 WPBIDDA RETAIL 50,000 GRANT WPBIDDA GRANT 50,000 Boston Capital EQUITY SALE OF TAX Part ne t, Inc. INVESTMENT CREDIT 1,051,454 TOTAL 2,511,454 9% 1520yr. 3% 15yr. 5% 15yr. DEVELOPER Harris Housing Limited Partnership (General Partner is Boston Capital Properties, Inc.) February 27, 1997 BOOK _wry "J Qt Jul, CASE STUDY: NEW CONSTRUCTION ELDERLY MARKET THE GROVES OF DELRAY LOCATION: Delray Beach, Florida — 142 acre site IMPROVEMENTS: 158 Apartment homes. 86 one -bedroom (639 sq.ft.) 72 two-bedroom, two bath apartments (900 sq.ft.) Amenitites include: swimming pool; whirlpool spa; car care center, shuffleboard courts; 5,550 square foot recreation/office building with full kitchen and fitness center, laundry building. Senior -related amenities include: Emergency medical call button system connected to a nearby hospital. Free hot meal each weekday in the clubhouse. An activities director and free transportation for shopping, hospital and medical visits. RENT STRUCTU_RE: 100% of the units affordable to persons earning 60% of Palm Beach County median income. One -bedroom unit $464. per month and two-bedroom unit $550. per month. Leased solely to households with at least one person age 55 years and above. Now'... W�a _ l' COST DMIRCREMoN �'R Building Construction 1RF' 4,280,000 Site Improvements 1,434,000 Hard Cost Contingency 200,000 Land 948,000 Soft Costs 1,658,000 Personal property 110,000 ImpactFees; Water/Sewer 582,000 TOTAL 9,212,000 February 27, 1997 FINANCING STRUC JItE (Closed April 1994) SOURC 3= DMIRCREMoN AMSLIIl!lT Community Financing IN�RF�T RATE Consortium, Inc. LOAN Florida Housing Ist MORTGAGE 3,300,000 85% 15/20yr. Finance Agency LOAN Palm Beach County LOAN 2nd MORTGAGE 3rd MORTGAGE 1,502,000 3% 15yr. TtansAmcica EQUITY SALE OF TAX 400,000 3% 15yr. 4,009,998 INVESTMENT CREDIT ON TOTAL 9,212,000 DEVELOPER Florida Affordable Housing ,Inc. and Epoch Properties, Inc. 121 w N RESTORING OUR NEIGHBORHOODS CASE STUDY BEFORE ITEM LAND SALE CONSTRUCTION COST LOT ASSIGNMENT FEE CLOSING COST COST STRUCTURE AFTER gfwi-t�' OST $15,000 $46,900 $500 80 TOTAL $65,361.80 1 1 FINANCING STRUCTURE L ' SOURCE CONSORTIUM FOR AFFORDABLE TYPE I ST MORTGAGE ELMS $43,100 HOME FINANCING, INC. BANK FLORIDA HOME PROGRAM 2ND MORTGAGE $16,600 3 PALM BEACH COUNTY HTF GRANT $5,000 _ HOMEBUYER W DONPAYMENT/TOTAL $661.80 ` OUT OF POCKET TOTAL $65,361.80 DEVELOPER PROJECTLAKE WORM INC. CONTRACTOR: R -WALLS, INC. REALTOR: JONI K TATE REALTY, INC AREA.• LAKE WORM 1 1 Z; Li N ,1 RESTORING OUR NEIGHBORHOODS CASE STUDY BEFORE ITEM PROPERTY CONTRACT REHABILITATION COST CLOSING COST SOURCE CONSORTIUM FOR AFFORDABLE HOME FINANCING, INC. BANK FLORIDA HOME PROGRAM PALM BEACH COUNTY HTF HOMEBUYER I - l COST STRUCTURE FINANCING STRUCTURE II TYPE 1ST MORTGAGE 2ND MORTGAGE GRANT DOWNPAYMENT/TOTAL OUT OF POCKET COST $50,000 $8,724 $2,844.16 TOTAL $61,568.16 91i1►17.y $10,000 $5,000 TOTAL $61,568.16 I DEVELOPER CENTRO CAMPESINO, INC. CO—DEVELOPER: NOAH DEVELOPMENT CORPERATION f I CONTRACTOR: CENTRO CAMPESINO, INC. AREA: BELLE GLADE cw CD � a n, Mr. Fleming emphasized the amenities, high quality in design and construction, and financing structure. He stressed that lenders will make sure their investment remains a valuable property. Generally the loan terms are 30 years. He advised that the same philosophy of quality structures was present whether the properties were single or multi -family and new construction or rehabilitation. Mr. Fleming also addressed economic development and business development perspectives and stated that economic development cannot be separated from housing. Wight Greger, Technical Assistance Project Manager, Florida Housing Coalition, assured the Board that they were not alone in this process; most all of the counties in Florida have gone or will go through this process. She remarked that they are asking all the right questions and addressing the same types of issues that other counties have and stressed that huge resources are available to them. She explained that there is a new way to do business through effective partnership and the Board is a member of the partnership with an increased pool of stakeholders. Ms. Greger cautioned the Board not to let the process scare them, as there are many professionals and agencies available to show them examples of developments. She offered to take them on a field trip into other communities doing the same thing. VI. DISCUSSION OF ISSUES