Florida Workforce Housing News

Fla. growth rate slows by more than one-third, demographer: "surprising"

Steven Webster (Florida Workforce Housing Network) — Thu, 27 Dec 2007 12:51:19 -0600

WASHINGTON, D.C. ---Florida's population growth rate dropped by more than one-third last year, according to new numbers released by the U.S. Census Bureau. MiamiHerald.com posts an Associated Press story with the details:

According to figures released Thursday, the state's population increased by 1.1 percent to 18.3 million. Over the previous 12-month period, the growth rate was 1.8 percent.

Looking the other way...

The Orlando Sentinel credits John Dunbar at AP for its version, which leads off with two paragraphs on Louisiana's population history before somberly inserting:

Florida was the 19th-fastest-growing state -- dropping from 2006 when it was No. 9 in the nation.

The Sentinel's version buries the money quote---from Census Bureau demographer Greg Harper---in the 11th paragraph, and without a word of followup:

"If there's one state that's a little surprising, I would say it's Florida," said [Harper].

Christina Rexroad at sptimes.com (St. Petersburg Times) took a closer look at the Census Bureau's American Community Survey and saw something more profound---a reason Florida population growth is skidding to a stop:

Florida has the largest percentage of renters spending 30 percent or more of their income on rent and utilities, according to the ...Census Bureau.

A rough formula that allocates 30 percent of the family income for housing---including insurance, utilities and taxes---is a rule of thumb planners, financial analysts and bureaucrats use to measure regional economic health.

According to the Census Bureau survey, 52 percent of Florida's 2.1-million renter households pay more than 30 percent of their income for housing, beating out also-rans California, Massachusetts, Nevada and New York.

Nationwide, only 46 percent of renters spend more than 30 percent for housing. Rexroad doesn't ask, but we will: who would want to move to the state where:

Median wages in Florida are $28,570, or about $3,000 less than the national average, according to the state Agency for Workforce Innovation. But the median price of a home, $222,100, is about $14,000 more than the national median.

Brian Bendel at bizjournals.com/southflorida finds evidence of even greater long-term growth declines:

On a longer-term scale, Florida also has slipped. Estimates dating back to April 2000 have Florida's population growing 14.2 percent, or 2.3 million people, to rise from 16 million people in 2000. Where it previously was the third-fastest-growing state over a seven-year span, this year Florida has slipped to seventh. Its long-term growth was eclipsed by Nevada (28.4 percent), Arizona (23.5 percent), Utah (18.5 percent), Georgia (16.6 percent), Idaho (15.9 percent) and Texas (14.6 percent).

Sam Roberts at nytimes.com concluded:

"the bursting housing bubble squelched expansion in some of the nation's fastest-growing states..."

And Roberts focuses on another practical measure of population growth---realignment in Congressional districts after the 2010 census:

If nearly decade-long trends endure, Texas will gain as many as four Congressional seats and Florida’s delegation will grow by two, while New York and Ohio will lose two seats each, said Andrew A. Beveridge of Queens College of the City University of New York.

Cox News' Marilyn Geewax at PalmBeachPost.com took a look at the latest Standard & Poore/Case Shiller Home Price Indices released Wednesday to find yet another wet blanket:

The respected measurement showed Miami surpassing Tampa as the big city where values were falling fastest in October. But the news was gloomy across the board, even in formerly healthy markets.

"No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim," said Robert Shiller, one of the economists who developed the home price report.

PalmBeachPost.com delved a little deeper:

October single-family home prices on the Treasure Coast fell to a median of $201,000 from $242,400 in October 2006, according to the Florida Association of Realtors. The 17 percent drop was the highest-percentage decline in the state. Prices for existing single-family homes in Palm Beach County were off 5 percent, down to $348,300 from $365,600 in the same month a year ago.

The Tallahassee Democrat and Florida Times-Union in Jacksonville have yet to weigh in on the issue.

Will Lennar lead housing out of its slump?

Steven Webster (Florida Workforce Housing Network) — Wed, 05 Dec 2007 05:59:03 -0600

MIAMI, Fla. --- Will Lennar---one of the nation's largest corporate home builders---lead Florida---and the rest of the nation---out of the housing collapse before it wrecks the economy? Lennar is dumping land---lots of it---at 40 cents on the dollar.

Late last night Michael Hinman at bizjournals.com/tampabay (Tampa Bay Business Journal) reported that Lennar sold Metro Development Group of Tampa 8,300 home sites---almost 4,000 acres of land in seven Fla. counties. Neither party disclosed the bargain basement terms. And that's not all: On Monday, Michael Corkery at WSJ.com (Wall Street Journal) reported that Lennar and Morgan Stanley Real Estate formed a joint venture---MSR Holding Co.---to which Lennar then sold more than 11,000 home sites in 32 communities nationwide for $525 million---half of the reported net book value of $1.3 billion.

Last year, Lennar took a precharge loss of $500 million for land inventory or land under options to purchase. From July through September of this year Lennar told the SEC it had a homebuilding operating loss of $787.7 million and an overall loss of $513.9 million on revenues of just $2.3 billion. or the same period last year, Lennar reported $206.7 million profit on revenues of $3.9 billion---that's a 44 percent drop. But this year's strategy may be even more effective.

According to investor analyst Reggie Middleton at SeekingAlpha.com, Lennar's new deal with Morgan Stanley "bought...an extra year before bankruptcy." But some of us watching the florida housing market closely think Lennar may be leading the way out of the housing morass. Corporate home builders---Lennar included---played a major role in Florida's housing bubble and subsequent collapse. Their co-conspirators included the U.S. Federal Reserve Board and U.S. lenders, who spread it around to greedy speculators, equally greedy land owners, contemptible Florida legislators, corrupt local housing officials and just plain stupid local elected officials who pillaged the Florida economy. And over-reaching, under-thinking home buyers were willing pot-stirrers. Everyone got in on the action, including, just as it all peaked, Microsoft's Bill Gates (heh heh).

Well, almost everyone. Most working families who don't already own a home can't afford to buy one in Florida, and as the James Thorner at UnRealEstate blog (St. Petersburg Times) reports, that has even the Florida Chamber Foundation grumbling:

Median home prices have surged 60 percent statewide since 2003, with even larger increases in key markets such as Miami. The median home now costs 6.4 times the average annual salary in the State, compared to a 4.6 ratio in 2003. Housing in Florida is now less affordable than it is nationally and increasingly out of reach for essential services workers and other middle-income earners in the State.

Our orgy of economic expansion has left us with an artificially inflated real estate market so severe that most Floridians today can't afford to buy their own home at market price. Worse, no one else can either, so employers---schools, hospitals and police agencies, not to mention tech companies---are having a tough time recruiting and retaining workers.

For the anti-growth crowd, that's a perfect storm. And there are plenty of signs Florida's perpetual growth is slowing.

Slower growth might be a good thing. But our 'perfect storm' will leave hundreds of thousands of working families exposed to the elements. That can't be good. So what's the answer?

To paraphrase James Carville, 'It's the affordability, stupid.' Wages and income aren't going to keep pace with housing's artificial inflation. If we're to see sanity restored, values have to come down. That's going to hurt a lot of people, especially those who bought homes over the past three years. It's also going to hurt most of those corporate home builders.

It's in that regard that Lennar may be leading us out of the housing catastrophe. Lennar's bargain basement land sales are flooding the market with home sites. Substantially lower-priced home sites. And that has an impact on the rest of the market.

When the price of home sites drops to the $15,000-$30,000 range, we'll see more housing priced in the $150's. No, that's still not 'affordable' to low income families without assistance, but it's a lot closer to 'affordable' than we've seen in a decade. Now if we could just get the Fed, U.S. lenders, speculators, and especially Fla. legislators, local elected officials and local housing authorities to make similarly radical assessments of their strategies, we might could solve this affordable housing crisis after all.

Property Taxes and Affordable Housing: They Matter!

