EXCLUSIVE
PALM BEACH COUNTY REPORT
HOME
MATTERS
REPORT FROM THE FLORIDA HOUSING COALITION
2015
QUICK FACTS: Palm Beach County isn’t paradise if you can’t afford housing. • Nearly 72,000 very low-income households—including hardworking families, seniors, and people with disabilities—pay more than 50% of their incomes for housing. • On a single day in January 2015, 1,421 people in Palm Beach County were staying in homeless shelters or on the streets. • Of the 15 most common occupations in the West Palm Beach metropolitan area, only one pays over $18.56/hour, the “housing wage” for a 1-bedroom apartment at Fair Market Rent. • Palm Beach County had an estimated 40,000 low-income households who could benefit from owning a modest home. However, only about 4,000 homes were sold as primary residences at or below the median price of $246,010.
A REPORT FROM THE FLORIDA HOUSING COALITION
WHY DOES HOME MATTER? The health, safety, and welfare of Palm Beach County and the strength of its economy hinges on an adequate supply of affordable housing for working families, elders, and people with disabilities living on fixed incomes.
AFFORDABLE HOUSING REDUCES TAXPAYER EXPENSES • Affordable, community-based housing for seniors and people with disabilities is about one-third of the cost of institutional care. • Chronically homeless persons often cycle through jails, hospitals, and other crisis services. Permanent supportive housing for this high-need population can reduce taxpayer costs by about $20,000 per person per year. • Affordable housing can improve the health and educational outcomes of low-income families and children, reducing the public costs associated with illness and poor school performance.
AFFORDABLE HOUSING BOOSTS THE ECONOMY • Money spent on affordable housing construction and rehabilitation has a ripple effect on local economies. Contractors and suppliers spend money on materials and labor, and workers spend their earnings locally. • For Fiscal Year 2015-2016, Palm Beach County and its four largest cities are estimated to receive a total of $6.52 million in State Housing Initiatives Partnership (SHIP) funds, creating 675 jobs and generating nearly $85 million in positive economic impact.
The Florida Housing Coalition has produced this report in support of Home Matters® (www.HomeMattersAmerica.com), a national movement to make Home a reality for everyone by elevating the importance of Home’s impact on people’s health, education, personal success, public safety, and the economy. Participating in Home Matters is a coast-to-coast coalition composed of members of the general public, leaders of housing and community development organizations, as well as other organizations concerned about increasing the positive impact of Home in their communities.
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1
HOME MATTERS 2015 SECTION ONE:
Introduction Home is the foundation of a vibrant community like Palm Beach County. Home is our foothold in the neighborhoods where our children play and go to school. It is where we rest after a hard day’s work, where we store our belongings, where our children do their homework. And for those of us who own homes, they are often our single greatest source of wealth. For many low-income residents in Palm Beach County, however,
a decent house or apartment exceeds what many low-income
their housing is a source of stress rather than respite. Thousands
families can afford to pay in rent or mortgages. Additionally, in
of working families are paying more than they can afford for
desirable communities like Palm Beach County, more affluent
housing, and cutting back on necessities like nutritious food and
homebuyers and renters bid up the price of even relatively modest
health care as a result. Other low-income families respond to
housing. As a result, many low- to moderate-wage workers, and
high housing costs by living in substandard housing, doubling
people living on fixed incomes due to age or disability, are priced
up with family and friends, or moving frequently, all of which
out. To correct the mismatch between average housing prices
have negative impacts on their health, their children’s education,
and what low- and moderate-income residents can afford to pay,
and the wider community. By contrast, an adequate supply of
Palm Beach County should continue to provide incentives and
affordable housing helps families put down roots, stay healthy
enhance existing local programs that make it profitable for private
and get ahead.
developers to invest in affordable housing. These incentives come from public-private partnerships among lenders, real estate
What is Affordable Housing?
professionals, community-based nonprofit organizations, and
In addition to being a basic human need, housing is a market
local, state, and federal government agencies. Affordable housing
commodity. However, the cost of constructing and maintaining
funders typically impose high standards for building quality and
Every partner and every funding source in this community effort —
public, private, and nonprofit — is an essential piece of the puzzle.
Private Sector Partners
Lenders, For Profit Developers, Builders, and Real Estate Professionals
Public Sector Partners
Federal, State, and Local Governments 2
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Nonprofit Partners
Nonprofit Developers, Service Providers, and Foundations
A REPORT FROM THE FLORIDA HOUSING COALITION
property management. Every partner and every funding
costs $30,323 annually, compared to over $109,000
source in this community effort—public, private, and
for an intermediate care facility. Homeless persons
nonprofit—is an essential piece of the puzzle.
with severe mental illness, meanwhile, are often
The remainder of this section summarizes the benefits of affordable housing and provides a brief overview of Palm Beach County. Section 2 presents data on the need for affordable housing among low-income households in Palm Beach County, including those
heavy users of public crisis services such as jails and emergency rooms. A study in Central Florida estimates that permanent supportive housing for chronically homeless individuals saves taxpayers an estimated $20,000 per person per year3.
in housing and those who are homeless. Section 2
Health and Education Benefits
also explores the influence of prevailing wages on
Housing plays a major role in our physical and men-
housing cost burden, the tradeoffs that families must make between housing and transportation costs, and the implications of regional commuting patterns. Sections 3 and 4 explore drivers of housing cost burden for low-income renters and owners, respectively, in more detail.
Finally, Section 5
describes the role of the Sadowski Housing Trust
tal health. For low-income individuals and families, lack of affordable housing can have a multitude of negative effects:
• Families in unaffordable housing are likely to cut back on nutritious food and health care4.
• Substandard housing poses a variety of health hazards. Dust, mold, and cockroaches can cause
Funds and other tools in crafting solutions to the
asthma and allergies, and peeling lead paint can
affordable housing challenges in Palm Beach County.
reduce IQs and cause behavioral problems in children. Unsafe structural conditions, such as faulty
The Benefits of Affordable Housing
wiring, increase the risk of fire and injury5,6.
Economic Benefits Affordable
housing—like
development—is
an
any
other
economic
housing
powerhouse.
Construction and rehabilitation creates local jobs directly, as well as creating business for local suppliers, who in turn hire new workers to meet the increased demand. The workers provide a further boost to the economy by spending their wages at local restaurants, grocery stores, and other businesses.
Once the
development is finished and occupied, the residents create demand for ongoing jobs to meet their needs1. In addition, affordable housing programs are less
• Many low-income families move frequently or double up with friends and relatives if they cannot find affordable housing. Frequent moves are associated with stress and depression, and overcrowding has been linked to poor health in children7,8.
• Homelessness exacerbates a person’s pre-existing health problems, and living on the streets or in shelters poses unique health risks (including tuberculosis, violence, and exposure to weather). Homelessness also makes it difficult to rest and recuperate after illnesses, find a place to store medications, and keep wounds clean and dry9.
costly to taxpayers than providing social services
Many of the health problems associated with a lack of
to persons who are elderly, have disabilities, or are
affordable housing are closely connected to children’s
homeless or precariously housed. According to an
educational performance.
AARP report , Medicaid-funded nursing home care
to lead paint is known to cause developmental de-
in Florida for seniors and people with disabilities
lays in children, while asthma from exposure to dust
cost over $30,000 annually per person served,
and mold can cause children to miss school and fall
compared to less than $10,400 for Medicaid Home
behind. Frequent moves, overcrowding, and home-
and Community-Based Services (HCBS). For an
lessness have also been linked to lower educational
individual with developmental disabilities, HCBS
attainment in children10.
2
For example, exposure
WHAT IS AFFORDABLE HOUSING? Misconceptions about affordable housing are widespread, with many citizens associating it with large, distressed public housing projects in central cities. However, plenty of public housing authorities in communities around the nation, large and small, are wellmanaged and have decent units. Furthermore, public housing is only one type of affordable housing. In this report, “affordable housing” refers to privately owned housing that receives a subsidy to bring its rent or purchase price down to a level affordable to a low-or moderateincome family. Except for the subsidy, affordable housing is indistinguishable from market-rate housing— it has the same architectural and landscaping styles, and often has basic amenities like energy efficient appliances and community gathering spaces. Substandard housing is, by definition, not affordable housing.
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3
HOME MATTERS 2015
If a lack of affordable housing can contribute to ill health
HOUSING PLAYS A MAJOR ROLE
IN OUR PHYSICAL AND MENTAL HEALTH. For low-income individuals and families, lack of affordable housing can have a multitude of negative effects:
Food & Health Care Families in unaffordable housing are likely to cut back on nutritious food and health care.
and educational problems among low-income families and children, then affordable housing is the foundation for good health and achievement in school. For example, a study in Boston found that children in subsidized housing were 19% less likely to be food insecure and 35% more likely to be in good health than children whose families were on the waiting list for subsidized housing11. Additionally, both subsidized rental housing and homeownership have been linked to better educational outcomes for children12,13 .
Overview of Demographic, Housing, and Economic Characteristics Palm Beach County is the third most populous county in the State of Florida, and is similar in many ways to the
Health Hazards Dust, mold, and cockroaches can cause asthma and allergies, and peeling lead paint can reduce IQs and cause behavioral problems in children. Unsafe structural conditions, such as faulty wiring, increase the risk of fire and injury.
state as a whole (Table 1). The County has a comparable racial and ethnic profile, and similar rates of labor force participation, unemployment, and poverty. Palm Beach County has a higher median household income ($51,804 compared to $46,036), but its housing costs are higher as well. The County’s median gross rent was the state’s 3rd highest in 2013, while median monthly housing costs for homeowners with mortgages were the state’s 4th highest14. The County also has a higher homeownership than the state
Stress & Depression Frequent moves are associated with stress and depression, and overcrowding has been linked to poor health in children.
