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Item H02H.2 M BOARD OF COUNTY COMMISSIONERS C ounty of f Monroe �� "' Mayor George Neugent, District 2 Mayor Pro Tern David Rice, District 4 The Florida Keys - Danny L. Kolhage, District 1 Heather Carruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting June 21, 2017 Agenda Item Number: H.2 Agenda Item Summary #2930 BULK ITEM: No DEPARTMENT: Planning/Environmental Resources TIME APPROXIMATE: STAFF CONTACT: Mayte Santamaria (305) 289 -2500 10:00 A.M. AGENDA ITEM WORDING: Discussion and direction on evaluating expiring affordable housing deed restrictions and the potential of buying back expiring deed restrictions in order to preserve affordable housing. ITEM BACKGROUND: Affordable Housing deed restriction timeframes over time have included 20 years, 30 years, 50 years and currently 99 years. Numerous affordable housing deed restrictions were recorded in the 1990's with a 20 -year effective period, which are expiring in the near future. According to the County's inventory of affordable housing units, 47 units will have a deed restriction by the end of 2017 (see attached table) that is no longer effective. By the end of 2018, there will be 17 additional units and, in 2019, there will be another 8 units. Restrictions will continue to expire on the existing 800+ affordable housing dwelling units. In 2015, the BOCC expanded the membership of Affordable Housing Advisory Committee and assigned the committee specific additional duties to complete within a 1 year timeframe. The committee met from August 2015 through July 2016 to develop recommendations to facilitate the provision of workforce housing. On July 22, 2016, the Affordable Housing Advisory Committee adopted Resolution 01 -2016, providing 33 recommendations to the Board of County Commissioners on the issues included in their charge. On August 17, 2016, staff presented the Affordable Housing Advisory Committee's adopted Resolution 01 -2016 (33 recommendations) to the BOCC and the BOCC approved contracts for studies to support an inclusionary housing requirement to cover transient and commercial development as well as requested staff to schedule a special meeting to discuss the remaining recommendations. On a special meeting on December 6, 2016, the BOCC reviewed and discussed the 33 recommendations provided by the Affordable Housing Advisory Committee and directed staff to Packet Pg. 1504 H.2 hold certain items, research certain items, implement certain items and to provide additional details to process amendments to the comprehensive plan /land development code. Specifically, the BOCC reviewed the following recommendation: The AHAC recommends the BOCC direct the Land Authority to evaluate and provide recommendations to the BOCC on utilizing Land Authority funds to buy back expiring deed restrictions in order to preserve rental affordable housing. The Land Authority should consider remaining deed restriction timeframes and make recommendations on potential monetary offers to provide for a range of additional deed restriction years, including a priority for perpetual deed restrictions in order to preserve existing affordable housing. The BOCC did not direct the Land Authority to move forward with this recommendation and discussed that the action item requires an analysis of deed restriction timeframes, an anlysis of the "market value of extending restriction," a determination of how much and at what time period of the deed restriction to approach owners (i.e. not when deed restrictions are about to expire) and a discussion of funding availability. PREVIOUS RELEVANT BOCC ACTION: April 12, 2017: The BOCC approved a resolution authorizing staff to develop and issue a release form for expired affordable housing deed restrictions, if the deed restrictions are no longer effective due to the conclusion of maximum time within the covenant and asked staff to prepare a discussion item for the May BOCC to discuss expiring affordable housing deed restrictions. BOCC 5/17/17 (1115): BOCC continued this item to the BOCC 6/21/17 meeting. CONTRACT /AGREEMENT CHANGES: n/a STAFF RECOMMENDATION: Direction if staff, in coordination with the Land Authority and County Attorney, should evaluate and provide recommendations to the BOCC on buying back expiring deed restrictions in order to preserve affordable housing. DOCUMENTATION: County AFF Housing Developments — deed restriction end date CHART of AHAC RECOMMENDATIONS Dec 6 BOCC direction deed restrictions FINANCIAL IMPACT: Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Packet Pg. 1505 H.2 Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: Grant: County Match: Insurance Required: Additional Details: