Item Y1
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 15. 2003
Division:
Growth Management
Bulk Item: Yes
Nol
Department: Planning
AGENDA ITEM WORDING:
A public hearing to adopt an ordinance amending the Monroe County Land Development Regulations
by revising Section 9.5-4(A-5) defInition of affordable housing, (M-6.2) maximum sales price, owner
occupied housing and (M-10) median annual household income, Section 9.5-122 (c) residential ROGO
allocations and Section 9.5-266 affordable housing sections (a) through (h). (One public hearing
required)
ITEM BACKGROUND:
The Board of County Commissioners requested that the Planning Department make amendments to the
current affordable housing ordinance (003-2002) in order to address the imbalance between affordable
housing and moderate housing. This imbalance decreases the availability of housing to a large
proportion of people employed at moderate incomes. The proposed changes are designed to alleviate
the imbalance of housing options for moderate-income families. The initial proposed ordinance was
drafted by Don Craig. The Development Review Committee recommended approval of the amendment
on May 1, 2003, and it was approved by the Planning Commission on June 25, 2003, with minor
revisions.
PREVIOUS REVELANT BOCC ACTION:
This item was first introduced at the October 16, 2002, Board of County Commissioner's meeting. The
Board directed Staff to review and forward the proposed ordinance through the text amendment
process for the BOCC's eventual consideration and adoption.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST:
N/A
BUDGETED: Yes
No
COST TO COUNTY:
N/A
SOURCE OF FUNDS:
N/A
REVENUE PRODUCING: Yes
No X AMOUNT PER MONTH
Year
DIVISION DIRECTOR APPROVAL:
/ Risk Management N/ A
APPROVED BY: County Atty-X....
DOCUMENTATION:
Included L To Follow
Not Required_
AGENDA ITEM#~
DISPOSITION:
Revised 1/03
LAND DEVELOPMENT REGULATIONS
TEXT AMENDMENT
AFFORDABLE HOUSING
BOARD OF COUNTY COMMISSIONERS
HARVEY GOVERNMENT CENTER
JULY 15, 2003
PROPOSED TEXT AMENDMENT
AMEND THE MONROE COUNTY LAND DEVELOPMENT REGULATIONS
REVISING SECI10N 9.5-4 (A-5) DEFINITION OF AFFORDABLE HOUSING, 9.5-4 (M-
6.2) MAXIMUM SALES PRICE, OWNER OCCUPIED HOUSING AND 9.5-4 (M-I0)
MEDIAN ANNUAL HOUSEHOLD INCOME, SECTION 9.5-122 (c) RESIDENTIAL
ROGO ALLOCATIONS AND SECTION 9.5-266 AFFORDABLE HOUSING SECTIONS
(a) THROUGH (h).
RECOMMENDATIONS
Staff:
Approval
April 29, 2003
Staff Report
DRC:
Approval
May 1, 2003
Resolution #D17-03
pc:
Approval
June 25, 2003
Resolution #P39-03
DRAFT BOCC ORDINANCE
ORDINANCE NO.
-2003
AN ORDINANCE AMENDING SECTION 9.5-4(A-5), (M-6.2) AND (M-I0), Section
9.5-122 (c) AND SECTION 9.5-266 (a), (b), (c), (d), (e), (I), (g), (h), (i), (j) and (k)
MONROE COUNTY CODE; PROVIDING FOR A REVISED DEFINITION OF
AFFORDABLE HOUSING; PROVIDING FOR AN ADJUSTABLE MAXIMUM
SALES PRICE FOR AFFORDABLE HOUSING; TO AMEND APPLICANT
EUGmILITY REQUIREMENTS; PROVIDING FOR LINKAGE OF
AFFORDABLE HOUSING PROJECTS; PROVIDING FOR AN AFFORDABLE
HOUSING TRUST FUND; PROVIDING FOR COMMUNITY HOUSING
DEVELOPMENT ORGANIZATIONS; PROVIDING FOR INTERLOCAL
AFFORDABLE HOUSING RATE OF GROWTH ALLOCATION AGREEMENTS;
PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF
INCONSISTENT PROVISIONS; PROVIDING FOR INCORPORATION INTO
THE MONROE COUNTY CODE OF ORDINANCES WHEN EFFECTIVE; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Monroe County Board of County Commissioners finds that the need for
affordable and employee housing has become persistent and affects a large proportion of employees in
Monroe County, and
WHEREAS, the Monroe County Board of County Commissioners wish to create opportunities
for families to obtain affordable, clean and safe housing; and
WHEREAS, the Monroe County Board of County Commissioners finds that there are appropriate
areas within Monroe County to locate affordable housing, which shall be addressed through the Livable
CommuniKeys Planning process; and
WHEREAS, the Monroe County Board of County Commissioners finds that adjustments are
needed to distinguish income requirements among very low income, low income, median income, and
moderate income employee housing; and
WHEREAS, the Monroe County Board of County Commissioners finds that a revision of the
County's affordable housing regulations is necessary to address an imbalance in provisions for low
income affordable housing versus moderate income housing; and
WHEREAS, the Monroe County Board of County Commissioners finds that a revision of the
County's affordable housing regulations would promote the health, safety and welfare of the citizens of
Monroe County; now, therefore
BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA, that:
Section 1. Section 9.5-4 (A-5) of Monroe County Code is amended to read as follows:
(A-5) Affordable housing refers to residential dwelling units that meet the following
requirements:
Meet all applicable requirements of the United States Department of Housing and Urban
Development minimum property standards as to room sizes, fixtures, landscaping and building
materials, when not in conflict with applicable laws of Monroe County; and
a) Generally. affordable housing for a rental dwelling unit shall mean a dwelling unit whose
monthly rent. not including utilities. does not exceed 30 percent of that amount which
represents either 50 (very low income) or 80 (low income) or 100 (median income) or 120
(moderate income) percent of the monthly median adjusted household income for Monroe
County.
b) Affordable rental housing. very low income shall be a rental dwelling unit whose monthly
rent. not including utilities. does not exceed 30 percent of the amount which represents 50
percent of the monthly median adjusted household income for Monroe County.
c) Affordable rental housing. low income shall mean a dwelling unit whose monthly rent. not
including utilities. does not exceed 30 percent of the amount which represents 80 percent
of the monthly median adjusted household income for Monroe County.
d) Affordable rental housing. median income shall mean a dwelling unit whose monthly rent.
not including utilities. does not exceed 30 percent of the amount which represents 100
percent of the monthly adjusted median household income for Monroe County.
e) Affordable rental housing. moderate income shall mean a dwelling unit whose monthly
rent. not including utilities. does not exceed 30 percent of the amount which represents 120
percent of the monthly median adjusted household income for Monroe County.
t) Affordable housing owner occupied very low income shall mean a dwelling unit occupied
only by a household whose total household income does not exceed 50 percent of the
median monthly household income for Monroe County.
g) Affordable housing owner occupied low income shall mean a dwelling unit occupied only
by a household whose total household income does not exceed 80 percent of the median
monthly household income for Monroe County.
h) Affordable housing owner occuoied median income shall mean a dwelling unit occupied
only by a household whose total household income does not exceed 100 percent of the
median monthly household income for Monroe County.
i) Affordable housing owner occupied moderate income shall mean a dwelling unit occupied
only by a household whose total household income does not exceed 120 percent of the
median monthly household income for Monroe County.
j) Affordable housing trust fund shall mean a trust fund established and maintained by the
county for revenues from fees in lieu of constructing affordable housing. and revenues
from other sources earmarked for the trust fund by state statute. land development
regulation. ordinance or donation. Funds collected for and deposited in the trust fund shall
be used exclusively for the acquisition of land for affordable housing projects. the
construction of affordable housing and for -loans for down payment assistance for the
purchase of affordable housing.
k) Monthlv Median household income shall mean the median annual household income for
Monroe County divided by 12.
2
I) Median income. rental rates and qualifying incomes table shall mean eligibility
requirements compiled each year by the Planning Department based upon the median
annual household income published for Monroe County on an annual basis by the U.S.
Department of Housing and Urban Development and similar information for median and
moderate income levels from the Florida Housing Finance COIporation. Affordable
housing eligibility requirements for each household will be based upon median annual
household income adjusted by family size. as set forth by the U.S. Department of Housing
and Urban Development and the Florida Housing Finance COIporation. The County shall
rely upon this information to determine maximum rental rates and maximum household
incomes eligible for affordable housing rental or purchase.
Section 2. Section 9.5-4 Monroe County Code, is amended by adding a new Section 9.5-4(M-
6.2) as follows:
(M-6.2) Maximum sales price. owner occupied affordable housing unit shall
mean a price not exceeding four and one-quarter (4.25) times the annual median
household income for Monroe County.
Section 3.
Section 9.5-4 (M-10) Monroe County Code, is amended to read as follows:
(M-10)Median annual household income means the median of annual household income (per
household size) is aetermiaea frem time to time tEl be meaiaB by the U.S. CeRsas Elr the Flerida
Statistical ~J\.bstract. as published for Monroe County on an annual basis by the U.S. Department
of Housing and Urban Development.
