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H
HOUSING NEWSN E T W O R KThe Journal of the Florida Housing
Coalition, Inc.
Volume 24, Number 1
WINTER 2008
$6.2 Billion Stimulus for Florida’s Economy at Stake:
Housing Trust Funds Must be Used for Housing
The cap on the Affordablehousing trust funds went intoeffect in
July, 2007. Thatmeans that the distribution of moniescollected from
the revenue dedicatedto affordable housing from theSadowski Act is
now limited to amaximum of $244 million per year.But in the 2008
legislative session,over $596 million is available forappropriation
out of the state andlocal housing trust funds. This is because
forseveral years the monies distributed into the trustfunds was not
allowed to be spent—a total of$348.8 million. That means the
question forthe 2008 Legislature is whether to spend thosehousing
monies now and if so, on what.
Why spend all the moniesin the state and local
housing trust funds onhousing?
The monies in the trust funds are there becausethey were
collected and distributed into thetrust funds for the express
purpose of providingaffordable housing. Those
philosophicallycommitted to ensuring that taxes imposed for
aparticular purpose should be spent only for thatpurpose would find
this enough rationale forspending the monies in the trust funds
on
housing. But adherence to thatphilosophy is not necessary
toconclude that all the monies inthe housing trust funds shouldbe
spent on housing. The morecompelling reason at this particularpoint
in Florida’s history is theeconomy. Spending all $596million of
this money on housingwould give Florida’s economy a$6.2 billion
boost.
Housing is Florida’sEconomic Engine.
Florida is in an economic downturn. And thereis no end to this
downturn in the immediatefuture. We need to stimulate the
economy.There is no better way to stimulate the economythan to
invest money in the housing industry.
• State Housing Dollars Leverage Private SectorInvestment: For
every $1 million of statefunding for housing over $6.05 millionof
housing is built and/or sold. That meansthat the appropriation of
the $596 millionin the trust funds on housing would yield39,005
units.
• State Housing Dollars to Bring in FreeFederal Money: Without
sufficient statehousing dollars, our
Continued on page 3
From the Editor - Jaimie Ross President, Florida Housing
Coalition
The Sadowski WorkforceHousing Coalition Calls forRepeal of the
Cap andAppropriation of the Moniesin the State and LocalHousing
Trust Funds forHousing.
Preservation ofAffordable
Rental Housingin the State of
Florida
5
Making the Casefor Preservation
with Data
8
The ForeclosureFreefall inFlorida: AnAffordableHousing
Perspective
11
ForeclosureCounseling
15
The FloridaHousing
Coalition’s 21stStatewide
AnnualConference
16
Community LandTrusts:
On the Move inFlorida
17
The AffordableHousing Advisory
CommitteesMake a
Comeback
24
SHIP Clips
28
Coalition News
30
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page 2 T H E F L O R I D A H O U S I N G C O A L I T I O N
BOARD OFdirectorsexecutive committeeJeff Bagwell, CHAIRKeystone
Challenge Fund, Inc.,LakelandAnnetta Jenkins, VICE CHAIRLocal
Initiatives Support Corporation,West Palm Beach/South Florida
Jaimie Ross, PRESIDENT1000 Friends of Florida,TallahasseeGregg
Schwartz, TREASURERTampa Bay C.D.C.,ClearwaterSophia Sorolis,
SECRETARYCity of St. Petersburg,St. PetersburgMelvin Philpot, PAST
CHAIRProgress Energy Florida,St. PetersburgMark Hendrickson, AT
LARGEThe Hendrickson Company,TallahasseeRobert Von, AT
LARGEMeridian Appraisal Group, Inc.Maitland
board ofdirectorsBob AnsleyOrlando Neighborhood
ImprovementCorporation, Orlando
Michelle BraunWachovia, JacksonvilleEd BusanskyFirst Housing
DevelopmentCorporation of Florida,TampaHolly DuquetteFlorida Power
& Light,Juno BeachJames “Jim” DyalAmerican Realty Development,
LLC.,TampaCharles “Chuck” ElsesserFlorida Legal Services,Miami
Denise FreedmanBank of America,TampaCora FulmoreMortgage &
Credit Center,Winter GardenWight GregerCity of
Jacksonville,JacksonvilleDan HorvathCommunity Enterprise
Investments, Inc.,PensacolaJack HumburgBoley Centers, Inc.St.
PetersburgJeff KissKiss & Company,Winter ParkTei
KucharskiFlorida Solar Energy Center,Cocoa
Sandra Martin SealsReliance Housing Foundation, Inc.,Ft.
LauderdaleWilliam "Bill" O'DellShimberg Center forAffordable
Housing, GainesvilleEarl PfeifferFlorida Home Partnership
Inc.,RuskinGeorge RomagnoliPasco County CommunityDevelopment,New
Port Richey
financial services committeeDana ChestnutWashington
Mutual,Atlanta, GADavid ChristianRegions,TampaPeter
McDougalCitibank,MiamiRuna Saunders National City,Ft. PierceDeana
LewisSunTrust Bank,Pensacola
advisorycouncilHelen Hough FeinbergRBC Capital Markets,St.
Petersburg
staffADMINISTRATION
Michael DavisExecutive DirectorPam DavisWorkshop CoordinatorTom
FlaggFinancial ManagerDanielle WrightOperations & Conference
Manager
TECHNICAL ADVISORS
Aida AndujarSouth Florida OfficeLydia BeltránSouth Florida
OfficeMichael ChaneyNorth Florida OfficeHana EskraSouth Florida
OfficeStan FittermanCentral Florida OfficeEvelyn RusciolelliCentral
Florida OfficeGladys SchneiderSouthwest Florida Office
The Florida Housing Coalition is a nonprofit, statewide
membership organization whose mission is to act as a catalyst to
bring togetherhousing advocates and resources so that Floridians
have a quality affordable home and suitable living environment.The
Housing News Network is published by the Florida Housing Coalition
as a service to its members and for housing professionals andothers
interested in affordable housing issues.
Jaimie Ross, Editor.
Email: [email protected], Web site: www.flhousing.orgFlorida
Housing Coalition, Inc., Phone: (850) 878-4219, Fax: (850)
942-6312, 1367 E. Lafayette Street, Suite C, Tallahassee, FL
32301.
The Florida Housing Coalition would like to recognize BANK OF
AMERICA, CITIBANK, NATIONAL CITY, WACHOVIA and WASHINGTON
MUTUAL,
for their partnership, leadership and support as our PLATINUM
SPONSORS. We are deeply appreciative.
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Page 3T H E F L O R I D A H O U S I N G C O A L I T I O N
private sector developers are unable to access freefederal tax
credits- leaving millions of dollars to be usedby other states at
Florida’s expense.
• Multiplier Effect: For every million dollars of statefunding,
$10.36 million of economic activity is generatedby housing
construction. That means that with anappropriation of $596 million,
Florida could generate$6.2 billion in economic activity.
• Job Creation: For every every million dollars of statefunding,
106 jobs are created—that means that with anappropriation of $596
million we can expect 63,000 jobsto be created.
• Sales Tax Revenue: For every every million dollars ofstate
funding for housing $98,711 of sales tax revenueflows to the state
directly from purchase of buildingmaterial and supplies. With an
appropriation of $596million that would generate $58.8 million in
sales taxesfor Florida.
Economic Impact of Sadowski Act, White Paper analysisperformed
by: Mark Hendrickson, the Hendrickson Company.
The Mortgage ForeclosureCrisis and Florida’s Affordable
Housing Programs.
The foreclosure crisis in Florida provides further evidenceof
the value in investing in Florida’s affordable housingprograms.
Florida has been hard hit by foreclosures due tothe subprime
lending crisis. Borrowers who are losing theirhomes because they
took out adjustable rate mortgageswithout the ability to make the
payments upon reset(without selling or refinancing), are typically
not thebuyers in Florida’s affordable housing programs.
Florida’shomeownership programs using SHIP or mortgage
revenuebonds, receive home buyer counseling and are put into
fixedrate long-term mortgages. If they are not qualified for aprime
loan they go through credit repair programs until theyare ready to
become homeowners. ( See article on page 14 )
Much of the housing stock being foreclosed is beyond thepurchase
price of low income buyers. But there are somegood opportunities
due to the downturn in the market topurchase land and homes at
reduced prices for the benefit
of Florida’s low income population. This is yet anotherreason
for the Florida Legislature to appropriate all themonies in the
state and local housing trust funds for housing.
2008 Provides a One TimeOpportunity.
We have a one time opportunity in 2008 to stimulate theeconomy
with housing money. Because of the cap on thetrust funds, we will
never again have anything close to $596million to invest in
housing—at most we will have $244million (with negligible annual
increases). That means noneof Florida’s programs like CWHIP, or the
Preservation LoanProgram to assist the extremely low income (See
article onpage 5) will have the opportunity to be funded.
It is not fiscally responsible to use housing dollars to fill
thevarious gaps in the budget for programs that could notpossibly
boost Florida’s economy the way housing would.Investing housing
dollars in housing provides an immediatereturn to the state in
increased documentary stamp taxes, inaddition to the ripple effect
of creating employment for theconstruction industry and all the
other businesses relatedto the production and sale of affordable
housing.
There is no “excess” ofSadowski trust fund monies.
Proponents of balancing the budget by raiding Florida’shousing
trust funds assert that there is an “excess” ofhousing trust fund
monies—“cash that has just beenaccumulating year after
year”—implying that somehow thismoney was not needed or spent on
affordable housing as itcould or should have been. The fact is that
all the moniesin the housing trust funds could and would have been
spenton affordable housing if the legislature had appropriatedthose
monies. There has been an intentional withholding ofthe Sadowski
monies to the detriment of our economy, ourworkforce, and our most
vulnerable populations, includingthe elderly, veterans, and people
with special needs.