Steven Webster (Florida Workforce Housing Network) — Fri, 19 Oct 2007 14:58:30 -0500

In my capacity as editor of Florida Workforce Housing Network, I interviewed senior Tallahassee lobbyist and affordable housing expert Dr. Jeffry Sharkey, CEO of Capitol Alliance Group in Tallahassee. The topic: why is property tax reform so important to affordable housing? His answer wasn't the obvious one:

12 QUESTIONS: Tallahassee lobbyist Dr. Jeff Sharkey on Tax Reform, Affordable Housing

TALLAHASSEE, Fla. --- Yesterday Florida House and Senate leaders decided their special session 'tax reform' differences are so complex they need another weekend to think them over. While legislative observers debate whether the special session (and tax reform in Florida) has broken down completely, we asked a senior Tallahassee lobbyist about tax reform and affordable housing.

Dr. Jeffrey Sharkey heads the Capitol Alliance Group, a lobbying firm headquartered in Tallahassee. Dr. Sharkey worked closely with the late Rep. Mike Davis, R-Naples, to craft most of Florida's recent affordable housing legislation. He is a longtime advocate of affordable housing in Florida.

1. Why is property tax relief for affordable housing any more important than property tax reform per se?

Dr. Sharkey: Many property appraisers determine the value of affordable rental properties using a "market rate evaluation" approach. In effect, this methodology over-assesses the property's value. Since these properties operate on restricted rent levels set by HUD---indexed on the income of the resident---the real assessed value of the property should be based on a rental income approach.

The pro forma for affordable rental properties is established prior to the construction of the property. It uses an estimated NOI [Net Operating Income, or rent revenues minus vacancy and operating expenses] based on the restricted rent levels. Property taxes are estimated and budgeted based on those income-restricted rents, as if that were the true valuation of the property.

Oftentimes, assessors make no distinction between affordable and market rate properties. So when property appraisers over-assess those properties, there isn't sufficient cash flow from the rent to pay the inflated valuation. This creates serious financial pressure on the property. As property values and property taxes have skyrocketed over the past two years, this problem has only become worse. There is a history of law suits between housing developers and property appraisers over this very issue and we have been working on educating property appraisers and changing Florida law to help them assess these properties properly.

2. You're saying that methodologies used by local tax assessors create another roadblock for affordable housing developers?

Dr. Sharkey: Property taxes are a significant portion of the annual expense for affordable rental housing. If the assessment is not done on a rental income approach, it increases ad valorem costs. Those increased ad valorem costs will quickly deplete any operating reserves a property has available. Since the rent cannot be increased beyond the levels set HUD, there is no revenue to pay for this increased cost.

If affordable housing developers can not expect predictability with respect to the assessment of affordable properties, the added risk may keep them from deciding to develop on affordable housing in that community.

3. Is this over-assessment problem statewide or is it more prevalent in certain areas?

Dr. Sharkey: Ten years ago, the problem was fairly widespread statewide, principally because many local property appraisers were not familiar with the financial structure and the rent restrictions involved in financing affordable rental properties. Over the years, thanks to continued dialog, education, and frankly, some law suits, most of the property appraisers began to understand that over-assessing these properties would lead to a financial disaster for the property. Thus many of them adopted the rental income assessment approach. There are still a few counties where the problem exists, but we feel the property tax relief legislation will dissolve those.

4. Does it affect both rental and home ownership housing?

Dr. Sharkey: Most of the problem with affordable housing property assessment has focused on clarifying assessment of rental properties. However, as more and more non-profit organizations have developed home ownership property with layered financing and public/private partnerships, there has been some confusion about assessment of non-profit owned properties. The property tax relief package addresses both rental and home ownership property taxes.

5. The legislature has addressed this issue before, has it not?

Dr. Sharkey: Yes. We've attempted to fix the assessment of affordable rental income property four or five times since 1996 by fine-tuning the statutory language. Part of the problem has been that despite our legislative efforts, some property appraisers argued that changes needed to be made to the constitution rather than the statutes in order for the changes in state law to be considered constitutional. Because of that, the legislature has included changes to the Florida constitution in addition to statutory changes in the property tax relief legislative package under consideration during the special session.

6. How do property appraisers and local governments feel about the recommended changes to the assessment of affordable housing?

Dr. Sharkey: For the most part, I think they feel very positive. Almost all local government officials finally realize that affordable workforce housing to essential to the health and sustainability of their community, therefore they want this housing to be financially solved and the appropriate ad valorem assessment is the key to making that a reality.

7. Realizing this is still up in the air, what does the current affordable housing portion of the property tax relief legislative proposal attempt to do?

Dr. Sharkey: It has five components.

1) It clarifies how community land trust properties should be assessed; 2) It clarifies that property owned by non-profit organizations should be exempt from taxation; 3) It directs property appraisers to utilize a rental income assessment approach on any and all state, federal, and locally funded rent restricted properties; 4) It sets up an annual affordable housing certification process to be classified as affordable housing properties for assessment purposes; and 5) It adds a classification of affordable housing into Florida's constitution to ensure that property appraisers utilize the approach set forth and the proposed statue.

8. What property, and what income levels would the proposal affect?

Dr. Sharkey: The income levels defined in the statue that we covered under the property tax relief proposal would include very low, low, and moderate incomes.

9. Are there any particular legislators championing the effort in the legislature? Who, in your opinion, are the affordable housing heroes?

Dr. Sharkey: Of course, Representative Mike Davis, who recently passed away, provided the majority of the leadership last session on this property tax relief issue. There are many others in both the House and Senate that have taken up this initiative including Representative Dean Cannon, Representative Frank Attkisson, Representative Mike Grant, Senator Mike Haridopolos, Senator Mike Bennett, Senate President Ken Pruitt, and Senator Ted Deutch. Almost everyone in both the House and Senate has been supportive.

10. Are Democrats or Republicans leading the affordable housing tax relief effort?

Dr. Sharkey: Both parties are involved in solving the problem, very much so. Most Democratic and Republican members of the legislature understand the value of affordable workforce housing. They believe that property tax relief is important to keep affordable housing properties in their communities financially liable. The fact that affordable housing is included in this special session legislation on property tax reform is an indication of how important it has become to the economic and social well being of the state.

11. What will the affect of the proposed legislation be on affordable rental and ownership property?

Dr. Sharkey: I believe that finally it will stop any law suits between developers and property appraisers over misguided property assessments on rental income and ownership properties which will help ensure financial stability for these properties

12. Who has been most responsible for these legislative initiatives, and what can we do to help further those efforts?

Dr. Sharkey: I think the bipartisan support in this year's legislature for property tax relief and funding for affordable housing is a testament to all of the great education provided by affordable housing advocates and stakeholders around state. Florida has a huge affordable housing problem, but Florida also has an increasingly influential affordable housing advocacy movement. We need to continue to educate and thank our local legislators for their support for affordable workforce housing. We e we have a lot more to do in this arena and we will need their help as we move forward.

NIMBYs Will Try Porn Claim Tonight To Derail Ascot's Delray Beach CWHIP Project

Steven Webster (Florida Workforce Housing Network) — Tue, 16 Oct 2007 12:26:37 -0500

DELRAY BEACH, Fla. --- Eliot Kleinberg at the Palm Beach Post reports that neighbors opposed to a CWHIP-financed 116-unit town home project with a three-story, 30,000-square-foot medical office building plan to pack the Delray Beach city council chambers tonight and play their 'porno' card to stop it.

Someone's been watching to much TV. Ascot's project partner is the City of Delray Beach, which waived building, paving, irrigation and plan review fees for Ascot's affordable housing units.

Besides, Ascot's den of iniquity is a smart idea, if a bit more market-driven than purposeful---one of the not-so-unintended consequences of the CWHIP program (Fla.'s new Community Workforce Housing Innovative Pilot program):

Delray Beach-based Ascot Development bought 10 acres of... former grove... for $4.5'million in 2005...
Ascot plans to offer 32 of the [116] units for $225,000 to $275,000, to people from professions such as teaching, nursing and firefighting. The firm is set to receive a $5 million state [CWHIP] grant for the affordable housing units.

