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Item C1M C ounty of f Monroe ELj » °o � BOARD OF COUNTY COMMISSIONERS /� r i � �� Mayor George Neugent, District 2 The Florida Key y ��� ',�� � I � Mayor Pro Tern David Rice, District 4 ; - = = :' j y Danny L. Kolhage, District I Heather Carruthers, District 3 Sylvia J. Murphy, District 5 County Commission Meeting November 29, 2017 Agenda Item Number: C.1 Agenda Item Summary #3601 BULK ITEM: No DEPARTMENT: Planning/Environmental Resources TIME APPROXIMATE: STAFF CONTACT: Mayte Santamaria (305) 289 -2500 n/a AGENDA ITEM WORDING: Presentation of the Monroe County Housing Strategy Document (The Florida Keys — Rising Above Recovery) prepared by Housing Task Force (County staff and city staff) which has been prepared to share information with the State and Federal partners assisting the County with housing recovery efforts to briefly explain and highlight the unique Florida Keys and potential strategies to target for rebuilding a resilient housing stock. ITEM BACKGROUND: Attached is the Monroe County Housing Strategy Document (The Florida Keys Rising Above Recovery) which was prepared by Housing Task Force (County staff and city staff) to share information with the State and Federal partners assisting the County with housing recovery efforts to briefly explain and highlight the unique Florida Keys and potential strategies to target for rebuilding a resilient housing stock. This document has been shared with the State and Federal agencies assisting Monroe County is the recovery from the storm and to help the County identify future mitigation programs to help residents rebuild. The main details from the strategy are provided below: GOAL: Rebuilding a stronger Florida Keys ✓ promote public health, safety and general welfare; ✓ advance adaptation to coastal flooding, storm surge and other hazards; ✓ protect property, residences and businesses, from storm impacts and minimize damages; ✓ minimize public and private losses due to storms; ✓ preserve of economy during and after disaster, including business viability and workforce housing; ✓ preserve and protect the environment, including natural and historic resources; and ✓ enhance resiliency. STRATEGY. • To address the unique challenges and diverse needs in our long term housing recovery DEVELOP PROGRAMS TO: o Wind- retrofitting of Residential Structures - provide funding options to harden existing housing units ■ Installing hurricane shutters or impact- windows; Metal roofs; Reinforced trusses and Reinforced garage doors o Provide funding to elevate existing private residences above BFE (Elevation of Residential Structures) • Provide funding to demo and replace private residences to meet or exceed Building Code and Floodplain requirements (Demolish and Rebuild of Mitigated Building Envelope) • Develop and increase the supply of workforce housing & choice of rental housing opportunities - identify areas damaged properties or areas of less damaged properties to more easily and more quickly rebuild safe, energy— efficient and cost effective housing units (Community Workforce Housing Programs) ■ Purchase scattered sites for single family homes; purchase parks and redevelop multifamily housing, purchase less vulnerable sites for workforce housing • Provide funding to rebuild and repair resilient existing housing units as safe, energy — efficient and cost effective housing units (New Construction or Rehabilitating Residences damaged by the storm) • Identify areas to purchase and not rebuild in that area (provide financial incentives to purchase areas in dangerous or high -risk zones) ■ Provide funding to purchase developed properties in V zone with existing residences to create additional open space and natural buffers and rebuild housing outside of the V zone • Relocate and rebuild in another less vulnerable location - safe, durable, physically accessible, energy— efficient and cost effective housing units (Purchase & Rehab assistance) • Provide funding to purchase abandon damaged structures and demo unsafe structures • Provide funding to improve infrastructure for drainage at housing units — lessen flooding vulnerability • Develop infrastructure for improved mass transit — improve mobility & access to services /jobs • Provide funding to repair and flood proof commercial structures and add housing units over the commercial structure to improve local economic conditions, particularly the continued availability of workforce housing & jobs (Flood - proofing of Non - Residential Structures) • Identify /explore cost effectiveness of different types of factory -built housing to replace manufactured housing units PREVIOUS RELEVANT BOCC ACTION: n/a CONTRACT /AGREEMENT CHANGES: n/a STAFF RECOMMENDATION: Direction on the proposed housing recovery strategies. DOCUMENTATION: MONROE COUNTY Housing Strategy after Irma 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: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: Grant: County Match: Insurance