(70% compared to 65%), and elderly people make up a larger share of the population (23% compared to 19%). These characteristics have implications for the appropriate mix of affordable housing policies and options in a local community. For example, a relatively high percentage of elderly residents highlights the need for options that help elders live independently, such as funding for emergency repairs, accessibility retrofits, energy conservation
Exacerbated Health Problems Living on the streets or in shelters poses unique health risks. Homelessness also makes it difficult to rest and recuperate after illnesses, find a place to store medications, and keep wounds clean and dry.
measures, and development of handicapped-accessible rental housing. SECTION 2:
Housing Cost Burden and Related Factors Low-Income, Cost Burdened Households in Palm Beach County Housing is generally considered affordable if it costs no more than 30% of a household’s income. Households who pay more than this amount are considered “housing cost
4
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A REPORT FROM THE FLORIDA HOUSING COALITION
Table 1: Basic Comparison Data for Palm Beach County and the State of Florida in 2013. (Source: American Community Survey [ACS] 2013 1-year estimates, Bureau of Labor Statistics 201315.)
Variable
State of Florida
Palm Beach County
19,552,860
1,372,171
White/Caucasian Percent of Population
76%
75%
Black/African-American Percent of Population
16%
18%
Hispanic/Latino Percent of Population*
24%
20%
Homeownership Rate
65%
70%
$46,036
$51,804
$1,368
$1,643
Median Gross Rent
$972
$1,132
Percent of Population 16 and Older in Civilian Labor Force
59%
60%
Unemployed Percent of Civilian Labor Force
7%
7%
Poverty Rate
17%
15%
Elderly (65 and older) Percent of Population
19%
23%
Population
Median Household Income Median Monthly Owner Costs (households with a mortgage)
*Hispanic and Latino are ethnicity categories, which the Census Bureau counts separately from race. Hispanic and Latino individuals may belong to any race.
burdened”. This is not a perfect benchmark, since it is applied equally
Figure 1 shows the distribution of cost burden and incomes
at all income levels. However, it is a reasonable standard for most
among households in Palm Beach County and the state as a whole.
low-income households. Other analyses of housing affordability
Palm Beach County has approximately 150,000 low-income, cost
focus on household who are “severely cost burdened”, or paying more
burdened households, accounting for 28% of all households. Of
than 50% of their incomes for housing. See the Sidebar on p. 7 for a
these 150,000 households, 36% are headed by an elderly person (65
discussion of terms related to housing costs and incomes.
or older), and 28% have a member with disabilitiesa.
There is overlap between low-income, cost burdened households headed by an elderly person, and those with a member with disabilities.
a
Figure 1. Low-Income, Cost Burdened Households in Palm Beach County and the State of Florida in 2013. (Source: Custom tabulations by the Shimberg Center for Housing Studies, 2015a16.)
Palm Beach County
State of Florida 94,606 households
18% 10%
16%
55,463 households
11% 60%
59% 13%
Low-Income, Severely Cost Burdened
Low-Income, Moderately Cost Burdened
13%
Low-Income, Not Cost Burdened
Not Low-Income
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5
HOME MATTERS 2015
Over 94,000 households—18% of all households in Palm Beach
As Section 4 notes, low-income households can sustain mortgages
County—are low income and severely cost burdened.
if the principal, interest rate, and fees are reasonable.
The
prevalence of severe cost burden among low-income households is only marginally higher in Palm Beach County than in the state as a whole, which may surprise many local stakeholders. The similarities in cost burdens among income groups probably reflects the fact that “low-income” is defined relative to the Area Median Income, which is relatively high in Palm Beach County. Nonetheless, in human terms, the County’s prevalence of housing
Between 2005 and 2013, the cost burdened share of low-income households increased minimally in Palm Beach County, from 68% to 69%. The increase in severe cost burden among low-income households was marginally higher, from 41% to 44%17. However, when the data is broken down by tenure and income bracket, some households experienced higher increases in severe cost
cost burden is cause for concern.
burden, as shown in Table 2. Renters between 50.01% and 80%
Figure 2 shows the prevalence of severe cost burden by household
percentage points), followed by ELI renters (8 percentage points).
tenure and income bracket in Palm Beach County. Not surprisingly, extremely low-income households (ELI; see Sidebar) have the highest rate of severe cost burden for each tenure type. Renters are considerably more likely than owners without mortgages to be severely cost burdened—for example, 72% of ELI renters are severely cost burdened, compared to 52% of owners without mortgages. However, the prevalence of severe cost burden is highest among homeowners with mortgages, ranging from 44% in the 50.01-80%
AMI experienced the largest increase in severe cost burden (11 For the former group of renters, the increase in severe cost burden drove the increase in overall cost burden (12 percentage points). For the latter group, the overall increase in cost burden was very small (0.4 percentage points), since the increase in severe cost burden was offset by a decrease in moderate cost burden. This suggests that housing costs as a share of income have increased among ELI households that were already cost burdened.
AMI bracket to 80% in the ELI bracket. This probably reflects the
Overall, these results are not surprising. In a 2013 report on rental
legacy of subprime mortgages made in Palm Beach County, but also
housing in the United States, Harvard’s Joint Center for Housing
shows that homeownership with a mortgage is inherently costly.
Studies found that increases in cost burdens among low-income
a
There is overlap between low-income, cost burdened households headed by an elderly person, and those with a member with disabilities.
Figure 2: Prevalence of Severe Housing Cost Burden by Tenure and Income Bracket in Palm Beach County in 2013. (Source: Shimberg Center, 2015a.)
PERCENT OF HOUSEHOLDS THAT ARE SEVERELY COST BURDENED
80
72%
Renters
73%
71%
Owners with Mortgages
70
Owners without Mortgages
58%
60
52%
50
44%
40 30
25%
20
12%
10 0
6
80%
30% of AMI or lower
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
30.01% to 50% of AMI
8%
50.01% to 80% of AMI
A REPORT FROM THE FLORIDA HOUSING COALITION
renters over time have occurred mainly among households with moderately low incomes. Among the lowest-income renters, the share of cost burdened households did not increase much, but were extremely high to begin with18. While the prevalence of cost burdens by income bracket and tenure suggests which households are most vulnerable, the absolute numbers of cost burdened households have implications for the appropriate mix and scale of affordable housing strategies. Table 3 shows the number of severely and moderately cost burdened households by tenure and income bracket in Palm Beach County. Severely cost burdened ELI renters are the single largest group (24,335 households), although substantial numbers of ELI owners and households above the ELI threshold are also severely cost burdened. Policy makers often focus on very low-income (VLI) households with severe cost burdens (see Sidebar). Palm Beach County has 71,875 VLI households (39,777 renters and 32,098 owners) with severe housing cost burden.
Homelessness When a household’s rent or mortgage payments compete with other basic needs, such as food and healthcare, they are at risk of homelessness. The County’s homeless population peaked during the recession years and has since declined, similar to statewide homelessness trends. In its 2015 Point-in-Time [PIT] Countb, Palm Table 2. Changes in Cost Burden between 2005 and 2013 in Palm Beach County, by Tenure and Income Bracket. (Source: Shimberg Center, 2015a.)
Overall cost burden (moderate and severe) Owner Households with Mortgage
Percentage Point Change 2005 - 2013 30% AMI 30.01 to 50.01 to or Less 50% AMI 80% AMI 4%
-1%
-2%
Owner Households without Mortgage
-0.1%
-6%
5%
Renter Households
0.4%
2%
12%
Severe cost burden
Percentage Point Change 2005 - 2013 30% AMI or Less
30.01 to 50% AMI
50.01 to 80% AMI
Owner Households with Mortgage
-2%
-3%
6%
Owner Households without Mortgage
7%
-5%
4%
Renter Households
8%
1%
11%
Terminology for
Income & Housing Cost Burden According to the federal government and the State of Florida, housing is affordable if it costs no more than 30% of a household’s gross income. This includes rent or mortgage payments, utilities, and property taxes and insurance, if applicable. If housing costs more than 30% of a household’s income, but no more than 50%, the household is considered “moderately cost burdened”, and a household paying more than 50% of its income for housing is “severely cost burdened”. Florida Statutes and certain federal housing programs define “low-income” (or “LI”) households as those who earn no more than 80% of the Area Median Income (AMI)—the median income for households of their size within their geographic area. Federal housing assistance programs usually calculate AMI for metropolitan areas, portions of large metropolitan areas, and nonmetropolitan counties within a state. “Very low-income” (VLI) households are those that earn no more than 50% AMI, and “Extremely low-income” (ELI) households earn no more than 30% AMI. In this report, the term “low-income” includes all households at or below 80% AMI, and “very low-income” includes all households at or below 50% AMI. Thus, all ELI households are also classified as VLI and LI, but the reverse is not true. In Florida, the term “moderate-income” generally refers to households with incomes higher than 80% AMI, but no higher than 120% AMI.
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7
HOME MATTERS 2015
Table 3. Number of Cost Burdened Households in Palm Beach County by Tenure and Income Bracket. (Source: Shimberg Center, 2015a)
Households at 30% AMI or Less
Households at 30.01 to 50% AMI
Households at 50.01 to 80% AMI
Owner
18,229
13,869
14,094
46,192
Renter
24,335
15,442
8,637
48,414
Owner
4,662
12,379
11,649
28,690
Renter
667
8,827
17,279
26,773
47,893
50,517
51,659
150,069
Cost Burden / Tenure
Severe Cost Burden
Moderate Cost Burden Totals
Totals
Beach County identified a total of 1,421 “literally homeless”
County’s declines in unsheltered homeless persons and homeless
people—those staying in emergency shelters, transitional housing,
veterans were more modest than the state’s. While the number
on the street, or in other places not meant for human habitation.
of chronically homeless individuals declined by 8% statewide, it
As Table 1 shows, the population of literally homeless people
increased by 10% in Palm Beach County. Overall, the County’s
has decreased by 20% in Palm Beach County since 2007, driven
homeless population declined by 10% between 2007 and 2014,
largely by a decrease in unsheltered homelessness. Homeless
compared to a 14% decline statewide.
people in families declined by more than half, while the homeless veteran population (since 2011) declined more modestly (13%). The population of chronically homeless individuals increased by about one-third, possibly due to improved methods for finding and counting these individuals19.