Section 4.
as follows:
Section 9.5-122(c) Monroe County Code, is amended by adding subparagraph (4)
(4) In any allocation period. as defined. the available affordable housing allocation awards shall
be granted in the following proportions:
very low and low income. as defined herein. 25%.
median income. as defined here. 50%.
moderate income. as defined herein. 25%.
The Planning Commission may amend these proportions during any ROGO quarter.
Section 5. Section. 9.5-266(a) (6) Monroe County Code, is amended to add the following:
g. At the time of sale of an owner-occupied affordable unit. the total income of households
eligible to purchase shall not exceed 120 percent of the median household income for the
county. However. a unit within a class of affordable housing eligibility may only be sold to a
household within that same class. i.e.. a median income household which purchased a home
within this category must sell the home to a qualifying household within the median income
category
h. During occupancy of any affordable housing rental unit. not otherwise limited by state or
federal statute or rule concerning household income. a household's annual income may
increase to an amount not to exceed 140 percent of the median household income for the
county. If the income of the lessee exceeds this amount. the tenant's occuDancy shall terminate
at the end of the existing lease term. The maximum lease for any term shall be 3 years or 36
months.
3
i. Affordable housing projects shall be no greater than twenty (20) units unless approved by
resolution of the Monroe County Planning Commission. The Planning Commission's decision
may be appealed to the Board of County Commissioners utilizing the procedures described in
Section 9.5-521. with the Board of County Commissioners serving as the appellate body for
the purpose of this section only.
J. Family size.When establishing a rental and sales amount. the County shall assume family size
as indicated in the table below. This section shall not be used to establish the maximum
number of individuals who actually live in the unit. This table shall be used in conjunction
with the eligibility requirements created by Section 9.5 (A-5).
Size of Unit Assumed F amilv Size Minimum Occupancy
Efficiency (no separate 1 1
bedroom)
One bedroom 2 1
Two bedroom 3 2
Three bedroom 4 3
Four or more bedrooms 5 1 per bedroom
k. The income of eligible households shall be determined by counting only the first and highest
paid 40 hours of employment per week of each unrelated adult. For a household containing
adults related by marriage or a domestic partnership registered with the county. only the
highest 60 hours of the combined employment hours shall be counted. which shall be
considered to be 75% of the adjusted gross income. The income of dependents regardless of
age shall not be counted in calculatinl! a household's income.
Section 6. Section 9.5-266 Monroe County Code, is amended by renumbering Section 9.5-266(b)
to Section 9.5-266 (f) and by the addition of new Sections 9.5-266(b), (c), (d), and (e) as follows:
Section 9.5-266(b) Affordable housin~ requirement for residential projects of three (3) or more
units and in-lieu fees. New residential projects of three (3) or more units containing market rate
units or projects containing both market rate residential units and commercial floor area shall be
required to develop at least 30 percent (30%) of the residential units beyond the first two (2) units
as affordable. Each of the affordable units shall be at least 400 square feet in floor area. The
developer of the project may contribute a fee in-lieu for all or some percentage of the required
affordable units. which if approved by the Monroe County Board of County Commissioners. will
be deposited in the affordable housing trust fund. The in-lieu fee shall not be less than $50.000
per unit. representing construction cost. less land cost of the minimum size 400 square foot
affordable unit. The Planning Commission shall by resolution annually adjust the in-lieu fee
during the first quarter of each calendar year based upon the cost of construction of residential
units as contained in standard published construction cost indicators. adjusted for Monroe County.
This section does not apply to the redevelopment of existing units. This subsection does not apply
to employee housing which may be established by Section 9.5-266. Monroe County Code.
Section 9.5-266(c) Linkage of projects. Two or more development projects which are required to
provide affordable housing may be linked to allow the affordable housing requirement of one
development project to be built at the site of another project. as long as the affordable housing
requirement of the latter development is fulfilled as well. The project containing the affordable
units must be built either before or simultaneously with the project without. or with fewer than. the
required affordable units. Sequencing of construction of the affordable component of linked
4
projects may be the subject of the Planning Department or the Planning Commission's approval of
a project. In addition. if a developer builds more than the required number of affordable units at a
development site. this development project may be linked with a subsequent development project
to allow compliance with the subsequent development's affordable unit requirement. The linkage
must be supplied by the developer to the Planning Commission at the time of the subsequent
development's conditional use approval. Finally. all linkages under this subsection may occur
between sites within the county and in the cities of Key West. Marathon and Islamorada. subject
to an interlocal agreement. where appropriate: however. linkage must occur within the same
geographic planning area. i.e. lower. middle and upper keys. All linkages must be approved via a
covenant running in favor of Monroe County. and if the linkage project lies within a city. also in
favor of that city. Said covenants shall be placed upon two or more projects linked. stating how the
requirements for affordable housing are met for each project. The covenant shall be approved by
the Monroe County Board of County Commissioners and. if applicable. the participating
municipality.
Section 9.5-266(d) Affordable housing trust fund. The affordable housing trust fund (referred to
as the "trust fund") is established. The trust fund shall be maintained with funds earmarked for the
purpose of promoting affordable housing in municipalities and unincOlporated areas of Monroe
County. Monies received by the trust fund shall not be commingled with general operating funds
of the county. The trust fund shall be used for the following::
a) Financial aid to developers as project grants for affordable housing construction:
b) Financial aid to homebuyers as mortgage assistance. inclusive of loans for down payment
assistance:
c) Financial incentive for the conversion of transient units to affordable residential units:
d) Direct investment in or leverage to housing affordability through site acquisition. housing
development and housing conservation: or
e) Other affordable housing purposes may be established by resolution of the Board of County
Commissioners. which shall act as trustees for the fund. The Board of County
Commissioners may enter into agreements with the Monroe County Housing Authority. a
qualified community housing development organization created by the Board of County
Commissioners. or a municipality within Monroe County.
Section 9.5-266(e) Community housing development organization. The Board of County
Commissioners may establish a nonprofit community housing development organization (CHDO).
pursuant to federal regulations governing such organizations. to serve as developer of affordable
housing units on county-owned property. including or located in the municipalities of the county.
upon interlocal agreement. In such event. the county may delegate to the community housing
development organization all or partial administration of the affordable housing trust fund.
Section 7. Sec. 9.5-266(b) (1) Monroe County Code, as above renumbered to 9.5-266(t) (1) is
amended to read as follows:
(t) Administration and Compliance:
(1) Before any certificate of oceepaBey building permit may be issued for any structure, portion
or phase of a project to this section, restrictive covenants(s) shall be filed in the Official
Records of Monroe County to ensure compliance with the provisions of this section running
5
in favor of Monroe County and enforceable by the County and, if applicable, a participating
municipality. The covenants for any affordable housing units partly or wholly financed by a
public entity shall be effective for a period of at least fifty (50) years. The covenants for any
affordable housing units relying wholly upon private non-public financing shall be effective
for at least thirty (30) years. The covenants shall not commence running until a certificate of
occupancy has been issued by the building official for the dwelling unit or dwelling units to
which the covenant or covenants apply.
Section 8. Section 9.5-266 Monroe County Code, is amended by adding a new Section 9.5-266(h)
as follows:
Section 9.5-266(h) Interloeal affordable rate of frowth allocation afreements. The Monroe
County Board of County Commissioners may authorize interlocal agreements between the County
and the cities of Marathon. and Key West. and Islamorada. Village of Islands for the purpose of
sharin~ residential rate of growth affordable housing allocations. The interlocal agreements may
be based upon a specific project proposal within one or more jurisdictions or may be for a specific
allocation of units on an annual basis. from the County to a municipality or from a municipality to
the County. All allocations made available to a jurisdiction must meet the applicable affordable
housing requirements of the receiving iurisdiction's land development regulations and affordable
housing ordinances.
Section 9. If any section, subsection, sentence, clause, item, change, or provision of this ordinance
is held invalid, the remainder of this ordinance shall not be affected by such validity.
Section 10. All ordinances or parts of ordinances in conflict with this ordinance are hereby
repealed to the extent of said conflict.
Section 11. This ordinance shall be filed in the Office of the Secretary of State of Florida, but
shall not become effective until a notice is issued by the Department of Community Affairs or
Administrative Commission approving the ordinance.
Section 12. This ordinance shall be transmitted by the Planning Department to the Department
of Community Affairs to determine the consistency of this ordinance with the Florida Statutes.
Section 13. The Director of Growth Management is hereby directed to forward a copy of this
ordinance to the Municipal Code Corporation for incorporation in the Monroe County Code of
Ordinances once this ordinance is in effect.
( This is left intentionally blank )
6
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PASSED AND ADOPTED by the Board of County Comnussioners of Monroe County, Florida. at a
regular meeting of said Board held on the day of _ ' 2003.
