HomeMy WebLinkAboutItem L2 Liz Yongue
From: Gomez-Krystal <Gomez-Krystal@MonroeCounty-FL.Gov>
Sent: Monday, August 18, 2025 11:37 AM
To: Ballard-Lindsey; County Commissioners and Aides; Kevin Madok; Senior Management
Team and Aides; Liz Yongue; InternalAudit
Cc: Shillinger-Bob; Williams-Jethon; Cioffari-Cheryl; Livengood-Kristen; Rubio-Suzanne;
Pam Radloff; County-Attorney; Allen-John; Danise Henriquez; Hurley-Christine; Rosch-
Mark; Gambuzza-Dina; Beyers-John; InternalAudit; Valcheva-Svilena; Powell-Barbara
Subject: ADD-ON Item L2 08/20/2025 BOCC Meeting
Attachments: ais 4432 and backup.pdf
Good morning,
Please be advised,the following Add On Item is set for inclusion day-of meeting prior to the approval of the Agenda:
"Discussion of the newly purchased Southcliff Estates multi family affordable tourism employee housing rental rates."
The Agenda Item Summary is attached.Once approved,this will be considered Add On Item L2.
Sincerely,
)V,rystaC crovuez
Executive Administrator
Monroe County Administrator's Office
1100 Simonton Street,Suite 2-20S
Key West, FL 33040
Office:30S-292-4441
Cell:30S-8SO-8694
Courier Stop#1
Notary Public
www.ri"ioriroeco�,,iirity.-fu..gov
gorriez..kry:st,, 1.@ri"ioriroeco�,,iirity..-fl..gov
,.airity..fl.gov
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1
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor James K.Scholl,District 3
The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2
Craig Cates,District 1
David Rice,District 4
Holly Merrill Raschein,District 5
Board of County Commissioners Meeting
August 20, 2025
Agenda Item Number:
2023-4432
BULK ITEM: No DEPARTMENT: Commissioners Aid
TIME APPROXIMATE: STAFF CONTACT: Corie Abel 305-453-8787
N/A
AGENDA ITEM WORDING:
Commissioner Merrill Raschein: Discussion of the newly purchased Southcliff Estates multi-family
affordable tourism employee housing rental rates.
ITEM BACKGROUND:
Monroe County purchased the Southcliff Estates multi-family development at 95295 Overseas Highway
in Key Largo as part of the newly formed Affordable Tourism Housing Program, utilizing a portion of
the $35 million from Tourism Development Council(TDC) surplus funding.The purpose of the
acquisition was to provide affordable housing opportunities to the workforce of the tourism industry.
The State of Florida established this program with the passage of Chapter 2024-219, Laws of Florida
(SB 1456), which was signed by the governor and became effective on July 1, 2024. It allows the
county to utilize up to $35 million of accumulated surplus funds from tourist development taxes and
tourist impact taxes collected through September 30, 2024, for purposes of providing affordable
housing, as defined in F.S. 420.0004, for employees of private sector tourism-related businesses in the
county.
According to F.S. 420.0004, "affordable housing"includes housing with maximum income limits and
corresponding rental rates at 120% of area median income. What this means is the county may charge
up to $3,126 per month for households earning up to $125,040 for single unrelated roommates or
$166,720 for married or domestic partners.
Community members have indicated they believe the rental rates are too high and not affordable.This
item is to discuss and take input on what is legally possible at this new project.
1
PREVIOUS RELEVANT BOCC ACTION:
On December 11, 2024, the BOCC adopted Resolution No. 544-2024, establishing the Monroe County
Affordable Tourism Housing Program and setting forth the program qualifications, restrictions, and
conditions for funding affordable housing projects utilizing the accumulated surplus Tourist
Development Tax and Tourist Impact Tax revenues.
On June 18, 2025, the BOCC approved expenditure of TDC surplus funds for the purchase of the
Southcliff Estates housing units as part of the Monroe County Affordable Tourism Housing Program
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: N/A
DOCUMENTATION:
07 - TDC Affordable Housing Progra .pdf
J4 -AIS Approval of TDC funding and application- South Cliff Estates.pdf
Affordable Housing in Monroe County One Page.pdf
2.Reso.544-2024 Affordable Tourism Housing Program.pdf
FINANCIAL IMPACT:
N/A
2
07
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE 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
December 11, 2024
Agenda Item Number: 07
2023-3383
BULK ITEM: No DEPARTMENT: Administration
TIME APPROXIMATE: STAFF CONTACT: Christine Hurley/Nathalia M.
N/A Archer/Cheryl Cioffari
AGENDA ITEM WORDING:
Approval of a Resolution establishing the Monroe County Affordable Tourism Housing Program and
setting forth the program qualifications, restrictions, and conditions for funding affordable housing
projects utilizing the accumulated surplus Tourist Development Tax and Tourist Impact Tax revenues
collected through September 30, 2024, in an amount not to exceed $35 million for the purpose of
providing housing that is available to employees of private sector tourism-related businesses in the
County in accordance with Ch. 2024-219, Laws of Florida.