Unfortunately, family homelessness has increased substantially in Palm Beach County, according to another commonly used measure. The U.S. Department of Education provides funding and other support for public school districts to identify children and youth who are homeless at any time during the academic
Comprehensive PIT Count data for the state of Florida is not
year (including summer school), using a definition that includes
yet available for 2015, but Table 4 compares changes between
children who are doubled-up or living in hotels or motels due to
2007 and 2014 for Palm Beach County and the state (except for
their family’s loss of housing or economic hardship. Local school
veterans; see note below Table 4). During these years, the County
district liaisons help homeless children, youth, and their families
achieved a sharper decline in the number of homeless people in
overcome barriers to school enrollment and attendance, and help
families (42%) than the state as a whole (15%). However, the
them identify the services needed to return to stable housing22.
The U.S. Department of Housing and Urban Development (HUD) requires Continuums of Care (CoCs), or geographic networks of homeless service providers, to conduct Point-in-Time Counts of sheltered and unsheltered homeless people at least biennially. Palm Beach County has its own CoC, with the County’s Division of Human Services serving as the lead agency. Most CoCs in Florida and across the nation conduct their PIT Counts on a single day (or night) in the last week of January.
b
Table 4: Point-in-Time Counts of Homeless Persons in Palm Beach County and the State of Florida. (Source: Palm Beach County 2015b20, HUD Point-in-Time Count data21.)
Homeless Population Category
Population in Palm Beach County 2015
% Change in Palm Beach County (2007-2015)*
% Change in Palm Beach County (2007-2014)*
% Change in Florida (2007-2014)*
Total Homeless Population
1,421
-20%
-10%
-14%
Unsheltered Homeless Persons
825
-21%
-9%
-21%
Persons in Families
201
-57%
-42%
-15%
Chronically Homeless Individuals
448
36%
10%
-8%
Veterans*
157
-13%
-17%
-36%
*Except veterans; 2011 is the baseline year for tracking changes in homeless veteran populations at the Continuum of Care level. 8
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A REPORT FROM THE FLORIDA HOUSING COALITION
Between the 2009-2010 and 2013-2014 academic years, the
Homeless service providers also have to ask whether the system
number of homeless public school students increased by 53% in
that preceded Coordinated Entry was any better. The families
Palm Beach County, compared to a 43% increase statewide (Table
who were most assertive at obtaining services may have been
5). The County’s homeless student population actually dipped
more successful under the old system, but service providers may
in the 2010-11 and 2011-12 academic years, increased sharply in
have overlooked large numbers of families with more acute needs.
2012-13, and declined modestly in 2013-14. These fluctuations were driven primarily by changes in the number of students doubled up with relatives and friends.
Nonetheless, it is cause for concern that Palm Beach County had a sharper increase in its doubled-up student population than the state as a whole, even as it surpassed the state in terms of reducing
Compared to the state, Palm Beach County saw greater increases
sheltered homelessness among people in families (according to
in the number of students who are doubled up, in places not meant
both school district and PIT Count data). This is most likely due
for long-term habitation (cars, parks, campgrounds, etc.), in
to the County’s extremely high rental housing costs (Section 3).
hotels and motels, and awaiting foster care placement. However,
The number of doubled-up students declined by 137 between the
the number of students in shelters declined by a substantial 45%
2012-13 and 2013-14 academic years; if this trend continues, it
in Palm Beach County, compared to a 1% decrease statewide.
may indicate that Palm Beach County is integrating the homeless
In recent years, Palm Beach County has implemented a
crisis response and affordable housing activities more effectively.
Coordinated Entry system to target homeless assistance to
Most of the homeless students identified by school district
individuals and families who need it most, and to divert
liaisons are staying with their parents or guardians, but a
households from the shelter system if possible. This does not
significant minority of these students are unaccompanied.
necessarily mean that the reduction in sheltered homeless
Some of these children and youths are truly living alone, while
families caused the increase in doubled-up students between the
others are living with adult relatives, friends, or neighbors in an
2009-10 and 2013-14 academic years. In the State of Virginia, for
informal arrangement with the child’s parents or guardians. The
example, PIT Count totals for literally homeless people in families
Palm Beach County school district saw a 63% increase in the
declined by 17% between 2010 and 2013 as homeless assistance
number of unaccompanied students from the 2009-10 to 2013-
funds were shifted from shelters to Rapid Re-Housing programs.
14 academic years, compared to a 20% increase statewide. In
During roughly the same period (from the 2009-10 to 2012-13
addition to concerns about the overall level of safety and support
academic years), the number of homeless students in Virginia’s
that these students have outside of school hours, the absence of a
public schools increased, but at a lower rate than the national
formal guardian can make it difficult to obtain authorization for
homeless student population (26.6% compared to 34.4%)25.
emergency medical care on a student’s behalf.
Table 5. Homeless Students Identified in Public School Districts in Palm Beach County and the State of Florida. (Source: Florida Homeless Education Program23,24.) % Change in Palm Beach County from 2009-10 to 2013-14
% Change in Florida from 2009-10 to 2013-14
331
-43%
-1%
1,981
61%
46%
Cars, Parks, Campgrounds etc.
125
681%
51%
Hotels/Motels
217
295%
152%
Awaiting Foster Care Placement
337
321%
24%
Unaccompanied Youth*
775
63%
20%
Total Homeless Students
2,991
53%
45%
Living Situation
Shelters Doubled Up
Students in Palm Beach County 2013-2014
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9
HOME MATTERS 2015
Low-Wage Jobs
HOMELESS CHILDREN
POPULATION ON THE RISE ON THE STATE LEVEL
The population of homeless students increased by 45% between the 2009-2010 and 2013-2014 academic years.
Low-wage jobs dominate Palm Beach County’s economy, which largely explains the prevalence of housing cost burdens among low-income households. In the West Palm Beach metropolitan division (hereafter the “metro”), the current median wage for all occupations is estimated at $16.10. This is higher than the statewide median of $15.23, but housing costs are higher as well (see Table 1). As Table 6 shows, the West Palm Beach metro’s top 15 occupations include many low-wage positions in food service, retail, and office settings, similar to the state as a whole26. Eight of the West Palm Beach metro’s top 15 occupations pay median wages below $10.91, the “survival wage” calculated for Palm Beach County by the United Way of Florida’s report on Asset Limited, Income Constrained, Employed (ALICE) householdsc, adjusted to 2015 dollars27. The survival wage allows for the bare minimum in housing, food, child care, and other expenses, with no cushion for emergencies. For a young family of four, the County’s inflation-adjusted survival wage is $27.22—higher than the median wages for all but one of the occupations shown (registered nurses), and more than double the wages of 11 occupations. This means, for example, that two parents working full-time as nursing assistants could not support themselves, an infant, and a preschooler. Many individuals and families whose wages fall short of the “survival wage” receive benefits and services from government agencies and private charities. However, these resources are often not enough to fill the gap. To survive, these households cut their budgets in risky ways, such as eating unhealthy food, putting off preventative
IN PALM BEACH COUNTY The increase over the same period was 53%—yielding a homeless student population of almost 3,000 by the 2013-2014 academic year.
health care, and using low-quality child care28. When faced with a crisis, such as a job loss, illness, child care emergency, or breakdown of a car, these households may be forced to double up with friends and relatives, or may become “literally homeless”.
The ALICE Report bases the survival wage on a 40-hour work week, 50 weeks per year.
c
10
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A REPORT FROM THE FLORIDA HOUSING COALITION
Housing and Transportation Costs Faced with high housing costs in the communities where they work, many families live in outlying communities. However, this strategy is not entirely successful, since many of these families have to pay for long commutes. The Center for Neighborhood Technology [CNT] calculates a “Housing + Transportation Affordability Index” for communities across the nation. Just as 30% is the maximum share of income that a family can affordably devote to housing, CNT has determined that 45% is the maximum affordable share of household income that can
WHEN HOUSEHOLDS
CANNOT MAKE ENDS MEET THEY CUT BUDGETS IN RISKY WAYS
be spent on combined housing and transportation costs. Table 6. Estimated Median Wages in the Top 15 Occupations in the West Palm Beach Metropolitan Division in 2015. (Source: Florida Department of Economic Opportunity [DEO] 201529, United Way of Florida 2014.)
Occupation
ACCUMULATE CREDIT CARD DEBT
D IT CAR CRED CREDIT CARD
Median Hourly Wage
Combined Food Preparation and Serving Workers
$9.14
Waiters and Waitresses
$9.26
Cashiers
$9.44
Retail Salespersons
$10.18
Stock Clerks and Order Fillers
$10.66
Janitors and Cleaners*
$10.79
Landscapers and Groundskeepers
$10.83
Security Guards
$10.83
Nursing Assistants
$11.41
Restaurant Cooks
$12.45
Office Clerks
$13.04
Customer Service Representatives
$13.68
Receptionists and Information Clerks
$14.11
Secretaries and Administrative Assistants**
$15.44
Registered Nurses
$32.33
All Occupations
$16.10
"County Survival Wage" for a Single Adult
$10.91
"County Survival Wage" for a Young Family of Four***
$27.22
FORGO AN ADEQUATE DIET
GO WITHOUT PREVENTATIVE HEALTH CARE
CHOOSE LOWER QUALITY CHILDCARE
NEGLECT TO REGISTER OR BUY CAR INSURANCE
*Except maids and housekeepers **Except legal, medical, and executive ***Two parents, one infant, and one preschooler FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
11
HOME MATTERS 2015
Table 7. Housing + Transportation Costs for Typical Palm Beach County Households at 80% of Area Median Income. (Source: Center for Neighborhood Technology [CNT] H+T Affordability Index30.) Cost Variable
Average Cost as % of Income % of Cost Burdened Households
Housing
Housing + Transportation
53%
82%
92.8%
99.9%
As Table 7 shows, a typical Palm Beach County household at
Figure 3 approximates the balance between rents and renter
80% AMI has a much heavier cost burden when transportation
incomes in Palm Beach County using the best available data.
costs are taken into account . These households pay an average of
According to Reinhold P. Wolff Economic Research, Inc., average
53% of their incomes on housing alone, and an astounding 82%
rents for the County’s professionally managed rentals experienced
of their incomes on combined housing and transportation costs.
a net increase, from about $1,300 in 2008 to about $1,450 in 2014.