Mayor Dixie Spehar
Mayor Pro T em Murray Nelson
Commissioner George Neugent
Commissioner David Rice
Commissioner Charles "Sonny" McCoy
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
Mayor Dixie Spehar
(SEAL)
Attest: D^"~ L. KOLHAGE, Clerk
7
BOCC STAFF REPORT
Memorandum
10:
FROM:
DATE:
RE:
Board of County Commissioners
Timothy J. McGarry, AICP, Director of Growth Manage#/?
June 30, 2003
Momoe County Land Development Regulations Text Amendment
STAFF REPORT
Mr. Donald Craig, AICP with Staff have prepared the proposed amendments to the affordable
housing text as directed by the Board of County Commissioners.
Overview
This text amendment is in response to the imbalance between affordable and moderate housing,
which decreases the availability of housing options for people employed at moderate incomes.
The Board of County Commissioners has directed the Planning Department to make
amendments to the current Affordable Housing Ordinance (003-2002) to provide families who
have moderate income more options for purchasing a home as well as providing incentives to
make affordable housing developments more appealing to developers.
Sllmmaryof~orEremen~
The proposed text amendment provides policy direction in the following areas:
. 120% Median Income - adds new eligibility class
. 75% of adjusted gross income counted for affordable housing eligibility- allows greater
flexibility for the purchasers of housing in the moderate income range
. Thirty (30) Percent Requirement for Market Rate Housinglln lieu Fee - requires 30% of all
new housing developments of three (3) or more units provide affordable units within the
development or pay in lieu of fees ($50,OOO/unit)
. linkage of Projects - allows projects to be linked in their affordable housing requirements
off -site
. Community Housing Development Organization (CHOO) - creates authority for an
organization to implement affordable housing
. Trust Fund - provides monetary support for the CHDO through contributions from the in
lieu fees
. Variable Term Affordable Housing Covenant - provides variable term restrictions on
housing depending on the type of funding available for the project.
Page 10f6
06/30103
. Affordable Housing ROGO Allocations/ Interlocal Agreements - codifies Comprehensive
Plan Policy 101.2.14 - Momoe County and incorporated municipalities to share affordable
ROGO allocations
Details and Analysis of Changes
The proposed changes outlined above will change the current affordable housing eligibility and
structure of the affordable housing system. The following paragraphs describe the proposed
changes and where appropriate provide examples of the policy change. Staff comments and
recommendations are provided at the conclusion of each section. Each Section of the report is
numbered as it is in the adopting ordinance as well as by Momoe County Code Section.
Section 1.
. Section 9.5-4 (A-5) (a) through (1) - Amends the definition of Affordable Housing and
income requirements. The new income requirements describe the eligibility requirements
for each affordable income level (very low, low, median and moderate) including rental and
ownership requirements as defined by the U.S. Department of Housing and Urban
Development (HUD) and the definition introduces an affordable housing trust fund to be
established and maintained by the County.
. Section 9.5-4 (A-5) (d) - Sets the threshold for median income monthly rent adjusted by
family size.
. Section 9.5-4 (A-5) (f) - Moderate-income level is defined as 120% of the monthly median
income for Momoe County by the State of Florida.
. Section 9.5-4 (A-5) (g) - Affordable housing trust fund is a trust fund established and
maintained by the County from fees collected in lieu of constructing affordable housing
(9.5-266 (b)) and revenues from another source earmarked for the trust fund by state statute,
land development regulations, ordinance or donation. Funds collected for and deposited in
the trust fund are to be used exclusively for the acquisition of land for affordable housing
projects, the construction of affordable housing projects and for down payment assistance
loans for the purchase of affordable housing.
. Section 9.5-4 (A-5) (i) - Establishes the median income, eligibility, rental rates and
qualifying incomes.
Staff Comments and Analysis
. The 2003 income for moderate-income households is $67,800.(without considering
adjusted family income)
. Bases rent on assumed family size, currently, no size adjustments are considered.
Section 2.
. Section 9.5-4 (M-6.2) - Adds a new section to address the maximum sale price of owner
occupied affordable housing.
Page 2of6
07/01/03
. The sale price may not exceed four and one-quarter (4.25) times the annual median
household income.
Staff Comments and Analysis
. The 2003 median income is $56,500; therefore, the maximum sale price of an owner
occupied house under these new regulations is $240,125.
. While limiting the sales price of affordable housing is an admiral goal, Staff has
concerns with limiting the sales price for housing and believes that potential home-
owners meeting moderate income affordable housing requirements will not want to
enter into deed restrictions in such a lucrative housing market.
Section 3.
. Section 9.5-4 (M -10) - Amends the definition of Median household income to be the
annual household income as published by the U.S. Department of Housing and Urban
Development.
Staff Comments and Analysis
. This definition is more consistent with the other state and federal affordable housing
standards.
Section 4.
. Section 9 .5-122 (c) - Amends affordable housing allocation and awards by adding
subsection (4), which introduces a proportional allocation for each level of affordable
housing.
. Very low and low income - 25 % of the available allocations
. Median income - 50 % of the available allocations
. Moderate income - 25 % of the available allocations
Staff Comments and Analysis
. The Planning Commission has the ability to amend the proportions as necessary on an
annual basis. It should be noted that annual affordable housing allocations are all front-
loaded to the 151 quarter unlike market rate allocations.
. The three separate allocations will increase staff administrative time and complicate
restrictive covenants.
Section 5.
. Section 9.5-266 (a) (6) - Amends Affordable Employee Housing to include subsections (g),
(h), (i), (j), and (k).
. 9.5-266 (g) states that at the time of sale of an owner occupied unit, the total household
income must not exceed 120% of the median household income.
. 9.5-266 (h) states that during occupancy of affordable housing rental units, a
household's annual income may increase to an amount not to exceed 140% of the
median income and the maximum lease shall be no longer than 3 years or 36 months.
Page 3 of6
06130103
. 95-266 (i) states that housing projects greater than twenty (20) units shall be approved
only by resolution of the Planning Commission and may be appealed to the Board of
County Commissioners.
. Section 9.5-266 G) establishes rental amounts by family size and offers a chart to
determine the assumed family size.
. Section 9.5-266 (k) allows the first and highest paid forty (40) hours to be considered
the income of eligible households. Married couples or domestic partners may consider
75% of the adjusted gross income to be the eligible income for affordable housing.
Staff Comments and Analysis
. This appears to provide flexibility to allow more people to be come eligible for
affordable housing.
Section 6.
. Section 9.5 -266 is amended by renumbering Section 9.5-266 (b) to Section 9.5 - 266 (f)
and by adding Sections 9.5 - 266 (b), (c), (d) and (e).
. 9.5-266 (b) introduces the affordable housing requirements of residential projects of three
(3) or more units and in lieu fees. This section requires developers to build 30% of the new
development as affordable housing. Each unit must be at least 400 Sf. The in lieu fee is a
sum that a developer may contribute for all or some of the required units. The money,
which may not be less than $50, 000 per unit, will be deposited into the affordable housing
trust.
. 9.5-266 ( c) introduces linkage of projects. This allows two development projects to provide
one development of affordable housing at another site. This section will also allow a
developer to develop more affordable housing than necessary to fulfill a future
development, with the Planning Department's or Planning Commission's approval.
Projects, which incorporate linkages, may provide the housing including municipalities
within the same planning area as the initial housing project.
. 9.5-266 (d) creates the affordable housing trust fund. This fund will be maintained by funds
specifically allotted for affordable housing projects. The following are permitted uses for the
fund:
. Financial aid to developers for construction
. Financial aid to homebuyers as mortgage assistance specifically loans for down
payment
. financial incentive for the conversion of transient units to affordable units
. Direct investment through site acquisition, housing development and housing
conservation
. Other uses as seen necessary by the Board of County Commissioners established by
resolution
Page4of6
07/01/03
. 9.5-266 (e) establishes authority for a community housing development organization
(CHDO), which is a non-profit organization designated to govern organizations serving as
developer of affordable housing units in Momoe County.
StatT Comments and Analysis
. For example, if a developer is proposing a development of thirty (30) units, nine (9) of
these must be built as affordable housing. The developer has the option within this new
section to not build the 9 units and pay a sum of $450,000. This sum is calculated by
multiplying $50,OOO(the minimum price that must be paid in lieu of building the
required units) by 9 (the number of units required).
. This amendment allows a developer to build one large affordable housing development
and use those units as a bank for future market rate housing developments.
. Many communities have developed CHDOs, which develop housing as well as secure
funding from outside sources. However, further amendments are probable required to
County Code to implement this organization.
Section 7.
. Section 9.5 - 266 (b) (1) renumbered to 9.5 - 266 (t)(I) and is amended to include
. Restrictive covenants must be filed prior to the issuance of a building permit.
. The restrictive covenant is to be effective for 50 years for projects funded by a public
entity and for 30 years for private non-public funding.
