Workforce/Affordable Housing PowerPointWorkforce/Affordable Housing
in Miami Beach
A Workshop for the Mayor and Commission
1
Affordable Housing Defined
Affordable housing is any housing in
which its occupants expend no more than
30% of household income on housing
costs (rent, utilities, etc.)
In the vernacular, many people have associated affordable housing with the
Section 8 housing program because the program requires participants to pay 30%
of their income towards rent.
2
Workforce Housing Defined
Workforce housing is affordable housing
directed at individuals and their families
employed in the area’s local workforce.
Its modern use is most closely aligned with Aspen, Colorado’s effort to provide
subsidized housing for its workforce.
3
Typical Miami Beach Rents
Average rents for a 1-bedroom
apartment in our City range from
$1,575 to $2,300
Source: ZumperMiami, Spring 2015 4
Area Median Income Rates
FAMILY <=50%50.01% - 80%80.01% - 100.01% - 120.01% - 140%
SIZE
VERY LOWLOW 100%120%MODERATE/
MIDDLE
MEDIANMODERATE
1 $ 24,850.00 $ 39,800.00 $ 49,700.00 $ 59,640.00 $ 69,580.00
2 $ 28,400.00 $ 45,450.00 $ 56,800.00 $ 68,160.00 $ 79,520.00
3 $ 31,950.00 $ 51,150.00 $ 63,900.00 $ 76,680.00 $ 89,460.00
4 $ 35,500.00 $ 56,800.00 $ 71,000.00 $ 85,200.00 $ 99,400.00
5 $ 38,350.00 $ 61,350.00 $ 76,700.00 $ 92,040.00 $ 107,380.00
6 $ 41,200.00 $ 65,900.00 $ 82,400.00 $ 98,880.00 $ 115,360.00
7 $ 44,050.00 $ 70,450.00 $ 88,100.00 $ 105,720.00 $ 123,340.00
8 $ 46,900.00 $ 75,000.00 $ 93,800.00 $ 112,560.00 $ 131,320.00
*Income Limits are retroactive as of March 28, 2016. They are subject to change periodically via U.S. HUD revisions.
5
The Need for Workforce Housing
51% of all of the City’s
•
households
are paying 30%
or more of their income for
housing (25,400 households)
6
The Need for Workforce Housing
51% of all elder households
•
are spending 30% or more of
their household income for
housing (5,618 households)
27% of our elder households are spending 50% or more
•of their household income for
housing
7
The Need for Workforce Housing
Households with severe housing costs burden 1:
Miami Beach Miami-FT. Lauderdale-
West Palm Beach Region
# w/severe # % w/severe # w/severe # households % w/severe
cost burden households cost burden cost burden cost burden
11,580 43,115 26.86% 511,130 2,015,980 25.35%
1-Cost-burdened –households spend more than 30% of income for housing expenses
Severely Cost-burdened -households spend more than 50% of income for housing expenses
8
The Need for Workforce Housing
Benefits of workforce housing in a community:
•Reduces traffic (by eliminating cars carrying
workers from other communities)
•Creates closer community ties (by those who live
and work here)
•Encourages residency by vital employees including
teachers, emergency service personnel, and
nurses, among others
9
Affordable Housing Types
Subsidized Housing
•
Public Housing
•
Section 8
•
Fair Market Rents
•
10
Subsidized Housing Defined
Subsidized housing provides a rent
reduction to income-eligible households
(typically at or below 80% of Area Median
Income) that results in either Fair Market
Rents (typically lower than Market Rent
which is dictated by the open marketplace)
or rent costs capped at 30% of household
income.
Can be publicly or privately provided.
11
Public Housing Defined
Public housing is affordable housing owned
by a housing authority in which 30% of the
household’s income pays for rent.
Rebecca Towers’ South Tower is an example of public housing.
12
Section 8 Defined
Section 8 is a rent subsidy program
requiring income-eligible households to pay
30% of their household income for rent. The
program has two aspects:
Project-based
–Property-specific housing is typically owned privately
but subsidized by federal funds.