If yes, amount: I to] XTAi Do 1111" Mayte Santamaria Completed Assistant County Administrator Christine Hurley 04/26/2017 8:12 AM Steve Williams Completed Jaclyn Carnago Completed Budget and Finance Skipped Maria Slavik Skipped Kathy Peters Completed Board of County Commissioners Completed 04/25/2017 2:48 PM Completed 04/26/2017 8:13 AM 04/26/2017 8:25 AM 04/25/2017 2:01 PM 04/25/2017 2:01 PM 04/26/2017 9:45 AM 05/17/2017 9:00 AM Packet Pg. 1506 Monroe County Affordable Housing Developments and Incentives DRAFT 11/21/2016 *fncome CeGgory (201 owner occupied incomelvni6(singleparone) -4 person household size I u ied ivcomelvni6 (men'ie� -4 aovhoveehold size V. LOW LOW MED MOD $43,6`0 $69,800 98'],300 $139,680 $58,200 $93,067 $116,400 $186,240 ,-1 in me 1vni6( —gle p-- )- 4pe— h —ehold size rmfel1 —.e h—,( —ed) -4 --h—e ld size $43,6`0 W9,800 x7,300 $58,2(. 993,067 $116,408 $139,680 MINI ®moo ® ®��o�� ®�� ®moo ® ®��o�� ® ® ®�� ® ®moo ®o ®��o�� ® ®�� ® ®moo ® ®��o�� ® ®moo- ® ®��o�� ® ® ®�� ® ®moo ®o ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ® ®moo ®o ®��o�� ® ® ®�� ® ®moo ® ®��o�� ®moo ® ®��o�� ® ®�� ®moo- ® ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ® ®moo ®o ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ® ®moo ®o ®��o�� ® ®�� ®moo ® ®��a�� ® ®�� ®moo ®o ®��o�� ® ® ®�� ®moo ®o ®��o�� ® ®moo ® ®��o�� ® ®moo- ® ®��o�� ® ® ®�� ® ®moo ® ®��o�� ® ® ®�� ®moo ®o ®��o�� ® ® ®�� ®moo ®o ®��o�� ® ® ®�� ®moo ® ®��o�� ® ®�� ®moo ®o ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ®tea ®o ®��o�� ® ® ®�� ®moo ®o ®��o�� ® ®�� ®moo ® ®��o�� ® ®�� ®moo ®o ®��o�� ® ® ®�� ® ®moo ® ®��o�� ® ®�� ® ®moo ® ®��o�� ® ® ®�� ®moo ® ®��a�� ® ® ®�� ® ®moo ®o ®��o�� ® ® ®�� ® ®moo ®o ®��o�� ®�� ® ®moo ®o ®��o�� ® ® ®�� ®moo ® ®��o�� ® ® ®�� ®tea ®o ®��o�� ® ® ®�� ®moo ® ®��o�� ® ®�� —1'. In e,t—We -- $1,534 pa —n MFR'.$1,331 pa— t, end M $1,229pa— -ty 11 -11111 NMI INNER —1'. In e,t—We -- $1,534 pa —n MFR'.$1,331 pa— t, end M $1,229pa— 0 AHAC tasks assigned by BOCC Implementation AHAC Recommendations to SOCC Notes BOCC Direction Resolution 189 -2015 timeframe TASK 1: Propose a definition for "Workforce" and the The BOCC should review the Committee's recommended definitions for "Workforce" and "Workforce Housing." If the BOCC accepts the need within and where (geographically in Committee's recommendation, it should direct staff to propose any Land Development Code amendments needed to incorporate them. unincorporated Monroe County) for providing housing for various income levels (very low, low, Workforce means individuals or families who are gainfully employed supplying goods and /or services to Monroe County residents or visitors. AHAC adopted Code Amendments median and moderate ) Reso 01 -2015 to recommend to BOCC. Staff can process amendments in Workforce Housing means dwelling units for those who derive at least 70% of their income as members of the Workforce in Monroe County and BOCC approved. 6 to definitions who meet the affordable housing income categories of the Monroe County Code. BOCC Reso 393 -2015 supporting & approx. months adopt and incorporate into the affordable housing code sections and land use passed Based on the current, available data, the Committee believes there is an unmet Workforce Housing need throughout Monroe County, specifically encouraging collaboration districts. TASK 2: near employment centers. It recommends the BOCC recognize that Monroe County continues to experience a critical Workforce Housing need. Evaluate and define the workforce housing need The need and demand for Workforce Housing appears most critical for those households at the median, low and very low- income levels in unincorporated Monroe County and is most severe in the middle and lower Keys. The bold language for recommendation #3 below were suggested refinements thatwere agreed to by the AHAC at the June 17 meeting. The Committee recommends the BOCC take action to strengthen the County's ability to qualify and monitor deed restricted affordable housing in unincorporated Monroe County. 1. The BOCC should direct staff to continue to build its database of deed - restricted units. 