Florida Summit on Affordable Living
Affordable Housing in Broward County
James Carras 954.415.2022 carras@bellsouth.net
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Engaged and educated stakeholders
Affordable Housing Summit
Educated over 500 participants Best practices from 12 National Speakers Conducted a housing survey of registrants Facilitated consensus building session
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Identified all available tools
Potential Affordable Housing Tools
Identified over 80 potential “tools” for affordable housing development Determined effectiveness Investigated improvements to each program Analyzed the feasibility of implementation
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Conducted Comprehensive Needs Assessment
Florida International University Metropolitan Center
Methodology
Labor Market and Economic Base Housing Market Housing Affordability Existing Housing Demand Future Housing Demand
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Labor Market & Economic Base
Broward County Occupations Projected to Gain the Most New Jobs
Occupation
Registered Nurses Waiters and Waitresses Retail Salespersons Customer Service Representatives Food Preparation & Serving Workers, Including Fast Food Sales Reps., Wholesale and Manufacturing, Other Office Clerks, General Janitors and Cleaners, Except Maids and Housekeeping Cashiers Elementary School Teachers, Except Special Education Totals:
2004
13,142 14,503 31,341 14,724 15,219 14,019 19,578 14,621 19,901 6,076 163,619
2012
16,927 18,014 34,783 18,117 18,530 17,108 22,224 16,871 22,079 8,174 192,827
Total Job Gain 2004-2012
3,785 3,511 3,442 2,898 3,311 3,089 2,646 2,250 2,178 2,098 29,208
Source: Florida Agency for Workforce Innovation
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Labor Market & Economic Base
Target Workforce
Occupation Elementary School Teacher Secondary School Teacher Fire Fighters Police Officers Registered Nurses Social and Community Service Managers Cashiers Retail Salespersons Construction Laborers Customer Service Reps Secretaries and Admin Assistants (excl. legal, medical, exec.) Computer Systems Analysts Systems and Data Communications Analysts X X X X X X X
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<50% AMI $25,673
<80% AMI $41,077 X
<120% AMI $61,615
<150% AMI $77,019
X X X X X
Housing Market
Median Sales Price 2002 - 2005
Condominium / Townhome 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
02 03 04 04 04 05 05 05 08 / 03 03 03 11 / 11 / 02 / 05 / 08 / 04 02 / 05 / 02 / 05 / 08 / 11 / 11 / 05
Single Family House
$202,500
$391,100
95%
$108,500
$193,000 78%
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Source: Realtor Association of Greater Fort Lauderdale
Housing Market
Rental Costs 2000 - 2005
Area
Broward Cities with Population over 100,000 Coral Springs Fort Lauderdale Hollywood Miramar Pembroke Pines Hallandale North Lauderdale $899 $641 $685 $784 $945 $657 $794 $1,173 $1,252 $1,178 $1,110 $1,110 $1,178 $978 $274 $611 $493 $326 $165 $521 $184 30% 95% 72% 42% 17% 79% 23%
2000
$757
2005*
$1,122
Change
$365
% Change
48%
Cities with Population under 50,000
Source: 2000 US Census and Broward County Quarterly Housing Report, Third Quarter 2005: Reinhold P.Wolff Economic Research, Inc. *Survey of53,271 units
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Housing Affordability
Affordability Gap by Municipality (Median Selling Price = $391,100)
Municipality North Lauderdale Pembroke Pines Coconut Creek Coral Springs Hollywood Hallandale Miramar Ft. Lauderdale Median Household Income $48,524 $64,902 $53,566 $71,472 $45,177 $34,048 $61,293 $45,890 Median Sale Price $192,900 $280,000 $215,000 $320,512 $278,050 $290,000 $410,000 $452,000 Affordable** Purchase Price $183,662 $256,414 $188,330 $284,411 $168,933 $124,277 $239,408 $172,852 Affordability Gap $9,238 $23,586 $26,670 $36,101 $109,117 $165,723 $170,592 $279,148
Source: Florida Agency for Workforce Innovation and US Dept of Labor and US Census *Median household income has been adjusted for inflation **Assumptions for affordable purchase price: 30 year fixed rate mortgage, 6.0% interest, 5% down payment, average insurance of $1257 per year, property taxes based on municipal millage, and no outstanding debt. Affordable purchase price was determined using the online calculator from bankrate.com
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Housing Affordability
Affordability Gap by Occupation (Median Selling Price = $391,100)
Occupation
Elementary School Teachers Secondary School Teachers Fire fighters Police officers Registered Nurses Waiters and Waitresses Cashiers Retail salespersons Cooks (all types) Construction laborers Truck drivers (all types) Customer Service Reps Secretaries & Admin Assistants (all types except legal & medical)
Median Annual Wages
Affordable** Purchase Price
Affordability Gap
$39,876 $44,556 $47,172 $49,188 $50,362 $12,324 $15,480 $18,936 $20,016 $21,060 $26,232 $24,264 $24,252
$148,983 $168,516 $179,440 $187,857 $192,764 $33,965 $47,143 $61,578 $65,658 $70,440 $92,023 $83,812 $83,763
$242,117 $222,584 $211,660 $203,243 $198,336 $357,135 $343,957 $329,522 $325,442 $320,660 $299,077 $307,288 $307,337
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Needs Assessment Findings
Homeownership is becoming unattainable
The median sale price of $391,100 requires a household income of $98,000 The average affordability gap by municipality for the purchase of a home is $92,000
The inventory of affordable rental housing is decreasing
The median rent of $1,122 requires a household income of $45,000 Approximately 50% of the workforce have annual incomes of $25,000 or less Loss of 22,000 units to condo conversions and Hurricane Wilma
By 2012, job growth is projected to create a demand for 90,000 additional housing units
51,300 units for households earning less than $41,082 (less than 80% AMI) 11 27,000 units for households earning between $41,082 and $77,019 (80-150% AMI)
Recommended Programs
Housing Trust Fund
Capitalize Fund through corporate and community investments, voluntary donations from corporations, foundations, government. Allows for both Restricted (i.e. Managed Municipal Funds) and Unrestricted Funds Utilize Bank CDC regulation Model: Santa Clara County and San Luis Obispo, California
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Recommended Programs
Double Bottom-Line Fund
Allows investors to simultaneously improve the community while making a profit Provides mezzanine financing for mixedincome/mixed-use development (i.e. transitoriented development) Model: San Francisco, San Diego, Portland
$
Sources of funds:
$ $ $
Private sector market-driven investments New Markets Tax Credits CDFI Fund
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Recommended Programs
Community Land Trust
Holds the land asset in trust for affordable housing and removes the land cost to reduce rental and home prices Ensures perpetuity Model: Burlington VT, Delray Beach
$
Sources of funds: $ State of Florida (Housing Finance Corporation) $ Broward County $ Fannie Mae
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Recommended Programs
Homebuyer Assistance
Provide first-time Homebuyer Assistance funds Offer second mortgages Develop soft second mortgage program Model: Massachusetts
$
Sources of funds: $ County $ Municipalities under agreement $ Voluntary in-lieu payments $ Low interest bank loans $ CDFI Fund $ Grants
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Public Policy Recommendations
State
Remove the cap on the Sadowski Housing Trust Fund and fully dedicate capital to affordable housing
County
Create a modern regional comprehensive land use plan Streamline and expedite the development approval process for affordable housing Provide new local funding for housing Give escheated county properties to qualified Community Land Trusts Review existing programs
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Contact Us
James Carras
carras@bellsouth.net 954.415.2022
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