Affordable Housing Efforts Stalled in Collier County

In Collier County, commissioners have given the green light to nearly 5,500 affordable housing units since the end of 1999. But there’s a problem.
Fewer than 1,500 of those units have been built, according to county records.

A few projects have been completed. But most are under construction or still under review by government agencies, causing a problem for Florida mortgage borrowers that need assistance.

“The houses are just not being built that we approved,” Collier County Commissioner Fred Coyle said. “Most of the ones that have been built have been built by Habitat for Humanity and the other affordable housing providers in Immokalee.”

Some blame the county staff and state and federal agencies for taking too long to issue permits, while others point fingers at the developers themselves.

“I don’t think there’s really a magic answer,” said Joe Schmitt, administrator for the county’s Community Development and Environmental Services Division.

He admits the approval process is “rather laborious” but the county does offer expedited permitting for affordable housing. Coyle wonders whether the delays are Florida housing market-driven.

“People are just reluctant to begin building at a time when prices are down and demand is down,” he said.

Several affordable projects that have yet to be built also include market-rate housing, a much tougher sell these days. That may give developers a reason to drag their feet.

“It is more complicated when the affordable housing is merely a component of a larger housing development because the demand for other types of housing is not as great,” Coyle said.

In their defense, developers say getting the necessary approvals to build affordable housing often takes longer than expected, so they’re not able to put up homes as fast as they want.

“Every given project has its own issues and delays,” said Blake Gable, vice president of real estate for Naples-based developer Barron Collier Cos.

Schmitt said he’s not aware of any developers backing out of affordable housing projects the county staff has approved.

“Nobody has said to me we’re going to put a stop on it,” he said.

Phil McCabe, a longtime Naples businessman and developer, believes some of the approved projects won’t get built for “many, many years to come” because of a slower real estate market. Until demand for Florida mortgage loans returns, what’s the incentive to build?

“I think they’re just frozen in their tracks,” he said.

On the way
Marcy Krumbine, the county’s director of Housing and Human Services Administration, said several affordable projects are in the middle of construction and more units will be coming online soon.

A few projects have just started to go vertical, including one in the town of Ave Maria that will offer 326 townhomes, ranging from the low-$170,000s to the high-$197,000s. It’s called Middlebrooke. Pulte Homes is building the project in partnership with Ave Maria Development.

“There are some very large projects that will definitely move forward,” Krumbine said. “In a year or two, there will be more of a balance between what has been approved and what has been built.”

Despite the market slowdown, there’s still a strong demand for affordable housing priced at $200,000 and under, she said.

Even with falling Florida home prices and a higher inventory of homes on the market, the average sales price is still in the high $300,000s in Collier County, putting home ownership out of reach for many workers, from police officers and firefighters to teachers and nurses, Krumbine said.

“This is actually the first time since I’ve been working in housing that it’s a buyers’ market,” she said. “It’s a better time to buy right now. There is more flexibility in pricing and more things on the market.”

The affordable housing is targeted at workers earning 80 percent or less of the median income. For a single Florida mortgage applicants, that means $39,100 a year. For a family of four, it’s $55,850.

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