Palm Beach County Looks to Jump Start Affordable Housing
Looking for a $200 million “jump-start,” Palm Beach County commissioners agreed to consider using bonds backed by taxpayer money to create more affordable housing.
In the past, the county used bonds to pay to preserve land for farming, conservation and parks. This could work the same way and provide money needed to preserve or build more homes priced for teachers, police officers, young professionals and others who can’t afford Palm Beach County’s home costs, Commissioner Burt Aaronson said.
“That is something the people would understand,” said Aaronson, who proposed using $100 million to $200 million in bonds. “That would be a way to jump-start this affordable housing.”
Aaronson proposed using bonds backed by county revenues other than property taxes, which means it would not have to be approved by voters. Proposed fees on new development intended to help pay for affordable housing could be used to pay off the bonds.
Commissioners agreed to consider the bond plan along with other affordable housing proposals that are expected to go before the board in March.
Past problems with bond money
The county’s use of bond money has been criticized in the past. Members of the county’s Land Acquisition Selection Committee in December called for more citizen oversight of the bond money voters approved to preserve farmland. They objected to the county deciding to use 40 acres of farmland to store garbage.
Affordable housing needs gained attention last year when the median home price in Palm Beach County exceeded $400,000 - although the median prices at least dropped a bit as the year wore on.
Instead of just focusing on housing for the poor, the county started looking for ways to ensure more homes are available for moderate-income residents making between $35,000 and $75,000 a year. Those in the South Florida home loan market within this bracket have felt a financial crunch over the past year.
Fees on luxury homes and new businesses are among the proposals being explored to help pay for affordable housing, which the county considers up to $275,000.
In November, commissioners agreed to create a community land trust that could acquire property to build affordable housing, as well as buy mobile home parks and apartments, which provide lower-cost rental opportunities.
The county also has a proposal to require builders to include reduced-price homes in new neighborhoods. The plan would require about 20 percent of new homes to be offered as affordable housing - all this is meant to halt the exodus of South Florida residents. They ditched the area in droves last year in exchange for a North Florida home loan.
Builders would get to build more homes than otherwise allowed to help compensate for the potential lost profits. They also could “buy out” of the affordable housing requirement and the county could use the money to build reduced-price homes elsewhere.
That proposal was supposed to go before the county commission in January, but it has been delayed while county officials try to address objections from the housing industry.
County officials plan to meet again next week with a task force of building and real estate industry representatives helping to craft the new rules.
Summary: As Florida home loans become more and more difficult for renters to afford, the challenge of finding affordable housing becomes more and more pressing. We’ll continue to monitor this story and update the plans Palm Beach has in store to address the concerns of the middle class.
