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Ned Murray, PHD, AICP

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FLORIDA CHAPTER OF THE AMERICAN PLANNING ASSOCIATION. September 8, 2005. Ned Murray, PHD, AICP ... James Carras, 954.415.2022, carras_at_bellsouth.net ... – PowerPoint PPT presentation

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Title: Ned Murray, PHD, AICP


1
Where does it fit? Inclusionary Zoning and the
Affordable Housing Puzzle FLORIDAS
RENAISSANCEANNUAL CONFERENCE 2005FLORIDA
CHAPTER OF THE AMERICAN PLANNING
ASSOCIATIONSeptember 8, 2005
2
Speakers
  • Dr. Ned Murray, FIU Metropolitan Center,
    305.349.1444 murrayn_at_fiu.edu
  • James Carras, 954.415.2022, carras_at_bellsouth.net
  • Danny Bivins, Tarragon South, dbivins_at_tarragonsout
    h.com, (954) 712-2755

3
Overview
  • COLLECTING THE PIECES OF THE PUZZLE
  • The Affordable Housing Needs Assessment
  • Ned Murray, Ph.D., AICP
  • ASSEMBLING THE PUZZLE
  • Affordable Housing Tools
  • Jim Carras, Development Finance Counsel
  • FROM PUZZLE TO PICTURE
  • Building Affordable Housing in Your Community
  • Danny Bivens, VP, Tarragon South Corporation

4
Collecting the Pieces of the Puzzle The
Planners Perspective
  • The Affordable Housing Needs Assessment

5
Affordable Housing Needs Assessment
  • Primary Elements
  • Housing Demand Analysis
  • Housing Supply Analysis
  • HMDA/CRA Analysis
  • Development Feasibility Analysis
  • Supply and Demand Impact Assessment

6
Affordable Housing Needs Assessment Housing
Demand Analysis
  • Overview of city/county housing and economic
    development activity
  • Population and household characteristics and
    trends
  • Mobility of the population
  • Household income by renter and owner households
  • Economic development and employment growth
  • Occupation and income analysis of existing and
    emerging populations
  • Wage rates and relation to housing affordability
  • Forecast of housing market demand by type and
    price.

7
Affordable Housing Needs Assessment Housing
Supply Analysis
  • Housing inventory by type, age and condition
  • Existing housing values and rents
  • Profile of existing residential developments
  • Assessment of current and projected residential
    development activity
  • New and existing housing sales trends
  • Apartment rent trends
  • Apartment vacancy rates
  • Apartment and condominium absorption activity
  • Workforce housing supply and demand analysis
  • Market appreciation estimates for owner and
    renter units

8
Affordable Housing Needs Assessment Home
Mortgage Disclosure Act Analysis
  • Determine the level of activity of local lenders
    in affordable housing financing
  • (Analyze Home Mortgage Disclosure Act data)
  • Help define local lenders role in affordable
    housing development strategies
  • (Review CRA ratings and HMDA data and convene
    discussion)

9
Affordable Housing Needs Assessment Development
Feasibility Analysis
  • Purpose
  • To provide a clear understanding of development
    costs, ROI and gap financing required to produce
    affordable housing units
  • Calculate development feasibility based on the
    following criteria
  • Income ranges
  • Sale price points and rent ranges
  • Unit sizes and construction types
  • Densities

10
Affordable Housing Needs Assessment Supply
Demand Impact Analysis
  • Purpose
  • Determine the correlation and level of impact of
    current and projected housing supply and demand
    on future housing accessibility, affordability
    and economic sustainability.
  • Analysis includes
  • Assessment of the balance between current and
    projected housing supply and current and future
    housing demand by geographic sub-area.
  • Housing affordability gap analysis for homeowner
    and renter markets by geographic sub-area.
  • Assessment of current and projected housing
    supply and demand factors on employment and
    economic growth.

11
Assembling the Puzzle The Partnership
Perspective
  • Affordable Housing Tools

12
Affordable Housing Tools
  • Ways to encourage the development of housing
    that is affordable
  • Update local zoning ordinances
  • Utilize good land use practices
  • Acquire sources of long-term funding
  • Develop partnership models

13
Affordable Housing ToolsInclusionary Zoning
  • What is it?
  • Inclusionary Zoning involves the development of a
    percentage of residential units at affordable
    costs
  • Is it for your community?
  • Advantages
  • Creates ongoing affordable housing stock
  • Less public subsidies needed
  • Integrates families of all income levels
  • Eliminates pockets of high poverty
  • Prevents sprawl by intensifying densities
  • Disadvantages
  • Developers asked to solve a social problem
  • Costs are passed on to market rate homebuyers

14
Affordable Housing ToolsInclusionary Zoning
  • Offering Incentives
  • Density Bonus
  • Build additional market rate units without
    acquiring additional land
  • Fee Waiver
  • Waive impact or permit fees
  • Fast Track Permitting
  • Streamline and expedite permitting process
  • Design Flexibility
  • Reduce number of parking spaces
  • Reduce setbacks, minimum lot size
  • Direct Subsidies
  • Award grants or payment per affordable unit built
  • Publicly fund infrastructure needs
  • Tax Abatement
  • Waive property tax