Staff Comments and Analysis
. A home built in 2004 by a private developer with no public assistance will be able to
turn the house over in 2034 to any willing buyer, while a developer who builds housing
with public assistance will only be able to sell to affordable housing income eligible
buyers in 2034 and to any willing buyer in 2054.
Section 8.
. Section 9.5 - 266 (h) establishes interlocal agreements for affordable housing
allocations. This section codifies interlocal agreements between Momoe County and
municipalities within Momoe County for the use of rate of growth (ROGO) affordable
housing allocations within one jurisdiction or more given that the development meets all
of the development regulations of the receiving site jurisdiction, which are recognized
by the Momoe County Comprehensive Plan Policy 101. 2.14.
Staff Comments and Analysis
. The County currently has interlocal agreements with municipalities for the exchange of
ROGO allocations.
Other Comments
The following comments were provided by Innovative Housing Institute on the proposed
ordinance:
"On Section 9.5-266 (a) (6) (i) - first 60 hours of income counted for affordable eligibility
Page 50f6
06130103
This proposal had the effect of making families who can clearly afford to purchase a modest
market rate home in the Keys, eligible for the scarce resource of "Affordable Housing". And, it
will likely have the effect of raising the overall sales prices of homes produces under the
"Affordable" rubric".
Overall Comments and Recommendation
"While raising the effective income limits for the affordable housing program increase the
number of potential buyers, many of these higher income buyers already have other
opportunities in the normal market -place.
Given the scarcity of ROGO allocations and the difficulty that goes along with producing
workforce housing, we are dealing with a severely restricted product. Instead of competing in
the marketplace for buyers with options, it would be our suggestion that the maximum income
limits remain the same and that in order to reach a broader range of buyers, that outside
subsidy, such as donated land, HOME and SHIP funds, and other down payment assistance be
provided such that those with incomes below $50, 000 can afford to live and work in the
Keys".
Findings
1. Based on the Monroe County Code, staff finds that the proposed amendment is consistent
with Section 95-511 of the Monroe County Code.
2. Based on the Monroe County Year 2010 Comprehensive Plan, staff finds that the proposed
amendment is consistent with and furthers the goals and objectives of the plan.
3. Based on the Principles for Guiding Development, staff finds that the proposed amendment
is consistent with Chapter 380 Horida Statutes.
Recommendation
The Planning staff recommends approval of the proposed text amendment of the Monroe
County Land Development Regulations.
Page 60f6
06130/03
PLANNING COMMISSION RESOLUTION #P39-03
PLANNING COMMISSION RESOLUTION #P39-03
A RESOLUTION BY THE MONROE COUNTY PLANNIG COMMISSION
RECOMMENDING APPROVING THE REQUEST FILED BY THE MONROE
COUNTY PLANNING DEPARTMENT TO AMEND THE MONROE COUNTY
LAND DEVELOPMENT REGUIATIONS REVISING SECTION 9.5-4(A-5)
DEFINmON OF AFFORDABLE HOUSING, (M-6.2) MAXIMUM SALES
PRICE, OWNER OCCUPIED HOUSING AND (M-lO) MEDIAN ANNUAL
HOUSEHOLD INCOME, SECTION 9.5-122 (c) RESIDENTIAL ROGO
ALLOCATIONS AND SECTION 9.5-266 AFFORDABLE HOUSING
SECTIONS (a) THROUGH (k).
WHEREAS, The Monroe County Land Development Regulations, Volume III of
the comprehensive plan, were adopted February 28, 1986 and became effective
September 15, 1986; and
WHEREAS, The Monroe County Board of County Commissioners finds that the
need for affordable and employee housing has become persistent and affects a large
proportion of employees in Monroe County; and
WHEREAS, The Monroe County Board of County Commissioners finds that
adjustments are needed to distinguish income requirements among very low income, low
income, median income, and moderate income employee housing; and
WHEREAS, The Monroe County Board of County Commissioners finds that a
revision of the County's affordable housing regulations would promote the health, safety,
and welfare of the citizens of Monroe County; and
WHEREAS, The Monroe County Board of County Commissioners has directed
the Planning Department to make amendments to the current affordable housing
ordinance (003-2002) as prepared by Mr. Donald Craig and Staff; and
WHEREAS, the Development Review Committee met on May 1, 2003 and
recommended approval of the proposed text; and
WHEREAS, during regular meetings held on May 7, 2003, May 28, 2003, June
11, 2003 and June 25, 2003 the Monroe County Planning Commission conducted public
hearings on the proposed text; and
WHEREAS, the Planning Commission was presented with the following
information, which by reference is hereby incorporated as part of the record of said
hearing:
1. Staff report prepared by Maureen Meehan, Planner, dated April 29, 2003; and the
proposed changes to the Land Development Regulations (Exhibit 1); and
Page 10f2
06/30/03
Initial
2. Memos prepared by Maureen Meehan, Planner, dated June 4,2003 and June 23,
2003; and
3. Report by Thomas Doerr of the Innovative Housing Institute, dated June 23, 2003;
and
4. Discussion of Growth Management Staff; and
5. Comments by the public; and
WHEREAS, the Planning Commission has made the following Findings of Fact on
the evidence presented:
1. Based on the Monroe County Code, we find that the proposed amendment is
consistent with Section 9.5-511.
2. Based on the Monroe County Year 2010 Comprehensive Plan, we find that the
proposed amendment is consistent with and furthers its goals and objectives.
NOW THEREFORE, BE IT RESOLVED by the Planning Commission of Monroe
County, Florida, that the preceding fmdings of fact support its decision to recommend
APPROVAL to the Monroe County Board of County Commissioners of the revisions to
the text of the Monroe County Land Development Regulations as requested by the
Monroe County Planning Department (Exhibit 1).
PASSED AND ADOPTED By the Planning Commission of Monroe County, Florida at
a regular meeting held on the 25th day of June, 2003.
Chair David C. Ritz
Vice Chair Denise Werling
Commissioner Julio Margalli
Commissioner Jerry Coleman
Commissioner Alicia Putney
YES
YES
YES
YES
YES
PlANNING COMMISSION OF MONROE COUNTY, FLORIDA
By
David C. Ritz, Chair
Signed this _ day of
,2003
Page 20f2
06/30/03
Initial
Exhibit 1
Section 9.5-4 (A-5) of Monroe County Code is amended to read as follows:
(A-5) Affordable housing refers to residential dwelling units that meet the
following requirements:
Meet all applicable requirements of the United States Department of Housing
and Urban Development minimum property standards as to room sizes,
fixtures, landscaping and building materials, when not in conflict with
applicable laws of Monroe County; and
a) Generally. affordable housing for a rental dwelling unit shall mean a
dwelling unit whose monthly rent. not including utilities. does not exceed
30 percent of that amount which represents either 50 (very low income) or
80 (low income) or 100 (median income) or 120 (moderate income)
percent of the monthly median adjusted household income for Monroe
County.
b) Affordable rental housing. very low income shall be a rental dwelling unit
whose monthly rent. not including utilities. does not exceed 30 percent of
the amount which represents 50 percent of the monthly median adjusted
household income for Monroe County.
c) Affordable rental housing. low income shall mean a dwelling unit whose
monthly rent. not including utilities. does not exceed 30 percent of the
amount which represents 80 percent of the monthly median adjusted
household income for Monroe County.
d) Affordable rental housing. median income shall mean a dwelling unit
whose monthly rent. not including utilities. does not exceed 30 percent of
the amount which represents 100 percent of the monthly adjusted median
household income for Monroe County. provided that such units are
located within housing development projects of twenty (20) units or fewer.
e) Affordable rental housing. moderate income shall mean a dwelling unit
whose monthly rent. not including utilities. does not exceed 30 percent of
the amount which represents 120 percent of the monthly median adjusted
household income for Monroe County. provided that such units are
located within housing development projects of twenty (20) units or fewer.
f) Affordable housing owner occupied verv low income shall mean a
dwelling unit occupied only by a household whose total household income
does not exceed 50 percent of the median monthly household income for
Monroe County.
g) Affordable housing owner occupied low income shall mean a dwelling unit
occupied only by a household whose total household income does not
exceed 80 percent of the median monthly household income for Monroe
County.
h) Affordable housing owner occupied median income shall mean a dwelling
unit occupied only by a household whose total household income does not
exceed 100 percent of the median monthly household income for Monroe
County.
i) Affordable housing owner occupied moderate income shall mean a
dwelling unit occupied only by a household whose total household income
does not exceed 120 percent of the median monthly household income for
Monroe County.
j) Affordable housing trust fund shall mean a trust fund established and
maintained by the county for revenues from fees in lieu of constructing
affordable housing. and revenues from other sources earmarked for the
trust fund by state statute. land development regulation. ordinance or
donation. Funds collected for and deposited in the trust fuhd shall be used
exclusively for the acquisition of land for affordable housing projects. the
construction of affordable housing and for loans for down payment
assistance for the purchase of affordable housing.
k) Monthlv Median household income shall mean the median annual
household income for Monroe County divided by 12.