Voucher-based
–The rent subsidy is portable and can be used for
housing in the marketplace
13
Affirmatively Furthering Fair
Housing
Affirmatively Furthering Fair Housing (AFFH) is a legal requirement that
federal agencies and federal grantees further the purposes of the Fair
Housing Act
to:
Overcome historic patterns of segregation;
Promote fair housing choice; and
Foster inclusive communities that are free from discrimination.
Affirmatively furthering fair housing means taking meaningful actions that, taken together,
address significant disparities in housing needs and in access to opportunity, replacing
segregated living patterns with truly integrated and balanced living patterns, transforming
racially and ethnically concentrated areas of poverty into areas of opportunity, and
fostering and maintaining compliance with civil rights and fair housing laws. The
Assessment of Fair Housing identifies four fair housing issues:
Patterns of integration and segregation;
1.
2.Racially or ethnically concentrated areas of poverty;
3.Disparities in access to opportunity; and
4.Disproportionate housing needs.
14
The City’s Comprehensive Plan
Five objectives that address affordable housing:
Objective 1
: Have 16,000 affordable units for low/moderate-income and
special needs households
Current Status:
Through government sponsored programs, there are
2,048 affordable units for low/moderate income and special needs
households as well as 3,138 Section 8 vouchers administered by the
Housing Authority of Miami Beach.
Out of the total number of units in the City (50,006), including the 2,048
mentioned above, 4,525 are affordable to low/moderate-income
households.
15
The City’s Comprehensive Plan
Five objectives that address affordable housing:
Objective 3:
Maintain a minimum of 40% of City’s land area that is
designated so as to permit residential uses and 25% of the City’s total
land area as areas in which land use policies are either designed to
encourage, or mitigated to allow for, housing affordable to very low-to
moderate-income families
Current Status
: There has been no change to these standards.
16
The City’s Comprehensive Plan
Five objectives that address affordable housing:
Objective 4
: Maintain a minimum of 20% of the City’s total land area
designated so as to permit “community residential homes” licensed or
funded by the Florida Department of Children and Families and assisted
living facilities for the elderly and special need populations
Current Status
: This encompasses the City’s commercial districts in RM-
1, RM-2 and RM-3.
17
The City’s Comprehensive Plan
Five objectives that address affordable housing:
Objective 5:
The City will continue to promote preservation or
rehabilitation of housing, including identification of historically significant
housing and the re-use of historic structures as housing.
Current Status
: The City continues to support this objective.
18
The City’s Comprehensive Plan
Five objectives that address affordable housing:
Objective 7:
Implement housing activities or programs as set forth in the
City’s five-year Consolidated Plan submittals to HUD and Local Housing
Assistance Plan to the State
Current Status
: The City continues to prioritize its housing funds to create
159 affordable rental units and maintain/rehabilitate 200 affordable units in
the past 8 years.
19
City’s Efforts
The City has funded a variety of affordable housing projects over the
past 15 years through either direct City funding or as subrecipients of
Federal and State funding including:
elderly
Affordable rental housing for the
•Allen Apartments (39 units)
•Jefferson Apartments (27 units)
•Rebecca Towers (400 units)
working families
Affordable rental housing for
•Lottie Apartments (9 units)
•London House Apartments (24 units –opened summer 2016)
veterans and formerly homeless individuals
Affordable rental housing for
•Harding Village Apartments (92 units)
•Meridian Place Apartments (36 units)
working and disabled individuals
Affordable rental housing for
•Madeleine Village Apartments (16 units)
•Neptune Apartments (35 units)
20
MBCDC & HUD
The City suspended MBCDC’s CHDO (Community Housing Development
Organization) status in July 2013.
This action was taken after the new City Administration noted serious and significant
discrepancies and inconsistencies regarding MBCDC projects.