Required: Additional Details: If yes, amount: REVIEWED BY: Mayte Santamaria Completed Assistant County Administrator Christine Hurley 11/20/2017 12:42 PM Steve Williams Completed Jaclyn Carnago Skipped Budget and Finance Skipped Maria Slavik Skipped Emily Schemper Skipped Kathy Peters Completed Board of County Commissioners Pending 11/20/2017 12:56 PM Skipped 11/20/2017 1:15 PM 11/20/2017 12:42 PM 11/16/2017 1:23 PM 11/16/2017 1:23 PM 11/20/2017 12:40 PM 11/21/2017 10:16 AM 11/29/2017 10:00 AM MONROE COUNTY _ LORID � 5 - TzlSIN �}gOV� TZECOV�>z ' �'_ At 9:10 a.m. on September 10, 2017, Hurricane Irma made landfall near Cudjoe Key as a Category 4 Hurricane with maximum sustained winds of 130 mph. We are at this time still in the midst of determining the full extent of its catastrophic impacts and documenting our shared vision of recovery. The Florida Keys are a chain of islands connected by 112 miles of US Highway 1, extending from Key Largo to Key West, representing the most southerly point of the continental United States. The surrounding water is designated as an Outstanding Florida Water and includes the Florida Keys National Marine Sanctuary, the second largest marine sanctuary in the United States. The Keys are the location of North America's only coral reef and the third largest coral reef system in the world. The Keys are also home to over 30 species of threatened and endangered species and is one of the most ecologically diverse ecosystems in the United States. The regional and statewide resources of the Florida Keys prompted its designation by the Administration Commission as an Area of Critical State Concern in December, 1975 and the Florida Legislature in 1979 (Section 380.0552, F. S.). As required by the State of Florida, the Florida Keys local governments have adopted policies to control growth based on the Florida Keys carrying capacity. The carrying capacity constraint with the lowest threshold is the requirement to maintain hurricane evacuation clearance times at or below 24 hours — in our hurricane prone location. Irma Recovery - Page 1 of 5 The rate and distribution of future growth has been limited by implementing Permit Allocation Systems. The Florida Keys local governments, with the exception of Key Colony Beach, have adopted a performance -based allocation system for both residential development and commercial development because of the requirement to maintain a 24 -hour hurricane evacuation clearance time, environmental needs including water quality and habitat protection, as well as to maintain and enhance the community character. The Permit Allocation Systems create a competitive permit allocation system whereby those applications with the highest scores are awarded building permits. After a hurricane evacuation clearance time study in 2012, the State of Florida provided 3,550 allocations for a period of 10 years (355 per year) to the local governments as follows: *Key Colony Beach does not have a permit allocation system * *Monroe County updated Comp Plan to make all affordable housing allocations available for award Based on the State's allocation and rate of distribution, the Florida Keys are anticipated to reach build out in 2023, after which no further development will be permitted. The Florida Keys are a world renowned tourism and resort destination, with a long established commercial and recreational fishing industry and extensive accessible coral reefs which support a large recreational snorkeling and scuba diving industry. The dominant industry throughout the Keys (incorporated and unincorporated areas) is tourism. This segment of the economy has held the lead position in employment in the County for more than 30 years. The tourism industry category of "Hotel/Eat- Drink/Entertainment" includes eating and drinking establishments, hotel /motel space along with seasonal rental properties and entertainment venues such as museums, theaters parks and beaches. This ecosystem is the lifeblood of marine -based tourism and fisheries economy unrivaled in the State of Florida generating over $413 in economic activity. While an economic engine, tourism also increases the costs for public safety, sanitation, additional infrastructure and utilities like water, sewer, power, roads, bridges, sidewalks, lighting, parking, boat ramps, mooring fields, parks and beaches. It also increases the cost of living and the costs of land and housing, and places demands on the environment and the water quality. The Florida Keys face the quadruple impact of high land values, land limited by geographic and environmental features, housing supply limited by controlled growth (the permit allocation systems) and a tourism economy with a prevalence of lower paying service- sector employment. The housing affordability problem of the Florida Keys has widespread economic impacts, including a growing recognition of the important link between an adequate affordable housing supply and economic growth. Many of the business sectors in the