The cap of the Sadowski Act trust funds will already
sweepapproximately $183.6 million dollars for fiscal year
’07-’08and ’08-‘09 from housing programs to general revenue.
TheFlorida Legislature needs to think well about
financialinvestment in our state’s economy and use the balance
ofhousing trust fund monies for housing.
Senator King Senator Geller Rep. Saunders
Repeal of Cap Bills filed in House and Senate - SenatorGeller
and Senator King are co-sponsoring Repeal of theCap legislation, SB
74.
Representative Ron Saunders has the identical bill in theHouse,
HB 5.
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page 4 T H E F L O R I D A H O U S I N G C O A L I T I O N
1. In 1992, the Florida Legislature established a
dedicatedrevenue source for affordable housing along with
creativeand highly accountable programs for the use of thosemonies,
known as the William E. Sadowski AffordableHousing Act. The
Sadowski Act state and local housingtrust funds have produced or
preserved over 200,000 homesfor Floridians.
2. The Florida Legislature has closely scrutinized both thestate
and local housing trust funds and Florida’s housingprograms. These
reviews have shown that Sadowski Actmonies have been an unequivocal
success in promotinghome ownership, building quality rental
housing, leveragingpublic dollars with private investments, and
providing aneconomic boost to Florida far in excess of the amount
offunds appropriated for housing.
3. The Florida Constitution requires that all trust funds
bereauthorized every four years. The state and local housingtrust
funds were last reauthorized, by unanimous vote of thelegislature,
in 2004. The trust funds must be reauthorizedduring the 2008
session.
4. Beginning July 1, 2007, an arbitrary cap of $243 million
peryear was placed upon distributions from doc stamps to thehousing
trust funds—$150-$300 million per year less thanthe dedicated
revenue would have generated for housing inaccordance with its
design.
5. Repeal of the cap will produce significant economicbenefits
for Florida. For every $1 million of state funding,over $6.05
million of housing is built and/or sold, $10.36million of economic
activity is generated, $4.05 million ofearnings/income are paid,
106 jobs are created, and almost$100,000 of sales tax is paid back
to the State, directlyattributable to the purchase of construction
materials.Funding at the ten-year average uncapped amount of
$580million compared to the $243 million cap each year willproduce
11,184 more housing units, $1.77 billion more
economic activity, $693 million of additional income, 18,114more
jobs, and $16.8 million more sales tax revenue.
6. The design of the funding for the trust funds was
deliberatelytied to documentary tax revenues so that as real estate
costsand population increases drove up doc stamp receipts,
themonies available for housing would increase proportionately.
7. Repealing the cap does not tie the hands of thelegislature—if
the funds are needed to balance thebudget they can be utilized for
that purpose. In fact,the legislature HAS done this in the past,
most recently inthe budget crisis that followed post 9-11 revenue
shortfalls.
8. Between ongoing successful programs such as SHIP andSAIL, the
new CWHIP and ELI Programs, and the everlooming need for funds for
post-hurricane housing recovery,the legislature appropriated $393
to $443 million each ofthe past three years. Combined with
increasing need toserve additional segments of the workforce, the
need forhousing funding will far exceed the $500 million per
yearthat would be distributed to the trust funds without the
cap.
9. The impact of the cap was not felt in FY07-08, because
thelegislature was able to appropriate trust fund balances
thataccumulated from the time of a de facto cap beginning in2003,
—thus allowing appropriation levels far in excess ofthe cap level.
When the existing balances run out either thisyear or next, the
combination of needs and current fundingcompared to available
capped revenue is a train wreck inthe making.
10. Unlike many a crisis, Florida prepared for this one
bycreating an effective housing funding system. TheHousing Trust
Funds were designed to have more moneyavailable when more money was
needed. Coupled withour innovative housing programs, we have
enoughresources to address the housing crisis—but only if thetrust
funds are reauthorized and the cap is repealed.
Florida’s Sadowski/Workforce Housing Coalition Calls for Repeal
of the Cap on the Housing Trust Funds
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The Affordable Housing Study Commissionselected the topic of
Preservation in2004-2005 due in part to the Commission’sevaluation
of strategies for housing extremely lowincome (“ELI”) households
the preceding studyyear and in consideration of the significant
focuson preservation throughout the country. Timingwas ideal for a
comprehensive review given that theaffordability restrictions for
thousands of rentalunits were due to expire in the coming years.
Given themagnitude and importance of the topic, the Commissionchose
to dedicate an additional year to discovery, eval-uation of
programs and development of recommendations.This extended review
culminated in the Commission’s 2006comprehensive strategy for
preserving rental housing inFlorida.
THE EXTENT OF THE PROBLEM – THOUSANDS OFEXPIRING UNITS ON THE
HORIZON: To develop effectiverecommendations that encourage
preservation of multifamilyunits restricted for low income
households, the Commissionstudied each of the programs that fund
affordable
housing developments. These programs includeHUD, Rural
Development, Florida HousingFinance Corporation and local programs
whichserve households with incomes ranging frombelow 30% AMI up to
80% AMI. TheCommission estimates that over the next fiveyears, the
affordability periods for 12,958 unitswill expire and over the next
10 years, theaffordability periods for 17,190 units will
expire.
A cumulative total of 237,674 units are estimated toexpire over
time.
Preservation of Affordable RentalHousing in the State of
Florida
By Helen Hough Feinberg
ProjectedExpirations
15,70312,95817,1908,961
AffordabilityPeriods
Already ExpiredWithin 5 yearsWithin 10 yearsWithin 15 years
Cumulative
28,66145,85154,812
INVENTORY
Villa Maria is a 1924 building withclassic Mediterranean
structure, and34 one-bedroom and studio unitsserving extremely low
income elderly.This beautiful historic property sitsone block from
the ocean in an urbansetting among upscale condominiums.
When Roberto Datorre, president ofthe Miami Beach
CommunityDevelopment Corporation (MBCDC),first saw the Villa Maria
Apartmentshe did not know the scope of the battlehe was about to
encounter. Knowingthat this apartment complex wasworth preserving,
Datorre used everymeans possible to keep Villa Mariafrom being
demolished by the initialbuyer of the property, who plannedto
construct a six-story luxurycondominium.
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page 6 T H E F L O R I D A H O U S I N G C O A L I T I O N
HOUSING NEWS NETWORK
BARRIERS TO PRESERVING AFFORDABLE HOUSING: TheCommission also
examined the myriad of barriers topreserving affordable rental
units, including:
• Financial Barriers – programs require low rents whichgenerate
limited surplus funds to address maintenanceand capital needs
issues; limited subsidy,complex rules and sponsoring agencieswith a
multitude of rules and limitedflexibility discourage purchasers
whodesire to maintain affordability.
• Information Barriers – preserva-tion strategies generally
require buyerswith an intent to maintain affordabilityto take a
proactive approach before an owner convertsunits to market or sells
to a market purchaser.Information on owner strategies and existing
fundinglayers is not readily available to assist in creating
aviable and specific preservation strategy for a
property.Furthermore, programs providing the subsidy that willbe
part of any financing plan may not be available whenthe seller
markets the property.
• Capacity Barriers – Non-profits and public housingauthorities
have the mission to engage in preservationactivities but do not
always have the financial resourcesor knowledge of the development
process to effectivelyengage in preservation activities.
THE IMPORTANCE OF PRESERVING UNITS WITH PROJECT-BASED RENTAL
ASSISTANCE: While the Study Commissionapplied a broad definition of
“preservation” to considerany rental units acquired or
rehabilitated with programs thatimpose affordable use restrictions,
we quickly recognizedthe particular value of units with
project-based rentalassistance. These units constitute some of the
most
affordable rental housing in the state. The followingrepresent
the number of units estimated to be available inthe State of
Florida that offer rental assistance:
• Rural Development: 11,171 units• HUD Programs with rental
assistance: 28,422
These units enjoy the benefit of significant federal
subsidyfunding that will terminate if the units are converted
tomarket rate. The units also serve a wide range of
householdsincluding elderly, persons with disabilities, families
andfarmworkers. Generally, tenants of a project with expiringrental
assistance will receive a special “enhanced” voucher.However, some
tenants have problems finding appropriateaffordable housing even
with this voucher. Moreover, oncea tenant is no longer eligible
under the program (for anyreason), the rental assistance is
permanently lost and will notbe transferable to another person.
This makes preserving
the actual unit important in ensuring the continuation of
thesubsidy. Consider the potential loss in federal funding if a100
unit property with project based rental assistance islost to the
affordable housing inventory through demolitionor conversion to
market rate:
Housing ELI (extremely low-income) households is a veryexpensive
proposition. Florida Housing FinanceCorporation Programs are
required to fund $85,000 perunit to house ELI and the actual per
unit cost issignificantly greater when all factors of the
developmentfinancing are considered. Rehabilitating existing
projectswith federal rental assistance can be much more
costeffective, making it important to ensure that resources
areavailable to sustain these development as safe, decent
andaffordable housing.
SELECTED RECOMMENDATIONS: The Affordable HousingStudy
Commission’s Final 2006 Report should be reviewedfor the complete
list of preservation recommendations. Thefollowing represent a few
key measures that the Commissionfelt would encourage
preservation.
100 Units X $300 (Assumed Average Operating Subsidy) = $30,000
per month
$30,000 per month X 12 months = $360,000 annually
$360,000 annually X 20 years = $7,200,000 over 20 years
Present Value of Federal Rental Assistance = $4,129,171 at a PV
Rate of 6.00%
43,830 units at risk by 2015
• Highest concentrations in 5 counties
• 75% of total in 13 counties
• Families and the elderly are most affected
• 120,000 Floridians (est.) affected
EXPIRING PROPERTIES 2007-2015:
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• Florida Housing Finance Corporation shouldcreate a
Preservation Set-Aside for 9% HousingCredits: The Commission
deliberated extensivelyover this particular recommendation. At that
time,Florida was the only statein the nation not prioritiz-ing
preservation in itshousing credit program,by using a set
aside,additional points orsome other form ofprioritization.