Some residents in area subdivisions have hired a lawyer to fight the project, and a troop of 150 showed up at last month's P&Z session with their tennis shoes on. Ascot co-founder and partner Teri Gevinson summoned her best PR sense, or hired some:

"It's another attempt by the neighbors to not allow the same people who are teaching their children, saving their lives in the emergency room, or putting out a fire that could possibly happen in their house, to live in their neighborhood," ...Gevinson said. "It's really sad for the city I live in, and it's embarrassing."
And, she said, "I see no reason why the NIMBYs are going to win." NIMBY is an acronym for "Not in my back yard."

For their part, the NIMBYs are out for developer blood. Kleinberg reports they'll try to paint Gevinson's 47-year old partner and Ascot co-founder Garrett M. Bender as a sleaze-meister. Is seems he once ran an online financial services company similar to PayPal whose clients included Disney, Sony and a British Virgin Islands-based enterprise that uploaded porn videos for Japanese customers.

Midtown Delray's project overview from the 2006 CWHIP Annual Report:

Midtown Delray located in Palm Beach County was awarded $5,000,000 in CWHIP funds. The proposed development consists of 32 town home units. Affordability for these units will be maintained through a Community Land Trust which will own the land and provide a ground lease to the homeowner. Midtown Delray is part of a larger development that consists of 124 residential units and a 20,000 square foot medical facility. The proposed development is adjacent to an elementary school and a fire station.
The public-private partnership for Midtown Delray consists of the developer, Midtown Delray, LLC, the City of Delray Beach, Delray Beach Community Land Trust and Delray Beach Chamber of Commerce. The development will be able to utilize a variety of financing options, including SHIP and Community Development Block Grant funds, available to affordable housing developments located in Delray Beach. Additionally, the City of Delray Beach has adopted a policy for the waiver of building, paving, irrigation and plan review fees for affordable housing units, which will provide a savings total of $1,200 in permit fees for each homebuyer. Palm Beach County has existing land use policies that require development of affordable housing near transportation areas and employment facilities. The county allows for mixed land uses where households can live, obtain services and work in the same area.
An expedited review process is provided and density bonuses are allowed for affordable housing developments.

And just to wring every drop of irony from this story, USA Today recently proclaimed Delray Beach as "the next South Beach."

'Affordable,' 'Attainable,' 'Value' are hottest new buzz words for Fla. home builders

Steven Webster (Florida Workforce Housing Network) — Mon, 15 Oct 2007 08:01:06 -0500

ORLANDO, Fla. --- Across Florida, many of the same production home builders who rode the pricing explosion 'to infinity...and beyond' back in 2005 are positioning their homes for a new generation of post-bubble buyers who favor 'affordable' over old-school buzz words like 'luxury,' 'gated' and 'resort style.'

Yesterday Lennar's Tampa Bay division issued a news release to formally challenge area home builders to focus on 'value'---and invite potential buyers to be the judge. They sound serious. Says Mark Metheny, left, president of Lennar North Tampa:

"Florida's housing industry is facing its biggest challenge ever. We've focused on location, we've focused on size, we've focused on features and we've focused on design. If we're going to turn the housing market around, we need to focus on good old fashioned value," said Metheny.

Lennar ranks as one of the nation's three largest home builders and the biggest builder in the Tampa Bay region, with 26 communities and prices that start from the $130's. The median sale price in Tampa last year was $252,500.

Centex Homes, which likewise ranks as one of Florida's most active builders, announced on Wednesday it wants to be Florida's leading builder of affordably priced homes. From Carol Ann Barody, director of operational marketing for Centex Homes in the Orlando region:

"Centex has retooled its entire production, from site acquisition to model home design to features and amenities in order to price its home more affordably without reducing quality," Barody said.

Centex boasts it now has 10 communities in the Orlando region that offer new single family homes priced from the $140s to the $190s. And they aren't ugly either---the Durango, right, at Sullivan Ranch in Mount Dora, offers 1,708 square feet in a three-bedroom, two-bath 'twin villa' (duplex) design that's priced at $146,900---half the Orlando region's $294,000 median sale price in 2006.

The most distinguishing trend at the annual Marion County Fall Showcase of Homes in Ocala is the downward price shift. Marion County's median sale price in 2006 was $195,950. The fall Parade---which continues through this weekend---features 41 homes by 23 builders. And prices?

...many range downward to $130,000.

Francine Schaefer, executive officer of by the Marion County Building Industry Association (MCBIA), told Rick Allen at the Ocala Star-Banner last week that more than half of the homes entered in the fall Parade are priced below $300,000.

Contrast that with MCBIA's spring Parade, when nearly a third of the 60 homes were priced $500,000-plus, including one for $3.6 million, and only 25 homes were priced below $300,000, the lowest at $158,145.

At the Building Industry Association of Okaloosa and Walton Counties (BIAOW)'s summer Parade last July, the lowest-priced home came in at $144,000.

It's not just home builders who are climbing on the 'affordable' wagon.

Realtor Hemley Gonzales in Miami has launched affordableproperties.com, a nationwide real estate sales web site that only features homes priced under $500,000. While Gonales' franchise is a bit more sizzle than steak, his lip service, at least, is on the right track---the 2006 median sale price in Dade and Broward counties was $345,000 and $339,000, respectively.

"Realtors who work primarily with affordable properties and owners of such real estate are in dire need of an effective and affordable marketing solution. Not every individual representing or selling these types of properties can spend $500 - $2,500 dollars every month to promote a single listing on a local scale, let alone a national platform. That's why we aim to be worth every penny of our service!" explains the company's CEO and founder, Hemley Gonzalez.
"It is time for a $175,000 single family home in Texas, a $57,000 condo in Dayton Ohio and a $287,000 townhouse in Oregon to receive the same attention as a $7 million waterfront estate in Florida" adds Gonzalez.

To be sure, not everyone has gotten the 'affordable' message. Yet.

Margie Krpan, deputy director of the Builders Association of North Central Florida in Gainesville, is busy coordinating the final weekend of BANCF's annual Fall Parade of Homes, but she doesn't know anything about prices.

"We don't keep track of the prices of Parade homes," Krpan told us. That's one way to deal with sticker shock---denial. But, Krpan quickly explained, the 625-member BANCF has never listed prices for its Parade homes.

"I've been associated with the Builders Association for 21 years and we have never listed prices, to my knowledge," she said.

The Citrus County Builders Association's Fall Parade of Homes, which continues through Oct. 28, is likewise 'priceless.'

In DeLand, pro home builders Bob Fitzsimmons, Mike DeAngelo and Geri Davis---former executives at Masterpiece Homes for more than 12 years until Orleans Homebuilders bought out Masterpiece, canned them and dropped the Masterpiece name earlier this year---have found the best and highest value for their home-building talents:

Gallery Homes will concentrate its efforts in West Volusia initially, [Fitzsimmons] said, but still hopes to build 50 homes by the end of 2008. Within five years, he anticipates building about 150 homes a year.

They've also found an honored place in our Florida Affordable Housing Builders & Developers gallery. Joe Crews at the Daytona Beach News-Journal has their story:

Gallery Homes offers three basic floor plans, each available in two architectural styles, ranging in price from $104,900 to $131,900, not including the lot. The company will build on one of the scattered lots it owns in the DeLand area -- five are currently in inventory, and more are being sought -- or on a prospective buyer's lot.
Also, Gallery Homes finalized a contract this week to build its first subdivision, which will have 55 lots. Highlands will be built southwest of North Ridgewood and West Minnesota avenues.
Land clearing and construction of the infrastructure already has begun, Fitzsimmons said.
"We'll have homes starting in the $150,000s, with three bedrooms, two baths and two-car garages," he said. "It will probably be January before homes start going in."

Fame, Fortune and Florida Trend for Florida Workforce Housing Network

Steven Webster (Florida Workforce Housing Network) — Wed, 03 Oct 2007 06:23:32 -0500

From Florida Workforce Housing Network, with permission:

ST. PETERSBURG, Fla. --- Florida Workforce Housing Network is a 'community blog.' That means anyone can join for free to post their own news, opinions, comments or announcements for whomever visits this site (100 people daily, on average). And each visitor is invited to register, log on and argue an opposing viewpoint, or more recent figures, or errors of epistemology.

In the 'blogosphere'---which is like the mainstream media only most of us don't get paid or edited---it's common to toot your own horn. Actually, it's kind of a rule. The 'transparency' thing. The cross-linking thing. The no one else wants to do it thing.