1. in progress &ongoing 2. The Committee strongly recommends staff coordinate, collaborate and share information with the Monroe County Housing Authority, 2. in progress & ongoing municipalities, nonprofit entities, and the real estate sector to create a dynamic countywide database, inventory for existing affordable housing. TASK 3: 3. staff has requested assistance from Evaluate and propose additional mechanism to 3. By October 2016, County staff should develop proactive mechanisms including . code requirements and fines based on HUD guidelines AHAC adopted Florida Housing on reviewng current qualify and monitor the occupants of deed to enhance the monitoring of affordable housing including consideration of securing the services of the Monroe County Housing Authority, Reso 01 -2015 recommend to BOCC. procedures and enhancing monitoring. passed restricted affordable housin to ensure the units g additional County staff 3rd party monitoring services or some combination thereof. Funding estimates for such a program should be BOCC approved. C PP 4. in &ongoing are preserved and maintained as affordable developed and evaluated d by staff and the Monroe County Housing Authority and should be considered in deciding how to develop the most cost effective monitoring and qualifying approach. progress 5.a) in progress &ongoing 4. The Committee strongly recommends staff coordinate and share information with the municipalities in developing these options, with a goal 5.b) Staff can amendments in of developing a countywide monitoring mechanism program. process approx. 6 months 5. The Committee strongly recommends that the County identify and fund an enhanced enforcement program as an essential elementfor maintaining affordable workforce housing in the County. This program should address compliance and enforcement of deed restricted property to maintain our available housing stock. a) Authorize Code Compliance and /or the Monroe County Tax Collector's Office to more aggressively pursue illegal rentals. b) Require that owner- occupied units be homesteaded. 425/2017 1 0 AHAC tasks assigned by BOCC Implementation AHAC Recommendations Recommendations to �OCC Note: BOCC Dl Resolution 189-2015 timefram Direction The AHAC recommends the BOCC direct staff to evaluate and develop comprehensive plan and land development code amendments to requires an evaluation of amount of density CP and Code Amendments staffto research & create a workforce housing overlay which can be applied to properties (through a map amendment) to provide additional density bonuses for bonus and direction ifthe bonus should be a Staff in discuss with BOCC (e workforce developments that offer only workforce housing rentals in perpetuity on Tier /// designated /ands . sliding scale based on income category can process amendments approx. 1 market rate kOOOS ?) year The AHAC recommends the BOCC direct staffto evaluate and recommend a proactive approach to enhance the enforcement against illegal budget decision by BOCC to add code vacation rentals; tourist housing and vacation rentals of affordable housing units, including additional code compliance staff to focus on short- compliance staff to focus on short -term enforcement in progress .& ongoing keep workign on it TASK 4: term rentals and continued partnership with the Monroe County Tax Collector. rentals Develop solutions for rental housing The AHAC recommends the BOCC direct the Land Authority to evaluate and provide recommendations to the BOCC on utilizing Land Authority requires analysis of deed restiction funds to buy back expiring deed restrictions in order to preserve rental affordable housing. The Land Authority should consider remaining timeframes, "market value of extending deed restriction timeframes and make recommendations on potential monetary offers to provide for a range of additional deed restriction years, restriction" and the balancing of available Land Authority HOLD including a priority for perpetual deed restrictions in order to preserve existing affordable housing. funding The AHAC recommends the BOCC direct staff to evaluate and provide recommendations to the BOCC on strategies and best practices for updated code will require community engagement, outreach, public awareness and education to address the NIMBY ( "Not in my backyard ") sentiment to workforce housing and meetings for text & map amendments and ongoing passed collaborate with the developers, municipalities, the private and non- profit sectors. conditional use permits prior to public hearings 4252017 2 0 AHAC tasks assigned by BOCC Implementation AHAC Recommendations to BOCC Notes BOCC Direction Resolution 189 -2015 timeframe Staffdiscussed issuing an RFP in BOCC adopted Reso 404 -2015: inventory August with BOCC. Of the 7 properties of county -owned land which maybe discussed with BOCC, 2 parcels are The AHAC recommends the BOCC consider issuing requests for proposals (RFP) for the development of workforce housing on county- appropriate for affordable housing. being utilized by the Sheriff. owned land as a key priority. The AHAC recommends the BOCC direct staff to collaborate with other public entities which own land in the Remaining parcels have a county and recommend how best to increase and target incentives for leasing