Florida Keys, including professional services, retail trade, tourism and health care, find it increasingly difficult to attract and maintain workers. Affordable housing Irma Recovery - Page 2 of 5 Total Annual Allocations Market Rate Allocations Affordable Allocations Monroe County 197 126 71 ** Marathon 30 24 6 Islamorada 28 22 6 Key West 91 Varies Varies No less than 60% Key Colony Beach 6* n/a n/a Layton 3 n/a n/a *Key Colony Beach does not have a permit allocation system * *Monroe County updated Comp Plan to make all affordable housing allocations available for award Based on the State's allocation and rate of distribution, the Florida Keys are anticipated to reach build out in 2023, after which no further development will be permitted. The Florida Keys are a world renowned tourism and resort destination, with a long established commercial and recreational fishing industry and extensive accessible coral reefs which support a large recreational snorkeling and scuba diving industry. The dominant industry throughout the Keys (incorporated and unincorporated areas) is tourism. This segment of the economy has held the lead position in employment in the County for more than 30 years. The tourism industry category of "Hotel/Eat- Drink/Entertainment" includes eating and drinking establishments, hotel /motel space along with seasonal rental properties and entertainment venues such as museums, theaters parks and beaches. This ecosystem is the lifeblood of marine -based tourism and fisheries economy unrivaled in the State of Florida generating over $413 in economic activity. While an economic engine, tourism also increases the costs for public safety, sanitation, additional infrastructure and utilities like water, sewer, power, roads, bridges, sidewalks, lighting, parking, boat ramps, mooring fields, parks and beaches. It also increases the cost of living and the costs of land and housing, and places demands on the environment and the water quality. The Florida Keys face the quadruple impact of high land values, land limited by geographic and environmental features, housing supply limited by controlled growth (the permit allocation systems) and a tourism economy with a prevalence of lower paying service- sector employment. The housing affordability problem of the Florida Keys has widespread economic impacts, including a growing recognition of the important link between an adequate affordable housing supply and economic growth. Many of the business sectors in the Florida Keys, including professional services, retail trade, tourism and health care, find it increasingly difficult to attract and maintain workers. Affordable housing Irma Recovery - Page 2 of 5 has posed and continues to pose a major challenge for local governments, public agencies and the private sector in the Florida Keys. The service and retail industries generate high demand for affordable housing from low income earning workers, while the limited land area and linear geography of the Keys severely limit the potential supply and locations of housing. Furthermore, unlike other areas, working families cannot find affordable housing nearby. As a result, a severe imbalance exists between supply and demand, resulting in escalating housing prices. This imbalance is worsened by a number of other contributing factors, including: • strong demand for second homes which reduces the supply of housing for permanent residents; • conversion of permanent housing for transient use as vacation rentals which reduces the housing supply and increases affordable housing demand; • high construction costs due to transportation costs of goods, limited labor market, and caprock conditions; • higher costs due to regulations and insurance (building standards are among the most rigorous in the State); • limited permit allocations due to hurricane evacuation standards, habitat protection and water quality objectives; and • limited non -profit and private sector capacity for funding assistance and housing production. The need to protect and preserve an adequate inventory of affordable /workforce accessible housing is a continual as well as a growing challenge in the Florida Keys, particularly after the impacts of Hurricane Irma. Community Characteristics: 2016 estimated population: 76,047 (BEBR 4/1/16 estimate) 2016 estimated households: 33,991 with an average household size of 2.18 (BEBR 4/1/16 estimate — (Between 2000 and 2010, only Monroe County in Florida had a net loss of households) 2015 estimated population: 75,901 (ACS 2015 5 -year estimates) Under 5 years to 24 years: 16,861 25 years to 64 years: 44,164 65 year and over: 14,876 2015 estimated housing units: 52,913 (ACS 2015 5 -year estimates) 2015 estimated vacant housing units: 24,003 (ACS 2015 5 -year estimates) 2015 estimated occupied housing units: 28,910 (ACS 2015 5 -year estimates) Estimate of owner occupied housing units: 17,675 Owner occupied housing units with value less than $149,999:2,109 Owner occupied housing units with value