When transportation costs are considered, the number of typical
Smaller rental properties and those that are not professionally
households at 80% AMI that are cost burdened grows from about
managed (e.g. “mom-and-pop” rentals) are likely to be excluded
93% to nearly 100%. As the following sections will explain, long
from this dataset31. However, the data for properties that are
and expensive commutes reduce employee productivity and may
included is highly accurate, and these properties are less likely to
drive away qualified workers.
be substandard.
SECTION 3:
Unlike Reinhold P. Wolff ’s average rents, which rapidly made up
d
Challenges for Renters
As Section 2 demonstrated, housing cost burden is widespread among low-income renters in Palm Beach County. Of all lowincome renter households in the County, 79% are cost burdened and 51% are severely cost burdened. Moreover, in the last decade, severe cost burden has increased among extremely low-income
for ground lost during the Recession, the rent affordable at median renter income dropped in 2009 and has been essentially stagnant since then, mostly hovering between $920 and $925. Not only are affordable rents at median renter income lower than the average rents in Figure 3, but the gap has widened since 2008.
(ELI) and moderately low-income renters. This section discusses
For households with incomes below the median renter income,
several factors that influence housing cost burden among renters.
the struggle to find affordable rental housing is even greater.
Mismatch Between Rents and Wages In attractive coastal communities like Palm Beach County, both the strength of the tourism economy and the quality of life for middle-class residents depend on the hard work of low-paid employees, including waiters and waitresses, janitors, security guards, groundskeepers, and nursing assistants. When these employees do not earn enough to afford housing near their jobs, they may have to sacrifice food, healthcare, and other necessities. Alternatively, they may be forced to live in neighboring communities where housing is less expensive, as discussed in the
Figure 4 compares the median wages for the West Palm Beach metro’s top 15 occupations with the hourly wage, or “housing wage”, needed to afford a 1- or 2-bedroom apartment at Fair Market Rente (FMR), assuming the employee works 40 hours per week, 52 weeks per year. The median wages range from $9.14 for food preparation and serving workers to $32.33 for registered nurses. Remarkably, only registered nurses can afford either a 2-bedroom or 1-bedroom apartment at FMR. For 9 of the top 15 occupations, the median wage is less than half of the housing wage for a 2-bedroom unit ($23.19).
previous section. Both tradeoffs can impact job performance and
Median-wage workers in 12 of the metro’s top 15 occupations can
increase tardiness, absences, and employee turnover.
afford a 1-bedroom unit at FMR if they share housing expenses
These percentages, unlike Census data, are not based on a “universe” of actual households, but are the result of a mathematical modeling exercise using a hypothetical “average” household at 80% AMI (not at or below 80% AMI). The model uses actual regional data on incomes, household composition, workers, housing and transportation costs, and other variables to construct profiles of “average” households and determine their average housing and transportation costs.
d
For the West Palm Beach metro area, HUD determines the Fair Market Rent by calculating the 50th percentile rent for recently leased apartments with a given number of bedrooms. For most communities nationwide, HUD uses a 40th percentile standard. HUD uses the 50th percentile standard for communities that need assistance with de-concentrating the geographic pattern of Housing Choice Voucher use.
e
12
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
A REPORT FROM THE FLORIDA HOUSING COALITION
Figure 3. Comparison of Average Rents and Affordable Rents at Median Renter Income in Palm Beach County. (Source: Shimberg Center 2015a, ACS 2014 1-year estimates, Reinhold P. Wolff Economic Research, Inc. 201532.)
Monthly Rent (2014 Dollars)
$1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900
2008
2009
2010
2011
2012
2013
2014
2015
Average Contract Rent (local data; utility cost not included) * Affordable Rent at Median Renter Income (from American Community Survey data) *Likely excludes smaller rental properties and those that are not professionally managed. The 2015 average rent is not adjusted to 2014 dollars.
$32.33
$35 $30
$23.19
$25
$18.56
$15.44
$13.68
$13.04
$12.45
$11.41
$10.83
$10.83
$10.79
$10.66
$10.18
$9.44
$9.14
$10
$9.26
$15
$14.11
$20
$0
/S er W vin ait g er W sa nd ork er W s ait re ss St es Re oc Ca ta kC sh il S le ale ier rk s sp sa La e n rs nd d Ja on O sc ni rd s ap to e r er rF s a s an ille d nd rs Cl G e an ro un er s* ds k Se ee cu pe rit N y G rs ur sin ua r g As ds Re sis Cu sta ta sto nt ur s m a nt er Co Se O rv o ffi ice ce ks Re Cl pr er ks es en t at Re ce ives pt io ni Se Ho sts us Re cre in t g a ist g r W er ies* Ho a e * ge us d N in fo u g r1 rs W es -B ag e dr ef oo or m 2Be dr oo m
$5
Fo o
d
Pr ep
Median Hourly Wage or Housing Wage (2015 dollars)
Figure 4. Comparison of Median Wages and Renter “Housing Wages� for Common Occupations in the West Palm Beach Metropolitan Division. (Source: DEO 201533, National Low Income Housing Coalition [NLIHC] 201534.)
*Except Maids and Housekeeping Cleaners **Except Legal, Medical, and Executive Secretaries FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
13
HOME MATTERS 2015
with another worker earning the same wage or higher, such as
Shortage of Affordable and Available Rental Units
a spouse. However, they are highly vulnerable to crises such
Palm Beach County does have rental units, both subsidized and
as job loss, illness, or loss of transportation. And for single-
unsubsidized, that are affordable to low-income households.
parent families, the impact of high FMRs is especially severe. For example, if a single mother with two children works fulltime as a nursing assistant or janitor, she cannot even afford a crowded 1-bedroom apartment at FMR, let alone a 2-bedroom apartment that would provide her family with more space. A moderate degree of crowding may be a necessary short-term sacrifice for some families, particularly those who are exiting homelessness. However, crowding takes a toll on children’s health and educational outcomes35,36,37 and should not be the only longterm option for families who need affordable housing. This single mother could also search for apartments with rents well below FMR, but she may have to settle for a unit in poor condition or
However, there are not nearly enough of these units to go around. Not only is the overall supply of affordable rentals limited, but some of these rentals are already occupied by higher-income households. This shortage of affordable and available units is illustrated in the infographic (on the facing page). For low-income households overall, 93 rental units are affordable and available for every 100 renter households. However, at lower income levels, the shortage is obvious: only 42 affordable and available rentals for every 100 very low-income households, and only 24 affordable and available rentals for every 100 extremely low-income households38.
in a neighborhood where she and her children feel unsafe. It flies
Tightened Rental Market
in the face of the principles of fair housing choice to expect low-
According to the American Community Survey, Palm Beach
income families to live in these conditions.
County’s rental vacancy rates have closely tracked statewide
Figure 5. Rental Vacancy Rates in Palm Beach County and the State of Florida. (Source: Shimberg Center 2015a, ACS 2014 1-year estimates, Reinhold P. Wolff Economic Research, Inc. 2015.) 15
Rental Vacancy Rate (%)
12
9
6
3
2005
2006
2007
2008
Florida *Likely excludes rentals that are not professionally managed. 14
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
2009
2010
Palm Beach County
2011
2012
2013
Palm Beach County (local data)*
2014
2015
A REPORT FROM THE FLORIDA HOUSING COALITION
numbers for most of the past decade (Figure 5). Rental vacancy rates at both the County and state level peaked during the recession years and then declined. Palm Beach County’s rental vacancy rate, however, dropped to 7.9% in 2013 and then to 6.1% in 2014, while the state’s rental vacancy rate remained above 8%. According to local data, which is likely restricted to professionally managed apartments (see p. 12), rental vacancy rates have dropped from 7.9% in 2009 to 3.5% in 2015. SECTION 4:
Challenges for Homebuyers Although the Great Recession has tempered American attitudes toward homeownership, most renters still aspire to own a home one day39. For a median-income household in Palm Beach County, purchasing a home is only marginally more affordable than renting40. However, homeownership has additional benefits, including a chance to put down roots in a community,
Affordable and Available Rental Units
FOR EVERY 100 RENTER HOUSEHOLDS
at Different Income Brackets in Palm Beach County.
24 FOR HOUSEHOLDS
<30%
of Area Median Income
gain access to desirable neighborhoods and schools, and build wealth. For many low- and moderate-income families, homeownership is a viable option—provided that the mortgage includes strong underwriting criteria and the principal and interest rates are not too high (see discussion of Figure 2 on p. 6). Some critics blame the Community Reinvestment Act (CRA) for precipitating the foreclosure crisis, since it requires banks to lend to underserved homebuyers in their communities, but
42 FOR HOUSEHOLDS
<50%
of Area Median Income
rigorous research dispels this myth. CRA-regulated lenders are subject to strong underwriting standards, and their CRA-related loans have performed similarly to their other mortgage products. Moreover, fewer than 10% of subprime loans in the years before the foreclosure crisis were made by CRA-regulated institutions41, and middle- and high-income homeowners accounted for the most mortgage defaults after 200742. National Low Income Housing Coalition analysis using 2007-2011 HUD Comprehensive Housing Affordability Strategy (CHAS) data. This analysis understates the actual prevalence of housing cost burden among low-income households. For example, a household at 60% AMI could live in an apartment affordable at 75% AMI. The household would be cost burdened, but the rental unit would still count as affordable and available to households between 51% and 80% AMI.
93 FOR HOUSEHOLDS
<80%
of Area Median Income
FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
15
HOME MATTERS 2015
Despite the availability of inexpensive bank-owned and short sale
and firefighters—are considered essential service positions. Of
homes in the wake of the foreclosure crisis, Palm Beach County
these occupations, the latter three have median incomes that are
has a severe shortage of homes for sale that are affordable to low-
comparable to or slightly higher than the Median Family Income
and moderate-income homebuyers. This section explores the
of $65,648.
impacts of wages, home prices, and inventory on the affordability
The 25th percentile for home sale prices was $145,563 in 2013,
of homeownership.
meaning that 25% of all homes sold were at or below this priceg.