I) Median income. rental rates and qualifying incomes table shall mean
eligibility requirements compiled each year by the Planning Department
based upon the median annual household income published for Monroe
County on an annual basis by the U.S. Department of Housing and Urban
Development and similar information for median and moderate income
levels from the Florida Housing Finance Corporation. Affordable housing
eligibility requirements for each household will be based upon median
annual household income adjusted by family size. as set forth by the U.S.
Department of Housing and Urban Development and the Florida Housing
Finance Corporation. The County shall rely upon this information to
determine maximum rental rates and maximum household incomes
eligible for affordable housing rental or purchase.
Section 9.5-4 Monroe County Code, is amended by adding a new Section 9.5-4(M-
6.2) as follows:
(M-6.2) Maximum sales price. owner occupied affordable housin~ unit shall
mean a price not exceeding four and one-quarter (4.25) times the annual median
household income for Monroe County.
Section 9.5-4 (M-IO) Monroe County Code, is amended to read as follows:
(M-10)Median annual household income means the median of annual household
income (per household size) is determiBes Hem time te time te be mesiaD by the
U.S. CeBStiS er the Flensa Statistical Abstract. as published for Monroe County
on an annual basis by the U.S. Department of Housing and Urban Development.
Section 9.5-122(c) Monroe County Code, is amended by adding subparagraph (4) as
follows:
(4) In any allocation period. as defined. the available affordable housing
allocation awards shall be granted in the following proportions:
very low and low income. as defined herein. 25%.
median income. as defined here. 50%.
moderate income. as defined herein. 25%.
The Planning Commission may amend these proportions during any ROGO
quarter.
Section. 9.5-266(a) (6) Monroe County Code, is amended to add the following:
g. At the time of sale of an owner-occupied affordable unit. the total income of
households eligible to purchase shall not exceed 120 percent of the median
household income for the county. However. a unit within a class of affordable
housing eligibility may only be sold to a household within that same class.
Le.. a median income household which purchased a home within this category
must sell the home to a qualifying: household within the median income
category
h. During: occupancy of any affordable housing rental unit. not otherwise limited
by state or federal statute or rule concerning household income. a household's
annual income may increase to an amount not to exceed 140 percent of the
median household income for the county. If the income of the lessee exceeds
this amount. the tenant's occupancy shall terminate at the end of the existing:
lease term. The maximum lease for any term shall be 3 years or 36 months.
1. Affordable housing projects of greater than twenty (20) units shall be
approved by resolution of the Monroe County Planning Commission. The
Planning Commission's decision may be appealed to the Board of County
Commissioners utilizing the procedures described in Section 9.5-521. with the
Board of County Commissioners serving: as the appellate body for the purpose
of this section only.
J. Family size.When establishing: a rental and sales amount. the County shall
assume family size as indicated in the table below. This section shall not be
used to establish the maximum number of individuals who actually live in the
unit. This table shall be used in conjunction with the eligibility requirements
created by Section 9.5 (A-5)i.
Size of Unit Assumed Family Size Minimum Occupancy
Efficiency (no separate 1 1
bedroom)
One bedroom 2 1
Two bedroom 3 2
Three bedroom 4 3
Four or more bedrooms 5 1 per bedroom
k. The income of eligible households shall be determined by counting only the
first and highest paid 40 hours of employment per week of each unrelated
adult. For a household containing adults related by marriage or a domestic
partnership registered with the county. only the highest 60 hours of the
combined employment hours shall be counted. which shall be considered to be
75% of the adjusted gross income. The income of dependents regardless of
age shall not be counted in calculating a household's income.
Section 9.5-266 Monroe County Code, is amended by renumbering Section 9.5-
266(b) to Section 9.5-266 (I) and by the addition of new Sections 9.5-266(b), (c), (d),
and (e) as follows:
Section 9.5-266(b) Affordable housing requirement for residential proiects of
three (3) or more units and in-lieu fees. New residential projects of three (3) or
more units containing market rate units or projects containing both market rate
residential units and commercial floor area shall be required to develop at least 30
percent (30%) of the residential units beyond the first two (2) units as affordable.
Each of the affordable units shall be at least 400 square feet in floor area. The
developer of the project may contribute a fee in-lieu for all or some percentage of
the required affordable units. which if approved by the Monroe County Board of
County Commissioners. will be deposited in the affordable housing trust fund.
The in-lieu fee shall not be less than $50.000 per unit. representing construction
cost. less land cost of the minimum size 400 square foot affordable unit. The
Planning Commission shall by resolution annually adjust the in-lieu fee during the
first quarter of each calendar year based upon the cost of construction of
residential units as contained in standard published construction cost indicators.
adjusted for Monroe County. This section does not apply to the redevelopment of
existing units. This subsection does not apply to employee housing which may be
established by Section 9.5-266. Monroe County Code.
Section 9.5-266(c) Linkage oforoiects. Two or more development projects which
are required to provide affordable housing may be linked to allow the affordable
housing requirement of one development project to be built at the site of another
project. as long as the affordable housing requirement of the latter development is
fulftlled as well. The project containing the affordable units must be built either
before or simultaneously with the project without. or with fewer than. the required
affordable units. Sequencing of construction of the affordable component of
linked projects may be the subject of the Planning Department or the Planning
Commission's ap9roval of a proiect. In addition. if a developer builds more than
the required number of affordable units at a development site. this development
project may be linked with a subsequent development project to allow compliance
with the subsequent development's affordable unit requirement. The linkage must
be supplied by the developer to the Planning Commission at the time of the
subsequent development's conditional use approval. Finally. all linkages under
this subsection may occur between sites within the county and in the cities of Key
West. Marathon and Islamorada. subject to an interlocal agreement. where
appropriate: however. linkage must occur within the same geographic planning
area. Le. lower. middle and upper keys. All linkages must be approved via a
covenant running in favor of Monroe County. and if the linkage proiect lies within
a city. also in favor of that city. Said covenants shall be placed upon two or more
projects linked. stating how the requirements for affordable housing are met for
each project. The covenant shall be approved by the Monroe County Board of
County Commissioners and. if applicable. the participating municipality.
Section 9.5-266(d) Affordable housing trust fund. The affordable housing trust
fund (referred to as the "trust fund") is established. The trust fund shall be
maintained with funds earmarked for the purpose of promoting: affordable housing
in municipalities and unincorporated areas of Monroe County. Monies received
by the trust fund shall not be commingled with general operating funds of the
county. The trust fund shall be used for the following:
a) Financial aid to developers as proiect grants for affordable housing
construction:
b) Financial aid to homebuyers as mortgage assistance. inclusive of loans for
down payment assistance:
c) Financial incentive for the conversion of transient units to affordable
residential units:
d) Direct investment in or leverag:e to housing afford ability through site
acquisition. housing development and housing: conservation: or
e) Other affordable housing purposes may be established by resolution of the
Board of County Commissioners. which shall act as trustees for the fund.
The Board of County Commissioners may enter into agreements with the
Monroe County Housing: Authority. a qualified community housing
development organization created by the Board of County Commissioners.
or a municipality within Monroe County.
Section 9.5-266(e) Communitv housing development organization. The Board of
County Commissioners may establish a nonprofit community housing
development organization (CHDO). pursuant to federal regulations governing
such organizations. to serve as developer of affordable housing units on county-
owned property. including or located in the municipalities of the county. upon
interlocal agreement. In such event. the county may delegate to the community
housing development organization all or partial administration of the affordable
housing trust fund.
Sec. 9.5-266(b) (1) Monroe County Code, as above renumbered to 9.5-266(1) (1) is
amended to read as follows:
(t) Administration and Compliance:
(1) Before any eertificate ef eeei:tflaDcy building permit may be issued for any
structure, portion or phase of a project to this section, restrictive
covenants(s) shall be ftled in the Official Records of Monroe County to
ensure compliance with the provisions of this section running in favor of
Monroe County and enforceable by the County and, if applicable, a
participating municipality. The covenants for any affordable housing: units
partly or wholly fmanced by a public entity shall be effective for a period of
at least fifty (50) years. The covenants for any affordable housing: units
relying wholly upon private non-public financing shall be effective for at
least thirty (30) years. The covenants shall not commence running until a
certificate of occupancy has been issued by the building official for the
dwelling unit or dwelling units to which the covenant or covenants apply.
Section 9.5-266 Monroe County Code, is amended by adding a new Section 9.5-
266(h) as follows:
Section 9.5-266(h) lnterlocal affordable rate of growth allocation agreements.
The Monroe County Board of County Commissioners may authorize interlocal
agreements between the County and the cities of Marathon. and Key West. and
Islamorada. Villag:e of Islands for the purpose of sharing residential rate of growth
affordable housing allocations. The interlocal agreements may be based upon a
specific project proposal within one or more jurisdictions or may be for a specific
allocation of units on an annual basis. from the County to a municipality or from a
municipality to the County. All allocations made available to a jurisdiction must
meet the applicable affordable housing requirements of the receiving
iurisdiction's land development regulations and affordable housing ordinances.