ITEM BACKGROUND:
Chapter 2024-219, Laws of Florida, (SB 1456), was signed by the Governor and became effective on
July 1, 2024. It provides that counties designated as Areas of Critical State Concern (ACSC) which levy
both a tourist development tax pursuant to F.S. 125.0104 and a tourist impact tax pursuant to F.S.
125.0108 may use any accumulated surplus from such taxes collected through September 30, 2024, not
to exceed $35 million, for purposes of providing affordable housing, as defined in F.S. 420.0004, for
employees of private sector tourism-related businesses in the county. The restrictions must remain on
any residential dwelling units financed by these funds for a period of no less than 99 years. Expenditure
of such funds is subject to approval by a majority vote of the BOCC.
At its November 19, 2024, BOCC meeting, the BOCC directed staff to bring forth a Resolution
outlining the program and the process for evaluating potential projects which would qualify for funding.
Based on direction from the BOCC, as well as the input from various community stakeholders including
the Affordable Housing Advisory Committee and the Tourist Development Council, county staff has
developed a program resolution for use in evaluating potential projects.
The program shall be known as "The Monroe County Affordable Tourism Housing Program". The
program will be structured as follows:
• PURPOSE AND INTENT. The purpose and intent of the Program is to facilitate the purchase,
3
development, construction, and/or rehabilitation of affordable housing projects which meet the
Program guidelines and requirements as set forth in the Resolution, which may be amended from
time to time.
• DEFINITIONS.
A. Affordable shall have the same meaning as F.S. 420.0004, (i.e., for one or more natural
persons or a family, the total annual adjusted gross household income must be less than 120
percent of the median annual adjusted gross income for households within the state).
B. BOCC shall mean the Monroe County Board of County Commissioners.
C. Land Use Restriction Agreement (LURA) shall mean a deed restriction restricting the units
purchased, developed or rehabilitated using funding from this Program as affordable for a
period of no less than 99 years.
D. Private Sector Tourism-Related Businesses shall mean those businesses physically located
and operating within Monroe County, and who fall within one (1) or more of the following
2022 North American Industry Classification System(NAILS) Categories:
1. Sector 71. Arts, Entertainment, and Recreation.
2. Sector 72. Accommodation and Food Services.
3. Subsector 487 of Sector 48-49. Scenic and Sightseeing Transportation.
E. Program shall mean the Monroe County Affordable Tourism Housing Program.
F. Project(s) shall mean affordable residential housing consisting of one (1) or more
residential dwelling unit(s) and which meet the Program requirements.
G. Qualified Employees shall mean employees of private sector tourism-related businesses
who meet the affordable income qualifications and who possess no ownership interest in a
residential property in Monroe County or the contiguous counties of Miami-Dade and
Collier counties.
H. Surplus funds shall mean accumulated excess of revenue in an amount not to exceed
$35,000,000.00.
• PROGRAM GUIDELINES. The Program will provide financial assistance for the purchase,
construction, or redevelopment of affordable housing Projects subject to the following
guidelines:
A. Types of Projects
1. The following types of projects will be considered for complete or partial funding:
a. New construction of residential dwelling unit(s);
b. Rehabilitation of residential dwelling unit(s);
c. Purchase of existing parcel(s), developed or undeveloped;
d. Purchase of existing residential unit(s) or development(s); and/or
e. A mix of any of the above.
B. Types of Residential Units.
1. Projects should include the following type(s) of housing units, in order of preference:
a. studio /efficiency apartment(s);
b. 1 bedroom/ 1 bathroom apartment(s);
c. 2+bedroom/bathroom apartment(s); and/or
d. Family type units with multiple bedroom/bathrooms.
2. Projects with multiple residential units may include a mix of these types of
residential units.
C. Types of Qualified Employees
1. Projects should prioritize the following type(s) of Qualified Employees, subject to
affordability criteria, in order of preference:
a. Single employees;
b. Employees with dependents;
c. Entry-level employees; and/or
4
d. Managers.
D. Additional Considerations.
1. Any and all Projects which involve one or more of the following will be given
greater weight in consideration:
a. Projects which propose partnerships with existing governmental entities, i.e.,
Key West Housing Authority, Monroe County Housing Authority, Monroe
County Land Authority;
b. Projects which propose partnerships with existing non-profits that have
demonstrated the ability to develop affordable housing in Monroe County,
meaning who have developed at least ten(10) affordable housing units over the
past 5 years;
c. Scattered site(s) developments which utilize existing scarified single-family
lots that have no protected habitat;
d. Projects which propose allowing Monroe County to utilize the rental income,
after necessary deductions for administration, building reserves, etc., for
inclusion in a separate interest-bearing account to be used in the future to
provide additional affordable housing within Monroe County.
2. The following types of Projects shall not be funded:
a. Projects which are already funded and required to provide affordable housing;
and/or
b. Projects required to be built pursuant to inclusionary housing requirements
and/or development approvals linked to a market-rate and/or commercial
project.
3. Projects which shall also be considered, in no order of preference:
a. Public-Private Partnerships (P3s); and/or
b. Purchase of existing residential dwelling developments with a county lease
back to original owner for management and lease with required LURA
restrictions on the subject property.