15
Affordable Housing ToolsInclusionary Zoning
  • Allowing Alternatives
  • Fee In-Lieu - Developer pays a fee for units not
    built
  • Collected into a fund to build affordable units
    elsewhere
  • Varying calculation to determine amount (per
    unit, per square foot, etc)
  • Some require larger fee than cost to build units
  • Off-Site Construction - Developer builds units on
    an alternate site
  • Some require a greater percentage of affordable
    units
  • Land Dedication - Developer donates land for
    future affordable units
  • Often developed by profit/non-profit partnership
  • Best in areas where land is limited
  • Credit Transfer - Developer credits required
    units to another project
  • Similar to off-site construction

16
Affordable Housing ToolsInclusionary Zoning
  • Striking a Balance
  • Mandatory vs. Voluntary
  • Mandatory Difficulty in gaining public support
  • Voluntary Fewer units created
  • Percentage of affordable units
  • Too low Not enough affordable units created
  • Too high Income from market rate units will not
    subsidize development costs
  • Size of qualifying developments
  • Too small projects become unfeasible without
    alternatives
  • Too large may encourage developers to only
    build below threshold
  • Targeted income group
  • Lower More subsidizes necessary and fewer units
    created
  • Higher Less needy families assisted
  • Incentives
  • Too few Advantages do not outweigh costs of
    development
  • Too many City over-subsidizes projects

17
Affordable Housing ToolsInclusionary Zoning
  • Striking a Balance (cont)
  • Alternatives
  • Advantage Maximizes number of units developed
  • Disadvantage Reduces dispersal and integration
    of mixed-income families
  • Length of affordability
  • Short time loss of units over time
  • Long time may not have most deserving families
    occupying units
  • Resale Restrictions
  • Advantage Maintain units at affordable prices
  • Disadvantage Homebuyer does not build equity in
    their home

18
Affordable Housing ToolsLand Use
  • Infill Development
  • Restoration of existing structures or use of
    vacant land within urbanized areas
  • Zero Lot Line (ZLL)
  • Additional apartments added to current housing
  • Advantages
  • Density lowers land costs
  • Mixed use reduces infrastructure needs
  • Reduces sprawl and preserves land

19
Affordable Housing ToolsLand Use
  • Smart Growth New Urbanism
  • Development of mixed use, dense town centers
  • Urban Growth Boundary
  • Urban/Rural boundary is created to encourage
    dense, urban development and land preservation
  • Advantages
  • Density lowers land costs
  • Mixed use reduces infrastructure needs
  • Green building design lowers energy costs
  • Reduces sprawl and preserves land

20
Affordable Housing ToolsLand Use
  • Community Land Trust
  • Separates the ownership of the house and the
    land
  • Non-Profit organization owns land for future
    affordable housing development
  • Offers long term leases to individuals,
    community groups, and businesses
  • Advantages
  •  Permanent affordable homeownership
  • Provides access to land, the most valued
    resources in development

21
Affordable Housing ToolsFunding
  • Trust Funds
  • Funds generated through Real Estate Transfer
    Tax, Stamp Tax, or Bonds
  • Permanent cash flow
  • Double Bottom Line Development
  • Investors driven by community development
  • Satisfies both financial and social objective
  • Conventional
  • HOME, SHIP, CDBG, Low-income Tax Credits
  • Federal allocations

22
Affordable Housing ToolsPartnerships
  • Public/Private Partnership
  • Collaboration of stakeholders from diverse
    backgrounds within both the public and private
    sector
  • Regional
  • City/County
  • Public/Private
  • Advantages
  • Information sharing
  • Division of labor
  • Utilize others strengths
  • Improved efficiency and cost effectiveness
  • Mutually beneficial outcomes

23
Affordable Housing ToolsPartnerships
  • Public/Private Partnership
  • Broward Housing Partnership, Inc.
  • www.browardhousingpartnership.org
  • Successes
  • Over 70 organizations involved private, public
    and community
  • Diverse representation of participants
  • Affordable Housing Summit
  • Education
  • Consensus building on solutions
  • Housing Needs Assessment
  • Strategic Plan

24
Affordable Housing ToolsLocal Solutions
  • Initiate public outreach and education programs
  • Develop public/private partnership among
    stakeholders
  • Determine applicable policy solutions
  • Advocate for policy change
  • Identify long term funding sources
  • Increase ability of residents to own homes while
    ensuring development of rental units
  • Create new affordable units while preserving
    existing affordable housing

25
From Puzzle to Picture The Developers
Perspective
  • Building Affordable Housing in Your Community

26
Building Affordable Housing
  • Site Selection
  • Urban infill
  • Underutilized parcel
  • Adjust deal to site
  • Force Partnerships
  • Educate "approvers
  • Maintain flexibility
  • Admit when your wrong (or when "they" are right)
  • Ethical development
  • The Real Deal

27
Building Affordable HousingTeachers Village
28
Building Affordable HousingTeachers Village
29
Building Affordable HousingTeachers Village
  • Purchase of Units Affordability Preservation
  • Broward County School Board - Reserves 50 slots
    for teachers for 20,000 each (total investment
    1 million)
  • Teacher can buy if he or she
  • Agrees to 20,000 forgivable loan
  • Works at an urban/low income school
  • Uses loans to buy home from LLTV (TSDC)
  • Adheres to seed restriction-can only sell to
    other teacher
  • Complies by Broward Housing Partnership
  • Verify purchase and sale
  • 5 fee per transaction
  • Must be used for affordable
  • Housing in Broward County

30
Building Affordable HousingTeachers Village
  • Broward County School Board (BCSB)
  • Required Contribution
  • 20,000 needed for each teacher to make a deal
    work (returns)
  • BCSB has investment in program (skin in game)
  • Teachers have five year investment (retention)
  • Money paid back to BCSB to re-invest in future
    loans
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