Florida’slong standing strategyof encouraging new con-struction has
served thestate well, but the timehad come to address theescalating
loss of projectswith expiring subsidies.In the end, theCommission
determined there was significant riskassociated with changing the
existing point system–we would either over-compensate and
disadvantagenew construction properties or under-compensateand not
achieve the intended goal. The Commissionrecommended a set-aside in
the competitive 9%housing tax credit program as the best solution.
Thisapproach would likely result in a minimum number ofpreservation
units being funded, as well as encouragean increase in preservation
applications which mightenjoy alternative funding if 9% credits
were not received.The Commission was pleased to see Florida
Housingincorporate such a set aside in the Universal Cycle.
• The Florida Legislature should appropriate $25million for the
creation of an affordable housingpreservation bridge loan program
to be matchedby private lenders to create a program totaling
aminimum of $50 million. This appropriationshould not supplant
funding for existing afford-able housing programs. The Commission
arrivedat this recommendation after noting a lack ofaffordable
housing friendly bridge loan programsin the private sector, and
hearing from theWisconsin Housing and Economic DevelopmentAuthority
on the success of their bridge loanproduct. Some of the obstacles
to usingprivate bridge loans for preserving affordablehousing
include: Private loans are generally 75%-
80% of a property’s value before considering the costof
additional rehabilitation; a private lender may notbe willing to
underwrite 9% or 4% low income housingtax credits as “take-out”
financing; and it is rare to find
a seller content to wait up to ayear while a prospective
buyerapplies for funding throughthe lengthy universal cycle.The
Commission believesthere is significant value in abridge loan
program orientedtowards preservation, whichwould use a one-time
appro-priation of state dollars toleverage significant privateand
foundation sources for arevolving program. TheCommission was
pleased tosee SB 1362 filed by SenatorFasano (R) to fund a
bridge
loan program and we are hopeful that this proposedlegislation
will be passed in the 2008 session.
• Full Funding Remains Critical: In closing, preser-vation of
affordable housing cannot occur withoutavailability of subsidy from
the State and LocalGovernment Housing Trust Funds. Full funding
ofthe Trust funds and full utilization of funding isnecessary not
only to preserve affordable units, but toensure progress towards
the goal that all Floridianshave access to safe, decent and
affordable housing asset forth in the Florida Statutes Chapter
420.0003.
For a copy of the Commission’s complete preservation strategy,as
well as previous annual reports, please visit the StudyCommission’s
website at www.floridahousing.org/AHSC.
HELEN HOUGH FEINBERG serves as Manager of the Housing Groupfor
RBC Dain Rauscher. She has been responsible for structuring
housingtransactions for state and local issuers totaling
approximately $7 billionfor over 20 years. Helen has structured
many types of mortgage-backedfinancings including open indenture
single family issues, REMIC CMOs,tax-exempt and taxable refundings,
mortgage portfolio sales, 501(c)(3)multi-family open indentures, as
well as virtually every type of multi-familytransaction. Helen has
a B.A. in economics and Spanish from Wake ForestUniversity, and has
completed graduate work in finance at the University ofSouth
Florida. She is a registered General Securities Representative and
aregistered Municipal Securities Representative as well as a
registeredMunicipal Securities Principal. Helen has served as a
member of FannieMae’s Housing Impact Advisory Council and serves as
a member of theFlorida Housing Coalition Advisory Council. She
currently serves as thechair of the Affordable Housing Study
Commission.
Page 7T H E F L O R I D A H O U S I N G C O A L I T I O N
• Florida loses 2 units for every one it builds
• Preserving one unit costs 1/3 to 1/2 the cost ofbuilding one
new unit
• Preservation can extend the useful life ofthousands of
existing units in “good bones”buildings already paid for by
taxpayer dollars
• Preservation prevents displacement of thousandsof low, very
low and extremely low incomefamilies and individuals
WHY PRESERVATION MAKES SENSE
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page 8 T H E F L O R I D A H O U S I N G C O A L I T I O N
H
Making the Case for Preservationwith Data
By Patricia Roset-Zuppa
H
Preservation of the affordable housing stock hasbeen a major
research focus for the Florida HousingData Clearinghouse at the
Shimberg Center forAffordable Housing at the University of Florida.
Thisfocus grew out of a mounting concern at the federal andstate
level about the loss of units in the assisted housingstock, and the
impact this has on residents and localcommunities. To underpin the
anecdotal evidence ofproperties already lost and to enhance the
understandingof properties at risk of loss, the Clearinghouse
started aneffort to collect preservation-related data three years
ago.In 2006, we developed a broader research agenda aroundthis
topic and partnered with the Florida Housing FinanceCorporation to
undertake a research project with supportfrom the John D. and
Catherine T. MacArthur Foundation.The project has two major
objectives: to improve theavailability of data at the national
level and to enhanceFlorida’s capability to produce information
that willcontribute to solutions to the housing supply
challenges.
Preservation Defined andDefended
Preservation of assisted multifamily housing means
bothmaintaining affordability for low income households foran
extended period, and keeping these properties in goodphysical and
financial condition. Assisted multifamilyproperties have finite
periods of affordability under theterms of their subsidies and use
restrictions. At the endof the period of affordability, when market
rents can becharged, the housing will likely be lost to low
incomefamilies unless other funding can be secured to keep
itaffordable. Affordable housing developments can be atrisk of loss
prior to maturity of a subsidized mortgage ifan owner decides to
prepay the loan, which can be afinancially attractive option in a
strong local market. Aproperty is also at risk if it faces large
capital needs andrepairs, but lacks the reserves and cash flow to
addressthese. This situation can lead to default and
foreclosure.
NUMBER OF UNITS IN ASSISTED MULTIFAMILY PROPERTIES WITH
AFFORDABILITY TERMINATION BY YEAR IN FLORIDA
Source: Florida Housing Data Clearinghouse, Shimberg Center for
Affordable Housing (2007)
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Page 9T H E F L O R I D A H O U S I N G C O A L I T I O N
HOUSING NEWS NETWORK
In Florida, nearly two out of three low income renterhouseholds
pay more than 40 percent of their income forrent. Preservation is
an important strategy to address theexisting and growing demand for
affordable housing bylow-income families. While new construction
efforts alsocontribute to the supply of affordable units, new
construc-tion alone cannot catch up to the housing need and is
oftennot as cost efficient as preservation of existing
properties.
Florida’s Assisted HousingInventory
The cornerstone of our research has been the AssistedHousing
Inventory (AHI) that is available on our website
atflhousingdata.shimberg.ufl.edu/AHI_introduction.html.This is a
database of multifamily properties in Florida thatare
privately-owned and funded underprograms by the U.S. Department
ofHousing and Urban Development(HUD), U.S. Department ofAgriculture
Rural Development (RD),Florida Housing Finance Corporationand Local
Housing FinanceAuthorities. AHI currently reports on23 housing
programs and lists morethan 2,200 developments with over272,000
units. In addition to generaldevelopment data such as
address,target population and housingprograms, the AHI holds
preserva-tion-specific information such asexpiration year of
funding or userestriction, type of ownership andapproximate year
built.
Lost HUD-Assisted Properties
The preservation discussion has long focused on olderassisted
HUD properties built during the 1960s and early1970s under the
Section 221(d)(3) Below Market InterestRate and Section 236
programs. The earliest properties firstbecame eligible for
prepayment in the 1980s and severalowners decided to convert to
market rate housing at thattime. The preservation discussion was
extended to theso-called newer assisted properties funded with
HUDSection 8 project-based rental assistance and constructedbetween
the mid 1970s and the early 1980s. Many of theseolder and newer
HUD-assisted properties now not only havethe option to prepay the
subsidized mortgage or opt-out of arental assistance contract, but
are also in a state of physical
deterioration. In Florida, an estimated 5,800 units in
theseHUD-assisted properties have already been lost to
theaffordable housing stock as a result of mortgage prepaymentor
rental assistance opt-out since the 1990s. This
figureunderestimates the total number of HUD-assisted units lostto
the affordable inventory, since it does not include unitslost to
foreclosure and demolition.
Geographic Concentration ofAt-Risk Properties
A simplistic approach to assess the number of units atrisk of
loss is to base the analysis only on the end dateof the subsidy or
period of affordability. This analysis issomewhat complicated for
subsidized properties withmore than one funding layer and multiple
end dates,
which applies to more than half ofthe subsidized properties in
AHI.To address this challenge, the enddate of the most restrictive
fundingprogram was used. The 2007 datashow that the largest number
ofunits are at risk during 2046-2055(63,774 units), followed by
2026-2035 (50,930 units) and 2007-2015(43,830 units). The majority
ofunits at risk after 2025 are fundedby Florida Housing
FinanceCorporation programs. Prior to2025, the majority of at-risk
unitsare funded under HUD. Thisimplies that many extremely
low-income households are at a highrisk of displacement in the
next
two decades, since more than 76 percent of all HUDunits are
estimated to serve this income group.
The immediate concern is for those units at risk to
loseaffordability restrictions by 2015. Almost 50 percent ofthese
units are concentrated in five counties: Miami-Dade,Duval,
Hillsborough, Pinellas, and Orange. An additional25 percent of
units at risk by 2015 are located in thefollowing eight counties:
Palm Beach, Broward, Brevard,Escambia, Polk, Alachua, Lee, and
Seminole.
Risk Profiles to TargetResources
The Assisted Housing Inventory is a useful tool for
creatingnuanced risk profiles that, in turn, can inform policy
H
In Florida, an estimated
5,800 units in these
HUD-assisted properties
have already been lost to
the affordable housing
stock as a result of
mortgage prepayment or
rental assistance opt-out
since the 1990s.