DEVELOPMENT REVIEW COMMfITEE
RESOLUTION #D17-03
MONROE COUNTY, FLORIDA
DEVELOPMENT REVIEW COMMI'ITEE RESOLUTION #017-03
A RESOLUTION BY THE MONROE COUNTY DEVELOPMENT REVIEW
COMMl1TEE RECOMMENDING APPROVAL TO TIlE MONROE COUNTY
PLANNING COMMISSION OF TIlE REQUEST FILED BY TIlE MONROE
COUNTY PLANNING DEPARTMENT TO AMEND TIlE MONROE COUNTY
LAND DEVELOPMENT REGULATIONS REVISING SECTION 9.5-4(A-5)
DEFINITION OF AFFORDABLE HOUSING, (M-6.2) MAXIMUM SALES PRICE,
OWNER OCCUPIED HOUSING AND (M-I0) MEDIAN ANNUAL HOUSEHOLD
INCOME, SECTION 9.5-122 (c) RESIDENTIAL RaGa ALLOCATIONS AND
SECTION 9.5-266 AFFORDABLE HOUSING SECTIONS (a) THROUGH (h).
WHEREAS, The Monroe County Land Development Regulations, Volume III of
the comprehensive plan, were adopted February 28,1986 and became effective
September 15, 1986; and
WHEREAS, The Momoe County Board of County Commissioners finds that the
need for affordable and employee housing has become persistent and affects a large
proportion of employees in Monroe County; and
WHEREAS, The Monroe County Board of County Commissioners finds that
adjustments are needed to distinguish income requirements among very low income, low
income, median income, and moderate income employee housing; and
WHEREAS, The Monroe County Board of County Commissioners finds that a
revision of the County's affordable housing regulations would promote the health, safety,
and welfare of the citizens of Monroe County; and
WHEREAS, The Monroe County Board of County Commissioners has directed
the Planning Department to make amendments to the current affordable housing
ordinance (03-2002) as prepared by Mr. Donald Craig and Mr. Ed Swift; and
WHEREAS, the Development Review Committee met on May 1, 2003 and was
presented with the following evidence, which by reference is hereby incorporated as part
of said hearing;
1. Staff report prepared by Maureen Meehan, Planner, dated April 29, 2003; and the
proposed changes to the Land Development Regulations (Exhibit 1); and
2. Discussion of Growth Management Staff; and
3. Comments by the public; and
Page 1 of 2
Initial ~
06/18/03
WHEREAS, the Development Review Committee has made the following Findings
of Fact on the evidence presented:
1. Based on the- Monroe County Code, we find that the proposed 8!Ilendment is
consistent with Section 9.5-511.
2. Based on the Monroe County Year 2010 Comprehensive Plan, we find that the
proposed amendment is consistent with and furthers its goals and objectives.
NOW THEREFORE, BE IT RESOLVED BY THE DEVELOPMENT REVIEW
COMMITTEE OF MONROE COUNTY, FLORIDA, that the preceding findings of
fact supports their decision to recommend APPROVAL to the Monroe County Planning
Commission of the revisions to the text of the Monroe County Land Development
Regulations as requested by the Monroe County Planning Department.
PASSED AND ADOPTED By the Development Review Committee of Monroe
County, Florida at a regular meeting held on the 1st day of May, 2003.
Fred Gross, Island Planning Team Director / DRC Chair yes
Ralpn Goulay, Environmental Resources Senior Administrator yes-
Jerry Buckley, Planneryes
Robert Will, Planner yes
Maureen Meehan, Planner yes
Department of Health (by fax) yes
-~ Department efPublic Works (by fax) yes
Department of Engineering (by fax) yes
DEVELOPMENT REVIEW COMMfITEE OF MONROE COUNTY, FLORIDA
By (J. ~ ' .-f
Fred Gross, DRC Chair
Signed thiS.J...%- day of June, 2003
Page 2 of 2
06/18/03
Initial ,.fL:
INNOVATIVE HOUSING INSTITUTE
REVIEW OF PROPOSED TEXT AMENDMENT
Innovative Housing Institute
.. .promoting affordable housing in a mixed income environment
MEMORADUM
To: Marlene Conaway, Director of Planning and Environmental Resources
From: Thomas Doerr, Innovative Housing Institute
Re: Proposed Affordable Housing Amendment, Monroe County Florida
Date: June 23, 2003
I. Background
The Innovative Housing Institute (IHI) has been asked to review the proposed
amendments to the affordable housing sections of the county land use regulations. IHI
has been retained to advise the County on affordable housing matters under a contract
dated May 15, 2002.
We have reviewed the proposed ordinance for:
. Consistency with common practice in other jurisdictions in the country that are
regulating the production of affordable housing;
. Consistency with federal programs that provide or fund affordable housing;
. Consistency with income, housing, and other data contained in the 2000 US
Census data for Monroe County; and
. The projected impact these proposed changes would have on current and future
beneficiaries of affordable housing efforts in Monroe County.
What does available data indicate regarding the population of Monroe County and
the need for, and availability of, affordable housing in the County?
We will begin with some numbers.
Income
The 2000 Census has the 1999 median income for Monroe County households as
$42,283. (Attachment 1). The average household size is 2.23.
The current (2003) HUD median income is $56,500 for a 4-person household.
(Attachment 2). Since the average household size is 2.23, by extrapolation, the 2003
median household income for the average sized household is approximately of $48,040.
For comparison purposes, this shows a 12% increase in annual incomes since the Census
was taken.
The 2000 Census (attachment 1) shows the following household income distribution:
Table 1
Less than $10,000
$10,000- 14,999
15,000 - 24,999
25,000 - 34,999
35,000 - 49,999
50,000 - 74,999
75,000 - 99,999
100,000 - 149,999
150,000 - 199,999
200,000 or more
8.8%
5.7
12.5
13.2
17.2
19.9
10.3
6.9
2.2
3.3
If we use the 12% increase in incomes since the Census was taken, while holding the
income distribution constant, it results in the table below:
Table 2
Income Percent of median for average Percent of
household size Population
Less than $11,200 >23% 8.8%
$11,200- 16,799 Between 23% and 35% 5.7
16,800 - 27,999 Between 35% and 58% 12.5
28,000 - 39,199 Between 58% and 82% 13.2
39,200 - 55,999 Between 82% and 117% 17.2
56,000 - 83,999 Between 117% and 175% 19.9
84,000 - 111,999 Between 175% and 233% 10.3
112,000 -167,999 Between 233% and 350% 6.9
168,000 - 223,999 Between 350% and 466% 2.2
224,000 or more < 466% 3.3
Table 2 should give us a realistic picture of how many households there actually are in
each income group that live in the Keys.
What can people afford?
Using the 2003 HUD median income adjusted for family size for Monroe County (Table
2), and current mortgage underwriting standards, households in various income ranges
can afford to purchase homes at the following prices:
Table 3
% Of Median 2003 Income Maximum Rent Maximum House
Income excluding utilities Price
50 $19,927 $400 $65,000
80 $37,516 $835 $140,000
100% $48,895 $1,125 $190,000
2
120% $56,274 $1,300 $245,000
160% $75,032 $1,775 $335,000
What housing is available on the market for sale?
A survey of the current listing available through the real estate agents' Multiple Listing
Service for the Florida Keys (Attachment 3) show the following homes for sale
throughout the Keys:
Table 4
ASKING PRICE NUMBER of HOMES ON MARKET
>$150,000 20
$150,000 - 200,000 16
$200,000 - 250,000 25
$250,000 - 299,999 89
$300,000 - 349,999 87
$350,000 - 399,999 126
$400,000 > 715
Total 1.078
Who Can Afford to Buy In Today's Market?
This table combines the information from all the tables above and gives us a picture of
home many homes are actually on the market and can be afforded by various segments of
the working households on the Keys.
Table 5
Income Percent of Percent of Number of Available
Median for Households Units Currently on
Average Size Market
Household
>$48,895 Below 100% 52% +/- 35
$48,895 to 56,274 100% to 120% 6% +/- 60
$56,274 to 75,032 120% to 160% 10% +/- 230
$75,303+ 160% and above 32% +/- 1000
This table shows that:
For 52% of the population (16,900 households) who have incomes below $48,895 there
is virtually nothing to purchase anywhere in the Keys with the exception of mobile
homes, which were excluded from this analysis.
For the approximately 6% of the population with incomes between $48,895 and 56,274
(120% of median) there are about 50 homes with prices below $250,000.
3
For thel0 % of the population with incomes between 120% of median and 160% of
median ($75,032) there are about 230 homes on the market below $340,000.
For the remaining 32% of the population, over a thousand homes are available.
How much does it cost to develop new affordable housing?
Our work over the last four months indicates that new modest single family homes, net of
the cost of land, run around $155,000, and that new attached housing or condominiums
cost about 15% less on a square foot basis.
