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Item I1 I1 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5 The Florida Keys Mayor Pro Tern James K.Scholl,District 3 Craig Cates,District 1 Michelle Lincoln,District 2 ' David Rice,District 4 Board of County Commissioners Meeting March 20, 2024 Agenda Item Number: I1 2023-2212 BULK ITEM: Yes DEPARTMENT: Planning & Environmental Resources TIME APPROXIMATE: STAFF CONTACT: Emily Schemper AGENDA ITEM WORDING: Approval of Permission for the Planning & Environmental Resources Department in Coordination with the City of Key West to Submit a Grant Application to the Department of Defense: Office of Local Defense Community Cooperation("OLDCC") for a Housing Needs Assessment. ITEM BACKGROUND: The Office of Local Defense Community Cooperation ("OLDCC") leverages capabilities of state, territorial and local partners through place-based grants and technical assistance to enhance readiness and resilience of our installations and ranges, and to deliver safe places for our members and their families where capabilities in Department of Defense do not otherwise exist. Additionally, the OLDCC works with states, territories and communities to help them respond and adapt to changes driven by the Department of Defense ("DoD"). By leveraging the full capabilities of the Federal government, the Office of Local Defense Community Cooperation helps towns, cities, states and territories plan and carry out a future that is sustainable, resilient, and in alignment with the military mission. Staff seeks permission to submit a grant application to the Department of Defense: Office of Local Defense Community Cooperation("OLDCC") for a Housing Needs Assessment. The "application" phase typically opens between April and July annually. The agreement with the OLDCC would be executed around October 2024 with initiation of the project anticipated in November 2024. The grant funds would be utilized to develop a Housing Needs Assessment identifying the current and emerging housing needs in the Lower Keys from Stock Island through Big Pine Key in concert with a Housing Needs Assessment conducted by the City of Key West. 1919 The grant requires a 10% match which will be covered by the associated $75,000 grant awarded by the OLDCCC to the City of Key West for a Housing Needs Assessment. A copy of the City of Key West's DRAFT scope document is attached hereto. PREVIOUS RELEVANT BOCC ACTION: N/A INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: 2022 RFP Scope - Housing Needs Assessmentand-2024—additions—DRAFT.pdf FINANCIAL IMPACT: There is no anticipated financial impact. The grant requires a 10% match which will be covered by the associated $75,000 grant awarded by the OLDCCC to the City of Key West for a Housing Needs Assessment. 1920 REQUEST FOR PROPOSAL (RFP No. XXXX) Key West Housing Needs Assessment 2022 DRAFT REQUEST FOR PROPOSAL Housing Needs Assessment & Compre 4� �4 te City of Key West (RF 022-xx) F f MA TERI JOHNSTON LOPEZ BILLY WARDLOW JIMMY CITY OF KEY WEST Page 1 of 6 1921 �m /rir WfP REQUEST FOR PROPOSAL (RFP No. XXXX) �, Key West Housing Needs Assessment 5.1 Purpose and Description Like many cities around the country, the City of Key West is experiencing significant housing challenges with respect to affordability, availability and the concurrent labor crisis. However, the City of Key West faces exceptionally unique barriers to developing affordable housing solutions. As an island, Key West is bound by its finite land area. In addition to spatial con ints, the extent of residential development in the City is strictly limited by the State of Fl 11 111,hich has designated Key West as an `Area of Critical State Concern.' This regulation has resu a specified number of new units that may be developed in Key West. In 2012, the State exec orandum allowing Key West to permit the development of an additional 910 170 out of the 910 units remain undeveloped. This presupposes most su -o tented ho strategies. Key West faces further barriers in terms of its existin ng stock; approximat % of residences are second and third homes. and the average media e (AMI)t t qualifies for force housing (80%)is well above the average person's salary in est. Bet arch 2020 an 2021, Key West lost almost 2,000 members of the workforce, in bor crisis to unprecedented heights. Due to this housing crisis, the City desir team of p rs and housing experts to conduct a