1. Affordable Housing Prepared for: Affordable Housing Committee, Greater Fort Lauderdale Chamber of Commerce Prepared by: Carras Community Investment, Inc. James Carras & Mandy Spangler Comments: carras@bellsouth.netcarras@bellsouth.net Greater Fort Lauderdale April 1, 2005 Draft for comment only

2. Introduction Local Real Estate Market Introduction Housing Need Best Practices Case Study Next Steps Rapid growth in real estate market: Low interest rates Reinvestment in central cities Aging baby-boomers seeking homes Immigration and outside investment Deflation of $ Instability of South America Speculation

3. Definitions: Affordable Housing costs < 30% of a households income Moderate Income is <120% of median Low Income is <80% of median Very Low Income is <50% of median Introduction Definitions Introduction Housing Need Best Practices Case Study Next Steps In Broward County: Area Median Income (AMI) is $42,659 (2003) 1/5 th of households spend >30% (2000) Over 160,000 low and very low income families

4. Housing Need Reasons to act now: Demand is rapidly increasing housing costs Renewed residential investment in central cities Increased displacement of current residents Disconnect between areas of employment and places with affordable housing No new affordable housing is being created Developers are encouraged to build high-end residential Apartments are quickly converting into condominiums Federally funding is being significantly reduced Critical Time Introduction Housing Need Time Cost People Benefits Barriers Best Practices Case Study Next Steps

5. Actual Housing Costs vs. Affordable Costs Housing Need Housing Costs Source: Andy Dolkart, Miami Economic Associates, Inc. Based on 2003 numbers Introduction Housing Need Time Cost People Benefits Barriers Best Practices Case Study Next Steps

6. I need housing that is affordable Teachers Police Officers Firefighters Nurses Corporate Salesperson Restaurant Staff Retail Employees Service Workers Senior Citizens Recent College Graduates Housing Need Persons Affected Introduction Housing Need Time Cost People Benefits Barriers Best Practices Case Study Next Steps

7. Housing that is affordable ensures: Diverse population Retention of current residents Recruitment and retention of companies/employees Reduction in commute times and transportation costs Reduction in traffic congestion Land preservation Housing Need Benefits of Affordable Housing Introduction Housing Need Time Cost People Benefits Barriers Best Practices Case Study Next Steps

8. Reasons why affordable housing is not being built: NIMBYism Government Regulations Exclusive Zoning Lack of Federal Funding Large cuts proposed to Section 8 and CDBG High Building Costs Land Cost Bordered by Everglades and Atlantic Construction Cost Increased since the hurricanes Building Codes Introduction Housing Need Time Cost People Benefits Barriers Best Practices Case Study Next Steps Housing Need Restrictive Barriers

9. Ways to encourage the development of housing that is affordable: Utilize good land use practices Update local zoning ordinances Acquire sources of long-term funding Develop partnership models Best Practices Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps

10. Infill Development Restoration of existing structures or use of vacant land within urbanized areas Zero Lot Line (ZLL) Additional apartments added to current housing Advantages: Density lowers land costs Mixed use reduces infrastructure needs Reduces sprawl and preserves land Best Practices Land Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps Utilize good land use practices:

11. Smart Growth & New Urbanism Development of mixed use, dense town centers Urban Growth Boundary Urban/Rural boundary is created to encourage dense, urban development and land preservation Advantages: Density lowers land costs Mixed use reduces infrastructure needs Green building design lowers energy costs Reduces sprawl and preserves land Best Practices Land Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps

12. Community Land Trust Separates the ownership of the house and the land Non-Profit organization owns land for future affordable housing development Offers long term leases to individuals, community groups, and businesses Advantages: Permanent affordable homeownership Provides access to land, the most valued resources in development Best Practices Land Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps

13. Inclusionary Zoning Development of a percentage of the market rate units at affordable costs Incentives Density Bonuses Fee Waivers & Tax Abatements Fast Track Permitting Design Flexibility Limit Requirements Alternatives In-Lieu Payments Off-Site Development Land Dedication Advantages: Permanent stock of affordable units from private market Integrate families of all income levels and eliminate pockets of high poverty neighborhoods Best Practices Zoning Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps Update local zoning ordinances:

14. Trust Funds Funds generated through Real Estate Transfer Tax, Stamp Tax, or Bonds Permanent cash flow Double Bottom Line Development Investors driven by community development Satisfies both financial and social objective Conventional HOME, SHIP, CDBG, Low-income Tax Credits Federal allocations Best Practices Funding Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps Acquire sources of long-term funding:

15. Collaboration of stakeholders from diverse backgrounds within both the public and private sector Regional City/County Public/Private Advantages: Information sharing Division of labor Utilize others strengths Improved efficiency and cost effectiveness Mutually beneficial outcomes Best Practices Partner Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps Develop partnership models:

16. Regional Partnerships California & New Jersey Fair Share Housing Each municipality is required to determine how to develop their fair share of the regions housing needs Reduces concentrations of poverty Encourages municipalities to enact policies Connecticut Consensus Building Municipalities that agree on a regional plan receive funding for infrastructure Cities work in partnership with neighboring municipalities Best Practices Partner Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps

17. City/County Partnership A Regional Coalition for Housing, Seattle Implement Regional Housing Trust Fund Created over 1,500 affordable units Public/Private Partnership Crawford Square, Pittsburgh Urban Redevelopment Authority (public authority) Hill District CDC (non-profit) Hill Project Area Committee (residents) McCormack Baron & Associates, Inc. (developer) Urban Design Associates (planner) City Councilmember (government) Created 426 units in low-income neighborhood Retained 45% at affordable rates Best Practices Partner Introduction Housing Need Best Practices Land Zoning Funding Partner Case Study Next Steps Source: URA of Pittsburgh

18. Introduction Housing Need Best Practices Case Study San Diego Next Steps Case Study San Diego, California Background: Population: 1,223,341 (2000) 324.3 square miles Large immigration – 25% foreign born Vacation spot / resort area Causes: Land locked Historically high costs and low wages Current Crisis: From 2000-2004, median home price doubled, while median income increased only 10.4% Average cost of a new home $781,000 Only 11% can afford median priced home 1/5 of households spend >50% income on housing Source: San Diego Housing Commission

19. Case Study San Diego, California City council declared Housing State of Emergency (2002) Established affordable housing as a priority Affordable Housing Task Force (2002) Analyzed current crisis and developed recommendations Comprehensive Affordable Housing Strategy Collaborative Governmental Agencies created partnership San Diego Redevelopment Agency San Diego Housing Commission City Redevelopment Division Centre City Development Corporation Southwestern Economic Development Corporation Notice of Funding Availability (NOFA) – $55 million Developers submit proposals for affordable housing Introduction Housing Need Best Practices Case Study San Diego Next Steps

20. Case Study San Diego, California Inclusionary Zoning Ordinance (2002) Residential developers of greater than 10 units are required to either set-aside 10% of the units as affordable or pay a fee in- lieu into the housing trust fund Condominium Conversion Laws (2004) Owners converting apartments are subject to Inclusionary Zoning and tenants are offered relocation assistance from owners as well as first right to purchase Expedite Program (2004) Developers of Affordable/In-Fill Housing can pay an optional fee to expedite permitting process Rental Assistance First Time Homebuyer Assistance Property Rehabilitation Assistance Introduction Housing Need Best Practices Case Study San Diego Next Steps

21. Case Study San Diego, California Advantages: 13,000 affordable homes 12,000 rental assistance 1,800 publicly owned affordable units 11,000 units renovated 4,000 homebuyers assisted Introduction Housing Need Best Practices Case Study San Diego Next Steps Source: San Diego Housing Commission

22. Initiate public outreach and education programs Affordable Housing Summit (September 2005) Introduction Housing Need Best Practices Case Study Next Steps

23. Initiate public outreach and education programs Develop public/private partnership among stakeholders Greater Fort Lauderdale Chamber of Commerce Broward Alliance for Neighborhood Development (BAND) Broward Task Force FAU Design Collaborative FAU Department of Urban & Regional Planning Broward Workshops Urban Core Committee Downtown Development Authority Florida Redevelopment Association (FRA) Urban Land Institute Next Steps Introduction Housing Need Best Practices Case Study Next Steps

24. Initiate public outreach and education programs Develop public/private partnership among stakeholders Determine applicable policy solutions Land use (Infill Development, Smart Growth, Community Land Trust) Zoning requirements (Inclusionary Zoning) Regional policies (Fair Share Housing) Next Steps Introduction Housing Need Best Practices Case Study Next Steps

25. Initiate public outreach and education programs Develop public/private partnership among stakeholders Determine applicable policy solutions Advocate for policy change City County State National Next Steps Introduction Housing Need Best Practices Case Study Next Steps

26. Initiate public outreach and education programs Develop public/private partnership among stakeholders Determine applicable policy solutions Advocate for policy change Identify long term funding sources Trust Fund Double Bottom Line Development Conventional Funding (SHIP, HOME, CDBG, etc) Next Steps Introduction Housing Need Best Practices Case Study Next Steps

27. Initiate public outreach and education programs Develop public/private partnership among stakeholders Determine applicable policy solutions Advocate for policy change Identify long term funding sources Increase ability of residents to own homes while ensuring development of rental units for those who do not qualify as homebuyers Educational Events Homeowners Fair Next Steps Introduction Housing Need Best Practices Case Study Next Steps

28. Initiate public outreach and education programs Develop public/private partnership among stakeholders Determine applicable policy solutions Advocate for policy change Identify long term funding sources Increase ability of residents to own homes while ensuring development of rental units for those who do not qualify as homebuyers Create new affordable units while preserving existing affordable housing Next Steps Introduction Housing Need Best Practices Case Study Next Steps