Affordable Housing Concerns Spread in Palm Beach County

It’s not exactly a shocking conclusion, but it’s still an important one. As property values have risen in Palm Beach County, affordable homes are more and more difficult to track down for lower-income families. A recent study confirms this fact.

County housing officials say the study, which is not yet finalized, emphasizes concerns over the lack of affordable Florida home loans in the area. Even with development plans currently in the pipeline, the county is more than 31,000 affordable homes and rental units short of meeting the projected demand by 2010.

Also troubling: nearly a quarter of the county’s homeowners, and more than a third of renters, spend more than 30 percent of household income on housing costs.

Affordable Florida home loan plans in the works

County commissioners have voted to enact a mandatory workforce housing program as they pore of the study, deeming the construction of middle class housing one of their highest priorities. A policy approved in March requires developers to build more affordable homes in new residential developments, targeting household incomes between $38,640 and $96,600 with homes in the $164,000 to $304,000 range.

As of May, the median price in Palm Beach County for an existing single-family home is $391,000. Prices have remained stagnant in recent months.

“I think there is some market correction occurring, but that’s just maybe a temporary blip,” County Commissioner Warren Newell said.

Creating mandatory affordable housing is just one facet of the county’s plan.

Luxury home fees are being considered - and the county created a community land trust to buy land for affordable housing and purchase existing affordable homes. Next week, commissioners will consider using $2.4 million in federal funds to buy about seven acres in suburban Lake Worth. Affordable homes are planned on the site.

Hurricane Wilma didn’t help. It had an impact on the most affordable of homes, damaging or destroying more than 3,000 mobile homes — about one-fifth of the county’s total — according to county date reflected in the study.

Another reason for affordable Florida home loan demand

Apartment-to-condo conversions also took a toll, with 12,068 rental units disappearing from the market between 2002 and 2005, resulting in higher rental rates across the county. Those who couldn’t afford a Florida home loan now couldn’t afford to rent, either.

The county government needs to step up and help this situation. Affordable housing proposals are on the table across the state - we can only hope they are soon agreed upon and Florida home mortgage loans are lowered for deserving families.