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page 10 T H E F L O R I D A H O U S I N G C O A L I T I O N
decisions about how to preserve affordable housing andwhich
communities to target. We created two risk profilesof properties at
risk by 2015, based on specific propertycharacteristics (instead of
only considering the end ofthe subsidy restriction). The first risk
profile identifiesproperties at high risk of conversion to market
rate housing.The second risk profile determines which properties
are athigh risk of deterioration and default.
The risk profile for conversion to market rate housing isbased
on three parameters: ownership is for profit or limiteddividend,
target population is family, and the project rentas a percentage of
the Fair Market Rent is below 100percent. As found by a 2006 HUD
study, these arecharacteristics of properties that prepaid or opted
outof a rental assistance contract. It confirms the
generalassumption that profit-motivated owners are driven
byfinancial returns. If the project rent is lower than FairMarket
Rent, the market offer opportunities to improvecash flow when
converting to market rate housing. Ouranalysis identified 136
developments with 16,803 units at
risk of loss by 2015. Of these, atotal of 98 developments
with10,499 units are exclusively fundedby HUD.
The risk profile for deteriorationand default is built on the
followingparameters: ownership is non-profit, target population is
family,and the approximate year built isprior to 1987. These
characteristicsare deemed indicators of higherrisk of deterioration
and default.The 2006 HUD study found thatthe majority of
developments inforeclosure served families and hadlower physical
condition scores.This risk profile also assumes thatthe risk of
deterioration and defaultmostly affects non-profit entities,because
of the lack of capitalreserves and limited access tocapital from
other sources. Theanalysis identified 37 developmentswith 4,928
units at risk. Of these,a total of 25 developments with2,578 units
are exclusively fundedby HUD.
Estimating the number of units at risk based on
affordabilityexpiration dates and property characteristics is by
nomeans an exact science that can predict owners’ decisions.Also,
not every property identified to be at risk will be
worthpreserving. But the judicious use of data can provide ageneral
picture of the extent of the potential problem andthe opportunity
to preserve much needed affordable housing.
The Florida Housing Data Clearinghouse is a joint project ofthe
Shimberg Center for Affordable Housing at the Universityof Florida
and the state of Florida through funding fromFlorida Housing
Finance Corporation.
PATRICIA ROSET-ZUPPA works as a Research Analyst for theShimberg
Center for Affordable Housing. She brings to her role morethan ten
years of experience in research on urban planning issues
andanalysis of development feasibility in the private and
non-profit sector.She is also enrolled in the Ph.D. program of the
College of Design,Construction and Planning at the University of
Florida. She can bereached at [email protected].
Risk Profile 1Expiring Multifamily Rental Units
“AT RISK OF CONVERSION” 2007-2015
01 to 100101 to 250251 to 750751 to 1,5001,501 to 3,474
Total Units at Risk for Conversion 2007 - 2015
Data Source: Shimberg Center for Affordable Housing, University
of Florida, 2007Notes: 1) Risk of conversion for units assisted
through local, state and federal housing programs is based on:
expiration of affordability between2007 and 2015, ownership is
for-profit/limited dividend/‘other’, target population is family,
and HUD project rent to Fair Market Rent percentageis below 100
percent. 2) This risk profile is an assessment of risk developed by
the Shimberg Center for Affordable Housing based on available
data.The risk profile is a general indicator of heightened risk
that a property may leave the affordable housing stock.
“AT RISK OF CONVERSION”
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H
Page 11T H E F L O R I D A H O U S I N G C O A L I T I O N
The Foreclosure Freefallin Florida: An Affordable
Housing PerspectiveBy Gladys Schneider
Florida Housing Coalition
H
Introduction
It has been called a “tsunami of foreclosure”nationwide and
Florida is among five states atthe epicenter. Expected to crest in
2008-09, theworst is yet to come with most experts blaming
thecrisis on weakening the economy domestically aswell as
negatively affecting institutional trading andthe international
banking industry. It is estimatedthat over two million homes in
America will go into fore-closure by 2008-09. It seemed like a
fairy tale as Florida’shomeowners and real estate investors watched
home pricesskyrocket from 2003 to 2006. Construction was boomingand
lines formed for pre-sales at condominiums andsubdivisions. For
homeowners, their equity ballooned,causing many to treat their
homes as ATM machines,drawing out cash for home improvements,
investing insecond homes, and consumer spending. New
homeownersjumped into the game, able to obtain financing from
hybridtype mortgages with adjustable rates. Investors played
aflipping game, buying homes with equity only mortgages,expecting
to sell at a profit a few weeks or months later asvalues continued
to spiral upward. Websites such aswww.condoflip.com flaunted the
reckless market wherehomes were purchased sight unseen by investors
usingonline mortgage and real estate products. Vacant landwas also
gobbled up with most vacant lots in the hugepre-platted
subdivisions of the 1970’s being traded at leastonce during the
2003-2006 period.
Financing for the real estate bubble came from a favorablecredit
market. Interest rates were low which made purchas-ing more
attractive. Mortgage backed securities increased
the secondary market for mortgages, providingmore credit.
Lenders were encouraged to belenient with buyers, overlooking their
actualincome and ability to repay. The subprimemortgage market,
serving those with lower creditrating and with looser lending
criteria, offeredexotic products, such as the 2/28 adjustable
ratemortgage, Hybrid Arms and Option Arms. A lowfixed teaser rate
was in effect for the first two years,
which was reset to a much higher amount that increasedmonthly
payments by over 30 percent. Prepaymentpenalties of up to 15
percent of the loan principal were ineffect during the low interest
period, severely discouraging arefinance to avoid the interest rate
reset. The predatorynature of these loans led them to buyers with
poor credit andlower ability to repay once the rates reset.
According to theCenter for Responsible Lending, there is a
preponderance ofsubprime and predatory loans among minority
communitiesand within inner city areas.
The high volume of these mortgages began to reset in 2006and
2007, leaving thousands of buyers in homes they wereunable to pay
for or sell. The perfect storm occurred whenhome appreciation
ground to a halt and lenders tightenedcredit. At the same time, the
construction boom flooded themarket with vacant inventory, dooming
the upward price ofhomes and limiting the ability to sell. Since
the loans hadalready been sold into the secondary market, there
were nooriginal lenders to negotiate with and foreclosure
ensued.
The negative effects of the foreclosure crisis carry over
intomany sectors. Local governments will see a decline in thetax
base as values fall and economic production will suffer
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page 12 T H E F L O R I D A H O U S I N G C O A L I T I O N
due to construction, spending andemployment slowdowns.
InFlorida, where housing starts havefallen from 272,000 in 2005 to
just90,000 in 2008, the potentialchange in property taxes will be
aprojected loss of $589 million.State sales taxes will be reduced
by$148 million or more. On a locallevel, neighborhoods that saw
themost speculation will suffer withempty homes boarded up with
forsale, for rent and public noticesigns dotting the streetscape.
Theclustering of foreclosures leads tofurther decline in property
valuesand damages the quality of neigh-borhoods. Unemployment has
beengradually increasing but the trendis becoming clearly evident
withthe precipitous drop in construc-tion. Even school districts
are see-ing a drop in enrollment as familiesrelocate to find work.
(GlobalInsight, The Real Estate Bubble)
The NationalResponse.
The national response began onSeptember 20, 2007, when
theFederal Reserve Chairman, BenBernanke testified before theHouse
of RepresentativesCommittee on Financial Serviceson subprime
mortgage lending andmitigating foreclosures. In hisstatement he
urged cooperationamong holders of mortgage backedsecurities and
loan servicers, aswell as federal action to encouragethe Federal
HousingAdministration to “collaborate withthe private sector to
expedite therefinancing of creditworthy sub-prime borrowers facing
largeresets.” To prevent inflation andloosen credit, the Fed has
mademinor reductions in the prime inter-
est rate. (Testimony, Chairman Ben S.Bernanke, Subprime
MortgageLending and MitigatingForeclosures, Before theCommittee on
Financial Services,U.S. House of Representatives,September 20,
2007).
The Joint Economic Committeeof the U.S. Congress prepared
areport in October, 2007 with abroad overview of the problem
withspecific recommendations. Thestudy clearly showed that the
sub-prime mortgages were the source ofthe foreclosure problem.
Between1998 and 2007, prime fixed ratemortgages had a fairly steady
rateof foreclosure of two percent.Adjustable rate prime
mortgageshad a slightly higher rate of 4percent. The subprime fixed
ratemortgages fluctuated from 8 per-cent to 15 percent and down to
10percent by 2007. But the subprimeadjustable rate mortgage
foreclosurerate grew steadily upward from 14to 16 percent. The
report notedthat in Florida there were 708,195outstanding subprime
loans with athird quarter estimate of 157,341subprime foreclosures,
or 22percent. The fact that the majorityof resets started in 2007
and 2008indicates that there will be an evenhigher percentage of
foreclosureamong this loan category. By the3rd quarter the report
estimated thatthe cumulative loss in propertyvalue in Florida was
over $12billion and the cumulative loss inproperty taxes was $89
million.
The report recommendationsinclude increased funding
forcounseling, statutory reform andstreamlined conversion to
FHAloans. An important reform thataffordable housing providers
HOUSING NEWS NETWORK
• Massachusetts passed a 60-90 day delayon foreclosures to allow
a review forpredatory or unfair treatment. Thestate also entered
into an agreementwith the largest subprime lender in thestate to
immediately stop foreclosuresuntil the Attorney General is
providedwith documentation. The state has alsobanned predatory
foreclosure rescueschemes. The Boston Bar is providingtraining for
pro bono lawyers willing toassist homeowners facing foreclosure.The
Massachusetts legislation is specifi-cally restricted to
foreclosures of pri-mary residences where the mortgagorowns no
other real estate.
• In New York, a one year moratoriumhas been proposed on court
orderedforeclosures.
• Buffalo, NY is requiring banks holdingforeclosed properties to
maintainthem to protect neighborhoodappearance and property
values.