Chairman Eggert asked Mr. O'Dell if, in developing the figures, consideration is given on the rate of deterioration of the buildings. For example, buildings in Indian River County are relatively young as compared to buildings in the older areas of the country. Mr. O'Dell replied that factor had not yet been taken into consideration, but that other factors, such as the condition of the house, were taken into consideration. Chairman Eggert thought that one of the biggest concerns of the public is transfer of density and density bonuses and how it is affecting affordable housing in general. Deputy County Attorney Will Collins pointed out that these policies are set out in our LDR's and included wetland protection goals. The Board cannot rescind the regulations on a case-by-case or project -by -project basis. They have to allow each applicant to avail themselves of the provisions of the laws. The Board would have to amend the Comprehensive Plan and make a decision not to protect the wetlands or not to provide incentives for reducing the cost of housing. 33 February 27, 1997 BOOK J FSG BOOK Chairman Eggert asked if you can take a transfer of densities with affordable housing to demand more landscaping, either in a regular density bonus or transfer of wetlands. Attorney Collins thought if there are compatibility issues, and you want to have an enhanced or enlarged buffer between a project that has a density bonus and one beside it that does not, you can do it through the LDR's. However, you must be aware that as you increase the buffers, you condense the units within the remaining building envelope and you may run into the pressures of the height limits or other regulations. Director Keating thought, with respect to River Park Place, that because we require density bonus and density transfer allowances to go through the Planned Development process, we have a lot more control there and we have the ability to get some of those things. He thought it might be helpful for some of the speakers to speak about density impacts on other projects in other local governments. Ms. Leigh advised the original intent was to have local government provide about 10% of the equity in some way. It could be provided in any way that would quantify to reduce the actual cost per unit. She recalled several of the original ideas to provide this 10% equity. In response to Commissioner Ginn's question, Director Keating advised that a density bonus is not required or necessary, but when considered as part of the whole and under some of the programs, an_ incentive such as a density bonus can be given',or some other incentive must be given. Mr. Fleming pointed out that balancing the quality of life issue with the need for creating financial affordability is important. He spoke on the competing environmental issues, increasing densities in areas, decisions on protecting the environment, and concerns for payment of infrastructure. He introduced Jodi Glass, as the "architect of density bonus program" who was in the audience. Jodi Glass, now working with the Richmond Group, the developer of Kyle's Run, formerly with the Palm Beach County Planning Division, who has also worked with the Commission on Affordable Housing, explained the creation of the density bonus program in Palm Beach County and pointed out the benefits to both the county and the developer. She agreed the density bonus program is scary, but that it is a very valuable tool when used correctly because it does not attack the dollars in the county's budget. She stressed there are reams of information in Palm Beach County and many 34 February 27, 1997 a s developments have been built using the density bonus. She concurred that the management issue is very important and submitted there are ways for the government to be in control. She emphasized that the "goal" is important as they can use particular incentives depending on the particular goal. Mr. Fleming commented regarding tying landscape to increased density bonuses, and in Palm Beach County the planners went exaction crazy. He believed there is a delicate balance and that all the world's problems cannot be solved in one apartment complex. Commissioner Tippin thanked the representatives for coming and observed that Indian River County is probably one of the "late bloomers" in affordable housing developments because it had been the goal for many years to keep the county "low density/green