Well, Toot! Toot!

The October issue of Florida Trend Magazine quotes Steve Webster---blogger extraordinaire and the Uncle Albert/Admiral Halsey of this site---in an article (actually a column) about affordable housing in Florida. Webster confessed his participation in the story to the rest of us and muttered the usual stuff about being misquoted out of context, blah blah blah.

In Workforce Housing: Back to Basics - A slow market is turning builders to workforce housing, journalist Richard Westlund offers a quick recap of the affordable housing narrative in Fla. with a twist of the nib:

In the past year, though, housing prices have been declining, and some of the state's biggest builders, including Lennar, KB Home, and D.R. Horton, have launched affordable housing strategies. "As Florida mortgage foreclosures soar, opportunities for lower-cost housing are imminent," Webster says. "Will that be enough to solve the problem? I doubt it."
In Broward, for instance, the median household income of $58,400 is enough to qualify for a $200,000 mortgage, but the median single-family home price in June was $382,000.

Webster claims he said eminent---you know, sounds like 'standing above others in quality or position.'

Something else that's eminent---Florida Trend's October cover story, Carolina Connection:

Floridians are buying up homes in North Carolina -- and Florida builders are hot on their heels. But the Sunshine State's brand of development is creating tension in the hills.

April Callihan is editor of Florida Workforce Housing Journal and managing director of mynewfloridahome.org.

Beachfront Gulf of Mexico and Under $70,000---brilliant!

Steven Webster (Florida Workforce Housing Network) — Mon, 01 Oct 2007 06:50:55 -0500

HUDSON, Fla. --- Here's a very bright, brand new idea that's bound to see some replay across the state: beachfront (sort of) mobile homes (well, not really) over garages (state law) that are priced at under $70,000 (plus lot lease, just like manufactured homes).

Jodie Tillman at the St. Pete Times broke this story (Lance Aram Rothstein, St. Pete Times, took the photo) and we'll bet this one goes national.

Put an architect like Abe Kadushin on this and a developer like Nick Pavonetti and see how many awards it would win. Definitely merits one from us. We'v posted a photo of the product at Florida Workforce Housing Network.

TriBird Development of Hudson is replacing the 43 homes in the old Hudson Springs Mobile Home Park with 43 modular homes. Like any other modular home, these are secured on concrete foundations - only the foundations in this case are nearly 14 feet tall and double as stucco-finished garages painted to match the homes.
The living space in the homes is relatively small, about 540 square feet, so TriBird is marketing the units as vacation villas and refers to the park as a "fisherman's paradise." The garages, the company says, could be a place to store boats.
Prices range from $69,900 to $79,900, depending on how close they are to the canal that provides access to the Gulf of Mexico. Buyers would also have to pay $400 to $500 a month to lease their lots.

Fla. Legislature to honor Rep. Mike Davis on Thursday

Steven Webster (Florida Workforce Housing Network) — Mon, 01 Oct 2007 06:47:54 -0500

TALLAHASSEE, Fla. --- Fla. House Speaker Marco Rubio plans to take time out from the legislative special session in Tallahassee on Thursday to honor Fla. Rep. Mike Davis, R-Naples. The afternoon memorial event will be followed by an evening fundraiser to benefit Rep. Davis' favorite causes.

Clearly, one of those 'favorite cause' beneficiaries ought to be affordable housing. Davis ranked as Florida affordable housing's biggest voice in the legislature, authoring most of the recent affordable housing legislation, including the high-profile CWHIP ('Community Workforce Housing Innovative Pilot Program') grants that will shell out $64 million this year to help finance new ideas.

While some---count us among them---will argue the legislature's efforts have been ineffective at best and more likely counter-productive, Davis earned the appreciation of a whole industry---and thousands of low-income Florida families---for making them considerably less so.

Moreover, he earned the esteem of almost all his colleagues and most who met him for his frankness, fairness and deep-seated sense of honor. We dare you to find anyone who doesn't speak of him in hallowed terms. He was definitely one of the good guys, and he was good at it too---no easy achievement in Tallahassee these days.

Lennar in Zephyrhills: 1,371-square foot town homes priced from $130's

Steven Webster (Florida Workforce Housing Network) — Thu, 27 Sep 2007 05:56:48 -0500

TAMPA, Fla. --- One of the nation's most prolific home builders is selling new, 1,371-square foot town homes in Zephyrhills northeast of Tampa priced from the $130's, according to a company news release.

Lennar's Eiland Park Town Homes is a gated community located near S.R. 54 and Eiland Blvd. with its own swimming pool and cabana, picnic area, gazebo, volleyball court and playground.

Mark Metheny, right, president of Lennar's North Tampa division, says two new new model town homes that open in Nov. feature GE appliances and ceramic tile floors. Two and three-bedroom town homes at Eiland Park come in three floor plans that range in size from 1,371 square feet to 1,531 square feet.

Arguably, Lennar has taken the most aggressive approach to 'affordable' homes among Tampa Bay- area builders. As Dan DeWitt reported in the St. Petersburg Times on Sept. 4, Lennar sold off inventory homes at Hernando Oaks in Brooksville---the community "that pioneered the idea of selling luxury homes in Hernando County" with some double-deep discounts:

The couple ended up paying $110,000 and $115,000 for two houses, each of them selling for more than $60,000 less than the market value, according to the Hernando County Property Appraiser's Office.

Some luxury homes at Hernando Oaks are priced as high as the $400's.

Lake County Builder to Unveil First Two of 11 Affordable Homes in Fruitland Park

Steven Webster (Florida Workforce Housing Network) — Tue, 25 Sep 2007 06:56:34 -0500

LEESBURG, Fla. --- Tavares-based JG Properties plans to unveil the first of 11 new homes under development at Dream Lake in Fruitland Park and priced so that median-income families can afford to buy them during two open house events this weekend for Realtors and potential home buyers.

John D. SanFelippo, owner of Tavares-based JG Properties, said he plans to showcase both new homes at an open house for Lake County Realtors on Friday, Sept. 28, from 4 p.m. to 7 p.m. at 202 Forest Ave. and 504 Penn Ave. in Fruitland Park.

The following day---Saturday, Sept. 29---JG Properties plans to show off the new homes at an open house for prospective home buyers from 10 a.m. to 2 p.m.

SanFelippo and Realtors Susan Snell of Exit Realty Tri-County in Mount Dora and Joe Savoy in Apopka are giving each participating Realtor prizes worth more than $100 each and a chance to win one of five $100 cash bonuses to be awarded. The prizes---10 tickets each to Bonkerz Comedy Club in Altamonte Springs and Universal Studios Orlando, along with four VIP Champagne Table passes to Tabu Night Club in downtown Orlando, with a complimentary bottle of champagne---are very generous, SanFelippo said, but that's for good reason.

"Realtors work very hard, and we wanted to provide something of real value to them," SanFelippo said. "With 10 tickets, a Realtor can treat the whole office to a night out," he added.

Prospective home buyers who visit Dream Lake on Saturday will receive a pair of tickets to Bonkerz Comedy Clubs (value $16) along with luncheon and refreshments in one house and dessert in the second, SanFelippo said.

Dream Lake is the first of several 'infill' projects JG Properties plans to build in Lake County that feature affordable pricing. SanFelippo, who recently graduated from a three-month course in Community Real Estate Development at the University of South Florida in Tampa, said he is already looking for a new site that can start development next year.

The two new Dream Lake homes---a four-bedroom, two-bath home priced at $168,000 and a three-bedroom, two-bath home priced at $164,500---rank among the most affordable new homes in Lake County. To make it even easier to buy, JG Properties will contribute up to three percent of the purchase price toward closing costs, SanFelippo said.

"Demand for affordable homes has increased tremendously as housing prices outpaced the ability of most families to afford to buy a new home," SanFelippo said.

"Lake County is a wonderful place to live, but it's harder than ever to afford to buy a home here," said SanFelippo.

By designing more efficient homes---both Dream Lake homes measure under 1,400 square feet of living space---and carefully selecting materials like floor tiles, lighting and bath fixtures and appliances, SanFelippo said he is able to deliver a high-quality traditionally-built home at an affordable price.