Relationship of Wages to Local Home Prices
Using conventional underwriting standards, the minimum
Figure 6 compares Palm Beach County’s home prices in 2013 , the
income needed to afford this home was $47,357.
most recent year for which the Shimberg Center has detailed data,
essential service occupations shown, three had median annual
to wages for ten skilled occupations that are generally considered
incomes higher than this threshold, elementary school teachers
to be tickets to the middle class. Each of the occupations shown
were less than $700 short, and LPNs were about $2,800 short.
in Figure 6 was in the top 100 for the West Palm Beach metro,
Among the remaining five occupations, the white-collar workers
in terms of the number of people employed in 2013. Five of the
(executive secretaries and paralegals) could afford the 25th
occupations—licensed practical nurses (LPNs), elementary school
percentile home price, while the blue-collar workers (electricians,
teachers, police and sheriff ’s patrol officers, registered nurses,
mechanics, and truck drivers) could not.
f
Of the five
Figure 6. Comparison of Median Annual Incomes for Selected Occupations in the West Palm Beach Metropolitan Division to Home Sale Prices in Palm Beach County in 2013 (2014 dollars). (Source: DEO 2013, HUD 201243, Shimberg Center 2015a.)
$100,000
$80,000
$60,000
$40,000
$20,000
$0
s er
ics
s
s
s
s nt
rs
e
rs es ** ** te rs h u ce ce i i g r r N I fi l a P P s s r lO ec d ec ily Te n A na ire le le ile lA M ro re l El F a a t o a a m i i e r o a S t a g & P st -T eS ca ho Adm Le ian ’s gi nF ns til or c o t e a d & ff a n i S i V i c R e r ls y & ic ce ed M l& he Tra ar ries ga er ch t a d S M e r P & c e n l i a T o & e a y h ct UD ar m cret 5t Aff av ce ra ice H P i e l 2 l e P v o e r E H d d Po et Se eS or se v m ff i o n t A e co ut Au In to Lic ec x e E m co In
iv Dr
n ha
an
ci tri
rse Nu
rs*
e ch
nt
ta sis
ta sis
ce
ffi
*Except special education **Single-family homes, townhomes, and condominiums with homestead exemptions the year after sale. 16
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
m
o nc
A REPORT FROM THE FLORIDA HOUSING COALITION
To afford the County’s median home sale price of $246,010, a
Of the homes sold in 2013 for which homestead exemptions were
family would need a minimum income of $82,863—well above
claimed in 2014, 2,021 were sold at or below the 25th percentile
the Median Family Income and the median incomes of all the
price of $145,563, affordable at an annual income of $47,357
occupations shown in Figure 6. Some policy makers argue, with
(Figure 7). These sales were dwarfed by the pool of 40,010 potential
good reason, that low-income homebuyers should focus on the
homebuyers in the 50.01% and 80% AMI bracket alone—including
more modest segments of the home market. However, there are
severely cost burdened owners who might want to downsize, and
limitations to this approach. Some lower-priced homes may be
cost burdened renters who might aspire to homeownershiph. The
in poor condition, in neighborhoods with higher crime rates or
potential homebuyer pool in Figure 8 undoubtedly includes some
lower school quality, or located far from employment centers and
households with incomes above $47,357, since the “low-income”
other amenities. If essential service workers with lower wages
limit for a family of three was over $49,000 in 2013. However,
(e.g. LPNs) are asked to sacrifice location and other amenities for
including homes that sold between the 25th percentile and the
price when buying a home in Palm Beach County, it may become
median price of $246,010 would only increase the home supply
difficult to recruit qualified personnel to the community.
to about 4,000.
Limited Supply of Moderately Priced Homes
It is not clear if home sale and construction activity in the next
Even if all modestly priced homes were in good condition and located
few years will expand the affordable supply for low-income
in desirable areas, Palm Beach County would not have enough
buyers. Between 2012 and 2013, sale prices for homes that
homes for sale to meet the needs of all low-income homebuyers. This
obtained homestead exemptions within a year increased by
is due in part to competition from investors, wealthy vacationers, and
18%. According to preliminary data on homes sold in 2014 that
others who are able to pay cash and do not occupy the homes year-
obtained a homestead exemption within a year, the median sale
round. In 2013, 65% of single-family homes and condominiums
price increased by 5% between 2013 and 2014, from $246,010
sold in Palm Beach County had no homestead exemption in 2014,
to $261,63944. By contrast, the County’s median income was
higher than the pre-recession peak of 62% in 2006. Units without
fairly stagnant between 2012 and 2014, and has declined by 14%
homestead exemptions are far less likely to be occupied year-round
between 2007 and 201445. Meanwhile, the average per-unit value
by the owner.
for single-family and multifamily building permits increased
Figure 7. Comparison of Home Sale Prices to Cost Burdened Households Between 50.01% and 80% AMI in 2013. (Source: Shimberg Center 2015a.) 50,000
Moderately Cost Burdened Renter Households 40,000 30,000
17,279
20,000
8,637
10,000 2,021 0
Homes in the 25th percentile sales price*
14,094
Severely Cost Burdened Renter Households Severely Cost Burdened Owner Households *Single-family homes (including townhomes) and condominiums with homestead exemptions the year after sale.
Number of Households
f Assumptions in Figure 7: 1) Median hourly wages were converted to annual incomes, if necessary, by assuming a 40-hour work week, 52 weeks per year, 2) 30-year fixed rate mortgage at 4.5% interest, 3) FHA-insured with a 3.5% down payment, 4) Front-end ratio of 31%, back-end ratio of 41%, 5) All other household debt service is 18% of annual income, 6) Assessed value is 85% of the purchase price, 7) Homestead exemption is $50,000, 8) Mill levy is $18.84, and 9) Property and mortgage insurance combined is 1% of the purchase price annually.
Of homes sold in 2013 for which a homestead exemption was claimed in 2014, over one-third were condos, which had a 25th percentile sale price of $58,797 in 2013. The 25th percentile price for single-family homes, including townhomes, was $192,643.
g
FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
17
HOME MATTERS 2015
between 2013 and 2014, while the number of units permitted
WHP units must be affordable to households between 60% and
decreased .
Unless the supply of moderately priced homes
140% AMI (based on a family of four). The required percentage
increases sharply, or incomes rise faster than home prices, low-
of WHP units in a development varies, depending on the zoning,
income families will face a shortage of affordable homes for the
density bonuses, and other incentives sought by the developer.
foreseeable future.
Additionally, developers have alternatives to constructing WHP
46
units onsite. Depending on the proposed share of WHP units
Shared Equity Tools for Affordable Homeownership As this section has shown, Palm Beach County’s private home sale market cannot single-handedly meet the needs of all costburdened households with moderately low incomes, let alone meet the needs of very low-income households. To help make homeownership more accessible for these households, Palm Beach County’s stakeholders have used two innovative tools to produce permanently affordable homes: 1. Enactment of an inclusionary housing ordinance known as the Workforce Housing Program (WHP) 2. Creation and operation of several Community Land Trusts
and the targeted income groups, the developer can pay a fee-inlieu, donate land for affordable housing construction (e.g. by a nonprofit housing developer), or buy existing homes and deedrestrict them for long-term affordability. Since the WHP was enacted shortly before the housing market crash, the number of affordable units produced has been limited. Nonetheless, it has had an impact: as of June 2015, 1,812 units had been approved and 759 units had been built. Additionally, nearly $900,000 has been collected in in-lieu payments. County officials and stakeholders are currently reviewing the WHP and considering modifications to make it more streamlined and effective.
Workforce Housing Program Palm Beach County’s Workforce Housing Program, enacted
Inclusionary Housing will become an increasingly important
in 2006, is a type of “Inclusionary Housing” or “Inclusionary
recover. In many high-cost communities throughout the nation, IH
Zoning” ordinance.
Inclusionary Housing (IH) ordinances
ordinances have made a worthwhile, albeit modest, contribution to
require or encourage developers to sell or rent a certain percentage
the affordable housing stock. Despite the fears of many developers
of residential units (often 10% to 15%) in new developments
and public officials, IH does not substantially reduce the rate of
at prices affordable to low- and moderate-income households.
residential construction or increase housing prices, especially if
These ordinances are usually enacted in communities with active
density bonuses and other cost offsets are offered48,49.
and high-cost housing markets. The underlying principle is that all beneficiaries of market-rate development—including landowners, developers, and affluent homebuyers, as well as local governments—should help to offset the burden of high housing prices on low- and moderate-income workers. Moreover, IH promotes fair housing goals by enabling lower income families to live in affluent neighborhoods with good schools and other amenities. To help offset the cost of building below-market-rate units, many IH ordinances offer incentives to developers, such as density bonuses and expedited permitting. Additionally, many IH ordinances give developers the option to pay a fee or donate land in lieu of building affordable units on-site47.
policy tool as Palm Beach County’s housing market continues to
Community Land Trusts A Community Land Trust (CLT) is a nonprofit housing provider that develops and sells homes while retaining ownership to the land underneath the dwellings. By removing the cost of the land from the home price, CLTs are able to sell homes at prices affordable to low- and moderate-income families. CLT homebuyers make nominal regular payments to the CLT for a long-term (usually 99year) ground lease on the land. The ground lease stipulates that if the family sells the home, it must be offered at an affordable price to another income-qualified family. For families whose incomes are too low to obtain conventional
Palm Beach County’s WHP is mandatory, and applies to all new
mortgages, CLT homes can be an attractive alternative to renting.
residential developments of 10 or more units within the Urban/
Compared to many unsubsidized low-cost rentals, CLT homes
Suburban land use tier in the County’s unincorporated area.
tend to be in better condition and offer more space, privacy, and
h This analysis does not consider moderately cost burdened owner households between 50.01% and 80% AMI, since these households have a better chance of refinancing their current homes than severely cost-burdened owners with similar incomes.