space". Now, however, low density/green space is being construed as "urban sprawl". He felt that housing cannot be separated from economic development because he sees workers going south every day, taking their pay checks with them to another county. He would like to see those dollars spent in Indian River County. Commissioner Ginn appreciated the presentations, felt they were enlightening and educational. She commented that some prior population growth projections have been incorrect and wondered how the figures are determined. Mr. O'Dell advised that projections are based on extrapolation of historical trends. He explained that they utilize the Bureau of Economic and Business Research County Level projects as a beginning. Commissioner Ginn pointed out that the County is not giving income tax credits as well as density bonuses. Now, developers appear before the Value Adjustment Board requesting reduction in ad valorem taxes. She wondered how much do you have to give a developer; she felt income tax credits should be sufficient. Ms. Leigh explained in detail the complicated process and pointed out that rents are lower than market rate and, therefore, restrict the development's cash flow. Commissioner Ginn commented on the Affordable Housing Commission report in the backup, the public's fears of deterioration of an area, and NIMBY -ism (not -in -my -backyard). She was not sure our need for additional affordable housing is as great as has been stated, cited newspaper advertising, and felt that a market analysis was necessary. She questioned how the programs are addressing the needs in the state and wondered what would happen 15 years down the road when Indian River Apartments and Kyle's Run are no longer affordable. 35 February 27, 1997 bw 1 U ��� � �� BOOKPAGE '16 Ms. Leigh pointed out that the two properties Commissioner Ginn mentioned are restricted for 30-50 years to remain as their agreement states. Commissioner Ginn could not agree with the recommendation to have a state appeal system for projects denied at the local level, as she believes strongly in home rule. The citizens in Vero Beach have a resistance to density. Ms. Leigh thought that one of the best tools was to create your system (laws et cetera) and work with developers you are comfortable with. The important point is to meet the needs of the community. Mr. Fleming reported that the Study Commission on Affordable Housing, of which he is a member, had at the top of their agenda this year to look at the issue of whether or not there is a concern for values, property and/or social. They are looking at it on a state-wide basis. The entire focus and intent of the Study Commission is to come up with ideas, some extreme, others quite moderate, which need to be discussed by the Study Commission. He stated there is an effort to schedule meetings throughout the state to solicit testimony and suggested perhaps they could come to solicit testimony here in Indian River County from anyone having points -of -view on the issue of NIMBY -ism. He thought that what often happens is that decisions are not necessarily based on reality, but may be based on emotion and perspective. Chairman Eggert asked that Indian River County be kept in mind in the scheduling. Ms. Gamble pointed out that availability of housing in the newspaper does not always provide all things that may be necessary for the family needing housing. Commissioner Adams felt that affordability is a matter of perspective and she felt there was not question as to the "need" for affordable housing in Indian River County. She thought the problem was the interpretation and stigma of affordable housing versus the old public housing. She felt it was necessary to provide affordable housing in the county and having all social strata live in our community. Chairman Eggert thought it would be terrific to have a public hearing on NIMBY -ism and requested that Mr. Fleming schedule one here in Indian River County. She thought we would learn a lot from it. 36 February 27, 1997 Ms. Leigh appreciated the opportunity to come here, and commended the Board as the first community to ask her to come to address this important issue. Chairman Eggert thanked all the presenters. There being no further business, on Motion duly made, seconded and carried, the Board adjourned at 11:20 a.m. ATTEST: J. rton, Clerk Minutes approved on 3-19-/7 CarolloK. Eg , Chairman 37 BOOK 16 February 27, 1997