• REQUIREMENTS. Any and all Projects selected for funding by Monroe County are subject to
the following requirements:
A. Application to Monroe County for funding;
B. Encumbrance of funding for a specific Project is subject to approval of a majority vote of
the BOCC by separate Resolution;
C. Prior to distribution of funds, recording of a LURA drafted and provided by the Monroe
County Attorney's Office;
D. No amount of the funding in this program may be used to develop commercial property;
E. Only rental residential dwelling unit(s) shall be considered;
F. Any other requirements in this Resolution, as may be amended from time to time; and
G. Any other requirements as may be outlined in the specific project funding Resolution, as
may be amended from time to time.
• COUNTY GUIDELINES.
A. The County Administrator shall facilitate the Program and delegate responsibilities of the
Program to county staff as deemed necessary in his/her sole discretion, which should
include, but not necessarily be limited to, an application process and a webpage. County
Administrator may enlist third-party reviewers or administrators for income and
employment verification.
B. Application package should include, at a minimum:
1. Detailed description of the project, including address/Parcel ID and business plan, if
applicable;
2. Included or potential building plans, if any;
5
3. Any current land restrictions;
4. Amount of funding requested and detailed documentation to support request.
C. Staff shall review and evaluate Project applicants and provide a written recommendation
to the BOCC for approval/disapproval of funding along with a draft Resolution, if
applicable. Staff may, in its discretion, seek additional information from the applicant(s)
prior to finalizing staff recommendations.
D. When reviewing and evaluating Projects, staff should consider allocation of the surplus
funds by the percentage of total funding earned within the geographical boundaries of the
tax collection districts as defined in Monroe County Code of Ordinances Chapter 23,
Article VI.
E. Funding shall only be issued after a project has received building permits and all funding
needed to complete the project has been approved as demonstrated by loan commitments,
to assure the project can be completed.
• TENANT ELIGIBILITY.
A. Only Qualified Employees who meet the affordable income qualifications in § 420.0004,
Florida Statutes, shall be eligible to apply for rental of any residential dwelling unit(s)
purchased and/or funded by this Program.
B. Tenants will be required to submit proof of eligibility at the time of application and again at
the time of annual lease renewal.
C. Only one full-time resident of the household needs to be, and remain, an employee of a
private sector tourism-related business for the household to qualify. All members of the
household must meet the affordable income limits, according to the local government
affordable housing regulations, which differ amongst local governments in the county.
• TENANT LEASE TERMS. Any and all leases to tenant(s) for dwelling unit(s)purchased and/or
funded by this Program shall meet the following requirements:
A. Shall be in writing;
B. Shall reference the LURA;
C. Any and all rental leases to tenant(s) shall be for a period of one (1)year.
D. Lease may only be renewed subject to the BOCC's rules of the Program which include, but
are not limited to, tenant income and employment eligibility.
E. Lease shall include an early termination provision in the event the qualified applicant(s)
is/are no longer eligible.
F. Maximum monthly rental rates shall not exceed the applicable annual Monroe County
Maximum Monthly Rental Rates unless the rental residential dwelling unit(s) is/are located
within the physical geographical boundaries of the City of Key West, Marathon, or
Islamorada. In that case, the tenant shall be subject to the City of applicable Cities'
Maximum Monthly Rental Rates for the respective income category.
PREVIOUS RELEVANT BOCC ACTION:
April 17, 2024 - Board directed staff to prepare an ordinance to allow for the authorized use of Tourist
Development and Tourist Impact Tax revenues as set forth in SB 1456.
May 15, 2024 - Board approved Ordinance No. 018-2024 which authorized "accumulated surplus"
funds to be transferred to an account to be held directly by the County or Land Authority for use in
accordance with provisions of SB 1456 with adoption of a policy or resolution setting forth the process
for distribution and expenditure of the accumulated funds to be approved by the Board at a later date.
August 21, 2024 - Board directed staff to bring back information to the Board concerning the collection
6
of tourist tax revenues.
September 11, 2024 - Board directed staff to bring back information from the Affordable Housing
Advisory Committee (AHAC) and the Tourist Development Council(TDC).
October 16, 2024 - Board directed staff to bring back information from AHAC and the TDC and seek
input from the cities regarding potential projects within their respective jurisdictions.
November 19, 2024 - Board heard the recommendations from AHAC and the TDC and gave direction
to county staff to bring forward a resolution at the next BOCC meeting setting forth program
parameters.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Resolution- MONROE COUNTY AFFORDABLE TOURISM HOUSING PROGRAM
C . 2 -219, haws of Fla.
Historic DAC Funding with 5-year Average
Tourist Development Council°s Responses to Questions from the BOCC
AHAC Resolution 04-2024
Florida Statute 420-0004
2022 NAICS Manual(Excerpt)
FINANCIAL IMPACT:
Resolution has no financial impact.