back the properties to workforce housing developers. June 2016, BOCC approved Land Authority development potential of 14 units Acquisition List, including: "The MCLA combined. RFP may no longer be Advisory Committee will consider adding worthwhile with low unit potential. No to the Acquisition List, on a case -by -case Would need to work with legal on title searches. The AHAC also recommends the BOCC direct the Land Authority to prioritize the purchase of additional Tier 3 lands for the development basis, affordable housing sites to be of workforce housing. The BOCC may also consider future RFPs for the development of affordable housing. acquired by government partners provided Committment to target purchasing Tier the sites do not include environmentally 3 parcels for AFH? See map of sensitive habitat or possible wetlands" extisting distribution of affordable units throughout neighborhoods. The AHAC recommends the BOCC direct staff to evaluate the legal, financial and legislative . issues and develop recommendations on the development of a property tax incentive for homeowners that rent a lawfully established existing market rate unit to a member of the workforce requires legislation continue research in any Tier within the very low, low and median affordable housing income limits and rental rates. -passed The AHAC recommends the BOCC direct staff to evaluate the legal, financial and legislative issues and develop recommendations on the creation of a 10 -year tax incentive for the development of only workforce housing. requires legislation staff to research TASK 5: The AHAC recommends the BOCC direct staff to maintain and update the inventory of County owned land that can be used for affordable BOCC adopted Reso 404 -2015 approving Develop incentives for development of housing development. inventory of county -owned land which may developed and ongoing done workforce housing on Tier III properties be appropriate for affordable housing. The AHAC recommends the BOCC direct staff to evaluate and develop comprehensive plan and land development code amendments to requires an evaluation of zoning districts, allow property owners of Tier 3 designated lands with an existing market rate dwelling unit to add an accessory workforce housing residential density standards, income levels, maximum CP and Code Amendments research - bring back TASK 6: unit which will require the use of an affordable ROGO. Staff should evaluate residential zoning districts, density standards, income levels, size ofthe accessory workforce housing residential unit and the minimum property size Staff can process amendments in after developing away to use market rate Develop strategies for increasing density to maximum size of the accessory workforce housing residential unit and the minimum property size for the development of an accessory for the development of an accessory approx. 1 year ROGOs encourage workforce housing development, residential workforce housing unit. This can be a method to incentivize the development of smaller "starter units" for the workforce. residential workforce housing unit such as micro housing and dormitories The AHAC recommends the BOCC direct staff to evaluate and develop comprehensive plan and land development code amendments to CP and Code Amendments research - develop create proposes amending height restrictions - criteria & more a Workforce Housing overlay for the Planning Commission to recommend and Board of County Commissioners to approve an extra story for requires an evaluation of locations Staff can process amendments in specifics - discuss the development of an exclusive workforce housing project, up to maximum o1`40 feet. approx. 1+ year with BOCC The AHAC recommends the BOCC direct staff to revise existing Land Development Code Section 130 -161.1 to provide another incentive for the preservation of affordable housing and the development of market rate housing on Improved Subdivision (IS), Tier III properties as follows: ROGO exemptions transferred under this program may be transferred on a 1 for 1 basis w 4ere the 8969 9riep9laaeae are to be '� - :,- a,>meweo to Tier III, single - family residential lots er paree/s within the Improved Subdivision (IS) land use district and the same ROGO planning subarea for Code Amendment the development of si ngle family detached dwelling units. Hgwever, w4ere 'r:,- asfers are to be �e to s99999erGfa ^ er re eab; ga; vderkiny amendment provided in recommendation passed 9,ww.o„m fag defiaed by €Ierlda Statdtes} er to m `apg#y prejeste is aea-/S el; &e ot&, e 'n- a;>mer ;Ff is a shall . t ae fewer tbaa tvde deed_ Staff can process amendments in approx. 