MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS

BREVARD COUNTY, FLORIDA

 

 

April 18, 2006

 

 

The Board of County Commissioners of Brevard County, Florida, met in special workshop session on April 18, 2006, at 9:00 a.m. in the Government Center Florida Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida. Present were: Chair Helen Voltz, Commissioners Truman Scarborough, Ron Pritchard, and Susan Carlson, Assistant County Manager Don Lusk, and County Attorney Scott Knox.  Absent was: *Commissioner Jackie Colon.

 

 

Commissioner Scarborough presented a letter to the Board addressed to the Titusville City Council Members advising that the County inadvertently did not notify the enclave property owners at the time the Joint Planning Agreement (JPA) was considered by the County and requesting the City offer the citizens the opportunity to participate in the discussion of property annexation into the City. He requested the Board authorize the Chair to execute the letter.  

 

Motion by Commissioner Scarborough, seconded by Commissioner Carlson, to authorize the Chair to execute letters to the Titusville City Council Members requesting enclave property owners be given the opportunity to participate in the discussion of the Joint Planning Agreement of their property’s annexation into the City.  Motion carried and ordered unanimously.

 

 

Commissioner Pritchard advised House Bill 1199 was filed on behalf of Telecommunications to provide cable television without the benefit of local franchises. He stated the Bill is being touted as consumer friendly but is going to have many problems; without a local franchise there will be no guarantee that if it is not cost effective service can be terminated; and over time the Bill may have a Statewide fiscal impact to local governments of at least $30 million dollars, with the potential to be significantly higher. He advised it is estimated House Bill 1199 may cost Brevard County approximately $278,904 annually.  He stated that other impacts could be loss of grants and assistance that Bright House, Adelphia, and Comcast have provided to the community such as, cost of start up for Space Coast Government Television, and recently infrastructure contributions such as the Bright House fiber feed to the Emergency Operations Center (EOC) for the new Emergency Information System. He stated the Bill is another attempt by the State to control local governments and remove home rule authority; and requested the Board send a Resolution of opposition to House Bill 1199 to Governor Bush, the Legislative Delegation, and Lobbyist John Thrasher.

 

 

 

 

Motion by Commissioner Pritchard, seconded by Commissioner Carlson, to adopt Resolution opposing House Bill 1199, which was filed on behalf of Telecommunications without the benefit of local franchises.  Motion carried and ordered unanimously.  

 

Corporate Relations Director at Harris Corporation Cindy Kane advised Harris Corporation has over 7,000 employees in Brevard County, half are technicians and engineers, and the price of housing is affecting these practices.  She explained Harris has a large population of baby boomers beginning retirement years; with situations of looking for more recruiting, attracting, and retaining employees, Harris is entering its first year searching for talent for new college graduates; and there was a high number of employers who visited students on campus this year.  She stated there are 58,000 engineers declaring majors; Harris Corporation looks for the top 10% to select from; and it needs to make itself the employer of choice.  She stated housing used to be a key discriminator for Harris Corporation in all collateral material; Harris brings over 300 new employees to Brevard County a year; and many potential employees when interviewed are entertaining multiple offers from Boston, Austin, Texas, and Washington, D.C. She noted the cost of housing is questioned; interested employees research the Internet and advised the housing is unaffordable; and with the housing so high other amenities are offered.  She stated interested employees may choose other locations which offer town centers, entertainment, sports teams, and places to meet other young professionals; the Board needs to look at zoning changes that support mixed use concepts, and density that would work with environmental issues to attract and retain high tech professionals; and availability of apartments during the summer for interns are hard to find to rent during that timeframe.  She advised the County needs to move forward with some solutions for future growth and high technology in the community.  

 

President and CEO of Parrish Medical Center George Mikitarian stated housing used to be a recruitment tool;  many experienced healthcare providers attempted to attract well- established employees in communities while attending college or training in large teaching hospitals; and to attract employees away from big cities such as Orlando, Jacksonville, and Miami tended to be easy, but now the cost of housing is a deterrent. He explained how an Ear, Nose, and Throat (ENT) physician from Wisconsin signed an agreement with Parrish; he came to Brevard County on two house hunting trips;  and he could not find something affordable so he resigned before even moving here. He stated Parrish Medical Center is willing to assist other private and public entities.