"Now that the home building industry has slowed, more builders are looking at the affordable market," SanFelippo said. "When the market picks up again, most of them will go back to building $300,000 houses, but we plan to focus on the affordable segment as long as we build homes," SanFelippo said.

In Memoriam: Rep. Mike Davis, R-Naples

Steven Webster (Florida Workforce Housing Network) — Wed, 12 Sep 2007 15:29:28 -0500

NAPLES, Fla. --- Rep. Mike Davis, the Naples Republican who authored Florida's affordable housing legislation and served as affordable housing's most prominent voice in the Fla. legislature, passed away this morning.

The family plans Mass at 11 a.m. Saturday, Saint Elizabeth Seton Catholic Church, 5225 Golden Gate Pkwy, Naples. A reception will follow at Vineyards Country Club, 400 Vineyards Blvd., Naples.

An anonymous poster at the St. Petersburg Times left this tribute, the best we've seen so far:

If you looked at issues and based your judgements on the question, "What would Mike Davis do?" you would serve your constituents and colleagues with honor and dignity.

More from Larry Hannan at NaplesNews.com.

(House photo by Meredith Hill. Davis urges support for his affordable housing bill, HB 1363, on May 1, 2006.)

Miami Architect's Affordable Housing Designs Star of Punta Gorda Groundbreaking Today

Steven Webster (Florida Workforce Housing Network) — Fri, 07 Sep 2007 06:22:58 -0500

PUNTA GORDA, Fla. --- Coconut Grove architect Abe Kadushin will play a starring role at a groundbreaking ceremony this morning in Punta Gorda.

The event marks the start of construction of a $27 million Florida-style community with 85 public housing units, 81 low-income, tax-credit apartments, and three market-value apartments. The Gulf Breeze community will even include 'green' energy-efficient central-air heating and cooling.

Kadushin will probably keep to the background. It's his work that will star in the showcase ceremony. Kadushin is one of the leading lights of a new generation of architects and designers for whom quality homes for working families---remember those old-fashioned values America used to celebrate?---offer more rewarding challenges than adding more plinths and cornices to one more McMansion.

Call them post-Duanyans.

Steve Reilly, staff writer for the Sun-Herald in Punta Gorda, posted an excellent story yesterday with no pictures but loads of details (and one or two strange assertions that are probably misunderstandings, as likely ours as his):

The housing authority will offer one-to-four-bedroom apartments, with the first floor dedicated to the elderly. The public housing units will be scattered throughout the other floors.
The apartments will be available to those who earn up to 60 percent of the local median income. The median income varies from year to year and is set according to the size of the family. The annual median income for a family of four in Charlotte County is $25,400.
Public housing rentals will be based on the individual incomes of the residents. The residents will be expected to contribute 30 percent of their income for the rent. Federal Housing and Urban Development funding pays the rest.
The residents in tax-credit units will be expected to pay their rent; however, the rent wouldn't exceed 2 to 2.5 percent of their incomes. The maximum rent is set by the IRS annually.

The Punta Gorda Housing Authority partnered with lender Primerica and developer Norstar Group, which had the good sense to commission Kadushin for the design.

FloridaCRED.org offers learning resources for affordable community real estate developers

Steven Webster (Florida Workforce Housing Network) — Mon, 27 Aug 2007 10:34:37 -0500

TAMPA, Fla. --- Calling all community developers: the Community Real Estate Development (CRED) Professional Certificate program at the University of South Florida, a unique summer seminar course at USF's Collaborative for Children, Families and Communities that's guiding 26 participants through development of six projects with more than 120 affordable homes and apartments, has launched www.FloridaCred.org to provide an online learning resource and a forum for new community development concepts.

Former Bank of America training executive and HUD official Thomas M. Zuniga, left, told Miami Herald Business Monday editor Nancy Dahlberg last week, "We want to birth a new generation of community developers. It's no longer about being a do-gooder. Affordable housing is a major economic issue."

Zuniga, managing director of DSG Community Marketing Services, serves as Program Manager and Principal Instructor of the CRED Certificate Program.

Zuniga posted Launching FloridaCRED yesterday to mark the event.

Expanding the supply of housing that is affordable to and attainable by working families has become increasingly complex. My wish is to expand our University of South Florida Community Real Estate Development classroom by using technology to create a "big tent" campaign for affordable housing through increased awareness and understanding of affordable housing issues.
I hope for our site to become a listening post for the many voices of affordable housing---a place where students and practitioners of community development can brainstorm possibilities, advance innovative ideas and recognize best practices.
I would like for us to use FloridaCred.org to establish a knowledge base on affordable housing and to that end, just like with our classroom, I promise to recruit local and regional experts who will weigh in on various topics through writings and interviews, and thereby foster dialogue.

The web-based project---privately funded through August, 2008---means to examine relevant affordable housing and community development issues, best practices, new concepts and new partnership, funding and development opportunities in an open, online symposium with an academic focus.

Quoth Zuniga:

I am inviting colleagues new and old to weigh in on the various topics that are relevant to our business.
This is the new "Journal of Community Development."

HUD Certified Realtor Course in Affordable Housing Aug. 29 in Orlando

Steven Webster (Florida Workforce Housing Network) — Thu, 23 Aug 2007 06:49:36 -0500

ORLANDO, Fla. --- The Center for Affordable Housing, Inc., in Sanford and HUD Certification Training for Realtors® is pleased to present an educational opportunity. Take this class and learn about a unique local program to help qualified first-time homebuyers gain access to bond money as well as public and private SHIP assistance.

The Center for Affordable Housing is partnering with Realtors® in a local housing initiative to fill the gap for affordable housing. This exclusive program provides qualified first-time homebuyers earning as much as $86,800 up to $35,000 in down-payment assistance for home sales up to $343,311.

Buyer and property subject to Certification. Learn the details about low 30-year fixed rates and and down payment assistance programs in these exclusive certification classes.

HUD certified trainer Suzanne Brown will conduct two 90-minute classes in southwest Orlando at:

Studio Plaza
5979 Vineland Road, Third Floor
Orlando, FL 32819
Wednesday, August 29 at 3:00pm

R.S.V.P. to Ashley Coleman at RSVPtoEvents-at-yahoo.com
or call (407) 445-7020.

Cost is $25 payable at the door via cash, check or credit card.

Why we 'blog' for affordable housing, and why it's a powerful new tool

Steven Webster (Florida Workforce Housing Network) — Thu, 16 Aug 2007 18:13:17 -0500

The technology that powers our web site, Florida Workforce Housing Network, is modeled after DailyKos.com. Coupled with the distributive power of networks like activerain.com, it's a cutting edge tool with powerful potential. If you're new to this amazing new facility, here's something that might help illustrate it, and it'll also make you laugh. Just click to play. And learn how to embed programs like this in your own blogs---this is next generation Realtor tech.

What role do professional planners play in affordable housing?

Steven Webster (Florida Workforce Housing Network) — Thu, 16 Aug 2007 08:11:56 -0500

(Cross-posted from Florida Workforce Housing Network.)

ORLANDO, Fla. --- Andrew Nothstine of Glatting Jackson Kercher Anglin, Inc., was the lead presenter at a Professional Development Housing Workshop at the Tampa Bay Regional Planning Council in St. Petersburg two weeks ago.

He delivered his PowerPoint presentation ---"Best Practices in Affordable Housing"---before about 80 professional planners at the Florida chapter, American Planning Association's (FAPA) event.

His overview struck me as superficial. I imagined his audience---planners whose decisions impact affordable housing considerably---would express a substantially higher awareness of and concern for affordable housing.

That's not a criticism of planners, or of Nothstine---planners analyze hundreds of levels of highly detailed information, requiring mastery of dozens of complex professional skills. Affordable housing ranks as one of literally hundreds of their priorities.

Hopefully, information and awareness can help make it a higher priority. Nothstine wants to develop more and better educational materials for Florida professional planners and administrators. He's already started revising his own book---New Directions in Affordable Housing. It's available for download as a .pdf file here, or visit the Glatting Jackson web site.