18
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
A REPORT FROM THE FLORIDA HOUSING COALITION
stability. The resale formulas for CLT homes provide homeowners
SECTION 5:
with a fair share of the price appreciation, while ensuring that
Affordable Housing Resources
low- and moderate-income families can continue to benefit from
As the previous sections have shown, Palm Beach County is
this opportunity.
not paradise for the thousands of low-income households who
Community Land Trusts were established in many Florida communities during the housing boom. For local governments and their nonprofit partners, it was becoming increasingly costly to use housing subsidy dollars (see Section 5) to provide down payment assistance to low-and moderate-income homebuyers. CLT land purchase and home construction subsidies were more efficient, since the resale restrictions ensure that the homes will be affordable long-term. A number of Florida’s CLTs were unable
cannot find an affordable place to live. Both median rents and home sale prices are out of reach for many low-income workers, and the supply of modestly priced homes for sale is limited. For working families who find lower-cost housing far from their jobs, their combined housing and transportation costs can absorb the vast majority of their income. Some individuals and families who cannot find affordable housing end up literally homeless, doubled up, or living in motels.
to survive the recession as the fee simple purchase prices on
Palm Beach County and several of its cities receive federal funding
foreclosed homes fell below the prices on the CLT homes, but
for affordable housing development and rehabilitation, mainly in
Palm Beach County remains a hotbed of CLT activity. In fact,
the form of federal Low Income Housing Tax Credits and grants
half of all Florida’s active CLTs are located in Palm Beach County.
from HUD. However, there will always be a need for highly flexible
Since Palm Beach County’s CLTs are relatively new, their performance cannot be comprehensively evaluated. However, national data shows that CLT mortgages have much lower rates of foreclosure and serious delinquency than conventional marketrate mortgages50. CLTs can play an essential role for both the local government and the private sector market rate developers in communities with inclusionary zoning ordinances, such as Palm Beach County. The CLTs can take title to and construct homes on land dedicated by developers, or can use in-lieu fee proceeds to purchase and develop land. While CLTs and inclusionary housing alone cannot address Palm Beach County’s affordable housing needs, the importance of these two tools cannot be overstated. An inclusionary zoning ordinance creates affordable housing units that would otherwise
funding sources controlled by state and local governments. In Florida, the Sadowski State and Local Housing Trust Funds help to meet this need. The following section describes the structure and impact of the Sadowski Funds, and their role in leveraging public-private partnerships in Palm Beach County.
Sadowski History and Major Programs More than 20 years ago, a diverse coalition of Florida’s affordable housing advocates, business and industry groups, and faith-based organizations recognized the need for a dedicated state revenue source for affordable housing. In 1992, the state legislature passed the William E. Sadowski Affordable Housing Act, which raised the state documentary stamp tax on deeds by ten cents per $100 of the property’s valuei. The “doc stamp” funds are directed to two trust funds, one for local governments and one for the state.
not be built in the County, while the CLT ensures that those
The Local Housing Trust Fund supports the State Housing
units remain affordable in perpetuity, retaining the subsidy for
Initiatives Partnership (SHIP) program, which primarily funds
generations to come and reducing taxpayer expense from having
the production and preservation of affordable ownership housing
to replace affordable housing that is lost from the inventory.
for low- and moderate-income households. The Florida Housing
While Palm Beach County has an inclusionary zoning ordinance
Finance Corporation uses a population-based formula to distribute
in effect and has six active community land trusts, it does not
SHIP funds to all 67 counties and to cities eligible for Community
appear that the connection has been made between these two
Development Block Grant (CDBG) funds. SHIP is most commonly
tools in Palm Beach County. The following section discusses how
used to support home construction, rehabilitation to make homes
multiple funding sources and policy tools, such as inclusionary
safe and/or handicapped-accessible, and down payment assistance.
housing and CLTs, can fit together in a comprehensive affordable
It gives local governments plenty of flexibility to meet local needs
housing strategy for Palm Beach County.
and preferences, as long as a few basic requirements are met. These FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
19
HOME MATTERS 2015
requirements, found in Florida Statute 420, include:
• At least 65% must be spent on homeownership activities • At least 75% must be spent on construction (including new construction and rehabilitation)
• At least 30% must be used to assist very low-income households
• At least 60% must be used to assist low-income households • No more than 10% may be used on administration The State Housing Trust Fund supports several activities, including administration of the Sadowski funds by the Florida Housing Finance Corporation. The main Sadowski-funded state program is the State Apartment Incentive Loan (SAIL) program. SAIL provides funding on a competitive basis for the construction of affordable multifamily rental housing. Both SHIP and SAIL complement federal funding sources in important ways:
• Helping local communities provide the matching funds required for many federal housing grants.
• Providing a buffer against fluctuations in federal
appropriations, such as the substantial reduction in funding for HUD’s HOME program in recent years.
i
• Providing a funding source for activities that are not
permitted by federal grants. For example, SHIP funds can provide rapid re-housing assistance for families with children who are doubled up or living in motels, and who may have trouble qualifying for HUD homeless assistance funds.
Impact of Sadowski Funds in Palm Beach County State Housing Initiatives Partnership (SHIP) In the 2015-2016 Fiscal Year, Palm Beach County is expected to receive $6.52 million in SHIP funds, including the SHIP allocations for the County’s four largest cities (Table 8). This SHIP allocation will leverage over $28.6 million in additional public and private funds—a ratio of 4.4 to 1. With over $35 million in SHIP and leveraged funds, local housing developers and public agencies are expected to assist 269 owner-occupied and 96 rental units, creating 675 jobs and generating nearly $85 million in positive economic impact for the County. In addition to boosting Palm Beach County’s economy, SHIP has given numerous low- and moderate-income families a hand up. Between Fiscal Years 2006-07 and 2011-12, the time period
In 1995, the State Legislature shifted another ten cents of documentary stamp tax revenue from general revenue to the Sadowski trust funds.
Each SHIP Dollar
is Required to Meet the Following Criteria: At least 30% must be used to assist very low-income households
No more than 10% may be used on administration 20
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
At least 65% must be spent on homeownership activities
At least 60% must be used to assist low-income households
At least 75% must be spent on construction-related activities (including new construction & rehabilitation)
A REPORT FROM THE FLORIDA HOUSING COALITION
for which data is readily available, SHIP assisted 2,037 housing units in the County, including the four largest cities that receive SHIP funds directly. All forms of assistance are captured in these numbers, including construction and rehabilitation, down payment assistance, foreclosure prevention, and assistance for homeless shelters and transitional housing.j Between FY 2006-07 and 2008-09, before the annual Sadowski Trust Fund sweeps by the State Legislature, SHIP assisted an average of 613 units per year in the County. Throughout the six-year period, 18% of Palm Beach County’s SHIP-assisted units were targeted to elderly households52. State Apartment Incentive Loan (SAIL) Program Palm Beach County currently has 4,471 units in 25 completed developments that have received SAIL funding53,54. Seventeen percent of these units are targeted to elderly tenants. Fifteen of the completed developments, with a total of 2,763 units, were built between 2000 and 2009, and another two developments with 224 units received financing in 2014. SAIL’s focus on rental housing complements SHIP’s primary focus on homeownership,
Additional Funding Sources
As important as the Sadowski Trust Funds are, they were never meant to single-handedly meet the affordable housing needs of Florida communities. They were intended to leverage a wide variety of public and private resources, including federal funding programs, local government contributions, support from local foundations and businesses, and volunteer hours. Local “skin in the game” is especially important—it shows that the community recognizes how a broad range of housing options improves its overall quality of life. With affordable housing needs growing, and funding from HUD and other federal agencies dwindling, local governments need to contribute to affordable housing development in innovative ways. The end of Section 4 discussed the advantages of Inclusionary Housing (IH) and Community Land Trusts (CLTs), especially when used in a coordinated manner.
Palm Beach County’s
Workforce Housing Program (WHP) and CLTs make modest but valuable contributions to the affordable housing stock, and local stakeholders should work to strengthen and streamline these
since Palm Beach County (and other SHIP communities) can
programs. As HUD enforces the strengthened provisions of its
spend no more than 25% of its annual SHIP distribution on rental
Affirmatively Furthering Fair Housing rules, the WHP and CLTs
activities. Additionally, some SAIL developments require both
will also help the County to integrate affordable units into desirable
SHIP and SAIL funds to be financially viable.
neighborhoods with good schools, jobs, and other amenities.
j
For homeless emergency shelter and transitional housing facilities, a bed is counted as a “unit”.
Table 8. Estimated Economic Impacts of State Housing Initiative Partnership (SHIP) Funds in Palm Beach County*. (Source: Sadowski Coalition 201551.)
Type of Impact Estimated 2015-2016 SHIP funds
Amount of Impact $6,521,710
Other funds leveraged
$28,603,277
Total development costs
$35,124,987
Owner units assisted
269
Rental units assisted
96
Total units assisted
366
Jobs created
675
Total economic impact
$84,909,019
*Including SHIP allocations for the County’s four largest cities
FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
21
HOME MATTERS 2015
How are the SHIP Programs funded in Palm Beach County? The doc stamp tax on all real estate in Florida increased in 1992. The additional money generated is dedicated to the state and local housing trust funds. 70% is directed to local governments (all 67 counties) and Florida’s entitlement cities to fund the SHIP program.
$6,521,710 IN SHIP FUNDS ARE AVAILABLE FOR PALM BEACH COUNTY AND ITS FOUR LARGEST CITIES IN FY 2015-2016
Uplifts Our Family, Friends, and Neighbors in Palm Beach County In Palm Beach County, the Fair Market Rent (FMR) for a 1-bedroom apartment is $965. In order to afford this, a household must earn at least $38,604 annually ($18.56/hour). For that same 1-bedroom apartment, a minimum wage worker earning $8.05/hour must work 92 hours/week year round or the household must include 2.3 minimum wage earners working year round.
resale. SHIP homebuyers also attend a pre-purchase homeownership counseling class.