The City notified HUD of its findings in July 2013 and undertook a forensic audit
of two City-funded MBCDC projects:
•Allen Apartments
•Neptune Apartments
The audit identified a variety of compliance and financial irregularities including:
•Advance funding was provided to MBCDC in violation of HUD regulations
•MBCDC was unable to provide proof that advanced funds were expended as proposed
21
MBCDC & HUD
The City was able to obtain ownership of five MBCDC-owned but City-funded
properties to address some of the financial irregularities:
•Barclay Apartments•Madeleine Village Apartments
•Lottie Apartments•Neptune Apartments
•London House Apartments
The City has a purchase contract for the Allen Apartments. However, this property
has significant debt and regulatory issues involving the State and County that are
impeding its acquisition.
22
The City & HUD
The City has been working collaboratively with HUD since 2013 to:
•Identify the areas of non-compliance and mismanagement prior to May 2013
•Audit project files and determine compliance failures
•Retrieve advanced funds provided to MBCDC but not expended properly
•Establish checks and balances to prevent the repeat of prior errors and ensure
compliance in the use of federal funds
•The City expects to repay HUD more than $1 million for prior compliance errors
The City has requested to repay the funds utilizing three future funding years.
●
23
Workforce Housing and Parking
At its March 18, 2016 meeting, the Finance and Citywide Projects Committee
discussed flexibility in parking garage design to enable:
►The possible inclusion of
workforce housing in the design of
future new garages (e.g. 2660
Collins Avenue)
►The possible future conversion of
garage space to workforce housing if
parking demand declines with
innovation such as driverless cars, etc.
*
Please note some current projects were
underway before this direction was provided
The Commission adopted Resolution 2016-29355 at its April 13, 2016 meeting.
24
North Beach Master Plan
The City aims to balance the desirable physical and economic revitalization of North Beach
“
with the retention of much needed affordable housing
.”
Protecting and assisting renters
►
Increasing Available Affordable Housing
►
◊Encourage Non-Profit housing developers to operate in
the City
◊Requiring developers to dedicate affordable units in
new projects
◊Regulating unit sizes to reduce construction and
housing costs
◊Understanding that short-term rentals may exasperate
the situation
25
Proposed Miami-Dade County Ordinance
►As initially proposed by Commissioner Barbara Jordan, the ordinance created a
mandatory Workforce Housing Development Program that required municipalities to
compel inclusionary housing on developments of 20 or more units among other changes
►When the item returned to the Board, it was effectively gutted enabling
municipalities to voluntarily pursue inclusionary policies.
►
Each municipality has until June 30, 2017 to submit a resolution making findings as
to the need for or practicality of providing workforce housing
►
Each municipality that adopts a resolution indicating that it will adopt a voluntary or
mandatory workforce housing program shall have until December 31, 2017 in which to
adopt any ordinance or resolution necessary to address its need for workforce housing
26
The Land Use Committee
At its April 20, 2016 meeting, the Committee discussed a variety of
incentives to encourage further private development of workforce housing
including:
►Expedited review and permitting
►Refund of application and review fees and the deferral/restructure of impact fees
►Encourage micro-housing and mixed-tenant projects
►Utilization of City-owned properties to develop workforce housing
►Defined workforce housing beneficiaries to those earning up to 140% AMI
►Encourage mixed income/mixed use development through positive marketing efforts
►Promote an education effort to developers so they fully understand incentives offered
►Establish a long-term deed restriction program to preserve affordability
►Assess the potential demand from the City’s workforce ensuring that appropriate units
are developed
►Research the possibility of short-term tax abatements for eligible new projects
27
What Other Areas Are Doing
Boston
–Community Preservation Act is on the ballot this year to establish a
one percent tax (about $24 per year for the average homeowner) on property
taxes to create revenue to develop affordable housing.
California
–Fee on real estate transactions to support affordable housing,
redevelopment and homeownership programs.
Minnesota
–Use of income tax credits for affordable housing development.
Portland
–Transient lodging tax that charges 11.5% per Airbnb reservation
for land acquisition and capital costs.