 

Second Vice President of Brevard Federation of Teachers Janet Eastman advised in the Fall of 2006 Florida will need more than 30,000 new teachers due to a surge of new students, a spike in teacher retirements, a flurry of new teachers leaving the profession, and demands of the 2002 Constitutional Amendment to reduce class sizes. She stated that the recent hiring rate has doubled the State’s existing workforce of 150,000 teachers;  beyond 2006 the State will need 20,000 new teachers every year for the next ten years; and quoted Commissioner John Winn as follows: “This is probably the biggest crisis we have faced in education in a long time, if something dramatic doesn’t happen soon I see nothing short of a great depression in schools.” Ms. Eastman stated Brevard

 

 

County needs to recruit a minimum of 500 teachers for the 2006-07 school year; the first year teachers will sign a contract with a beginning salary of $32,100; and optimistically there will be a significant increase for teachers when the Brevard Federation of Teachers and the School District negotiate a new contract for the school year. She advised the proposed increase will still keep affordable housing out of reach to most of the 5,000 teachers presently working in Brevard County; and with the prospect of 500 new teachers, and the recent hiring of more than 350 last year, affordable housing is a crucial issue for Brevard County teachers.  She advised the number of houses available from $75,000 to $150,000 are approximately 58, according to the Internet Multiple Listing Search (MLS) from December 2005; these are homes that teachers, law enforcement officials, and service workers, earning $29,000 to $33,000 a year can afford; and many professionals indicate the cost of housing is the most important quality of life decision in relocating and staying in a particular community.  She stated housing was used as an attraction in the County and now it is a deterrent; many teachers are leaving Brevard County for Georgia and North Carolina; and affordable work housing is critical to the economic prosperity of Brevard County, and directly affects members of the workforce.  She stated if teachers cannot afford a home in this area, not only will Brevard County lose teachers but risks the loss of nurses, law enforcement personnel, service workers, and other professions, which will seek employment outside of Brevard County; and if this trend continues the students entering the Brevard County workforce in the next 10 years will also leave.  She advised solutions Brevard Workforce Taskforce  recommends to the housing challenge include full funding of the Sadowski Act, 3% solution, maximum manual property tax increase of 3% on non-homestead employer assistance programs, mortgages, buy downs, mixed use developments, density bonuses, reduced lot sizes, and streamlining permits; and requested the Board commit with enthusiasm and consider these recommendations.

 

Chief Executive Officer of the Home Builders and Contractors Association Frank Kaiser stated the median price is coming down on homes to around $225,000;  it was as high as $248,000; price increases this year are expected to be in the 5 to 10% range as opposed to the 25-50% range as seen the last three years; and the number one crisis is the housing affordability factor. He explained a few variables in housing costs can be controlled and some cannot; and labor costs and material costs have increased.  He stated the formula used for principle and interest for taxes and insurance when qualifying are at an all time high, due to valuation of property; increases in property values, taxes, and insurance were never a factor in past years but can now disqualify homebuyers from getting a mortgage; and the Home Builders and Contractors Association is working hard in Tallahassee this year on Bills to find solutions for affordability of insurance.  He noted looking at land cost and taxes, the cost of living going up, and shortage of labor and basic economics have caused the price of labor to go up; material costs cannot be changed, but land is a variable to consider rezoning to a higher density; by doing so, land costs will be reduced per parcel and reduce traffic in commuting; and density decreases traffic. He advised solutions such as land trusts need to be looked at; other solutions Workforce Housing Taskforce has presented; and to consider all variable factors is important.

 

Commissioner Scarborough inquired what is the cost of a new unit, land, labor, and materials.  He stated the density issue deals with land costs reduction; reduction costs to get materials will not be seen; even before the Hurricanes the price of steel and concrete

 

 

had gone up substantially; and impacts by increased costs have not been calculated into the formulas.