The cost of land is an important variable. For the purposes of this memorandum we are
allowing $45,000 per unit for a single family lot. The cost per lot for multi-family and
attached housing is less. Land cost can vary tremendously based upon the alternative
uses to which the land may be put. In the context of government facilitated affordable
housing, the land can be significantly less costly due to the sever restrictions on new
development and the array of zoning possibilities that exist for using otherwise
undevelopable land exclusively for affordable housing.
So, for the purposes of this memorandum, we are assuming the cost of new
construction to be approximately $200,000 per unit for a simple three bedroom
home, including the cost of land.
4
II. The Proposed ordinance Revisions, Section By Section
Our comments are in italics and boxed. The proposed code revisions are everything else.
Section 1. Section 9.5-4 (A-5) of Monroe County Code is amended to read as follows:
(A-5) Affordable housing refers to residential dwelling units that meet the following
requirements:
. Meet all applicable requirements of the United States Department of Housing and
Urban Development minimum property standards as to room sizes, fixtures,
landscaping and building materials, when not in conflict with applicable laws of
Monroe County; and
The BUD Minimum Property Standards have largely been replaced by local codes. The
standards no longer (to the best of our knowledge) include minimum room sizes, etc. For the
purposes of this ordinance we suggest using local codes for building and describe room sizes,
amenities, etc., directly in this ordinance. Most jurisdictions set a minimum square footage for an
affordable unit based on the number of bedrooms. For example a two-bedroom unit must have a
minimum of 725 square feet, etc.
(a) Generally. affordable housing for a rental dwelling unit shall mean a dwelling
unit whose monthly rent. not including utilities. does not exceed 30 percent of
that amount which represents either 50 (very low income) or 80 (low income) or
100 (median income) or 160 (moderate income) percent of the monthly median
adjusted household income for Monroe County.
utilities.
(b)
Affordable rental housing. very low income shall be a rental dwelling unit whose
monthly rent. not including utilities. does not exceed 30 percent of the amount
which represents 50 percent of the monthly median adjusted household income
for Monroe County.
~
(c) Affordable rental housing. low income shall mean a dwelling unit whose monthly
rent. not including utilities. does not exceed 30 percent of the amount which
represents 80 percent of the monthly median adjusted household income for
Monroe County.
~
(d) Affordable rental housing. median income shall mean a dwelling unit whose
monthly rent. not including utilities. does not exceed 30 percent of the amount
which represents 100 percent of the monthly adjusted median household income
5
~
for Monroe County. provided that such units are located within housing
development projects of twenty (20) units or fewer.
(e) Affordable rental housing. moderate income shall mean a dwelling unit whose
monthly rent. not including utilities. does not exceed 30 percent of the amount
which represents 160 percent of the monthly median adjusted household income
for Monroe County. provided that such units are located within housing
development projects of twenty (20) units or fewer.
~
if) Affordable housing owner occupied moderate income shall mean a dwelling unit
occupied only by a household whose total household income does not exceed 160
percent of the median monthly household income for Monroe County.
There is no comparable definition for median or low income for sale housing.
(g)
Affordable housing trust fund shall mean a trust fund established and maintained
by the county for revenues from fees in lieu of constructing affordable housing.
and revenues from other sources earmarked for the trust fund by state statute. land
development regulation. ordinance or donation. Funds collected for and deposited
in the trust fund shall be used exclusively for the acquisition of land for affordable
housing projects. the construction of affordable housing and for loans for down
payment assistance for the purchase of affordable housing.
(h)
Monthlv Median household income shall mean the median annual household
income for Monroe County divided by 12.
(i)
Median income. rental rates and qualifying incomes table shall mean
eligibility requirements compiled each year by the Planning Department
based upon the median annual household income published for Monroe
County on an annual basis by the U.S. Department of Housing and Urban
Development and similar information for median and moderate income
levels from the Florida Housing Finance COl:poration. Affordable housing
eligibility requirements for each household will be based upon median
annual household income adjusted by family size. as set forth by the U.S.
Department of Housing and Urban Development and the Florida Housing
Finance COl:poration. The County shall rely upon this information to
determine maximum rental rates and maximum household incomes eligible
for affordable housing rental or purchase.
A definition of what constitutes income is necessary in order to have a clear rule for what is
income is included and what is excluded. Auached to this memorandum (Attachment 4) is a
description of how HUD handles these issues. We suggest that an income definition be included
in the revised ordinance.
For example, a semi-retired person may have income 'of only $10,000 per year but assets of
$1,000,000. The HUD formulae would count a percentage of the value of those assets as income,
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even if they generated no income in that year. On the other hand, extensive medical costs or child
care necessary in order to work can be deducted from the gross income.
Section 2. Section 9.5-4 Monroe County Code, is amended by adding a new Section 9.5-
4(M-6.2) as follows:
(M-6.2) Maximum sales price. owner occupied affordable housing unit shall
mean a price not exceeding four and one-quarter (4.25) times the annual median
household income for Monroe County.
This section does not address family size or unit size.
We suggest that the words "for a household of four persons" after the words "household
income" in the above definition.
Since specific unit size is not defined, a unit could cost the maximum allowed amount and be 400
square foot cottage efficiency.
Given the cost of construction described earlier, it seems reasonable to limit the cost of the final
product in two ways: 1)by square footage, and 2) with an absolute cap on cost for each unit size.
For example:
A two-bedroom unit could have a minimum size of 725 square feet and cost no more than
$150,000 in current dollars (2.65 the current median income). This works out to about $125 per
square foot plus $50,000 for the cost of land. The price would then automatically adjust with a
rise in median income. A three-bedroom unit might have a minimum of 1,000 square feet and
have a price cap of $175,000.
Section 3.
follows:
Section 9.5-4 (M-lO) Monroe County Code, is amended to read as
(M-lO) Median annual household income means the median of annual household income
(per household size) is aetermiRes ffom time ta time te Be mesiaR BY the U.S. CeRSHS ar
the Floriaa StcHistieal .\Bstfilet. as published for Monroe County on an annual basis by
the U.S. Department of Housing and Urban Development.
Section 4. Section 9.5-122(c) Monroe County Code, is amended by adding
subparagraph (4) as follows:
(4) In any allocation period. as defined. the available affordable housing allocation
awards shall be granted in the following proportions:
- very low and low income. as defined herein. 25%.
median income. as defined here, 25%.
- moderate income. as defined herein. 50%.
On an annual basis. the Board of County Commissioners may amend these
proportions.
The allocation of affordable units into various sub-groupings is interesting. Usually such a sub
allocation prescribes the maximum number of units that may be allowed at the upper income,
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permitting those units that serve lower incomes to utilize the up to 100% of the allocation. The
structure of this prescription eliminates that flexibility.
The rationale for the percentage chosen for allocation to each income tier is not explained. It
would be useful either here or in the "whereas" section to articulate the reasoning for this
particular division.
Based upon the background material in this memorandum it does not seem justified to allocate
such a large percentage of the units to the highest income group. That group, those whose
income is "moderate" by the definition herein, has significantly more housing choices than the
other groups. Their rental choices are virtually unlimited and their homeownership options,
while not generous, at least exist in some quantity in today's market.
The groups with the fewest housing options are those at the low end of the income spectrum. If
Table 5 is accurate, fully 68% of the households in the Keys may require some assistance,
however the majority of the assistance in this paragraph goes to the 10% who need assistance
least.
IHI suggests that this section be reconsidered. Set aside:
At least 25% of the allocation for very low income (50% of median)
25% for low-income (80% of median)
25% for 100% of median
25% for moderate income (160%) of median
Since the lowest income group will usually be unable to afford for sale housing, an emphasis on
the production of affordable rental housing is required.
On the for sale side, low-income and median households may be able to afford housing produced
under this ordinance if strict price and size guidelines are established and if there is some public
money for either land write-down or mortgage assistance.
IHI also suggests that the percentages allocated to each income group be controlled such that
higher income allocations may be used for lower income housing, but not the reverse.
Section 5.
following:
Section. 9.5-266(a)(6) Monroe County Code, is amended to add the
g. At the time of sale of an owner-occupied affordable unit. the total income of
households eligible to purchase shall not exceed 160 percent of the median household
income for the county. However. a unit within a class of affordable housing
eligibility may only be sold to a household within that same class. i.e.. a median
income household which purchased a home within this category must sell the home
to a qualifying household within the median income category
We suggest that the above be reworded as follows:
''At the time of sale of an owner-occuvied affordable unit. the total income of households elifible
to purchase shall not exceed that percent of the median household income for the county for
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which that unit was produced. i.e.. a median income household which purchased a home within
this category must sell the home to a Qualifying household within the median income category. "
h. During occupancy of any affordable housing rental unit. not otherwise limited by
state or federal statute or rule concerning household income. a household's annual
income may increase to an amount not to exceed 140 percent of the median
household income for the county. If the income of the lessee exceeds this amount. the
tenant's occupancy shall terminate at the end of the existing lease term. The
maximum lease for any term shall be 3 years or 36 months.