7
J4
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE Mayor James K.Scholl,District 3
The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2
Craig Cates,District 1
David Rice,District 4
Holly Merrill Raschem,District 5
Board of County Commissioners Meeting
June 18, 2025
Agenda Item Number: J4
2023-4092
BULK ITEM: No DEPARTMENT: Planning & Environmental Resources
TIME APPROXIMATE: STAFF CONTACT: Cheryl Cioffari/ Christine Hurley
N/A
AGENDA ITEM WORDING:
Approval of a resolution approving expenditure of$6,867,100.00 in surplus Tourist Development Tax
revenues, pursuant to Ch. 2024-2019, Law of Florida for acquisition funding of eleven (11) new
affordable housing units at 95295 Overseas Highway, Key Largo for the purpose of providing housing
that is affordable and available to employees of private sector tourism-related businesses and approving
an expenditure of$654,549.08 in infrastructure sales surtax revenues for acquisition of one (1) unit to
be used for the Monroe County Employee Housing Rental Program.
ITEM BACKGROUND:
Monroe County (the "County") is proposing to acquire land containing 12 new affordable housing units
with approved entitlements for an additional 16 units, including ROGO allocations on land located at
95295 Overseas Highway, Key Largo, with Parcel ID No. 00484390-000000. Eleven (11) of the 12
newly constructed units at the Subject Property will be solely occupied by households working in a
private sector tourism-related business. One (1) of the 12 units will be used for the County's Employee
Housing rental program. Of the $6,867,100.00 requested, staff recommends utilizing $1,519,180.00
from DAC 4 and $5,347,920.00 from DAC 5 as shown in the table below:
Monroe County Affordable Tourism Housing Program - Funding by District Advisory
Committee (DAC) boundaries
Encumbered DAC 1 DAC 2 DAC 3 TOTAL Project Totals
Projects: KW Stock Island West 7 mile LEMON, MMEM,
-
- 7 Mile Long Key MWAN91 MOM
Funding Available $16,868,243.00 $2,714,657.00 $6,273,123.00 $3,796,057.00$5,347,920.00 $35,000,000.00
1
Approved/proposed
encumbrances with $16,868,243.00$2,714,657.00$6,273,123.00 $2,276,867.00 $5,347,920.00
funds transferred
between DACs
Remaining Balance$- $- $- $ $
Prior to disbursement of any portion of the $6,867,100.00, the County shall sign and record a Land Use
Restriction Agreement (LURA) restricting use of the Subject Property to affordable housing in
accordance with section 380.0666(3)(a), Florida Statutes, for 99 years.
PREVIOUS RELEVANT BOCC ACTION:
April 17, 2024 - Board directed staff to prepare an ordinance to allow for the authorized use of Tourist
Development revenues as set forth in SB 1456.
May 15, 2024 - Board approved Ordinance No. 018-2024 which authorized "accumulated surplus"
funds to be transferred to an account to be held directly by the County or Land Authority for use in
accordance with provisions of SB 1456 with adoption of a policy or resolution setting forth the process
for distribution and expenditure of the accumulated funds to be approved by the Board at a later date.
August 21, 2024 - Board directed staff to bring back information to the Board concerning the collection
of tourist tax revenues.
September 11, 2024 - Board directed staff to bring back information from the Affordable Housing
Advisory Committee (AHAC) and the Tourist Development Council(TDC).
October 16, 2024 - Board directed staff to bring back information from AHAC and the TDC and seek
input from the cities regarding potential projects within their respective jurisdictions.
November 19, 2024 - Board gave direction for use of the accumulated surplus Tourist Development
Tax revenues collected through September 30, 2024 to be spent as closely as possible to the 5 year
average of where the funds were collected by District Advisory Committee (DAC) boundaries, in an
amount not to exceed $35 million for the purpose of providing housing that is affordable and available
to employees of private sector tourism-related businesses in the County in accordance with Ch. 2024-
219, Laws of Florida and to use the North American Industry Classification System (NCAIS) to define
"tourism related affordable housing".
December 11, 2024 - Board approved Resolution 544-2024 establishing the Monroe County Affordable
Tourism Housing Program and
setting forth the program qualifications, restrictions, and conditions for funding affordable housing
projects utilizing the accumulated surplus Tourist Development Tax revenues collected through
September 30, 2024, in an amount not to exceed $35 million for the purpose of providing housing that
2
9
is available to employees of private sector tourism-related businesses in the County in accordance with
Ch. 2024-219, Laws of Florida.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Resolution.S outhCliff.TDC.housing.06.1 8.25.revised 6.3.25 rbs.docx
Project.Funding.by.DAC.pdf
SouthCliff.Application.05.28.2025.pdf
Resolution 544-2024
Resolution 155-2022 MCEHR-P.pdf
FINANCIAL IMPACT:
Utilization of$6,867,100.00 from TDC Surplus consisting of$1,519,180.00 from DAC 4 and
$5,347,920.00 from DAC 5 for purchase of 11 units.
Utilization of$654,549.08 from 304 fund for purchase of one (1)unit.