 

Mr. Kaiser stated in single-family housing with one-quarter acre, one-third acre, or larger lot, land is a large factor; and the reason for touting higher density is multi-family housing, apartments, condos, townhomes, or something of that nature, then the land unit is reduced.

 

Chair Voltz inquired if land prices have been reduced. Mr. Kaiser responded land prices have not been reduced, but it is going to happen. He explained five years ago a person could buy a lot for $5,000 that sold last year for $60,000 to $80,000; it is expected those lots will come back down in the $30,000 to $35,000 range; bank costs will come down hopefully this year; but Brevard County has a shortage of land to build on which will keep prices up.

 

Commissioner Pritchard stated to build a 1,600 square foot house at a low-end price is about $85 a square foot, or $136,000, and a low-end lot is about $40,000, which puts the price at $176,000; so the 25% to 30% rule is accurate.

 

Government Affairs Director for Space Coast Association of Realtors Brenda Warner stated the President of Space Coast Association of Realtors Steve Ramona planned to speak today but is in Tallahassee discussing the same issues with the Legislative Delegation, including the funding for the Sadowski Act, which is a key component of realtors legislative policy issues this year.  She stated the last two years have brought unprecedented increases in housing values in Brevard County; many residents are priced out of the market; and the average working person is not in the position to purchase a home.  She commented on changes regarding the housing market, a drop in median price, and what experts say about the Brevard County market leveling off and sustaining a 4 to 5% growth, which is higher than the national average of 1.5%.  She stated any successful local and regional housing initiative has four main components, such as a vision, plan for implementing that vision, political will and support, and effective community organization and support; the Workforce Housing Group has developed a vision and are on the way of putting the instruments in place to implement that vision; and effective community organization and support is there, but lacking the political will and support, and is why today hopefully the problem is recognized and the Board will attack the issue before it becomes a critical mass.

 

Chair Voltz commented on a meeting with realtors and the Property Appraiser’s Office discussing how valuations of homes have increased and that the Property Appraiser indicated realtors were selling homes for too much money.  Ms. Warner stated a home can only sell for what homebuyers are willing to pay, and the housing prices are what the market can bear.

 

Thomas Morris stated he has resided in Brevard County for 25 to 30 years, been a contractor for 23 years, and has built houses throughout the County.  He expressed his concern for his children being able to afford a house in Brevard County; stated children have benefited from great teachers in Brevard; and he is concerned of losing those teachers due to cost of houses continuing to rise.  Mr. Morris explained  starting  pay  for  a  teacher is

 

$32,100; a 20-year veteran teacher’s salary is $49,080; and a teacher’s spouse will have to work in order to afford a house because an income of $57,300 is needed in order to afford a house for a family of four. He advised it applies to firemen, policemen, and County workers. He inquired how to recruit workers to Brevard County if housing costs keep increasing. He explained increased costs of lots going from $5,000 to $60,000 is a big issue; there is the cost to clear and fill, which has tripled, and impact fees are $6,000 to $7,000. He also commented on density issues, transportation, impact fees, how to make it more affordable to live in Brevard County, and costs need to be spread to everyone living in the County.

 

Commissioner Pritchard commented on pockets of density increasing around the County, inclusionary zoning, incentive for part of a development to be more dense and fast track permitting. He noted a developer could get a bonus for density in one area, leaving the other part of the total development less dense; and there has to be this balance.

 

Mr. Morris stated if Brevard County does not have affordable housing, people will still move here; there should be pockets of the area, which have a higher density; and he does not agree with inclusionary zoning.  He stated it is not just builders and developers, it is also people who bought houses 10 to 20 years ago trying to get more money for the houses; and issues with higher density near housing will scare away different buyers.

 

Commissioner Pritchard inquired to what size houses Mr. Morris builds; with Mr. Morris responding he is working on a house with 1,350 square feet of living space in a gated community,  priced under $200,000; but he also builds the 5,000 to 6,000 square foot homes priced at a half million to a million dollars.