Housing Needs Assessment and evaluate up ity's ehensive Plan with a special focus on housing policy and programs. This prehe ssme ill provide Key West's local government with a thoroug nding of v ou s in the City. It will examine the diversity of the existing s ousing t burden a the factors causing them through an analysis of newly c d and ex g data, a 11 as an analysis of the current impact of short- term rentals in Key Additionally, the Housin d d o provide data on "Trends, Needs, and Directions" e vita ation to the or planning and reporting purposes, and to provide unity olde up-to-date information on the housing needs and demands in the Cityi The fina should riorit reas o knificant need and provide direction for development of P g P P housing str ind policy, wi n emphasis on a variety of market and non-market affordable housing. The prim es of the Housing Needs Assessment are: a. Identify e current and emerging housing needs in Key West. b. Evaluate the housing supply, market factors, and state and local regulatory framework to identify gaps in housing across the Housing Continuum. C. Compare the housing supply with housing demand to identify best practices and strategies to meet future needs; and CITY OF KEY WEST Page 2 of 6 1922 REQUEST FOR PROPOSAL (RFP No. XXXX) �, Key West Housing Needs Assessment d. Provide a housing action plan that integrates land use planning strategies and implementation opportunities and includes proposed `strikethrough underline' amendments to the City's Comprehensive Plan and Code of Ordinances. 5.2 Advisory Group The City of Key West shall organize an advisory group consisting of City personnel and external partners; members shalll be identified at the onset of the Housing Needs ssment. The purpose of this group is to promote inclusion, transparency and effective communi s across public and private sectors. This group will work with the proponent to ensure all areas sing are addressed. 5.3 Scope of Services 11111111i� It is expected that this project will utilize both quantitativ ualitative sour uantitative information may come from available statistics, and t native information m obtained through stakeholder consultation. Both sources sho„ cross-exam' ed in order to ate the City's Comprehensive Plan goals, objectives and policies. alysis s include an eva n of the island's housing supply across the Housing Continuum nt s relative to income, household size and any other related issues within th egion. The Comprehensive Plan evaluation and °all be perfor ursuant to Florida Statutes Section 163.3191.Florida Administrative Code Sec 73 - rovid the City of Key West was last required to submit an evaluation and apprais otific ua °""2019.. The notification letter was remitted on January 25 Depart nom rtunity indicated that the City met the requirements of Sect 3.31 ough a ated February 28, 2020. At this time, the Cit'" res to cond thorough ew of state regulatory changes and evaluate best practices and policies ntify ended pges to the Comprehensive Plan. This review should also be �ormed b tra ectives. The ho analyse nclu t is not necessarily limited to the following focus areas or themes: 1. lation and D rap eview Projections th h (Year) b) e, broken d by household source as well as the percentage ofrenters and o arning o of the AMI(extremely low income), 31% -50% of the AMI (low i e o 80% of the AMI(moderate income), 8 1%to 120% of AMI (middle i and 120%to 140% of AMI c) Percentage o household income spent on housing costs per income group d) Number of adults per household, as well as number of households with children, , seniors and those with a disability e) Comparison of age with income, with a breakdown of renters and owners f) Number of income sources per household, broken down by households with single incomes, dual incomes, and three-or-more income sources.This should also include CITY OF KEY WEST Page 3 of 6 1923 REQUEST FOR PROPOSAL (RFP No. XXXX) �, Key West Housing Needs Assessment the average number of jobs held in each household and/or by adults g) Components of population change h) Ethnicity/Immigration i) Poverty rates 2. Housing Market Analysis a) Rental and Owner-Occupied Housing, including analyses i) Type & size of housing ii) Availability, conditions, sale prices, and other trends for various affordability levels iii) Assessed housing values iv) Ownership trends b) Senior Housing c) Short-term and Vacation Rentals& their ' on