• In Ohio, local sheriffs have been askedto give homeowners a 60
day foreclo-sure abatement on auctioning thehomes they occupy. A
similar effortallows homeowners to remain in theirhomes as renters
or tenants at will.This prevents clusters of vacant homesthat
become a public safety hazard.
• The City of Baltimore, filed suit againstWells Fargo Bank for
predatory anddiscriminatory lending. The city claimsthat the bank
was steering minorityhome buyers into high-cost subprimeloans.
• In Cleveland, the city filed against 21banks claiming that
subprime lendingin inner city neighborhoods has createda nuisance
and damaged propertyvalues and city tax collections.
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Page 13T H E F L O R I D A H O U S I N G C O A L I T I O N
consider a standard practice is that the federal
governmentshould require lenders to determine that the borrower
hasthe ability to repay a loan at the fully-indexed rate andassume
fully amortized payments. (The SubPrime LendingCrisis: The Economic
Impact on Wealth, Property Valuesand Tax Revenues, and How We Got
Here. Report andRecommendations by the Majority Staff of the
JointEconomic Committee. Sen. Charles E. Schumer and Rep.Carolyn B.
Maloney. October, 2007.)
The U.S. Treasury respondedwith a three part plan tocounter the
expected 1.8million interest rate resetsamong subprime
mortgages.The first part is mortgagecounseling through the HOPENOW
alliance to avoidpreventable foreclosures.The HOPE NOW alliance
hasgrown to include as members90 percent of the subprimeservicing
market includingthe major non-profit mortgage counseling
organizations,trade associations and investors.
Second, the mortgage industry is encouraged to developnew
products that will enable people to stay in their homes.An example
already implemented is the FHASecureprogram which allows eligible
borrowers to refinance intoFHA loans. Congress passed the Mortgage
ForgivenessDebt Relief Act, which prevents borrowers who receive
areduction in their interest rate and debt to avoid having topay
income taxes on the relief.
Third, a systematic streamlining process is envisioned thatwill
help borrowers quickly navigate a workout solutionthat follows a
loss mitigation strategy for the mortgageindustry. This
streamlining walks a fine line withabrogating the contracts among
investors in mortgagebacked securities, who use a strategy for
mortgagemodifications provided by the American SecuritizationForum.
This system is a myriad of complications bothoperationally and
financially as loan originators must belocated to help fast track
troubled homeowners intorefinancing, rate freezes and term
modifications.(Remarks by Treasury Secretary Henry M. Paulson, Jr.
onHousing and Capital Markets before the New York Societyof
Securities Analysts, January 7, 2008)
The plan has been criticized as “too little, too
late,”particularly by the Center for Responsible Lending. TheCRL
estimates that only 7% of holders of subprimemortgages will qualify
for the program. Hundreds ofthousands of 2/28 ARM’s made in 2005
will have alreadyreset and will not be eligible for a modification.
Also,those who have already fallen behind in their paymentswill not
qualify as the program is only for those loans notin delinquency.
Finally, the plan is in effect voluntary.
Lenders and services havehad the opportunity to modifymortgages
yet according to aMoody’s Investor Servicesstudy, only 1 percent
ofresetting subprime mortgageshad been modified throughJuly of
2007. There is little toguarantee that those borrowerswho receive
modifications willnot lose the equity in theirhomes due to
pre-paymentpenalties or be put intoanother bad loan. There
remains the business as usual incentive for servicers,lawyers
and lenders to reap the profitable fees generatedfrom the
foreclosure process. (Statement of Center forResponsible Lending in
Response to President Bush'sPlan to Address Foreclosure Crisis,
December 6, 2007)
The Florida Experience.
Florida’s foreclosure rate has landed it second in the
nation.Florida has experienced foreclosure filings for over
200,000properties in 2007, according to Realtytrac, a company
thatpublishes the largest database of foreclosure
properties.Realtytrac, the foreclosure data provider for the Wall
StreetJournal’s Real Estate Journal, estimates that when year
endactivity is collected, it is likely that 14,000 homeowners
willhave lost their Florida homes to foreclosure sales.
Florida’sforeclosure rate ranks it second highest in the
nation,based on November activity, with one foreclosure filing
forevery 282 households. In comparison, the U.S. rate wasone
foreclosure for every 555 households.
How has this Affected theAffordable Housing Industry
Two questions emerge for the Florida situation. How manyof the
foreclosures are for non-homesteaded, that is investorowned
properties? And to what extent are the foreclosures
HOW FLORIDA HOUSING PROGRAMSBUCK THE FORECLOSURE TREND
Lee County Housing Development Corporation hasbuilt over 200
homes for very low and low incomebuyers. Applicants must complete a
homebuyertraining course plus undergo any credit rebuild-ing needed
to qualify for a first mortgage from afinancial institution. All
loans are fixed interestwith reduced closing costs. Foreclosure
ratesamong these homeowners is almost nonexistent.
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page 14 T H E F L O R I D A H O U S I N G C O A L I T I O N
HOUSING NEWS NETWORK
affecting subsidizedhomes- properties pur-chased with some type
ofprogram assistance suchas SHIP, HOME, orHOP? The use of
bestpractices among SHIPand other affordablesubsidized
housingincluding homebuyercounseling and the useof prime, fixed
ratemortgages protectedthese homeowners. Datafrom some areas
indicatethat investor propertiesare the majority shareof the
foreclosures. Forexample, of the 1,441foreclosures filed in
LeeCounty in December,2007, 433, or 31 percent,were for primary,
home-steaded residences. Thisdoesn’t lessen the painfullosses
experienced bythose households wholose their homes. (News-Press,
January 9, 2008)
During the bubble, resi-dential prices increasedover 80 percent
in Floridawhile incomes remainedrelatively flat.
Florida’saffordable housingproviders watched landcosts spin out of
reachwhile at the same timepreviously subsidizedhomes were sold off
asbuyers cashed in on thebounty. While subsidieswere repaid and
recap-tured, the returns were nolonger adequate to subsi-dize new
buyers. Manycommunities resorted toshared equity mortgages
and community landtrust models to preservethe affordable
housinginventory.
Foreclosure rate increasesamong SHIP subsidizedhomes is not
expected tomimic the national trend.Most first mortgageswith SHIP
assistancehave fixed interest ratesand are not part of thesubprime
market. Thepre-purchase homebuyercounseling process thatis
commonplace with theSHIP program gives theSHIP homebuyer abetter
understanding ofmortgage responsibilities.
Conclusion
While foreclosure isalways a reality in thehomeownership
busi-ness, the typical causesare unexpected medicalexpenses or loss
ofemployment. Just asFlorida has weathered itsshare of natural
disas-ters, it will recover fromthe subprime mortgagecrisis
eventually and withsignificant intervention.The good news is
thatthe assisted inventory isminimally affected, dueto the best
practices fol-lowed by the state’saffordable housingproviders, both
publicand private.
"Foreclosure calls to ushave skyrocketed in justthree months. We
arenow getting up to 50 newcalls a day from familiesfacing
foreclosure. Justshy of 100% of those callsare from families we
didnot counsel or train orfinance. In most cases,when a family is
properlytrained, counseled, andfinanced, they do not gointo
default. The bestforeclosure preventioninitiative is
pre-purchasetraining and counseling.Our comprehensive
home-ownership services nowinclude foreclosure inter-vention
clinics gearedtoward quick collection offamily data for
negotiationwith the lender."
Arden ShankExecutive Director & President
Neighborhood Housing Services
"Like most housing counselingagencies we have seen amarked
increase in foreclo-sure clients from 2006 to2007. We have
experienceda 222% increase during thattime period (148
foreclosureclients in 2006, 328 in2007). The majority, if notall of
these homeownershave not had the benefitof pre-purchase
counselingor first time homebuyereducation. According to
ourfigures, the foreclosureclients that have receivedeither
homebuyer educationor pre-purchase counselingis less than 1% of our
totalforeclosure clients. Thisstatistic validates theeffectiveness
of pre-purchaseeducation and counseling.Since the inception of
ourforeclosure program we haveprovided services to 1,168area
residents."
Gregg SchwartzPresident & CEO, Tampa Bay CDC
-
HL ike HomebuyerC o u n s e l i n g ,F o r e c l o s u r
eCounseling requiresone-on-one relation-ships that require trustand
confidence in thecounselor, the familyin foreclosure and
theprocess. Foreclosurecounselors are seen bylenders as
facilitatorsto mitigate losses,while buyers andowners see the
counselor as an advocate. Counselors mustdesign a plan that
achieves the objective of the ownerbased on their willingness and
capability. The counselorestablishes a course of action with
specific tasks to befollowed. Knowledge of the servicing practices,
foreclosurelaws and options are essential for the counselor.
Thecounselor must start by evaluating the situation to
determinewhere in the process a delinquency or default might
be.Since Florida requires a judicial process for the foreclosureof
a real estate mortgage, the counselor needs to understandthe
timeframe and procedures involved.
The foreclosure counselor will be familiar with the causesof
delinquency. These include divorce, marital problems,or the death
of a family member. Job loss or reduction inincome can trigger
foreclosure as well as a major illness andmedical bills. Other
causes include excessive financial
obligations, poor moneymanagement, unex-pected repairs orother
problems suchas substance abuse.The consequences offoreclosure are
dire:the loss of shelter,loss of credit, extremestress on the
family,and unexpected taxconsequences. Thecounselor mustevaluate
the financial
picture and pinpoint the time constraints with regard to
latepayments and reinstatement. The homeowner needs to begiven
realistic advice and to understand if the problem iscurable or
not.
In working with the lender or servicer, the counselor willbe
able to determine if the property should be sold andwhat type of
sale. Other options include a deed in lieuof foreclosure or a short
sale. All of this is based on thefinancial condition of the
owner.