He agreed to answer 12 QUESTIONS:

1. At the Tampa Bay Regional Planning Council seminar, you showed data that indicate transportation costs play a much bigger role in the housing affordability matrix than most community developers recognize. Could you elaborate on that a little?

Nothstine: Too often, we think of the affordable housing problem as simply a matter of housing costs. In reality, the issue is much more complex. In a high-housing cost environment, most families do not end up in chronic homelessness; rather, they "drive to qualify," buying or renting lower cost housing that is far from employment, commerce, or transit opportunities.

While these families may have "solved" their affordable housing problem, they have essentially traded for a transportation affordability problem. This trade-off has a number of serious impacts on society, from air pollution and traffic congestion to declines in social capital and community-building.

One recent study showed that Atlanta, a city that has relatively low housing costs, was the second least affordable place to live when factoring in transportation costs (behind only San Francisco).

My presentation used the examples of New York and Tampa; when combining housing and transportation costs, Tampa is actually a less affordable place for the average family to live.

The annual cost of owning a single car is between $7,000 and $8,000. The typical household in an auto-dominated environment spends more on their transportation than health care and food combined.

Clearly, even if we "solve" the affordable housing problem, we have done nothing for low- and moderate-income families unless we also address the transportation affordability question. This is a much more difficult problem, in my estimation, requiring drastic changes to land use patterns, infrastructure investments, and political priorities.

2. For typical Florida home buyers, are 'housing cost' and 'transportation cost' inverse ratios? Should planners consider transportation and housing costs as a single unit?

Nothstine: These two costs are not necessarily inverse ratios. In many communities, however, they certainly can be inverse for low- and moderate-income households, particularly in places where alternative modes of transportation are not feasible. For the same reasons I discussed above, I believe planners should consider both costs when designing affordable housing strategies and transportation systems.

3. Glatting Jackson Kercher Anglin, Inc., ranks as one of the largest planning firms in Florida. What sorts of projects have you worked on within the past year that include affordable housing? Any idea what proportion of housing in Florida land planners touch?

Nothstine: I have worked on a couple of Developments of Regional Impact (DRIs) that are exploring a variety of methods for including workforce housing. A number of large-scale community developers are doing innovative things with this issue throughout the nation, given their sheer size and influence (see my response to Question 7). On the second question, I would have to guess 100%. Florida has complex growth management requirements and approval processes; navigating this maze of regulations and politics certainly requires someone with expertise in land planning. Obviously, just because a land planner is involved with nearly all housing projects does not mean that all projects are following good planning principles.

4. What priority does GJKA place on affordable housing development? What services do you provide now, and what can you offer clients?

Nothstine:We offer services to both public and private sector clients on this issue. Given our firm's experience with both local governments and private developers, as well as numerous other entities involved in building communities, we can help develop holistic and innovative affordable housing strategies that are fair, effective, and long-lasting.

Our services could include helping a local community revise their land development codes to eliminate regulatory barriers, or helping developers handle their legal/political obligations to incorporate workforce housing into their projects, among numerous other advisory roles.

We hope to offer assistance on a variety of affordable housing problems, but, perhaps more importantly, we hope to incorporate affordable housing solutions into the other work we do, from urban redevelopment to transit planning.

As I mentioned previously, affordable housing should not be viewed in a "silo," as it is integrally related to numerous other problems facing our communities. Our firm works hard to address these complex issues through an approach that considers all of these factors and influences.

5. Housing affordability seems to be an increasingly important public policy issue in Florida. Planners---public and private---impact housing at the regional planning level with Future Land Use policies and at the more practical level with DRI and subdivision plans. Is it time for Florida to revisit its planning requirements for affordable housing? Do current DRI requirements adequately address the affordable housing problem?

Nothstine: I personally believe that the state needs to revisit the existing planning framework, and not just for affordable housing. Take a look around the state: we have clearly failed on a multitude of levels.

The DRI process is certainly not adequate for addressing this problem. Most projects in Florida do not reach the DRI threshold, so a large proportion of development avoids the process entirely. Even for the relatively small number of projects that are DRIs, there is significant debate over the methodology used for the affordable housing analysis, and the mitigation options are often quite minimal, given the magnitude of the state's problem.

6. Generally, what sort of affordable housing requirements does Florida provide for in its planning policies? If I want to develop my 1,200-acre farm in Pasco County, what affordable housing provisions do I need to consider?

Nothstine: In most jurisdictions, there are no regulatory requirements to provide affordable housing, or even to consider affordable housing issues. Many communities have various incentives available for affordable housing, though many of these are not very effective.

DRIs are the exception; these projects are required to assess the amount of low- and moderate-income jobs their development will generate. This number is then compared to the amount of housing that is affordable to these workers within a certain radius of the project. If the developer can prove there is enough housing for these workers, then they are not required to do anything else.

If there is not enough housing, they must somehow mitigate for the deficit. They might do this through a financial contribution to a housing trust fund, by building affordable housing either on-site or elsewhere in the community, or through another mechanism agreed to by the local government. Until recently, very few DRIs made it to this final step. Most were able to "prove" the existence of adequate housing supplies within the specified radius of their project, and thus were not required to provide any mitigation.

Just because there are very few regulatory requirements, however, does not mean that developers aren't facing intense political pressures to "do something" about this issue. Development can only occur after a negotiation dance among the developer, the public, and the regulatory agencies on a variety of issues. Affordable housing is increasingly a part of these negotiations.

Some developers, undoubtedly, would prefer concrete regulation to the uncertainties of back-room political pressure.

7. GJKA works with many large-scale community developers whose projects have 10-20 year timelines and result in 1,500 to 5,000 new homes. Generally speaking, do large-scale new community developers have any inherent interest in affordable housing components or do local ordinances and Fla. DCA requirements provide most of the motivation?

Nothstine: Most large-scale new community developers do have an inherent interest in this issue. By definition, these developers have to attract a large market, due to the number of homes they need to sell. Having a wider range of price points helps broaden their potential market and increases their absorption rates.

Additionally, having affordable homes mixed with low- or moderate-income employment opportunities helps increase what planners call "internal capture": that is, the number of vehicle trips that remain within the project's boundaries. Higher internal capture results in lower off-site traffic impacts, which in turn allows the developer to pay less money for transportation improvements in the region.

8. Florida's troubled housing market is hardly news, but one trend sticks out: more 'market' builders and new community developers today are building homes priced within reach of at least the top rung of the affordable ladder - home buyers who earn 100-120 percent and even 140 percent of Area Median Income. Do you see this as a long-term trend? Are we seeing some convergence here?

Nothstine In general, I think the market is pretty good at responding to demand. There is obviously a lot of demand for price points that can be met by people earning in the 100-140% AMI range.

Barring external factors (such as regulatory barriers), the market should be able to adapt and offer products that meet this demand. The problem with the housing industry is that there are often a lot of these external factors that skew the marketplace.

One example is that the public sector essentially subsidizes low-density, auto-dominated living and development patterns, through enormous investments in roads and ineffective, unnecessary land development codes.

The market alone, cannot overcome these factors.

9. At the FAPA affordable housing workshop at the Tampa Bay Regional Planning Council two weeks ago it was apparent there are serious information gaps when it comes to affordable housing issues. Your 'overview' presentation was based on materials that were published a year ago. Are professional and public planners behind the knowledge curve on affordable housing?

Nothstine: The presentation is based on a publication that I wrote a year ago, but it has been updated throughout the last year to include newer ideas, research, and data. I do think that a lot of planners are behind the curve on this issue. The planning and development industry (myself included!) has a lot of catching up to do.

My goal is to help educate planners, the media, and residents on how this issue relates to the other problems in our communities, such as traffic congestion and economic competitiveness. We have to be able to show the upper-class family in the wealthy suburb how this issue affects their everyday life. Affordable housing is about sustainability, livability, mobility...it is not just about a house for a poor person.

10. Inclusionary zoning that requires developers and builders to designate a percentage of affordable housing units in new subdivisions is one of the more radical public policy solutions to the affordable housing crisis. Blue chip developer interests---the Florida Home Builders Association and the Association of Florida Community Developers to name two---are adamantly opposed. What do you think?