3
10
Monroe County Monroe County Comprehensive Plan
Objective 601.1: To ensure that affordable housing
HousingAffordable opportunities are available throughout the entire community
and to maintain a balanced and sustainable local economy and
The goal of affordable housing programs in Monroe County the provision of essential services, Monroe County shall
implement...policies o reduce estimate affordable
is to facilitate access by residents to adequate and housing need for its workforce and households in the very
affordable housing that is safe, decent, and low,low,median and moderate-income classifications.
structurally sound, and that meets the needs of the
population based on type,tenure characteristics, unit Objective 601.2: Monroe County shall adopt programs and
size and individual preferencesa policies to encourage housing o various types, sizes and
rice ranges to meet the demands of current and future
(Monroe County Comprehensive Plan Goal 601)
residents.
The established income cattgoiries for affordable housing are defined in the Monroe County Code and based on household
income as a percentage of the median household income within the County. The median household income and
corresponding income ranges within each category are (;sa11Nkhecl a.nn uafly by the 1.).S. l)u;partrrrucn of II fo us'Mu .,, 11ncl i.lu~ban
i)c u,iol rn cnt 0 f I Jl )).In 2025,the Median Household Income for Monroe County went up substantially,therefore each income
category went up by a corresponding amount.
• Very Low Income=households earning up to 50%of county median income
• Low Income=households earning up to 80%of county median income
• Median Income=households earning up to 100%of county median income
• Moderate Income=households earning up to 120%of county median income
These income categories are also used for HUD's Federal housing programs, as well as by the Florida Housing Finance
Corporation(FHFC)for the State's housing programs. *Monroe County's income limits and maximum rent limits are generally
consistent with the income and rent limits for Florida Housing Finance Corporation's Multifamily Rental Programs, CWHIP
Homeownership Program, and others.*
MaxuirD(uumii ureints are set in the Monroe County Code,based on
Income Limits for Single Persons the nationally accepted guideline that a household pay no more
Household size 'Very Low Low Median Moderate than 30% of their monthly income towards housing. Both HUD
50% 80% 100% 120% and FHFC also use the 30% standard for establishing rent limits
1 Person $45,650 $73,000 $91,300 $109,560 in many of their housing programs.
2 Persons $52,100 $83,400 $104,200 $125,040
3 Persons $58,650 _ $93 850 S117,300 $140 760 Rental rates are calculated as 30% of the income limit for
4 Persons $65,150 $104,250 $130,300 $156,360 each income category, and are based on an assumed household
5 Persons) $70,350 $112,600 $140,700 $168,840 size for each type of unit(see below).
6 Persons $75,550 $120,950 $151,100 $181,320
7 Persons $80,800 $129,300 1 $Il 611,600 $193 92�0 Household Size Used to Establish Maximum Rent by Unit Type
8 Persons $86,000 $137,650 $172,000 $206,400 Efficiency 1 person
Per MCC 101-1.Affordable Hawmg efinitions One bedroom 2 persons
Two bedroom 3 persons
..............................................................................................
Three bedroom 4 persons
Income Limits for Married o w.r Domestic Partners Four or more bedroom 5 persons
wwwww...........................................oredro
" LDC Sect on 139 1(b)(6)i.
Household Sine 'Very LowLow Median Moderate
50% 80% 100% 120%
2Perscons $69,467 $111,200 $138,933 $166,720 Maximum Monthly-Rental Rates
3 Persons $78,200 $125,133 S156,400 $187,680
4 Persons $86,867 $139,000 $173,733 $208,480 Unit Size Very Low Love Median Moderate
5 Persons $93,800 $150,133 � $187,600 � $225,120 50010 800/e 1000/e 120%
E;ffficiencyl $1,141 $Il,825 l $2,283 l $2,739
6 Persons $100,733 $161,267 $241,467 $241,760 1 bedroom $1,303 $2;085 $2,605 $3,126
7Persons� $107,733 $172,400 � $215,467 � $258,560 2bedrooms $1,466 $2,346 $2,,933 $3,519
8 Persons $114,667 $183,533 $229,333 $275,200 3 bedrooms $1,629 $2,606 $3,258 $3,909
Per MCC 139-1(b)(6)0) 4+b-edroom $1,759.. $2,815 $3,518. $4,221
Per MCC§1 s9-l(b)(5)(i)ana.MCC§101-1.ATbrdabie Hauea q Defnniticin
--------------------------------------------
Funding for Affordable Housing is provided by various entities at the Federal, State, and Local level. Depending on the
funding source, development may be required to meet a specific income category. For example:
FHFC Low Income Housing Tax Credits(LIHTC):typically units must average 60%of AMI
FHFC SAIL Program:typically Very Low Income or 50%of AMI
Federal Community Development Block Grant-Disaster Recovery (CDBG-DR):Low Income or 80%of AMI
TDC Surplus funds:Moderate Income or 120%of AMI
11
How does affordable housing, subsidized with public funds, work?
Every affordable/workforce/publicly assisted housing project comes with "rules"from the granting agencies
(State, Federal) and we must use those grants or funding sources to create the maximum income levels we
serve and the maximum rents that can be charged.
In the United States the Federal Government established a benchmark for "affordability": NO MORE THAN
30% of a household income should go toward housing costs. If they pay more than that, they're considered
"cost burdened." The article at the below link explains this in more detail.