residential long-term 'ng d) Housing targeting essential employees,.ill ng teach e) Housing targeting employees in managemen f) Group and/or Dormitory Styl„i sing; address i stacles to permanent housing, including but not lim ,y,," me limitat nd impacts g) Transitional, Subsidized and Sp 1 !"uui sing a ing obstacles to permanent housing, including but limite e li ions andimpacts h) Mobile Home a r Housin i in hed manufactured housing development and lots) i) Analysis sing in mi use zone cluding a focus on the downtown area and upper- story uni" th data on v cy and ca � llllllllllllllllllllll�iiuuuuu���������� .. llu�� nd cancy Ra sing oke n by rentals and owner-occupied units umber of bo tal a ner-occupied housing units needed required to meet urrent and futur ds, in ' g an analysis of needs based on number of bedrooms, e point, and co onding income levels and age categories c) A 'mate of the ber of households burdened by high housing costs, including those are bur and earn very low, low, moderate and middle incomes 4. Existing Ho us onditions and Issue Areas a) Conditions an issues broken down by rental and owner-occupied units b) Evaluation of existing housing stock, including an estimate of sub-standard dwelling units in need of rehabilitation/replacement. c) Estimated impact of students and/or seasonal workers on limited housing stock/availability d) Impacts of local land use controls and licensing programs to determine any regulatory, CITY OF KEY WEST Page 4 of 6 1924 REQUEST FOR PROPOSAL (RFP No. XXXX) �, Key West Housing Needs Assessment policy, licensing, or tax-related impediments toward the construction or renovation of housing e) Other housing issues 5. Economic Profiles and Projections through 2032 a) Analysis of anticipated trends in job growth, employment categories, wages, and unemployment rates, including:a breakdown of job types and verage wages, and an analysis of the incomes required to afford market-rate hous' b) Determine labor demand, including seasonal workers (i le) c) Percent of workers who commute from outside of th or oorings and boats, including a breakdown of, destination of oyment, eled, and income of out-of-community households d) Local labor force survey to evaluate the i f housing costs supply and on the ability of residents to maintain long-ter m'°illll ency and e oyment e) Cost of living 6. Gap Analysis ��II a) Determine whether a deficit or s ng units for households in various income groups for rental and owne cupie ��Vu�^ b) Consider existing a ected hou ld e in growth projections by income or tenur c) Consider co ened hou Ids and e living in substandard rental housing ; address ho ld growth a e need to lacement of substandard owner-occupied housing IpIIV 7. B s An dentify existin iers duction and preservation of housing opportunities cluding but not ed to emerging from state regulations, City Land lopment Regul s & Comprehensive Plan, and licensing & enforcement po practices & acity. b) Identi sting b and/or challenges to mitigating overuse of short term and vacation ding but not limited to regulatory and enforcement barriers. 8. Community Stakeholder Consultation a) Representatives of social service organizations, developers, housing related nonprofits, local governments and other applicable stakeholders are to be contacted and invited to provide input and insights by telephone interview, online survey, and/or public workshop. The local planning team will help to identify stakeholders and facilitate introductions between stakeholders and the consultant(s). CITY OF KEY WEST Page 5 of 6 1925 REQUEST FOR PROPOSAL (RFP No. XXXX) �, Key West Housing Needs Assessment b) The Proponent shall provide a public engagement plan for City review to ensure sufficient opportunity for residents and other stakeholders to provide input on proposed policy and program changes. 