Alameda, California
–Passed moratorium on rent increases.
Chicago
–Created a community land trust to address its limited supply of
affordable housing
Please note that some of the actions above would require State legislative action.
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Shall we amend
We Need Direction:
Comprehensive Plan?
Shall the Comprehensive Plan be amended to reflect current market conditions?:
□
16,000
Objective 1 for affordable housing establishes a goal of affordable
units for low/moderate income and special needs households
29
How should we comply with the
We Need Direction:
County workforce ordinance ?
1. The County requires a resolution making findings as to the need or practicality
June 30, 2017
of providing workforce housing within our jurisdiction” by .
□Shall we adopt a resolution establishing need but delineating the impracticality
of mandating inclusionary practices in our City?
2. The County requires a resolution or ordinance indicating that the City “will
December 31,
adopt a voluntary or mandatory workforce housing program” by
2017
.
□Shall we adopt a resolution incentivizing a voluntary workforce housing
program reflecting the recommendations?
30
Potential Workforce
We Need Direction:
Rental Housing Project Sites
We need direction as to where you would like us to develop workforce housing
and/or what parameters you want us to follow in considering these locations:
□
Barclay Plaza Apartments
, 1940 Park Avenue
■The Commission asked that we target educators, public safety
personnel and municipal workers earning 120 -140% AMI as tenants
Shall we build for?:
□Single Individuals
□Micro Units
□Families
□Current Workers within the City
What rents will the tenants pay?
□30% of Tenant Income□Market Rent
□Fair Market Rent (i.e. $774 –Studio, $975 –1 bedroom)
□Other Rent Formula?
31
Potential Workforce
We Need Direction:
Rental Housing Project Sites
□
2660 Collins Avenue
Shall we build for?:
□Single Individuals
□Micro Units
□Elderly
□Families
What shall they earn?
□Up to 140% AMI
□120 –140% AMI
□Other Income Level
Who shall they be?
□Any Current Workers within the City
□Specific Workers within the City
What rents will the tenants pay?
□30% of Tenant Income□Market Rent
□Fair Market Rent (i.e. $774 –Studio, $975 –1 bedroom)
□Other Rent Formula?
32
Potential Workforce
We Need Direction:
Rental Housing Project Sites
□
Future Housing Sites
(i.e. North Beach)
Shall we build for?:
□Single Individuals
□Micro Units
□Elderly
□Families
What shall they earn?
□Up to 140% AMI
□120 –140% AMI
□Other Income Level
Who shall they be?
□Any Current Workers within the City
□Specific Workers within the City
What rents will the tenants pay?
□30% of Tenant Income□Market Rent
□Fair Market Rent (i.e. $774 –Studio, $975 –1 bedroom)
□Other Rent Formula?
33
Potential Workforce
We Need Direction:
Rental Housing Project Sites
City Lot at Collins Avenue and 23 rd Street
The , east of Liberty Avenue, is
rd
being developed separate from the Collins Park Garage located at 23Street
and Collins Avenue, west of Liberty Avenue, and is programmed for artist and
workforce housing.
The City has hired a Public Private Partnership (P3) consultant to assist with the
development of the RFP to develop this site.
34
Tenant Policies?
We Need Direction:
We need direction as to certain tenant policies that may impact how we
approach workforce/affordable housing :
□Should tenants be current residents of the City?
□Should tenants be current workers in the City?
□What happens if a tenant changes jobs?
□What happens if a tenant’s income changes drastically?
□Other Concerns?
35
How will we pay?
We Need Direction:
►The Commission has already earmarked a portion of collected short term
rental fines to address the retention/development of workforce/affordable
housing
However, this will likely not produce sufficient revenues to address workforce
housing needs. If the Commission is seeking other sources:
□Should we use all or a portion of proceeds from the sale of City assets?
□Should we commit a percentage of General Fund annually?
□Other ideas?
36
Direction Needed
Is there something else you would like us to do?
37