The state of affordable housing in the US I Pew Research Center
Further,the banking industry has been a"guiding force"for how much Americans pay for housing. The article
below shows how banks look at the maximum households should pay when considering housing loans. We
have seen changes in this arena: where 30% used to be the maximum amount of income that should go
toward housing, nowwe have some banks allowing 45% of someone's income to go toward housing expense.
The article at the below link explains this in more detail.
What Percentage Of Mv Income Should Go ToMortgage?—Forbes Advisor
What does this mean for Southcliff Apartments, purchased with funds ($35M) from the Tourist Development
Council(TDC)?
For Southcliff, we analyzed maximum income and rent set by the State of Florida based on Florida Statute
420.0004.We also reviewed rents in Key Largo at other affordable housing projects, such as Keys Lake Villas.
We found that property does not have 1-bedroom units. However, they are charging $2,300 per month for
their 2-bedrooms/1-bathroom units. We decided we would set rent at$2,995 because we are covering water,
sewer, and trash. We legally can charge less; but are waiting to see where this rate heads in the market.
Based on information in the tables below,you'll see that the maximum income and rent work in tandem with
each other (using the Federal guidance that indicates 30% of a household's income can go toward housing)
and if someone earns that type of income they can"afford"the rent. In the chart below, a 2-person household
can earn $125,040. Multiply that by 30%=$37,512. Divide that by 12 months to get the maximum monthly
rent that household can afford and you get the rent amount of$3,126.
The law that was passed that allowed us to use TDC funds for this housing was written with a maximum
income level of 120% of area median income.
The Countyjust purchased this property, and we are developing an analysis of all the expenses to operate and
manage the development.As everyone knows,wind and flood insurance, as well as other operating expenses,
are excessive, and property owners throughout the entire Florida Keys are facing challenges. The County's
goal is to operate this development without losing money and costing taxpayers funds to make up the
difference.
Finally, we partnered with the Housing Authority on two projects, one on Conch Key and one on Big Pine Key.
Based on the requirements of the funding used to build those units,they only allow occupants to earn 50% or
80% of AMI and the Housing Authority is having a hard time finding applicants whose income is under those
levels, creating a situation where we have vacant unrented units.
12
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RESOLUTION NO. 544 -2024
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, ESTABLISHING THE MONROE
COUNTY AFFORDABLE TOURISM HOUSING PROGRAM FOR
PURPOSES OF FUNDING AFFORDABLE HOUSING DEVELOPMENT
PROJECTS WHICH PROVIDE AFFORDABLE HOUSING AVAILABLE
TO EMPLOYEES OF PRIVATE SECTOR TOURISM-RELATED
BUSINESSES IN THE COUNTY IN ACCORDANCE WITH CH. 24-219, §
4, LAWS OF FLA.; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Ch. 24-219, Laws of Fla., (SB 1456) became effective on July 1, 2024; and
WHEREAS, Ch. 24-219, § 4, Laws of Fla., provides that counties, which are designated
as an Area of Critical State Concern (ACSC), and which levy both a tourist development tax
pursuant to F.S. 125.0104, and a tourist impact tax pursuant to F.S. 125.0108, may use any
accumulated surplus from such taxes collected through September 30, 2024, not to exceed $35
million, whether held by the county directly, or by a land authority in the county created pursuant
to F.S. 380.0663, for purposes of providing housing which is available to employees of private
sector tourism-related businesses in the county; and
WHEREAS, Ch. 24-219, § 4, Laws of Fla., further provides that any housing financed
with funds from the surplus may be used only for purposes of providing "affordable" housing, as
defined in F.S. 420.0004, for a period of no less than 99 years; and
WHEREAS, pursuant to F.S. 420.0004, for one or more natural persons or a family, the
total annual adjusted gross household income must be less than 120 percent of the median annual
adjusted gross income for households within the state; and
WHEREAS, Ch. 24-219, §4,Laws of Fla.,further provides that expenditure of such funds
is subject to approval by a majority vote of the BOCC; and
WHEREAS, in anticipation of Ch. 24-219, Laws of Fla.,becoming law, on May 15, 2024,
the Board of County Commissioners (BOCC)passed Monroe County Ordinance 018-2024,which
authorized the "accumulated surplus" funds to be transferred to an account to be held directly by
the County or Land Authority and authorized for use in accordance with state law; and
WHEREAS,within said Ordinance,the BOCC stated that"[t]he BOCC will adopt a policy
or resolution setting forth the process for distribution and expenditure of accumulated funds for
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affordable housing in accordance with the conditions as set forth in SB 1456"; and
WHEREAS, the BOCC wishes to adopt through resolution a policy setting forth the
program parameters, restrictions, and conditions for evaluation of potential affordable housing
projects which qualify for this funding and the subsequent distribution and expenditure of the
accumulated funds for selected affordable housing projects in accordance with the requirements
as set forth in Ch. 24-219, § 4, Laws of Fla.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA:
SECTION 1: RECITALS AND LEGISLATIVE INTENT. The foregoing recitals and
statements of legislative intent are true and correct and are hereby incorporated as if fully set forth
herein.