The role of the counselor will be greater with the
systematicstreamlining of mortgage modifications proposed by the
U.S.Treasury. If the loan servicer is willing and the originator
ofthe mortgage can be located, there is a complex plan formodifying
mortgages. This will be advanced territory forthe state’s mortgage
counselors.
Page 15T H E F L O R I D A H O U S I N G C O A L I T I O N
H
Training Foreclosure CounselorsBy Cora Fulmore
Cora Fulmore, President of the Mortgage and Credit Center and
Florida HousingCoalition Board Member, provides homebuyer
counseling and foreclosure preventiontraining with the Florida
Housing Coalition.
The next Foreclosure Prevention Workshop offered by the Florida
HousingCoalition will be on April 1, 2008 at the Crowne Plaza Hotel
inWest Palm Beach.
For those working toward the joint homebuyer counseling
certification from and the FloridaHousing Coalition and
NeighborWorks, attendance at this workshop will serve as one of
therequired courses for that certification.
This workshop will address:• Foreclosure prevention through best
practices for homebuyer counseling, underwriting, and
subordination policies, so that barring unexpected illnesses or
loss of employment, there wouldbe no foreclosure.
• Foreclosure intervention and the foreclosure counselor’s role,
for those rare instances whenassisted housing is in trouble, and
for the all too common instances when those who did nothave the
benefit of affordable housing assistance, entered into the
sub-prime mortgage market.
• Changes to the credit market that will affect future low
income affordable housing buyers.
Who Should Attend:
There is no fee for this training. Go on-line www.flhousing.org
or Call 1-800-677-4548to register.
* Housing Counseling Providers* Community Lenders
* Local Government Housing Administrators* Nonprofit Affordable
Housing Developers
-
Our annual conference would not be possible without our Partners
for Better Housing at all levels. We especially recognize our
THANK YOU
PLATINUM SPONSORSBANK OF AMERICA • CITIBANK • NATIONAL CITY •
WACHOVIA • WASHINGTON MUTUAL
Community Land Trust InstituteNetworking Reception for
Community Land Trusts
FEATURING State of the StateAddress by Tom Pelham,Secretary,
FloridaDepartment ofCommunityAffairs
andSteve Auger,ExecutiveDirector, FloridaHousing
FinanceCorporation
GREEN HOUSING TRACKBuilding green is an integral component to
buildingaffordable. The 2008 conference will highlight GreenHousing
with an entire track devoted to what it meansto build green,
providing practical guidance from thecost benefit analysis and
financing of green housing towhat strategies and products make the
most sense.Workshops will feature speakers from Florida andaround
the nation who can model best practices fromtheir own
experience.
PUBLIC POLICY PLENARYNational and state experts engage in a
lively discussionabout the new environment for affordable
housing,including what effect the market rate housing slumphas on
affordable housing, climate change and greenhousing, and what our
industry should be doing to moveaffordable housing to the forefront
during this time ofbudget deficit.
....AND DOZENS OF WORKSHOPSESSIONS COVERING NUTS ANDBOLTS AND
CUTTING EDGEAFFORDABLE HOUSINGISSUES.
SEPTEMBER 15-17TH, 2008SEPTEMBER 15-17TH, 2008
The Florida Housing Coalition’s 21st Statewide Annual
Conference
page 16 T H E F L O R I D A H O U S I N G C O A L I T I O N
In addition to our traditional expo showcasing a variety of
financial resources foraffordable housing, we will have a green
expo. Contact the Florida HousingCoalition at 850/878/4219 if you
are interested in reserving an exhibit space.
GOLD SPONSORSCredit Union Housing Partners, LLC. • FHL Bank of
Atlanta • Progress Energy of Florida • Regions • SunTrust
S AV E T H E D AT ES AV E T H E D AT E
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Page 17T H E F L O R I D A H O U S I N G C O A L I T I O N
HJust one year ago in Florida, there were 17community land
trusts and the formationof 12 more were being considered byvarious
local governments or housing nonprofitorganizations. This year, 24
community landtrusts are in operation and 10 are in
exploratorystages. The Florida Community Land TrustInstitute and
the Florida Housing Coalition havebeen assisting both established
and exploratory CommunityLand Trusts around the state, with
particular emphasis onthose issues raised at the Florida CLT
caucus.
At the Florida Community Land Trust Caucus, sponsored bySunTrust
and held at the Florida Housing Coalition’s annualconference last
September, participants addressed a varietyof issues of common
concern. The most pressing was the advalorem tax issue, which is
presently being re-addressed bythe 2008 legislature (see sidebar on
page 23). The caucusparticipants also touched on the critical need
for CLThomebuyer education, sufficient operating funding for
thecommunity land trust, and the know-how to set pricepoints. At
the caucus, we announced the launch of theFlorida CLT blog, hosted
by the Florida Community LandTrust Institute. This site is an
opportunity for communityland trusts and the curious to post
questions and commentsas well as link to valuable sites and
resources.
Community Land TrustsCoordinated with
Inclusionary HousingPrograms
Community land trusts were formed andconsidered for many
reasons. Over the pastthree years CLTs were contemplated in
Florida as a response to out of control property valueinflation.
They were also viewed as an adjunct toinclusionary housing
ordinances under considerationaround the state. One of the most
important rationalesfor the community land trust model is to
provide apermanent inventory of affordable housing.
Many Florida communities are examining inclusionaryhousing
ordinances not only to create a more balancedshare of affordable
housing, but also to create a sustainableinventory. Several
communities, including the City ofDestin, Palm Beach County, Martin
County, and St. LucieCounty view the community land trust as the
receiving endof housing units that are mandated under some type of
landuse requirement for the production of affordable housingunits.
In Monroe County, funds that have been generatedfrom a fee in lieu
provision have been transferred to theMiddle Keys Community Land
Trust to offset impact fees forthe Woods Corner Plantation CLT
project. In Lee County,linkage fees have been considered for both
residential andcommercial projects, with the funds used for CLT
activities,including land acquisition.
Community Land Trusts:On the Move in Florida
By Gladys SchneiderFlorida Housing Coalition
How to use the blog
Log on to our website, www.flhousing.org and click onNonprofit
Developer Tools. Scroll down to theCommunity Land Trust Blog link
which will take you tofloridacltinstitute.blogspot.com.
One of the 10 homesbuilt for and sold bythe Hannibal
SquareCommunity LandTrust in Winter Park;highlighted in theSummer
Conference06’ issue of theHousing NewsNetwork Journal.
Continued on page 18
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page 18 T H E F L O R I D A H O U S I N G C O A L I T I O N
HOUSING NEWS NETWORK
Resale Formulas Favored inFlorida: Appraisal, Index, and
Hybrids
As any community land trust enthusiast has learned,
thedevelopment of the ground lease is an extensive exercisein
legal, economic, and organizational planning. Thisdocument provides
for the renewable 99 year term for theland beneath the affordable
unit. The resale formulacontains the specific language required to
establish theshared equity position of the land trust. This
identifies howmuch the community land trust homebuyer can expect
toreceive upon resale of the home. An informal survey ofFlorida’s
community land trusts indicates that most employan appraisal method
to establish the proportionate share ofthe appreciation that will
belong to the home seller. Manyutilize a simple 25 percent of
appreciation share. That is,the home is appraised at initial
purchase and again at thetime of resale. If the initial appraisal
of the improvedportion of the home is for example, $150,000, and
bythe time of the resale, the appraisal is $200,000, thenthe
appreciation amount is $50,000. The seller would beentitled to 25
percent of $50,000, which is $12,500. Thepurchase proceeds will
also cover the first mortgage balanceand in some optional cases the
down payment and equity ofthe buyer. Several CLTs who utilize the
appraisal methodallow for an increasing share the longer the home
is owned.
For example, in Citrus County, the share is 25 percent forthe
first five years. After that, the share increases annuallyuntil it
is capped at 50 percent after 10 years of ownership.This method
encourages stability and rewards the CLThomeowner for longevity in
the home. An alternative that isless frequent is the index method.
An index factor, forexample, income level or CPI is applied on an
annual basis.This method encourages long-term ownership but since
theamount is basically guaranteed, there must be incentivesbuilt in
to ensure that the homes are properly maintained. Inone CLT, an
index method of 3 percent annually isemployed, which caps in ten
years. This will encourageshort term stability and encourages
residents to move intoother housing choices after a decade.
Publicly Owned LandSubleased to Community
Land Trusts
Not all land that is developed for affordable housing mustbe
owned by the CLT. In fact, land can be owned by a localgovernment,
leased to a CLT, who then subleases the landto its lower income
buyers. While this might sound like“public housing,” it is in
effect a great way to ensurepermanent affordability and tax exempt
status for theground portion of the property.
SOUTHWEST FLORIDA
CHARLOTTE COUNTY: PEACE RIVER COMMUNITYHOUSING TRUST. In just
over one year, the land trust usedHurricane Housing Recovery and
Homeownership Pool(HOP) funds to purchase land and build 10 homes
inPunta Gorda and Charlotte County. Buyers tend to havevery low or
low incomes and did not income qualify formore costly housing
solutions.
LEE COUNTY HOUSING DEVELOPMENT CORPORATION/CLT. Using funding
from the Florida Housing FinanceCorporation CLT demonstration
program, the CLT ispreparing to close on the first of seven homes
in FortMyers. Partners also include Lee County SHIP,Homeownership
Pool (HOP), and the City of Fort Myers
SHIP. These scattered site single family homes will servebuyers
with very low to low income ranges with firstmortgages of
approximately $52,000.
C L T S T O R I E S F R O M A R O U N D T H E S T A T EC L T S T
O R I E S F R O M A R O U N D T H E S T A T E
Charlotte County puts community in community land trust.
