Florida Builders Not Thrilled By Local Governments’ Workforce Housing Strategies

Among local governments, planners and Florida home builders alike, workforce housing has become the latest buzzword. While they all agree that affordable housing for teachers, police officers, fire fighters and others is critical, how to best make it happen is another issue, the Daytona Beach News-Journal reports.

At the recent Southeast Building Conference at the Orange County Convention Center, representatives from the National Association of Home Builders, the Florida Home Builders Association (FHBA) and a member of the Florida Senate discussed workforce housing, focusing on inclusionary zoning.

Under that zoning system, area builders are required by law to set aside a percentage of the homes they build for lower cost units, as opposed to more expensive, market-priced homes.

Eliot Eisenberg, an economist with the National Association of Home Builders, was succinct in his condemnation of inclusionary zoning.

“I think it is just a plain bad idea. It really should be dumped in a trash can,” he said.

Eisenberg said inclusionary zoning, while well-intentioned, actually makes the situation worse for those desperately looking for lower Florida real estate prices.

First off, he said. it forces builders to charge more for the market-priced housing stock, which leads to fewer homes built and ends up pushing builders to other areas, creating more sprawl. On top of that, while many people think home builders only want to build expensive homes, the truth is they recognize there is a growing market for more affordable homes.

“They can’t build a small home and make any money anymore. If they could build them, they’d sell them like hotcakes,” Eisenberg said.

Florida Sen. Mike Bennett, a Republican from Bradenton, echoed Eisenberg’s analysis.

“We don’t want to tell local government they are the problem. But if it ain’t available, it ain’t affordable,” Bennett said.

Bennett, who is also an electrical contractor, said local governments put a lot of roadblocks to workforce housing in the form of impact fees, density requirements, height limits and other rules for home builders. Eisenberg said alternatives to inclusionary zoning include the waiver of impact fees, increasing density bonuses and the relaxation of some design standards.

In the past five years, the Florida housing market has exploded so fast and so highly that even upper-middle class residents are being priced out of many areas. A steady rise in Florida home loan rates has lessened demand, but has not yet caused a major reduction in prices. Stuck between a rock and a hard place, buyers need some form of relief, and soon.