SAIL funds produce apartments for Palm Beach County’s workforce, rehabilitate existing apartments in dire need of repair, and provide homes for the County’s most vulnerable populations—including homeless veterans, the frail elderly and persons with disabilities, who might SHIP funds can be used to move the existing housing stock. otherwise need to live in institutional settings. SHIP provides down payment and closing cost assistance, typically a soft second mortgage that is repaid only upon
1
40 HRS/WEEK 52 WKS/YEAR
22
$8.05/HR
$18.56/HR
92
40
HRS/WEEK 52 WKS/YEAR
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
HRS/WEEK 52 WKS/YEAR
$
CREATES
675
JOBS
From construction workers to retailers; an investment in housing creates jobs for Palm Beach County. Housing dollars will put Palm Beach Countyâ&#x20AC;&#x2122;s out-of-work housing industry back to work repairing homes and improving the real estate market. SHIP funds can be used for rehabilitation/renovation of existing empty housing stock to ready it for families to move in.
GENERATES RESULTS
CREATES JOBS
GENERATES RESULTS
INV LO EST CA S LLY
INVESTS LOCALLY SHIP has been successfully operating in Palm Beach County and its four largest cities for more than 20 years. SHIP program flexibility allows these communities to meet their individual needs and revise strategies in accordance with the local market.
SHIP has a proven track record for performance, transparency, and accountability. Palm Beach County needs affordable housing. Using the housing trust fund monies solely for housing is the right thing to do-for residents in need; for the benefit of taxpayers; and for the growth of Palm Beach County's economy.
S EL IC FU OM NT ON ME EC LOP VE DE
FUELS ECONOMIC DEVELOPMENT The appropriation would result in a positive economic impact of over 85 million.
$84.9
MILLION
UPLIFTS FLORIDIANS
$
A REPORT FROM THE FLORIDA HOUSING COALITION
FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
23
HOME MATTERS 2015
Summary and Conclusions Palm Beach County Doesn’t Have Enough Affordable Housing:
• Approximately 150,000 low-income households are paying more than 30% of their incomes for housing, the maximum amount considered affordable by experts.
• 71,875 very low-income households are severely cost burdened, meaning that they pay more than 50% of their incomes for housing.
• 72% of the County’s extremely low-income (ELI) renters were severely cost burdened in 2013, an increase of 8 percentage points since 2005.
• In the County’s 2015 “Point-in-Time” (PIT) homeless count, homeless service providers counted 1,421 people in shelters or on the streets, a net decrease of 20% since 2007.
• In the 2013-2014 academic year, the Palm Beach County School District identified nearly 3,000 students who were homeless or precariously housed, a 53% increase since the 2009-2010 academic year. Palm Beach County had a larger increase in student homelessness than the state as a whole, even though its PIT count data shows a sharp decline in “literal homelessness” among families.
• Many of the West Palm Beach metro’s most common occupations don’t pay enough for a family’s basic survival. For example, two parents working as nursing assistants could not support themselves, an infant, and a preschooler.
• Many low-income families live far away from their workplaces, trading high housing costs for high transportation costs. For a typical household at 80% of Area Median Income, taking transportation costs into account increases the average cost burden from 53% to 82%.
Many Palm Beach County Workers Don’t Earn Enough to Pay for Housing:
• Palm Beach County’s average rent exceeds what a household at the median renter income can afford to pay, and the gap has grown wider in the last decade.
• Of the West Palm Beach metro’s top 15 occupations, only registered nurses have a median hourly wage above $18.56, the “housing wage” to afford a 1-bedroom apartment at Fair Market Rent. 24
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
• For every 100 extremely low-income renter households, Palm Beach County has only 24 affordable and available rental units.
• Palm Beach County’s rental market is tightening. Rental vacancy rates dropped from 12.3% in 2009 to 6.1% in 2014. Statewide rental vacancy rates declined during the same period, but were still over 8% in 2014.
• In 2013, the median home price of $246,010 was out of reach for a household at the Median Family Income of $65,648, and for many essential service workers and other professionals. Even more moderately priced homes were out of reach for some skilled blue-collar and white-collar workers, including electricians and licensed practical nurses.
• In 2013, Palm Beach County had about 40,000 low-income households who could have benefitted from purchasing a modest home. However, only about 2,000 to 4,000 homes in their price range were sold as primary residences.
• Palm Beach County’s Inclusionary Housing ordinance (the Workforce Housing Program) and Community Land Trusts have an important role to play in expanding the affordable housing supply, especially in high-opportunity neighborhoods. These tools had limited effectiveness during the Recession, but will become increasingly important as the housing market continues to rebound.
Sadowski Funds Play a Vital Role in Meeting Affordable Housing Needs:
• For Fiscal Year 2015-2016, Palm Beach County and its four largest cities are estimated to receive a total of $6.52 million in State Housing Initiatives Partnership (SHIP) funds, creating 675 jobs and generating nearly $85 million in positive economic impact.
• Between the 2006-07 and 2011-12 fiscal years, SHIP funds in Palm Beach County (including its four largest cities) assisted 2,037 units, mainly owner-occupied. 18% of these units were targeted to elderly households. Before the State Legislature began to sweep the Sadowski Trust Funds, the County assisted 613 units annually with SHIP.
• Palm Beach County has nearly 4,500 multifamily rental units in developments that received SAIL financing, including over 3,000 units built or financed between 2000 and 2014.
A REPORT FROM THE FLORIDA HOUSING COALITION
â&#x20AC;˘ To increase its affordable housing supply, Palm Beach
Palm Beach County needs a multi-pronged strategy to expand its
County should advocate for maximum funding for the
affordable housing supply. Local stakeholders should continue
Sadowski State and Local Trust Funds, while finding creative
to advocate for the Sadowski Funds to be fully appropriated
ways to increase local affordable housing resources. For
for housing, since these funds provide a vital buffer against an
example, the County can expand affordable homeownership
uncertain federal funding environment. Stakeholders should also
while meeting fair housing goals by improving upon its
enlist support from as many local sources as possible, including
Workforce Housing Program (WHP) and strengthening its
business owners, foundations, employers, faith groups, and
Community Land Trusts (CLTs).
private citizens. Finally, the County can expand fair housing
CONCLUSION To provide high-quality housing that low-income families can afford, the private housing market needs public incentives. In
choice by supporting and strengthening the shared equity tools it already has, including the Workforce Housing Program and local nonprofit Community Land Trusts.
Florida, the Sadowski State and Local Housing Trust Funds
Individuals and families from all walks of life make Palm
provide critical support for affordable housing activities,
Beach County the vibrant community that it is. Low-income
including construction and rehabilitation subsidies for private
workers ensure that residents and tourists alike have a safe and
developers, purchase assistance for low-income homebuyers, and
comfortable experience in Palm Beach County, while elders and
financial assistance to help families avoid foreclosure or eviction.
neighbors with disabilities add richness and diversity. To reach
Sadowski Funds are particularly important for leveraging other
its economic and cultural potential, Palm Beach County needs
resources, such as federal grants and private local contributions.
affordable homes for everyone.
FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
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HOME MATTERS 2015
HOME MATTERS FOR PALM BEACH COUNTY’S FAMILIES
HOME MATTERS FOR PALM BEACH COUNTY’S ECONOMY
HOME MATTERS FOR PALM BEACH COUNTY’S ELDERLY
HOME MATTERS FOR PALM BEACH COUNTY’S VETERANS
HOME MATTERS FOR PALM BEACH COUNTY’S YOUTH AGING OUT OF FOSTER CARE
HOME MATTERS FOR PALM BEACH COUNTY’S SPECIAL NEEDS POPULATIONS
26
THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
A REPORT FROM THE FLORIDA HOUSING COALITION
Endnotes Wardrip, K., Williams, L., and Hague, S. 2011. The Role of Affordable Housing in Creating Jobs and Stimulating Local Economic Development: A Review of the Literature. Washington, DC: Center for Housing Policy. http://www.nhc.org/media/files/Housing-and-Economic-Development-Report-2011. pdf. Last accessed 1/6/15.
1
2 Houser, A., Fox-Grage, W., and Ujvari, K. 2012. Across the States: Profiles of Long-Term Services and Supports. Washington, D.C.: AARP. http://www. aarp.org/content/dam/aarp/research/public_policy_institute/ltc/2012/across-the-states-2012-full-report-AARP-ppi-ltc.pdf. Last accessed 12/19/14.
Shinn, G.A. 2014. The Cost of Long-Term Homelessness in Central Florida. Orlando, FL: Central Florida Commission on Homelessness. http://shnny. org/uploads/Florida-Homelessness-Report-2014.pdf. Last accessed 12/19/14. 3
Cohen, R. 2011. The Impacts of Affordable Housing on Health: A Research Summary. Washington, DC: Center for Housing Policy. http://www.nhc. org/media/files/Insights_HousingAndHealthBrief.pdf. Last accessed 1/6/15. 4
5
Ibid.
Newman, S.J. 2008. Does Housing Matter for Poor Families? A Critical Summary of Research and Issues Still to be Resolved. Journal of Policy Analysis and Management 27 (4): 895-925. 6
7
Cohen 2011.
8
Newman 2008.
National Health Care for the Homeless Council. 2011. Homelessness & Health: What’s the Connection? http://www.nhchc.org/wp-content/ uploads/2011/09/Hln_health_factsheet_Jan10.pdf. Last accessed 12/19/14. 9
Brennan M. 2007. The Positive Impacts of Affordable Housing in Education: A Research Summary. Washington, DC: Center for Housing Policy. http:// www.nhc.org/media/documents/Housing_and_Education.pdf. Last accessed 1/6/15.
10
11 Children’s HealthWatch and Medical-Legal Partnership Boston. 2009. Rx for Hunger: Affordable Housing. http://www.childrenshealthwatch.org/ publication/rx-for-hunger-affordable-housing/. Last accessed 12/19/14. 12
Newman 2008.