9. Recommendations a) Determine a continuum of housing that describes housing needs for residents and the workforce to accommodate a wide range of incomes, projected gh (YEAR). Present the continuum in a format that establishes the spectrum of h considered affordable by households in different income groups, indicating nu percentage of households earning different area median incomes and those type usi ely to be needed at the different income levels. b) Present best practices for tourist destinations a ellllu"sort towns and to applicability to the City of Key West. c) Proposepotential solutions for policymak on-profit or izations and th ronthe e sector to consider addressing identified housing ne d pro 111111,with a specific f unique limitations posed to the City by its geog e state oversite that limits the. d) Review the adopted land use r ns and future use maps and make recommendations for updates to "IIdevelopm future affordable housing identifying areas where opportuni °o may uu� develo housing and recommend policy changes and a dates to prom ousi ities various levels Vul e Identify P otential both fo rofit 1°�" e the capacity to develop housing at va ' evels f) Make sug sand priori strategie luding potential partnerships with local employers, ofits, a ivate deve rs, for the creation and implementation of housing progra d e s to meet the gaps identified in the study rt Require al housing acti an rep should be written in plain language, and where possible, illu meaning with s, tables, and figures. A concise executive summary must be provi addition to ull report as a handout to general public and stakeholder groups. The final de b 11 include data and analysis to support specific proposed EAR-based amendments. d amendments should be provided in strike-through underline format to amend the Compr ensive Plan to achieve the City's housing goals. It should alsoreflect changes in State requirements pursuant to Florida Statutes Section 163.3191. The final report along with the recommendations shall be provided to the Director of Housing& Community Development for review with City leadership and the Advisory Group, in advance of an in-person presentation to the City Commission. CITY OF KEY WEST Page 6 of 6 1926 2024 — Proposed Additional Scope Purpose: 1. Conduct a comprehensive housing needs assessment& strategy. 2. Identify the level of need for affordable and work force housing. 3. Gain direction to help the City update its Comp Plan or future initiatives. 4. Research affordable housing/work force initiatives to identify barriers. 5. Develop smart housing policies and best practices. 6. Analysis of impediments of Fair Housing Choice. 7. Effectiveness of current housing programs ab goals G��ng Elements) 8. Identification of new state hosing law and progra date current LDR's/newly adopted legislation. %�" 9. Identify Supply and Demand needs. ����� 10. Determine how we compare to other Ci r size and env %I/b/fent. 11. Tax Incentives for Developers? / � 12. Review the City s ability to own land or erty for t sole purple GG/ ,�,,,developing work force housingor affordable housing. //////// Scope of Services: ��� 0��� IIIII�IIIIIII�I ,� • Demographics ation — — /Ten useh" �� ize/Household Type • Economy a eh V1 come c s for Occupations • Housing Ma" —Marke p e s/Ag ousing/Nber of Units in City /Rental/ Homesteaded/ �use/ is/Exis Housing Stock/Vacancies/Blighted Pro • ��; lysis,,,,,,,,,,,,,,,,,,,,,, , ������� / GiG�� o Rental ( ets le raphics ome and costs of Housing cost of i0 GGGG%ii%,,, GGGGp" ,,,,,,,, transportati ' sts b (% spent on housing rental market summary) es Ma Zhj,bu rket ogra aincome , cost of Housing, cost of transportation, rden% t on PITI or mortgage, sales market summary) • Mortgage �� Analy • Housing gap s' enters/ Owners with AMI percentages 0-30%, 31-50%, 51- 80% and 81%to ` • Labor Force Engagement—Where are residents employed? • Population County—Location Specific to City boundaries only • Employment & Income • Population Mobility • Housing Trends • Housing Types and Affordability—Rental/ Owner, Single Family , Multi Family, Transitional, Short term , efficiency , transient, supportive housing and work force. • Age of Housing 1927 • Housing Condition & Quality • Affordable Housing Waitlist & Supply/Demand Statistics • Housing Market Conditions— Affordability by tenure, housing real estate activity, housing construction rate & demand. • Housing Resiliency • At Risk Units—Assisted or deed restricted rental housing that are at risk of losing its status as housing affordable for very low-, low-, and moderate-income residents due to the expiration of federal, state or local agreements. • Under Utilized Land • Poverty Rate • Assessed Housing Values • Senior Housing Units • Ownership Trends q%ggoo/?;;;?;;;?;;;;;;;;;;,,,,, • Number of Mobile Homes • Substandard Housing / • Homelessness • Adaptive Reuse �• Ability to afford Elevation j CE identi � omes only) �j % Illlllllll�i� %�, lllllllllllll�� �j�// ll �00000000o%oi %00000!!i000, 1928