between $299,999- $150,000: 3,913 Owner occupied housing units with value greater than $300,000: 11,653 Estimate of renter occupied housing units: 11,235 Gross rent as a percentage of household income: (ACS 2015 5 -year estimates) Less than 15.0 percent: 746 15.0 to 19.9 percent: 940 20.0 to 24.9 percent: 1,128 25.0 to 29.9 percent: 1,212 30.0 to 34.9 percent: 1,120 35.0 percent or more: 5,364 Housing unit built between 1990- present: 13,239 (ACS 2015 5 -year estimates) Housing unit built between 1970 -1989: 24,086 (ACS 2015 5 -year estimates) Housing unit built between 1930 or earlier — 1969: 15,588 (ACS 2015 5 -year estimates) Irma Recovery - Page 3 of 5 2010 estimated population: 73,090 (Census 4/1/10 estimate) 2010 estimated households: 32,629 with an average household size of 2.18 (Census 4/1/10 estimate) BEBR = Bureau of Economic and Business Research ACS = American Community Survey (Census) Preliminary data depicting the magnitude of effects from Hurricane Irma: ** *Damage Assessment not complete and substantial damage estimate not included in data below: PRELIMINARY • • 1 KEY LARGO 2581 3992 326 I VILLAGE OF ISLAMORADA 0 468 427 47 FIESTA KEY 0 0 0 257 CRAIG KEY 0 1 0 0 0 CTIY OF LAYTON 4 0 160 LS 0 LONG KEY 304 86 14 0 1 CONCH KEY 0 78 13 4 10 DUCK KEY 292 361 83 7 206 0 CITY OF KEY COLONY BEACH 0 462 888 1 OW OF MARATHON O 4018 829 1402 394 OHIO KEY 0 0 0 397 0 BAHIA HONDA KEY 6 9 6 0 0 BIG PINE KEY 264 1538 663 299 473 LITTLE TORCH KEY 389 300 80 25 37 0 MIDDLE TORCH KEY 3 0 12 0 1 BIG TORCH KEY 11 4 37 0 RAMROD KEY 31 20 493 12 19 SUMMERLAND KEY 1 706 20 10 1 CUDJOE KEY 134 914 624 52 81 SUGARLOAF KEY 125 995 207 103 19 UPPER SUGARLOAF KEY 175 0 0 0 0 LOWER SUGARLOAF KEY 6 161 110 0 0 SADDLESUNCH KEYS 82 0 0 0 0 SHARK KEY 0 39 0 0 0 BIG COPPITT KEY 122 538 63 4 6 GEIGER KEY 41 252 0 _ 7 12 ROCKLAND KEY 1 60 31 0 5 KEY HAVEN 0 457 1 0 1 0 STOCK ISLAND 895 565 22 15 17 CM OF KEY WEST 0 11625 282 39 1 23 Irma Recovery - Page 4 of 5 TH I=LOTRlD.4 k ErS - 12 1S 1Nq AP;0VF RECCVFR r GOAL: Rebuilding a stronger Florida Keys ✓ promote public health, safety and general welfare; ✓ advance adaptation to coastal flooding, storm surge and other hazards; ✓ protect property, residences and businesses, from storm impacts and minimize damages; ✓ minimize public and private losses due to storms; ✓ preserve of economy during and after disaster, including business viability and workforce housing; ✓ preserve and protect the environment, including natural and historic resources; and ✓ enhance resiliency. STRATEGY: To address the unique challenges and diverse needs in our long term housing recovery DEVELOP PROGRAMS TO: o Wind - retrofitting of Residential Structures - provide funding options to harden existing housing units ■ Installing hurricane shutters or impact- windows; Metal roofs; Reinforced trusses and Reinforced garage doors • Provide funding to elevate existing private residences above BFE (Elevation of Residential Structures) • Provide funding to demo and replace private residences to meet or exceed Building Code and Floodplain requirements (Demolish and Rebuild of Mitigated Building Envelope) • Develop and increase the supply of workforce housing & choice of rental housing opportunities - identify areas damaged properties or areas of less damaged properties to more easily and more quickly rebuild safe, energy — efficient and cost effective housing units (Community Workforce Housing Programs) ■ Purchase scattered sites for single family homes; purchase parks and redevelop multifamily housing, purchase less vulnerable sites for workforce housing • Provide funding to rebuild and repair resilient existing housing units as safe, energy —efficient and cost effective housing units (New Construction or Rehabilitating Residences damaged by the storm) • Identify areas to purchase and not rebuild in that area (provide financial incentives to purchase areas in dangerous or high -risk zones) ■ Provide funding to purchase developed properties in V zone with existing residences to create additional open space and natural buffers and rebuild housing outside of the V zone • Relocate and rebuild in another less vulnerable location - safe, durable, physically accessible, energy —efficient and cost effective housing units (Purchase & Rehab assistance) • Provide funding to purchase abandon damaged structures and demo unsafe structures • Provide funding to improve infrastructure for drainage at housing units — lessen flooding vulnerability • Develop infrastructure for improved mass transit — improve mobility & access to services /jobs • Provide funding to repair and flood proof commercial structures and add housing units over the commercial structure to improve local economic conditions, particularly the continued availability of workforce housing & jobs (Flood - proofing of Non - Residential Structures) • Identify /explore cost effectiveness of different types of factory -built housing to replace manufactured housing units Irma Recovery - Page 5 of 5