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SARASOTA COMMUNITY HOUSING TRUST. The CHT hascompleted 10 homes
and is working on development plansfor 82 new townhomes and
condominiums in threelocations in downtown Sarasota. Two of the
projects will belocated on County-owned land, the third on
City-ownedland. The City and County have offered to assist
withpredevelopment expenses. Two of the projects are fundedby the
CWHIP program. The CHT also provides homebuyertraining and credit
counseling. The CHT works with localhousing providers such as
Goodhomes of Manasota andHabitat for Humanity.
SOUTH FLORIDA
MIDDLE KEYS COMMUNITY LAND TRUST. Recentlyhonored as one of the
area’s “Unsung Heroes” by theCommunity Foundation of the Florida
Keys, the land trustis completing a 16 unit complex called Woods
Corner inIslamorada. Part of the impact fees on this project
arebeing offset by a transfer from Monroe County ofinclusionary
housing fee proceeds in the amount of$53,000. Woods Corner is also
a “green” communityfor low and moderate income households with
units pricedfrom $130,000 to $190,000. Partners in the Woods
Cornerproject include the Village of Islamorada, which donatedthe
land, the Florida Housing Finance Corporation (HOME),and Monroe
County (SHIP). When Woods Corner iscompleted, the land trust will
have constructed 24homeownership units. In addition, they own and
managean affordable rental property with 14 units.
HABITAT FOR HUMANITY OF KEY WEST AND THE LOWERKEYS. Habitat uses
the CLT model for its homes and hasjust been awarded a 99 year
lease on land and is working ona similar arrangement made last year
on two tracts thatwould result in 12 and 16 homes.
BAHAMA CONCH VILLAGE COMMUNITY LAND TRUST, KEYWEST. Florida’s
oldest CLT, this organization was recentlyawarded a 99 year lease
from the City of Key West todevelop 6.6 acres of land for 60-70
units of affordablehousing and other mixed uses. The CLT has
completed 7out of 15 single family homes plus owns and manages
avariety of apartments and single room occupancy units inthe
village at the heart of old Key West.
Page 19T H E F L O R I D A H O U S I N G C O A L I T I O N
Middle Keys Community Land Trust Woods Corner
underconstruction.
Habitat for Humanity Community Land Trust Triplex
Habitat for Humanity Community Land Trust Duplex
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page 20 T H E F L O R I D A H O U S I N G C O A L I T I O N
SOUTHEAST FLORIDA
COMMUNITY LAND TRUST OF PALM BEACH COUNTY, INC.This CLT has an
agreement with Palm Beach County foroperations funding and has
hired its first executivedirector, Cindee LaCourse-Blum. The CLT is
planning aboard retreat and has asked the Florida Housing
Coalitionto facilitate the meeting. The CLT of Palm Beach isseeking
opportunities for land trust projects throughout thecounty and will
be in a good position to manage propertiesdeveloped pursuant to
Palm Beach County’s inclusionaryhousing ordinance.
NORTHWOOD RENAISSANCE CLT. This neighborhoodbased CLT is
completing 14 single family homes in WestPalm Beach. This
organization has a well roundedbank of activities including
economic development andneighborhood work. Its housing programs
includemultifamily ownership and scattered site infill
housing.There is a monthly CLT orientation meeting for
prospectivebuyers to learn about the program.
DELRAY BEACH COMMUNITY LAND TRUST
2007 was been a great year for the Delray Beach CommunityLand
Trust! We achieved a level of success that exceededeveryone’s
expectations. The tremendous level of support thatwe have received
from all corners of the community is theprimary reason for all of
our accomplishments during oursecond full year of operation. The
City of Delray Beach andthe Community Redevelopment Agency have
been the primarysponsors of the DBCLT, providing land, financing
for homeconstruction and acquisition, and technical support.
Ourmembership ranks swelled to over 450 members this year,
andreflects the wonderful diversity of the City of Delray
Beach.
The DBCLT has received a total of 46 single family lots fromthe
CRA and the City. Twenty-one new homes have beenconstructed to
date, and another 16 homes are currentlyunder construction. Over
200 individuals and familieshave applied for DBCLT home ownership
opportunities, sinceour inception and we have been able to secure
mortgagecommitments for a large percentage of those families.
Wecontinue to provide counseling and support to the rest ofthe
families that applied as they pursue the dream ofhome
ownership.
Joseph E. GrayExecutive Director
Delray Beach Community Land Trust
Delray Beach CLThouse warming.
621 32nd Street: recently completed Northwood Renaissance
CLThome in West Palm Beach.
Lafrance Sr. ApartmentsGrand Opening- aDelray Beach CRAproperty
managed bythe Delray BeachCommunity Land Trust.
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HOUSING PARTNERSHIP, INC. This Palm Beach Countyorganization is
using funds provided through the FloridaHousing Finance Corporation
CLT demonstration loanproject for ten new homes in Jupiter. Four of
the 10homes have now closed.
THE COALITION FOR ATTAINABLE HOMES, INC., INDIANRIVER COUNTY,
will use the community land trustmodel to work with Indian River
County as well asmunicipalities to use surplus land for affordable
housing.The organization is researching multiple opportunities
forsingle family land trust ownership as well as town homesand
condos. The Coalition for Attainable Homes is abroad representation
of lenders, service providers andbusinesses including real estate.
The Florida HousingCoalition recently provided technical assistance
on amixed use project in the community of Gifford thatwould provide
14 CLT units on site with a commercialgrocery and office facility.
The CLT hopes to work withprivate sector developers to fulfill
affordable housingmitigation requirements.
NORTHEAST FLORIDA
ESCAMBIA COUNTY COMMUNITY LAND TRUST. The landtrust has a
variety of activities including housing, bothowner and rental,
education- life skills and credit counseling,and child care. These
ambitious tasks form the organiza-tion’s mission to build and
strengthen the community inPensacola and Escambia County. The CLT
has purchaseda 144 unit apartment building used for rental housing
andoperating support. The organization has acquired 10parcels of
land totaling 9 acres for future housing andcommunity development.
Ten families are in the processfor homeownership.
FRANKLIN COUNTY HOUSING COALITION. This is ahousing organization
hoping to use the CLT ground leasemodel to provide housing for
lower income families. As acoalition, the organization is working
in a grass rootsmanner. The City of Carabelle recently donated two
lots,one of which will have a home built by Habitat for
Humanity.
Page 21T H E F L O R I D A H O U S I N G C O A L I T I O N
HOUSING NEWS NETWORK
The Alphabet Street CLT is a program of Adopt-A-Family and I am
excited to report that we sold ourfirst house in May of 2007. Our
CLT is a neighbor-hood based CLT that has received support from
theCity of Lake Worth, The Lake Worth CommunityRedevelopment Agency
as well as from the TropicalRidge Neighborhood Association.
Cristina andRigoberto Araujo overcame tremendous odds to maketheir
dream of home ownership a reality. The Araujo'swere able to
purchase the home with a mortgageamount just under $100,000 - truly
affordablehousing. Since purchasing the home Cristina hasbeen
selected to serve as the Secretary of the TropicalRidge
Neighborhood Association and they recentlywere awarded the coveted
"Tropical Ridge Yard of theMonth." (the sign in the photo).
Matt Constantine, Director of Housing for Adopt-A-Family
of the Palm Beaches, Inc.
TheAraujo's
and theirnew home.
THE ALPHABET STREET CLT
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page 22 T H E F L O R I D A H O U S I N G C O A L I T I O N
CENTRAL FLORIDA
WESTSHORE ALLIANCE COMMUNITY DEVELOPMENTCORPORATION. This
project is a CWHIP participant andwill produce 57 Community Land
Trust town homes inTampa. Along with the Florida Housing
FinanceCorporation, partners include Neighborhood LendingPartners,
and the Federal Home Loan Bank. The townhous-es will sell for
$150,000 to $160,000 with down paymentassistance from the City of
Tampa.
PINELLAS COUNTY. The Housing Finance Agency ofPinellas County
has established a land trust programutilizing the 99 year ground
lease for use with its forand nonprofit partners for a variety of
owner or rentaldevelopments.
FLORIDA LOW INCOME HOUSING ASSOCIATES, INC.CITRUS COUNTY. This
project involved the purchase of 10existing homes from a builder
utilizing funding from theFlorida Housing Finance Corporation CLT
demonstration.The homes were resold to buyers in the low to very
low incomerange with a below market interest rate of 2 or 3
percent.
These homes have been closed and occupied as land trusthomes.
This project is an example of how to use the currentmarket downturn
to increase the supply of housing that ispermanently
affordable.
IN SUPPORT OF CLT SUCCESS
As communities in Florida continue to develop and usecommunity
land trusts as an integral part of their continuumof housing, we
will continue to provide assistance, withparticular attention to
the following:
H Community Land Trust homebuyer counseling.In addition to the
counseling that all first time homebuyers must have, it is
essential that specializedtraining be available to ensure that
homebuyersunderstand the differences between fee simpleownership
and the restrictions on ownership presentin the ground lease. It is
also important to providemarketing materials that clearly
differentiate betweenland trust housing and market rate
housing.
GENERAL HOME DEVELOPMENT, Two projects as they relate to
Community Land Trusts
Our first is with Workforce Housing Ventures, a longrunning non
profit serving both Pasco and PinellasCounty. We are currently in
the works for a number ofNew Homes with this partnership, utilizing
the CLTformulas that were taught and discussed during theworkshops
offered by the Florida Housing Coalition.The CLT formula, combined
with our attractivelydesigned, energy efficient homes makes the
opportunityof affordable units a reality.
Another project is with St. Petersburg NeighborhoodHousing
Services. Having worked with SPNHS overthe years they turned to GHD
for our guidance andresources, helping them secure the 10 lots for
theirCLT. SPNHS needed not only the backing to securethese lots but
the builder who could construct andcarry this project.
We are quite excited to be a part of these projects aswe see
this as a start to the solution in ever risinghome costs.
Jerome Hendrickson GHD of Pinellas, Inc.