6 months The AHAC recommends the BOCC direct staff to evaluate and develop comprehensive plan and land development code amendments to Code Amendment create an additional workforce housing density bonus in the Mixed Use Zoning District to provide additional density only for the development of workforce rental housing in the median, low and very low income categories which is deed restricted in perpetuity and located on Tier 3 Staff can process amendments in passed designated lands. approx. 6 months 4/25/2017 3 0 AHAC tasks assigned by BOCC Implementation AHAC Recommendations to BOCC Notes BOCC Direction Resolution 189 -2015 timeframe TASK 7: Develop strategies to increase the Monroe AHAC adopted Staff has requested assistance from County Housing Authority's role in workforce See Task 3 AHAC October 2015 recommendations that address this Task. Florida Housing on reviewing current housing, specifically as a management entity for Reso 01 -2015 to recommend to BOCC. procedures and enhancing monitoring rental workforce housing Unquestionably these recommendations will be costly, in developing these recommendations, the AHAC believes from the past 12 months of discussions that the Commission should set a 10 -year target of raising at least $10 million annuallyfrom local funding sources to help expand workforce housing in Monroe County and address the unmet Workforce Housing need throughout Monroe County, specifically near economic & budgetary item n/a employment centers. The AHAC recommends the BOCC direct staff to evaluate the legal, financial and operational issues and make recommendations on whether and how to establish an annual fee on non - primary residences that are not utilized as long -term rentals (6 month rentals or greater) to be economic & budgetary item no dedicated to supporting workforce housing and the enforcement of regulations. The AHAC recommends the BOCC direct staff to evaluate the legal, statutory, financial and operational issues and make recommendations on whether and how to establish a property tax exemption for non - primary residences that rent their residence for not less than 6 months legislative changes (long term) to a member of the Monroe County workforce. Every property owner claiming the additional reduction in assessed value must passed annually file an application with the Monroe County Property Appraiser, including documentation and affidavit regarding the qualifying workforce economic & budgetary item TASK 8: housing occupant of the residence for the year in which the reduction is sought. Explore and expanding local funding propose sources (local government, private /public The AHAC recommends the BOCC direct staff to evaluate the legislative, economic and financial issues, including and take the necessary steps partnerships, community /charitable and make recommendations on whether and how to propose to statutory amendments to increase by 1 pennythe Tourist Impact Tax to legislative changes or organizations) to help expand workforce 9 ) P P provide additional dedicated funding for acquisition of land for workforce housing and construction of workforce housing in MonroeCounty. economic &budgetary item No housing in Monroe County Evaluate including a sunset date of 10 years. The AHAC recommends the BOCC direct staff to engage with the Community Foundation of the Florida Keys (CFFK), municipalities, and the business and tourist sector in Monroe County to establish a community workforce housing fund administered by the CFFK that can provide other entities to implement passed additional dedicated funding for workforce housing in Monroe County and rental assistance loans. The AHAC recommends the BOCC direct staff to evaluate the legal, financial and economic issues and make recommendations on whether and how to increase the ad valorem tax on residential /commercial properties and commercial properties that are not rented at affordable economic & budgetary item No rates in order to provide additional dedicated funding for the acquisition of land for workforce housing and construction of workforce housing in Monroe County. The AHAC recommends the BOCC direct staff to evaluate the legal, financial and economic issues and make recommendations on whether and economic &budgetary item how to create a tax incentive for commercial properties that include workforce housing on the same site. passed The AHAC recommends the BOCC direct the Land Authority to evaluate and provide recommendations to the BOCC on utilizing Land requires analysis of deed restiction Authority funds to buy backexpiring deed restrictions in orderto preserve rental workforce housing. The Land Authority should consider timeframes, "market value of extending Land Authority has authority to do with done