Under the current market conditions, a renter with an income of 140% of median has a
significant range of market choices. Therefore we suggest that the upward limit be reduced to
"not more than 20% more than the upper income limit for which the unit was produced, i.e., a
unit produced to serve incomes no higher than 80% of median upon initial occupancy would have
a top limit of 100% of median before the tenant would have to move to a non-subsidized unit.
As to the maximum three-year lease term, this should not be construed to limit the number of
years an income eligible household, who remains income eligible may continue to rent. Many of
the households on the Keys will have to be permanent renters, given the lack of affordable for-
sale housing.
1. Affordable housing projects of greater than twenty (20) units may be approved only
by resolution of the Monroe County Planning Commission. provided that such
decision may be ap.pealed to the Board of County Commissioners utilizing the
procedures described in Section 9.5-521. except that the Board of County
Commissioners shall be the appellant board for the pUl:pose of development approved
under this definition.
We are unclear as to the purpose of this provision. We suggest that the reasoning for such a
provision be included in the "Whereas" section of the ordinance, or in the section which
establishes this condition.
j. Pami/v size. When establishing a rental and sales amount. the County shall assume
family size as indicated in the table below. This section shall not be used to
establish the maximum number of individuals who actually live in the unit. This
table shall be used in conjunction with the eligibility requirements created by
Section 9.5 (A-4)i.
Size of Unit Assumed P ami/v Size Minimum Occupancy
Efficiency (no separate 1 1
bedroom)
One bedroom 2 1
Two bedroom 3 2
Three bedroom 4 3
Four or more bedrooms 5 1 per bedroom
Section 6. Section 9.5-266 Monroe County Code, is amended by renumbering Section
9.5-266(b) to Section 9.5-266 (f) and by the addition of new Sections 9.5-266(b), (c), (d), and (e)
as follows:
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Section 9.5-266(JJ) Affordable housing requirement of residential projects and in-lieu fee.
New residential projects containing market rate units or projects containing both market
rate residential units and commercial floor area shall be required to develop at least 30
percent (30%) of the residential units as affordable. Each of the affordable units shall be
at least 400 square feet in floor area. The developer of the project may contribute a fee
in-lieu for all or some percentage of the units. which if ap.proved by the Monroe County
Board of County Commissioners. will be deposited in the affordable housing trust fund.
The in-lieu fee shall be not less than $50.000 per unit. representing construction cost. less
land cost of the minimum size 400 square foot affordable unit. The Planning
Commission shall by resolution annually adjust the in-lieu fee during the first quarter of
each calendar year based upon the cost of construction of residential units as contained in
standard published construction cost indicators. adjusted for Monroe County. This
section does not ap'ply to the redevelopment of mobile home parks which are subject to
the standards contained in Section 9.5-266(g). nor does it ap'ply to the redevelopment of
existing non-mobile home units. This subsection does not ap'ply to commercial employee
housing which may be established by Section 9.5-266. Monroe County Code.
The section of the code that is being amended deals with the density permitted when affordable
housing is being developed. We are not clear as to the reason that these new provisions for
mandating affordable housing are being inserted in this code section.
What is the rationale for excluding the value of the land? What is the rationale for establishing
the 400 square foot standard?
In our experience, the best way to require that affordable units be produced is by a separate
article in the code. That new article then is brought in to amend each section of the land
development regulations that are affected.
Section 9.5-266(c) Linkage of projects. Two development projects which are required to
provide affordable housing may link to allow the affordable housing requirement of one
development project to be built at the site of another project. so long as the affordable
housing requirement of the latter development is fulfilled as well. The project containing
the affordable units must be built either before or simultaneously with the project
without. or with fewer than. the required affordable units. In addition. if a developer
builds more than the required number of affordable units at a development site. this
development project may be linked with a subsequent development project to allow
compliance with the subsequent development's affordable unit requirement. The linkage
must be supplied by the developer to the Planning Commission at the time of the
subsequent development's conditional use approval. Finally. all linkages under this
subsection may occur within the county or on a site within the county and on a site in the
incorporated cities of Key West. Marathon and Islamorada. subject to an interlocal
agreement: however. linkage must occur within the same geographic planning area. i.e.
lower. middle and up.per keys. All linkages must be ap'proved via a covenant running in
favor of Monroe County. and if the linkage project lies within an incorporated city. also
in favor of that city. Said covenants shall be placed upon two or more projects linked.
stating how the requirements for affordable housing are met for each project. The
covenant shall be ap.proved by the Monroe County Board of County Commissioners and.
if applicable. the participating municipality.
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Section 9.5-266( d) Affordable housinc trust fund. The affordable housing trust fund
(referred to as the "trust fund") is established. The trust fund shall be maintained with
funds earmarked for the trust fund for the pur.pose of promoting affordable housing in the
county and the cities of Monroe County. Monies received by the trust fund shall not be
commingled with general operating funds of the county. The trust fund shall be used for
the following:
a. Financial aid to developers as project grants for affordable housing construction:
b. Financial aid to eligible homebuyers as mortgage assistance. inclusive of loans for
down payment assistance:
c. Financial incentive for the conversion of transient units to affordable residential units:
d. Direct investment in or leverage to housing affordability through site acquisition.
housing development and housing conservation: or
e. Other affordable housing pur.poses from time to time established by resolution of the
County Commission. The Monroe County Board of County Commissioners shall act
as trustees for the fund. but may enter into agreements with the Monroe County
Housing Authority. a qualified community housing development organization created
by the Board of County Commissioners. or a municipality within Monroe County.
Is this the most appropriate section of the code in which to create a housing trust fund? What are
to be the sources of income for the fund? What is its governance structure? Is it a governmental
entity with governmental powers, or is it only a separate fund to be administered by one of the
county departments?
I
We recommend that this section be the subject of a separate discussion as to the best vehicle for
the implementation of these goals, and be excluded from this section of the ordinance for the
present.
Section 9.5-266(e) Community housinc develooment orcanization. The Board of County
Commissioners may establish a nonprofit community housing development organization
(CHDO). pursuant to federal regulations governing such organizations. to serve as
developer of affordable housing units on county-owned property. including or located in
the incor.porated part of the county. upon interlocal agreement. In such event. the county
may delegate to the community housing development organization all or partial
administration of the affordable housing trust fund.
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Section 7. Sec. 9.5-266(b)(1) Monroe County Code, as above renumbered to 9.5-
266(t)(1) is amended to read as follows:
(t)Administration and Compliance:
(1) Before any building permit may be issued for any structure, portion or phase of a
project to this section, restrictive covenants(s) shall be filed in tbe Official
Records of Monroe County to ensure compliance with the provisions of this
section running in favor of Monroe County and enforceable by the County and, if
applicable, a participating municipality. The covenants for any affordable
housing units partly or wholly financed by a public entity shall be effective for a
period of at least fifty (50) years. The covenants for any affordable housing units
relying wholly upon private non-public financing shall be effective for at least
thirty (30) years. The covenants shall not commence running until a certificate of
occupancy has been issued by the building official for the .dwelling unit or
dwelling units to which the covenant or covenants apply.
Section 8. Section 9.5-266 Monroe County Code, is amended by adding a new
Section 9.5-266(h) as follows:
Section 9.9-266(h) Interlocal affordable rate of growth allocation agreements. The
Monroe County Board of County Commissioners may authorize interlocal agreements
between the County and the cities of Marathon. and Key West. and Islamorada. Village
of Islands for the purpose of sharing residential rate of growth affordable housing
allocations. The interlocal agreements may be based upon a specific project proposal
within one or more jurisdictions or may be for a specific allocation of units on an annual
basis. from the County to a municipality or from a municipality to the County. All
allocations made available to a jurisdiction must meet the applicable affordable housing
requirements of the receiving iurisdiction's land development regulations and affordable
housing ordinances.
The board might consider imposing the requirements of the sending or receiving jurisdiction,
which ever is more stringent. Otherwise it may happen that an unbalanced number of affordable
units will be developed in the jurisdiction with the least stringent requirements.
Section 10. If any section, subsection, sentence, clause, item, change, or provision of this
ordinance is held invalid, the remainder of this ordinance shall not be affected by such validity.
Section 11. All ordinances or parts of ordinances in conflict with this ordinance are ,
hereby repealed to the extent of said conflict.
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Section 12. This ordinance shall be fIled in the Office of the Secretary of State of
Florida, but shall not become effective until a notice is issued by the Department of Community
Affairs or Administrative Commission approving the ordinance.
Section 13. This ordinance shall be transmitted by the Planning Department to the
Department of Community Affairs to determine the consistency of this ordinance with the Florida
Statutes.
Section 14. The Director of Growth Management is hereby directed to forward a
copy of this ordinance to the Municipal Code Corporation for incorporation in the Monroe
County Code of Ordinances once this ordinance is in effect.
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