Nothstine Honestly, I have mixed feelings on inclusionary zoning. On the one hand, there are a number of benefits to such a policy. They generally result in a relatively large number of affordable units, and in places that have a well-designed ordinance, these units remain affordable for a substantial period of time. The policies can also be a benefit to developers, as it is a consistent, black- and-white rule that is (theoretically) applied equally to everyone.

Inclusionary zoning removes a lot of uncertainty, which to most developers is a huge factor; it allows them to plan for the known affordable housing costs at the beginning of the development process, rather than get caught unexpectedly with unknown costs at the end.

Inclusionary zoning also removes NIMBY complications: if every community is required to include affordable housing, it is harder for NIMBY opposition to organize and fight successfully; after all, they can't fight every single project. Many planners also identify social benefits of inclusionary zoning, as the policy usually results in true mixed-income communities, and helps to remove the stigma of affordable housing.

On the other hand, though, affordable housing is a societal problem, with a number of complicated causes. Asking one segment of society (residential developers, essentially) to "solve" the problem places an unfair burden on a single industry.

Additionally, these ordinances tend to be heavily focused on greenfield development. Throughout the history of this country, brand-new homes on greenfield sites have almost never been the affordable products in a community.

Affordability can be better handled through the existing housing stock. We need more policies in place to target rehabilitation and redevelopment initiatives.

Finally, unless inclusionary zoning is enacted on a regional level, it could easily result in leap-frog development, in which developers will simply move to neighboring jurisdictions that do not have such a policy in place.

11. One of the biggest shortcomings of the affordable housing movement is a lack of definitive market analysis. How do planners assess affordable housing need? Beyond sales figures, how do you demonstrate affordable housing need in a community?

You've touched on another hot-button issue here (saved the hard ones for last, I suppose!) There is not a widely-accepted method or standard for assessing affordable housing need. As with any complex issue, the numbers and statistics can be manipulated to suit almost any viewpoint. There are many respected economists who argue that there is no affordable housing problem, for instance.

As I mentioned above, there is currently an effort to revise the methodology used for DRI affordable housing studies.

I'm certainly not an expert in market analysis or affordable housing demand studies. As a very basic description, planners compare the existing housing stock to the household incomes in their community. In a perfect place, the two correspond; in the real world, there are imbalances in certain income categories.

The planner can identify these imbalances (such as a lack of homes for people making between 80 and 110% AMI, for instance) and craft policies that target that particular income group.

A more generalized, back-of-the-envelope method is comparing the median salary to the median housing price in a community; a multiple above a certain threshold might indicate affordability problems.

12. Predict the future. What housing trends do you see that directly affect affordable housing? Will a store manager, or teacher, or health care worker be able to afford to buy a home in Florida in 2020?

I think a lot of the trends we're seeing today bode well for the future of affordable housing. We are seeing a greater market interest in communities with diverse housing types and a mix of uses, two pre-requisites for quality, successful affordable housing.

We are also seeing a number of local governments express a greater appreciation for density and transit, which are also critical components of the solution. It's hard to say what Florida's market will look like in 2020; this state probably has one of the most confusing, dynamic, and volatile markets in the nation. I don't think the incredible growth rates we've seen over the past several decades will be able to sustain themselves much longer; a slower growth rate would, in theory, cool appreciation rates, thus opening a wider range of housing choices to our low and moderate income workers.

Obviously we are starting to see price drops already; this will probably be a painful but necessary start to a more sustainable pattern.

Key West groups turn former bar into affordable housing

Steven Webster (Florida Workforce Housing Network) — Thu, 16 Aug 2007 08:07:23 -0500

KEY WEST, Fla. --- Kyle Teal at keynoter.com posted this story on Aug. 10:

Community groups recently did their part to make Key West's affordable-housing problem a little less of a problem in Bahama Village.
And as 10 low-income units go online in that community, the Alliance of Community Housing continues to work in the background, fine-tuning a plan its members call Helping 1,000 Families in 1,000 Days to increase and maintain already existing affordable units, primarily in Key West.

Four groups partnered in the project: The Southernmost Homeless Assistance League, Fla. Department of Children and Family Services, the Bahama Conch Community Land Trust and Kinky Construction. With $750,000 in state funds, they repurposed a former bar in Bahama Village as 10 low-income housing units for families and the working homeless.

(Cross-posted from Florida Workforce Housing Network)

Universal Studios Orlando plans on-site workforce housing project

Steven Webster (Florida Workforce Housing Network) — Mon, 13 Aug 2007 07:27:01 -0500

ORLANDO, Fla. --- Universal Studios Orlando plans to develop more than 300 apartment units (and possibly a parking garage???) on a several acres of its current employee parking lot in southwest Orlando.

Scott Powers posted the story yesterday in the Orlando Sentinel:

"We're looking to put up some work-force housing there, about 310, 315 units. We think that's great," said Universal Orlando President Bill Davis. "It will be designed to accommodate many of our hardworking, young professionals here at Universal Orlando, or other people who want to move into a pretty darned good neighborhood."

Powers doesn't report rumors that Universal's partner in the development plan is one of the largest commercial developers in the southeast.

Powers also 'blogged' the story on the Sentinel's 'Tourism' blog.

Look for lots of opposition from Universal's wearisome next-door NIMBYhood.

(Cross-posted from Florida Workforce Housing Network.)

Fla. International University students building zero-energy Future House USA---in China

Steven Webster (Florida Workforce Housing Network) — Sun, 12 Aug 2007 19:32:42 -0500

(Cross-posted from Florida Workforce Housing Network)

MIAMI, Fla. --- Students and faculty at Florida International University in Miami are building a 3,200-square foot student-designed Future House USA that combines the organic architecture style of Frank Lloyd Wright, feng-shui, the Chinese art of environmental harmony, and the most energy-efficient design on the planet.

Scott Travis at the South Florida Sun-Sentinel posted the story in today's edition:

The structure's energy-efficient trademarks include solar panels, geothermal heat pumps, permeable paving, nontoxic building materials and a water-recycling system. The goal is to achieve what's known as "zero net energy," meaning the home would produce as much energy as it uses.

Is this the future of affordable housing in Florida? Anyone want to guess why it's being built in China?

China's Ministry of Construction commissioned the Future House project as a way to guide future construction, expected to exceed 100 million homes in the next decade.
Developers envision designing a smaller version of the U.S. house, about 1,600 square feet, to sell to the public.

West Palm, Boynton Beach to raze public housing, build mixed-use villages

Steven Webster (Florida Workforce Housing Network) — Sat, 11 Aug 2007 15:16:54 -0500

Two reports, both cross-posted from Florida Workforce Housing Network:

West Palm Beach, Fla. --- The West Palm Beach Housing Authority announced it will seek a federal grant to demolish the Dunbar Village public housing facility relocate all 317 residents and develop a mixed-use village with housing, shops and retail stores on the 17-acre site at a cost of $40 million or more.

Mike Clary of the South Florida Sun-Sentinel posted the news yesterday:

The plans were outlined Thursday by Laurel Robinson, executive director of the West Palm Beach Housing Authority, before a gathering of about 80 Dunbar Village residents summoned to a "mandatory" meeting in the housing project's conference room.
...Robinson said she had been encouraged to apply for a federal grant by HUD assistant secretary Orlando Cabrera. The authority applied for a similar grant in 2004 but was turned down.

Boynton Beach, Fla. --- Boynton Beach has told the last 13 families at Cherry Hill---the city's last public housing facility---to get out by Nov. 6 so the Palm Beach County Housing Authority can demolish the building.

Erika Pesantes at the South Florida Sun-Sentinel found the good news in this story:

Residents have long known the Nov. 6 deadline would soon arrive — officials notified them of plans to raze the compact duplexes more than a year ago.

Joe Zalman, the authority's executive director, said 37 families have been evicted. They got Section 8 vouchers, $1,100 for moving expenses and security deposits.

The building---Cherry Hill---stands in the way of the 24-acre 'Heart of Boynton' mega-redevelopment project Boynton Beach CRA officials (or is it city council members?) hope to convince Auburn Development Group to manage for them. And pay for.

'Heart of Boynton' may include some affordable housing. No one's saying for sure.