SECTION 2: PURPOSE AND INTENT. The Monroe County Affordable Tourism
Housing Program ("Program") is hereby established. The purpose and intent of the Program is to
facilitate the purchase, development, construction, and/or rehabilitation of affordable housing
projects which meet the Program guidelines and requirements as set forth in this Resolution,which
may be amended from time to time.
SECTION 3: DEFINITIONS.
(A) Affordable shall have the same meaning as § 420.0004, Florida Statutes.
(B) BOCC shall mean the Monroe County Board of County Commissioners.
(C) Land Use Restriction Agreement (L URA) shall mean a deed restriction restricting
the units purchased, developed or rehabilitated using funding from this Program
as affordable for a period of no less than 99 years.
(D) Private Sector Tourism-Related Businesses shall mean those businesses physically
located and operating within Monroe County, and who fall within one (1) or more
of the following 2022 North American Industry Classification System (NAILS)
Categories:
1. Sector 71. Arts, Entertainment, and Recreation.
2. Sector 72. Accommodation and Food Services.
3. Subsector 487 of Sector 48-49. Scenic and Sightseeing Transportation.
(E) Program shall mean the Monroe County Affordable Tourism Housing Program.
(F) Project(s) shall mean affordable residential housing consisting of one (1) or more
residential dwelling unit(s) and which meet the Program requirements.
(G) Qualified Employees shall mean employees of private sector tourism-related
businesses who meet the affordable income qualifications and who possess no
ownership interest in a residential property in Monroe County or the contiguous
counties of Miami-Dade and Collier counties.
(H) Surplus funds shall mean accumulated excess of revenue in an amount not to
exceed $35,000,000.00.
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SECTION 4: PROGRAM GUIDELINES. The Program will provide financial
assistance for the purchase, construction, or redevelopment of affordable housing Projects subject
to the following guidelines:
(A)Types of Projects
1. The following types of projects will be considered for complete or partial
funding:
a. New construction of residential dwelling unit(s);
b. Rehabilitation of residential dwelling unit(s);
c. Purchase of existing parcel(s), developed or undeveloped;
d. Purchase of existing residential unit(s) or development(s); and/or
e. A mix of any of the above.
(B)Types of Residential Units.
1. Projects should include the following type(s) of housing units, in order of
preference:
a. studio/efficiency apartment(s);
b. 1 bedroom / 1 bathroom apartment(s);
c. 2+bedroom/bathroom apartment(s); and/or
d. Family type units with multiple bedroom/bathrooms.
2. Projects with multiple residential units may include a mix of these types of
residential units.
(C)Types of Qualified Employees
1. Projects should prioritize the following type(s) of Qualified Employees,
subject to affordability criteria, in order of preference:
a. Single employees;
b. Employees with dependents;
c. Entry-level employees; and/or
d. Managers.
(D)Additional Considerations.
1. Any and all Projects which involve one or more of the following will be
given greater weight in consideration:
a. Projects which propose partnerships with existing governmental
entities, i.e., Key West Housing Authority, Monroe County
Housing Authority, Monroe County Land Authority;
b. Projects which propose partnerships with existing non-profits that
have demonstrated the ability to develop affordable housing in
Monroe County, meaning who have developed at least ten (10)
affordable housing units over the past 5 years;
c. Scattered site(s) developments which utilize existing scarified
single-family lots that have no protected habitat;
d. Projects which propose allowing Monroe County to utilize the
rental income, after necessary deductions for administration,
building reserves, etc., for inclusion in a separate interest-bearing
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account to be used in the future to provide additional affordable
housing within Monroe County.
2. The following types of Projects shall not be funded:
a. Projects which are already funded and required to provide
affordable housing; and/or
b. Projects required to be built pursuant to inclusionary housing
requirements and/or development approvals linked to a market-
rate and/or commercial project.
3. Projects which shall also be considered, in no order of preference:
a. Public-Private Partnerships (P3s); and/or
b. Purchase of existing residential dwelling developments with a
county lease back to original owner for management and lease
with required LURA restrictions on the subject property.
SECTION 5: REQUIREMENTS. Any and all Projects selected for funding by Monroe
County are subject to the following requirements:
(A)Application to Monroe County for funding;
(B)Encumbrance of funding for a specific Project is subject to approval of a majority
vote of the BOCC by separate Resolution;
(C)Prior to distribution of funds, recording of a LURA drafted and provided by the
Monroe County Attorney's Office;
(D)No amount of the funding in this program may be used to develop commercial
property;
(E) Only rental residential dwelling unit(s) shall be considered;
(F) Any other requirements in this Resolution, as may be amended from time to time;
and
(G)Any other requirements as may be outlined in the specific project funding
Resolution, as may be amended from time to time.
SECTION 6: COUNTY GUIDELINES.
(A)The County Administrator shall facilitate the Program and delegate responsibilities
of the Program to county staff as deemed necessary in his/her sole discretion,which
should include, but not necessarily be limited to, an application process and a
webpage. County Administrator may enlist third-party reviewers or administrators
for income and employment verification.