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H Structuring subsidies for CLT units. Sincesubsidies are often
needed for both the buyer and theland portion of the project, it is
important to ensure thatfunding requirements are met. For example,
if SHIPfunds are to be used for land acquisition, it is
importantthat the jurisdiction’s Local Housing Assistance Planallow
for subsidy to remain with the property througha series of
potential income eligible buyers. Whensubsidy is provided to the
buyer for the improvement, itis important that resale formulas
account for either therepayment of the subsidy amount or its
re-assignment tothe new income eligible buyer. The market
downturnhas presented challenges to land trusts as market ratehomes
can now compete with appreciated restrictedhomes, reducing the pool
of interested buyers. Mostland trusts continue to serve very low
and low incomebuyers rather than those with higher incomes.
H Education of lenders, appraisers, originators,processors,
title professionals. These services areavailable but the staff are
often unfamiliar with thepeculiarities of closing a land trust
deal. A trainingsession for lenders and other closing professionals
isrecommended. Closing involving layered funding plusground leases
and other CLT documents can be cumber-some for even the most
experienced housing provider.
H CLT stewardship and operating fund. Keeping theorganization
financially stable is an ongoing challenge.Community land trusts
need sources of money for theirown organizations, as well as a
stewardship fund forassisting CLT homeowners with unexpected
expenseswhich may arise from time to time. Sources of
operatingincome include transfer fees on re-sales, developerfees,
and community based fund raising activities.
H CHDO training. Many CLTs have been encouragedto become
Community Housing DevelopmentOrganizations. Benefits include
eligibility for HOMEset-asides as well as board representation by
home-owners or low income representatives. The FloridaHousing
Coalition provides CHDO training as well asboard of directors
orientation and strategic planningworkshops.
H Emphasizing a sense of community. The communityland trust is a
legal tool but the foundation for successfor community land trusts
is based on local supportand homeowner participation. Neighborhood
stability,pride, and a sense of belonging embody the spirit in
thetraditional land trust model.
Page 23T H E F L O R I D A H O U S I N G C O A L I T I O N
HOUSING NEWS NETWORK
1) As used in this section, the term "community land trust"
means a non-profit entity that is qualified as charitable under s.
501(c)(3) of theInternal Revenue Code and has as one of its
purposes the acquisition ofland to be held in perpetuity for the
primary purpose of providingaffordable homeownership.
2) A community land trust may convey structural improvements
located onspecific parcels of land to provide affordable housing,
which areidentified by a legal description contained in and subject
to a groundlease having a term of at least 99 years, to natural
persons or familieswho meet the extremely-low, very-low, low, and
moderate income limitsspecified in s. 420.0004, or the income
limits for workforce housing, asdefined in s. 420.5095(3). A
community land trust shall retain apreemptive option to purchase
any structural improvements on the landat a price determined by a
formula specified in the ground lease which isdesigned to ensure
that the structural improvements remain affordable.
3) In arriving at just valuation under s. 193.011, a structural
improvementthat provides affordable housing on land owned by a
community landtrust and subject to a 99-year or longer ground lease
shall be assessedusing the following criteria:
(a) The amount a willing purchaser would pay a willing seller
islimited to the amount determined by the formula in the ground
lease.
(b) If the ground lease and all amendments and supplements
thereto,or a memorandum documenting how such lease and amendments
orsupplements restrict the price at which the improvements may
besold, is recorded in the official public records of the county in
whichthe leased land is located, the recorded lease and any
amendmentsand supplements, or the recorded memorandum, shall be
deemed aland use regulation during the term of the lease as amended
orsupplemented.
Section 2. This act shall take effect July 1, 2008.
SENATOR BENNETT AND REPRESENTATIVE FITZGERALD HAVE FILED
IDENTICALBILLS (SB 796, HB 431) TO PROVIDE DIRECTION ON PROPERTY
ASSESSMENT OF
COMMUNITY LAND TRUST PROPERTIES.
193.017 Assessment of structural improvements on land owned by a
community land trust used to provide affordable housing.
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page 24 T H E F L O R I D A H O U S I N G C O A L I T I O N
HAlong with a multitude of housing mandatespassed in the 2007
legislative session, HB1375 also requires SHIP communities
toappoint an Affordable Housing Advisory Committeethat will
deliberate on an incentive package mainlytargeting regulatory
reform. Many will rememberthe initial SHIP enacting legislation
that required anine member affordable housing advisory committeeto
recommend specific initiatives to encourage or facilitateaffordable
housing. That nine member AHAC had torecommend at a minimum, two
incentive strategies to beadopted by local governments; expedited
processing ofdevelopment orders or permits for affordable
housingprojects and a process to consider, before
adoption,policies, procedures, ordinances, regulations or
planprovisions that increase the cost of housing. Many
localgovernments took this requirement seriously,
adoptingordinances and appointing an ombudsman to assistaffordable
housing developers through the process. Butmany others adopted the
required incentive languagewithout an enacting resolution or
ordinance that wouldput the incentive to work. Local governments
were allowedto sunset their AHAC after completing their review,but
some kept their AHAC, seeing them as an opportunityto assist
housing staff and foster the public’s opinion onaffordable
housing.
This new AHAC grows from nine members to 11,with some leeway for
committee size given tolocal governments that receive the minimum
SHIPallocation. Incentive review areas are relatively thesame
except for one additional incentive: “(k) Thesupport of development
near transportation hubsand major employment centers and
mixed-usedevelopments.” But now, the Committee does not
sunset. It is required to review the established policies
andprocedures, ordinances, land development regulations, andadopted
local government comprehensive plan and recommendspecific action or
initiatives to encourage or facilitateaffordable housing
triennially. The AHAC must also reviewand evaluate the
implementation of affordable housingincentives and submit that
report triennially. Localgovernments that receive the minimum SHIP
allocation mayopt out of the triennial review. Another key
improvement tothe process is a new requirement that the advisory
committeebe cooperatively staffed by the local housing department
andthe local planning department to ensure an integratedapproach to
the work of the advisory committee.
As the SHIP Administrator, what does all this mean to you?Let’s
take a look at the necessary steps, you and counterpartfrom the
planning department need to take and when youneed to take them, the
resources you will need, and how youcan make this committee work
most effectively.
The Affordable Housing AdvisoryCommittees Make a Comeback
SHIP Administrators, Are You Ready?by Evelyn Rusciolelli
Florida Housing Coalition
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Page 25T H E F L O R I D A H O U S I N G C O A L I T I O N
Step 1– Consider Staffing the AHACWHEN: Now420.9076 (9) requires
a cooperative staffing of theAHAC by department or divisions having
authorityto administer local planning or housing programs toensure
an integrated approach to the work of theadvisory committee. Now is
the time to sit downwith your Planning Department and design
astaffing plan. The advisory committee is goingto require a lot of
planning information and theywill have many questions of both
planning andhousing staff. It is imperative to have a staff
memberfrom both venues present at all meetings. Otherthings to
consider are scheduling and advertisingmeetings, recording minutes,
preparing agendasand materials. Have these duties outlined
andassigned before the first Committee Meeting.
Step 2– Recruit your members. WHEN: NowIf local government waits
until the June 30, 2008deadline the advisory committee will only
have sixmonths to complete its review, write the report, holda
public hearing and submit its recommendations tothe
commission/council.
Although your local government probably has anadvertisement and
application process for seekingmembers to local committees, both
housing andplanning staff should assist by recruiting citizensthat
not only meet membership requirements buthave also been active
supporters in the affordablehousing and planning incentive areas.
It is alsohelpful if they have a rapport with thecommission/council
and or planning department.Ask existing members of any active
housing orplanning committees to apply if the appropriateareas of
professional interest are matched. YourEconomic Development Council
(EDC) may alsobe a good source for recommendations. The EDChas a
large membership with various backgroundsand they understand the
correlation between newbusiness recruitment and employer housing
needs.
If your local government administers the SHIPprogram under an
inter-local agreement for otherlocal governments under one local
housingassistance plan, you may request approval fromFlorida
Housing Finance Corporation to use thesame advisory committee.
HOUSING NEWS NETWORK
Continued on page 26
FEBRUARY – JUNE 2008 OCTOBER – NOVEMBER 2008 DECEMBER 31, 2008
MARCH 31, 2009 MAY 2, 2009 FEBRUARY 2011
Designatestaff and
select AHACmembers
Complete draftreport scheduleand advertisepublic hearing
Submit reportto local
government governing
board
Submit amendedLHAP with proof
of boardapproval to
FHFC
GoverningBoard Appoints
members toAHAC by
resolution
Local government adopts
amendments to LHAPto incorporate
strategies
Public hearingAHAC approveslocal housing
incentive
Repeat processin preparationfor triennial
report
HOUSING INCENTIVE PLAN AND AFFORDABLE HOUSING ADVISORY COMMITTEE
TIME LINE
Dates in teal are reccomended timeline to meet deadlines. Dates
in blue are statute or rule deadlines.
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page 26 T H E F L O R I D A H O U S I N G C O A L I T I O N
HOUSING NEWS NETWORK
Step 3– Governing Board of a county or munic-ipality shall
appoint the members of theaffordable housing advisory committee
byresolution. WHEN: By June 30, 2008Ensure that there is at least
one applicant for eachof the eleven positions. Prepare your agenda
andresolution appointing the members of your AHAC.
Step 4– Schedule meeting of AHAC and Noticemeeting of AHAC which
is subject toGovernment in the Sunshine rules. WHEN: Within two
weeks of appointment speak
with members of the AHAC to determinewhat days and times are
best for them tomeet.
Schedule the first meeting and advertise as requiredby your
local government. In preparation for thisfirst meeting, think about
electing a Chairman aswell as decide which staff will attend to
takeminutes, gather technical information, schedulespeakers and
assist with other committee requests.Plan to review Government in
the Sunshine meetingrequirements and consider product dea