Although the Housing Authority has no agreement with the CRA, the agency has proposed affordable housing for the site, said Vivian Brooks, CRA assistant director.

Still, the area's crime and surrounding decay worry Zalman, who says there are no concrete plans in place for the site once the Cherry Hill buildings are demolished.

And it might be a while before any development gets under way.

Here's why:

Lee Co. commishers eye $40,000 'McMansion tax' to fund affordable housing

Steven Webster (Florida Workforce Housing Network) — Sat, 11 Aug 2007 05:14:55 -0500

(Cross-posted from Florida Workforce Housing Newtwork.)

FORT MYERS, Fla. --- Lee Co. commishers will consider raising impact fees 250 percent for developers who want to increase density in new subdivisions with market-priced homes. The proceeds would help fund affordable housing efforts. Developers who want to increase density to build affordable homes wouldn't be charged the extra fees.

Ryan Lengerich posted the story at News-Press.com in Fort Myers yesterday:

If developers want to build more units than the county’s plan allows, they have two options. The developers can make the extra units affordable housing or they can pay the county a fee for each unit which is used to promote affordable housing.
Commissioners are scheduled to hold a public hearing and possibly decide whether to increase the fee from $11,429 per extra unit to $40,000.

Absent substantial additional incentives for affordable housing, the plan would effectively draw battle lines between affordable housing advocates and development opponents.

Co. commishers plan to take up the measure on Tues.

Pinellas County, Fla. may nix schools for affordable housing projects

Steven Webster (Florida Workforce Housing Network) — Thu, 09 Aug 2007 13:53:18 -0500

ST. PETERSBURG, Fla. --- Don't look now, but Pinellas County could be looking at an affordable housing boom. That's a stretch, of course, but consider this: Pinellas Co. school enrollment is down---way down.

So down that the school board told School Superintendent Dr. Clayton Wilcox, left, to pick the schools he would close to reorganize the system. Wilcox said he would focus on schools that are older, have low enrollment or lie in flood-prone areas of the county.

Last month Wilcox named nine target facilities---Riviera Middle School, which boasts a sprawling 23-acre campus, and eight elementary schools. Pinellas runs 27 middle schools and 86 elementary facilities.

That gave St. Petersburg city council member Bill Foster, right, an idea: why not turn a surplus 26-acre school site into an affordable housing community that could accommodate a couple hundred families? Fox-TV Channel 13 reported Foster's 'trial balloon' yesterday. It took about two minutes for school board member Linda Lerner, right, to try to super-nanny the idea. Speaking for one of the largest land owners in Pinellas Co., Lerner sounds like an old world land baron herself:

"When you're out of land you're out of land, right? We don't have that much," said Lerner.
Lerner thinks the school system should land bank properties for future needs.

Foster, an attorney by trade, probably got the idea from Don Shea, left, CEO of the St. Petersburg Downtown Partnership, who last week proposed converting the former Euclid Elementary School in St. Petersburg into condominiums and town homes teachers can afford to buy. School supe Wilcox reportedly liked that idea. But then, no one asked the school board's resident greedy land baron. Yet.

Pinellas Co. Schools don't mind charging home builders a whopper impact fee for building new homes. Those impact fees are one reason Pinellas suffers its affordable housing crisis---its own teachers are leaving Pinellas for more affordable areas.

Lerner's 'land baron' response seems not only thoughtless but callous. She might reconsider her position for the good of Pinellas Co. schools, not to mention Pinellas Co. families.

Sarasota Habitat for Humanity gets $497,000 to build 'new urbanist' affordable housing project

Steven Webster (Florida Workforce Housing Network) — Wed, 08 Aug 2007 18:36:19 -0500

SARASOTA, FLA. --- Habitat for Humanity Sarasota, Inc. scored a $497,000 pre-development grant from the Federal Home Loan Bank of Atlanta to pay for part of the first phase of "Puppy Park," 215 town homes and condominiums on a 16.5-acre former parking lot adjacent to the Sarasota Kennel Club.

'Puppy Park' will target families earning less than 70 percent of AMI. The first phase includes 71 units. Sarasota architect Carl Abbott, FAIA, is designing the 'new urbanism' project.

Laurie Colton, communications director for Habitat for Humanity Sarasota, Inc., told Florida Workforce Housing Network this morning that 'Puppy Park' is the working title for the community. The agency hopes to raise as much as $15 million for the project by selling 'naming rights' to a foundation, a family or a corporation.

Tampa Bay Business Journal posted the story yesterday:

Puppy Park is a mixed-income subdivision of townhomes and condominiums developed by Habitat for Humanity of Sarasota in partnership with Bank of Commerce. When completed, the development will include 215 townhomes and condominiums, ranging from one to four bedrooms.

Hallandale Beach vice mayor to fight for Tower Park residents, proposes affordable housing

Steven Webster (Florida Workforce Housing Network) — Tue, 07 Aug 2007 04:16:20 -0500

"We've followed the rules legally, but we're morally wrong here."---Hallandale Beach vice mayor Bill Julian

HALLANDALE BEACH, Fla. --- Hallandale Beach, Fla., vice mayor Bill Julian read tripoli's weekend story, Hallandale Beach, Fla. commishers turn greedy scumbag developers, plan to evict elderly residents, and decided to respond.

In an email to Florida Workforce Housing Network on Sunday, Julian wrote that he plans to oppose the city's effort to evict the 84 residents of Tower Park in Hallandale Beach to expand a recreational park---and dress up the view for the skyboxers at Gulfstream Park, the city-sized race track a block away that wants to be a new Las Vegas.

Julian spoke with us yesterday afternoon in an exclusive interview as he drove through a rainstorm to donate blood for an injured sheriff's deputy. He cursed the traffic, Julian-style, which is something between a sigh and a sighing 'hmmm.'

A lifelong horse trainer, founder of Julian Racing Stables---the oldest in So. Fla.---Julian moved to Hallandale Beach as a youngster in the 1950's. He grew up in a mobile home neighborhood, and lived in one until hurricanes wiped him out four years ago. He now lives in a duplex, where he cares for his aged mother.

"If I could buy a double-wide in the city I'd do it today," Julian said. "I like the lifestyle. And it's the most affordable housing on the market," he said.

Julian said he's not the only member of the city's Affordable Housing Board who's tired of developers who promise affordable housing but never deliver.

"It's just not working," Julian said of local affordable housing efforts. "Their idea of affordable is $230,000. Who can afford that?"

When news about the Tower Park fiasco broke last week, Julian went to visit Tower Park residents.

"They're scared," Julian told us. "What we are doing isn't right. We followed the rules, we're legally correct as near as I can tell, but we're morally wrong here," Julian said.

"Try to imagine how you'd feel if it was you," Julian said. "They are living on fixed incomes, they are living very meager lives, and here comes the city---the same city they have been paying taxes to---proposing to kick them out on the street. That's just wrong."

In addition, Julian said, the city may be steering toward a bad deal. "In the final analysis we're paying about $3 million an acre for an expanded recreational park when the housing market is crumbling and every Florida municipality is looking at less revenues next year. We're making developers happy, but it's not a wise move for the city, it's not a wise use of the people's money," Julian said.

Hallandale Beach city commishers get a second chance to vote on the Tower Park deal on Aug. 14. That's when Julian said he plans to offer a few suggestions.

"If the city is determined to buy Tower Park and demolish the homes that are there now I'd like to see the city develop it as affordable housing," Julian said. "It's time someone did something. If Gulfstream develops its commercial facilities, that will create even greater need for affordable housing for their workers, and we have to take that into account," he said.

"Everyone says modular homes would lower property values, but some modular homes are attractive, sturdy, and very economical to build," Julian said.

"We work for all the people of Hallandale Beach, not just the developers," he said.

Hallandale Beach, Florida to evict elderly poor to expand park

Steven Webster (Florida Workforce Housing Network) — Sat, 04 Aug 2007 15:20:07 -0500

Hallandale Beach, Florida---City commishers voted to buy up some of the last affordable housing in Hallandale Beach and evict 84 residents---mostly elderly and mostly poor, including one WWI vet with terminal lung cancer---to make way for an expanded city park. Is this how democracy is supposed to work?