(B)Application package should include, at a minimum:
1. Detailed description of the project, including address/Parcel ID and
business plan, if applicable;
2. Included or potential building plans, if any;
3. Any current land restrictions;
4. Amount of funding requested and detailed documentation to support
request.
(C)Staff shall review and evaluate Project applicants and provide a written
recommendation to the BOCC for approval/disapproval of funding along with a
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draft Resolution, if applicable. Staff may, in its discretion, seek additional
information from the applicant(s)prior to finalizing staff recommendations.
(D)When reviewing and evaluating Projects, staff should consider allocation of the
surplus funds by the percentage of total funding earned within the geographical
boundaries of the tax collection districts as defined in Monroe County Code of
Ordinances Chapter 23, Article VI.
(E)Funding shall only be issued after a project has received building permits and all
funding needed to complete the project has been approved as demonstrated by loan
commitments, to assure the project can be completed.
SECTION 7: TENANT ELIGIBILITY.
(A)Only Qualified Employees who meet the affordable income qualifications in §
420.0004, Florida Statutes, shall be eligible to apply for rental of any residential
dwelling unit(s)purchased and/or funded by this Program.
(B)Tenants will be required to submit proof of eligibility at the time of application and
again at the time of annual lease renewal.
(C)Only one full-time resident of the household needs to be, and remain, an employee
of a private sector tourism-related business for the household to qualify. All
members of the household must meet the affordable income limits, according to the
local government affordable housing regulations, which differ amongst local
governments in the county.
SECTION 8: TENANT LEASE TERMS. Any and all leases to tenant(s) for dwelling
unit(s)purchased and/or funded by this Program shall meet the following requirements:
(A)Shall be in writing;
(B)Shall reference the LURA;
(C)Any and all rental leases to tenant(s) shall be for a period of one (1)year.
(D)Lease may only be renewed subject to the BOCC's rules of the Program which
include, but are not limited to, tenant income and employment eligibility.
(E)Lease shall include an early termination provision in the event the qualified
applicant(s) is/are no longer eligible.
(F) Maximum monthly rental rates shall not exceed the applicable annual Monroe
County Maximum Monthly Rental Rates unless the rental residential dwelling
unit(s)is/are located within the physical geographical boundaries of the City of Key
West, Marathon, or Islamorada. In that case, the tenant shall be subject to the City
of applicable Cities' Maximum Monthly Rental Rates for the respective income
category.
SECTION 9: CONSTRUCTION AND INTERPRETATION. This Resolution, being
necessary for the health, safety, and welfare of the residents of and visitors to Monroe County,
shall be liberally construed to effect(uate) the public purpose(s) hereof. Interpretation of this
Resolution shall be construed in favor of the Monroe County Board of County Commissioners,
and such construction and interpretation shall be entitled to great weight in adversarial
administrative proceedings, at trial, in bankruptcy, and on appeal.
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SECTION 10: NON-RELIANCE_BY NON-PARTIES AND NO THIRD-PARTY
RIGHTS OR BENEFICIARIES. Nothing contained herein shall create or be construed :or
interpreted to create any relationship,contractual or otherwise,with,or any rights in favor of, any
third party. No person or,entity shall be entitled to rely upon this Resolution or any provision
hereof to enforce or attempt to enforce any claim or entitlement to or benefit of any service or,
program contemplated hereunder.
SECTION.11: SECTION HEADINGS. Section headings have been inserted into this
Resolution as a matter of convenience for reference only,and shall not be used in the interpretation
or construction of this Resolution or any part thereof.
SECTION 12: NO LIABILITYY. Monroe County expressly reserves and in no way shall
be deemed to have waived,for itself or for its officer(s), employee(s), or agent(s), any sovereign,
governmental, and other similar defense, immunity; exemption, or protection against any suit,
cause-of-action, demand, or liability.
SECTION 13 SEVERABILITY. If any provision of this Resolution, or any part or
portion thereof, is held to be invalid or unenforceable by.any administrative hearing officer or
court of competent jurisdiction,the invalidity or unenforceability of such provision, or any part or
portion thereof, shall neither limit or impair the operation, enforceability;or validity of any other
provision of this Resolution,or any remaining part(s)or portion(s)thereof All other provisions of
this Resolution and remaining part(s)or portion(s)thereof,shall continue unimpaired in full force
and effect.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida,
=at a regular meeting of said board on the 1 l th day of December 2024.
Mayor James K. Scholl Yes
Mayor Pro Tern Michelle Lincoln Yes
Commissioner Craig Cates Yes
Commissioner David Rice Yes _ .s
Commissioner Holly Merrill Raschein Yes
(SEAL) '
BOARD OF COUNTY COMMISSIONERS'
g 11�TTES1EVIN MADOK,CLERK OF MONROE COUNTY,FLORIDA
By:
DE UTY CLERK AYOR/CHAIRPERSON
APPROVED AS TO FORM&LEGAL SUFFICIENCY
Monr a ounty Attorney's Office
thalia Melues'Archei
Ass tant County Attorney
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