TASK 9: remaining deed restriction timeframes and make recommendations on potential monetary offers to provide for a range of additional deed restriction" and the balancing of available existing statute Review and consider recommendations to the restriction years, including a priority for perpetual deed restrictions in order to preserve existing workforce housing. funding BOCC for amendments to statutes to address:a, b,c, &d In light the workforce housing crisis in Monroe County, the AHAC recommends the BOCC continue to support of the provision of Sadowski Trust funding and the dedicated tax credit project for the Florida Keys as a key legislative priority. annually in County Legislative Agenda ongoing support 4/25/2017 4 0 AHAC tasks assigned by ROCC Implementation AHAC Recommendations to BOCC Notes BOCC Direction Resolution 189 -2015 timeframe AHAC adopted Reso 03 -2015 to recommend to BOCC. in progress In August 2016, BOCC approved 2 surveys developed and sent to 3,000 contracts to conduct surveys and analyze employers "The AHAC recommends that the Board of County Commission support and fund a nexus study as the first step in the expansion of the current data to establish an inclusionary County residential inclusionary housing program to cover transient and commercial development in the County." AHAC January 2016 requirement for nonresidential data collection & analysis on going passed Resolution to the BOCC development. Clarion Associates here today to inform the public and County officials TASK 10: Will require review of consultant about the project, its schedule, and Develop strategies to assist in developing recommendations and data to develop general goals, and to receive input inclusionary housing requirements for inclusionary requirements and process code and feedback. hospitality and commercial sector to build requirements. workforce housing The AHAC recommends the BOCC direct staff to evaluate the legal, financial and economic issues and make recommendations on whether and Code Amendment how to amend the land development code to not allow inclusionary requirements to be satisfied through 'linkage' under Sec. 130 -161 (c) requires analysis of the "in proportion of passed the government investment" Staff can process amendments in with affordable housing units built in proportion of the government investment. approx. 6 months The AHAC recommends the BOCC direct staff to evaluate the legal, financial and economic issues and make recommendations on whether and Note. linkage should not be available for Code Amendment how to amend land development code to not allow inclusionary requirements to be satisfied through 'linkage' under Sec. 130 -161 (c) with existing affordable projects as they do not passed affordable housing units already existing /built. address the need for additional affordable housing. Staff can process amendments in approx. 6 months Building on the February 2016 Workforce Housing Intergovernmental Roundtable and the continuing participation of municipal planning directors in the AHAC process, the AHAC recommends each jurisdiction pass a resolution to commit their respective Planning Director's meet to discuss at least twice a year to explore and implement consistent strategies for closer intergovernmental cooperation and collaboration on workforce housing. Note: Atthe March 2016 AHAC meeting the Committee agreed that intergovernmental cooperation is a "very important" element of the AHAC's work and tasks on workforce housing. There was agreement that the planning directors review the potential areas that have been identified for cooperation atthe Intergovernmental Roundtable and report back to their respective governing boards and the AHAC with any recommendations Below are the potential intergovernmental cooperation opportunities identified in the February 2016 Intergovernmental Workforce Housing Task 11: Roundtable: BOCC Resolution 393 -2015 A. Collaborate on monitoring and qualifying Affordable Housing (AHAC Recommendation on Task 3) d supporting & encouraging collaboration with B. Seek to develop consistent affordable housing terminology passe cities C. Develop a more consistent intergovernmental approach to deed restrictions D. Identify county and municipal Funding Sources for Affordable Housing E. Purchase land to Address the Growing Workforce Housing Crisis. F. Support inclusionary Housing and Redevelopment G. Provide incentives for Building Workforce Housing H. Work together on Homeowners and Flood Insurance Costs I. Take a new look at the Hurricane Evacuation Formula J. Review policies on backyard houses and work force housing K. Communicating with the public on the workforce housing need & solutions 4/252017 5