NEW BUSINESS  22.

COMMITTEE MEMORANDUM

KEY INTENDED OUTCOME:
Ensure Workforce Housing For Key Industry Workers Is Available In Suitable Locations

HISTORY:

At its May 15, 2018 meeting, the Affordable Housing Advisory Committee (AHAC) reviewed the City’s programs tailored to meet its workforce housing needs. Through City policy established by Resolution 2017-29925, workforce households are defined as those earning up to 140% Area Median Income (AMI).

While the City is working to develop workforce housing that meets this parameter, current programs offered are funded through State Housing Initiative Program (SHIP) funds and are intended to serve households earning up to 120% AMI. The City has two programs to promote homeownership and affordable housing retention serving this population.

• First-Time Homebuyer Program - The program provides up to $150,000 in down payment and closing costs assistance to income-eligible households to purchase their first home in our City.
• Homeowner-Occupied Rehabilitation Program – The program provides up to $70,000 in rehabilitation assistance to enable ongoing affordability for property owners.

AHAC is supportive of these programs and the potential impact they can have in addressing the City’s affordable housing problems. As such, the AHAC recommended promoting these programs with an emphasis on outreach during the summer months. By beginning this outreach effort during the summer, the hope was to reach area educators who are adversely impacted by high housing costs in the City.    

The Committee’s motion was subsequently referred by Commissioner John Elizabeth Aleman to the Neighborhood/ Community Affairs Committee for further discussion at the June 6, 2018 City Commission meeting. The City Commission referred the item to the July 18, 2018 Neighborhood/Community Affairs Committee for discussion.

ANALYSIS:

The City’s First-Time Homebuyer and Homeowner-Rehabilitation Programs are funded by the State Housing Initiatives Program (SHIP). SHIP serves households up to 120% AMI which is inclusive of many of the working class households being targeted. SHIP requires that at least thirty percent (30%) of the City’s annual allocation be expended on very low-income households and a minimum of an additional thirty percent (30%) of funds to serve participants from low-income households. The chart below outlines the income eligibility requirements for SHIP:

While property values in the City have been strong as demonstrated by the median property value in the City being 94% greater than the national median of $205,000, this strong indicator also serves to impair the ability of low- to moderate-income households from becoming homeowners (Source: Shimberg Center at the University of Florida). As a result of the strong homeownership market, low- to moderate-income households are more likely to be renters and also face housing options with smaller units and fewer bedrooms (Shimberg Center at the University of Florida).  

To bring the crux of our community’s housing needs to the fore, it should be noted that 13,137 households or roughly 49.6% of all households paying rent are spending at least 35% of their household income on housing costs (Source: American Community Survey, 2016). This cost burden to maintain housing undermines a household’s ability to save for a home, acquire suitable insurance coverage, obtain higher education and provide economic stability, among other milestones. As a point of perspective, the average public school teacher makes $45,723 per year according to Florida Department of Education.

Working with the City’s Office of Marketing and Communications, the City will market the two (2)current SHIP programs in the following ways:

1. Utilizing social media to include Twitter, Facebook and Instagram
2. Carrying a fixed advertisement in MB Magazine promoting the program so long as there is space available (as paying advertisers would take precedence)
3. Working in conjunction with the Committee for Quality Education to ensure that local area educators are advised of these programs through their representatives on this Committee

CONCLUSION:

The Administration recommends promoting the City’s First-Time Homebuyer Program and Homeowner-Occupied Rehabilitation Program among its workforce, especially educators.