Newman, S.J. and Harkness, J. 1999. The Long-Term Effects of Housing Assistance on Self-Sufficiency: Final Report. Washington, DC: U.S. Department of Housing and Urban Development [HUD]. http://www.huduser.org/portal//Publications/pdf/longterm.pdf. Last accessed 12/19/14.
13
American Community Survey [ACS]. [2013 1-year estimates] http://factfinder.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t. Last accessed 7/22/15.
14
15
Bureau of Labor Statistics. [Local Area Unemployment Statistics with annual averages] http://data.bls.gov/cgi-bin/dsrv?la. Last accessed 7/8/15.
Shimberg Center for Housing Studies, University of Florida. 2015a. [Custom tabulations of 2013 Public Use Microdata Sample (PUMS) data and home sale data from County Appraiser tax rolls]
16
17
Ibid.
Joint Center for Housing Studies of Harvard University [JCHS]. 2013. America’s Rental Housing: Evolving Markets and Needs. http://www.jchs. harvard.edu/sites/jchs.harvard.edu/files/jchs_americas_rental_housing_2013_1_0.pdf. Last accessed 12/28/14.
18
Palm Beach County Homeless and Housing Alliance. 2015a. 2015 Homeless PIT Count News Release [downloadable PDF]. http://www.co.palmbeach.fl.us/communityservices/programs/humanservices/hha.htm. Last accessed 7/20/15.
19
Palm Beach County Homeless and Housing Alliance. 2015b. 2015 HUD Point-In-Time County WPB/PBC CoC [downloadable PDF]. http://www. co.palm-beach.fl.us/communityservices/programs/humanservices/hha.htm. Last accessed 7/20/15. 20
HUD. [Point-in-Time Count data, 2007-2014] https://www.hudexchange.info/resource/4074/2014-ahar-part-1-pit-estimates-of-homelessness/. Last accessed 12/19/14.
21
22 National Center for Homeless Education. 2012. Determining Eligibility for Rights and Services Under the McKinney-Vento Act. http://center.serve. org/nche/downloads/briefs/det_elig.pdf. Last accessed 12/19/14. 23 Florida Department of Education [FDOE]. [2013-14 data on student homelessness] http://www.fldoe.org/core/fileparse.php/7482/ urlt/1314HomelessStudentsCount.pdf. Last accessed 7/14/15. 24 FDOE. [2009-10 to 2012-13 data on student homelessness] http://www.fldoe.org/schools/family-community/activities-programs/homeless-eduprogram.stml. Last accessed 2/4/15. 25 Data on student homelessness was obtained from the following sources provided by the National Center for Homeless Education (http://center.serve. org/nche/) :
• National data for 2012-2013, Virginia data for 2009-10 and 2012-13: http://nchespp.serve.org/profile/National. Last accessed 7/21/15. • National data for 2009-10: http://center.serve.org/nche/pr/data_comp.php. Last accessed 7/21/15. 26
Florida Housing Coalition. 2015. Home Matters for Florida 2015. http://www.flhousing.org/?page_id=5915. Last accessed 7/14/15.
United Way of Florida. 2014. ALICE (Assed Limited, Income Constrained, Employed): Study of Financial Hardship. http://www.uwof.org/sites/uwof. org/files/14UW%20ALICE%20Report_FL_Lowres_12.17.14.pdf. Last accessed 7/1/15.
27
28
Ibid.
Florida Department of Economic Opportunity [DEO]. 2015. Occupational Employment Statistics and Wages (OES). http://www.floridajobs.org/ labor-market-information/data-center/statistical-programs/occupational-employment-statistics-and-wages. Last accessed 6/29/15. 29
FLHOUSING.ORG | THE FLORIDA HOUSING COALITION
27
HOME MATTERS 2015 30
CNT. 2015. [Housing + Transportation Index data]. http://htaindex.cnt.org/map/. Last accessed 7/30/15.
Personal communication from Suzanne Cabrera, President/CEO of Housing Leadership Council of Palm Beach County, and David Brandt, Executive Director of the Housing Finance Authority of Palm Beach County. October 2015. According to the American Community Survey, which samples “momand-pop” rentals as well as professionally managed properties, median gross rents in Palm Beach County rose sharply during the housing boom, declined during the Recession years, and had leveled off by 2014. However, median gross rents have exceeded affordable rents at the median renter income at least since 2005, and the gap has widened since then.
31
Reinhold P. Wolff Economic Research, Inc. 2015. Palm Beach County Quarterly Housing Report: Second Quarter, 2015. 18 p. Provided by the Housing Leadership Council of Palm Beach County. Data on average monthly rents and rental vacancy rates is provided graphically. Since tabular data was unavailable, we estimated values for each year from the graphs to the best of our ability. The report also does not clarify whether the average monthly rent data is adjusted for inflation, and David Brandt (see endnote 31) assumed it was not. 32
33
DEO 2015.
National Low Income Housing Coalition. 2015. [Out of Reach data for Florida] http://nlihc.org/oor/florida. Washington, DC: The author. Last accessed 6/30/15. 34
Roy, A.L. and Raver, C. 2014. Are All Risks Equal? Early Experiences of Poverty-Related Risk and Children’s Functioning. Journal of Family Psychology 28 (3): 391-400. 35
Newman, S.J. 2008. Does Housing Matter for Poor Families? A Critical Summary of Research and Issues Still to be Resolved. Journal of Policy Analysis and Management 27 (4): 895-925. 36
37
Evans, G.W. 2006. Child Development and the Physical Environment. Annual Review of Psychology 57: 423-451.
38
NLIHC. 2014. County Gap Analysis, Florida, 2007-2011. [Excel spreadsheet provided to Florida members]
MacArthur Foundation. 2014, June 3. “Housing Challenges Real For Many Americans, Finds 2014 How Housing Matters Survey.” http://www. macfound.org/press/press-releases/housing-challenges-real-many-americans-finds-2014-how-housing-matters-survey/. Last accessed 2/16/15. 39
40 Blomquist, D. 2015, July 8. “Potential buy-to-rent returns down from a year ago in 59 percent of U.S. counties for first five months of 2015.” RealtyTrac [news release]. http://www.realtytrac.com/news/home-prices-and-sales/realtytrac-buy-to-rent-housing-market-analysis-july-2015/. Last accessed 7/22/15.
Kroszner, R. 2009. The CRA and the Recent Mortgage Crisis. In: Federal Reserve Banks of Boston and San Francisco (eds). Revisiting the CRA: Perspectives on the Future of the Community Reinvestment Act. pp. 8-11. http://www.frbsf.org/community-development/files/cra_recent_mortgage_ crisis1.pdf. Last accessed 2/16/15.
41
42 Adelino, M., Schoar, A., and Severino, F. 2015. Changes in Buyer Composition and the Expansion of Credit During the Boom. [working paper] Cambridge, MA: National Bureau of Economic Research. http://www.nber.org/papers/w20848. Last accessed 2/16/15.
HUD. 2012. [FY 2013 Income Limits for West Palm Beach HUD Metro Fair Market Rent Area (HMFA)] http://www.huduser.org/portal/datasets/il/ il13/index.html. Last accessed 7/28/15. 43
44
Shimberg Center 2015a.
45
ACS. [2006 ACS, 2012 and 2013 1-year estimates]
Palm Beach County Building Division. 2015. [2014 Permit Reports] file:///C:/Users/Rose/Downloads/permit2014annual%20(1).pdf. Last accessed 7/23/15. 46
Hickey, R. 2013. After the Downturn: New Challenges and Opportunities for Inclusionary Housing. Washington, DC: Center for Housing Policy. http://www.nhc.org/media/files/InclusionaryReport201302.pdf. Last accessed 7/28/15.
47
48 Mukhija, V., Das, A., Regus, L., and Tsay, S.S. 2015. The Tradeoffs of Inclusionary Zoning: What Do We Know and What Do We Need to Know? Planning Practice & Research 30 (2): 222-235. 49 Schuetz, J., Meltzer, R., and Been, V. 2011. Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets in the United States. Urban Studies 48 (2): 297-329. 50 Thaden, E. 2011. Stable Home Ownership in a Turbulent Economy: Delinquencies and Foreclosures Remain Low in Community Land Trusts [Working Paper]. Cambridge, MA: Lincoln Institute of Land Policy. http://www.lincolninst.edu/pubs/1936_Stable-Home-Ownership-in-a-Turbulent-Economy. Last accessed 7/29/15.
Sadowski Coalition 2015. Estimate based on Florida Senate’s proposed SHIP allocations as of 6/19/15, 2012 IMPLAN Sector multipliers, and data on 2010 Sadowski fund expenditures compiled by Dr. Alan Hodges (Extension Scientist, University of Florida).
51
52
Florida Housing Finance Corporation. [SHIP data provide on request in 2014 for FY 2011-12, and in 2013 for FY 2006-07 to FY 20010-11]
Florida Housing Finance Corporation. 2015. 2014 Annual Report. http://issuu.com/fhfc/docs/annual_report_6_29_15_final. Last accessed 7/16/15. 53
54 Shimberg Center. 2015b. [Assisted Housing Inventory data for Palm Beach County] http://flhousingdata.shimberg.ufl.edu/a/ahi_basic. Last accessed 7/16/15.
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THE FLORIDA HOUSING COALITION | FLHOUSING.ORG
The Housing Leadership Council of Palm Beach County is a coalition of business, civic, and community leaders working to sustain the economic viability of the County by ensuring that housing is attainable for the workforce at all income levels through education, advocacy and facilitating collaboration
(561) 653-4107 www.hlcpbc.org
Affordable Housing is an Integral Part of Community Revitalization and Economic Development The Florida Housing Coalition, Inc., is a nonprofit, statewide membership organization which brings together housing advocates and resources so that all Floridians have a quality affordable home and suitable living environment.
FOR MORE INFORMATION, CONTACT: The Florida Housing Coalition 1367 E. Lafayette St., Ste. C Tallahassee, FL, 32301 (850) 878-4219 info@flhousing.org FLHousing.org
The Florida Housing Coalition and The Housing Leadership Council of Palm Beach County appreciate PNC for funding the Home Matters Report for Palm Beach County.