 

Commissioner Pritchard inquired to Mr. Morris can see the potential for having on one side of a street a 50-foot lot less than $200,000 a home, and on the other side of the street having the three-quarter of a million dollar home. Mr. Morris replied he cannot see a three-quarter of a million dollar home across the street from a $200,000 home, but could see a $500,000 or under home because three-quarter of a million dollar homebuyers have too many other options allowing he or she to go somewhere else.

 

Commissioner Scarborough stated density appears to drive the lot cost, and construction costs, and there is a market cut-off; but the size of the unit itself, without reducing the quality, will impact that fact. He inquired what level of home will sell but be attractive. Mr. Morris replied with 1,000 square feet of living space, two bedrooms, one bathroom, or two bedrooms, two bathrooms, the difference in cost is not much greater or less than a 1,600 square-foot house, which is typically three bedrooms, two bathrooms, the same amount of plumbing, and air conditioning; the difference is the price per square foot, for roofing and materials; and the plumber is going to charge almost the same.  Commissioner Scarborough inquired if dropping a couple hundred square feet reduces the cost much; with Mr. Morris responding any reduction of cost can make a big difference for homebuyers to be able to afford a house, as far as the mortgages and rates.

 

 

 

 

Commissioner Scarborough inquired how much in costs can be taken off; with Mr. Morris responding reduction of costs would be based mainly on materials, because of using less on construction costs; when adding more bathrooms, second air conditioner, upgrades in granite, cabinets, or floor tile is when cost dramatically begin to change;  and a basic 1,200 square-foot house and basic 1,600 square-foot house with the same number of bedrooms, the cost difference is the materials and land. Commissioner Scarborough stated to increase the entire density of the County could be a political backlash; and inquired how much can it be reduced by having units closer together but not necessarily more units on the land.  Mr. Morris replied it is a matter of the overall picture; land costs would depend on a 100 foot wide lot to a 50 foot wide lot; and cost would be less than half because of the infrastructure and piping.

 

Commissioner Scarborough inquired if having a density as to the individual unit, is going to affect the construction costs again as opposed to the land cost.  Mr. Morris commented construction of the development is affected and taxes on road frontage would be less; it is not a one all fix scenario; and there are a couple of different issues to look at to spread those costs throughout the entire County.

 

Laura Ward stated when she heard Commissioner Pritchard speak on inclusionary zoning, it seemed to be a good concept; it will allow a trade-off between increased density under a single development entity; and it requires that development entity  address quality and market ability of the smaller denser units through design and making the development more attractive to other purchasers.

 

Jeff Cribb stated he owns a mortgage company in Brevard County and in California; and suggested the Board go to the website at ocregister.com to look at traffic and density. He stated Orange and Brevard Counties are one highway towns and the infrastructure was not built to manage one million people.  He stated people will pay what they will pay; denser houses will sell; and people buy houses because of the location.  He stated Viera is a great community plan; people like to live there; and those houses are more than a house that has a bigger lot a couple miles away.  He stated in California buyers are $40,000 a year short to qualify for a house; in Brevard County it is from $20,000 to $25,000 short to what it takes to qualify for a home; and his company does a lot with teachers, firefighters, and policemen, with temporary buy downs that help them get about 30% more house.  He stated the national average for appreciation rate for the last 50 years has been 6.8% on a $250,000 home; and in the next three years if that appreciation stands, that house would cost $290,000.

 

Commissioner Voltz inquired who would subsidize the housing. Mr. Cribb replied in California the seller, for example, $250,000 with a three to one buy down at 6.5% on a conventional mortgage, the rate for the first year is 5%; it would go half a percentage each year thereafter; and the subsidy on that is less than three thousand dollars. He stated there is sellers concession, especially in an inflated market, where now it is a buyers market more than a seller’s market; and on one and a half percent interest to buy down something for a teacher, it allows buying 30% more house in that one and half percent interest difference.

 

 

 

Commissioner Pritchard commented the 30% is like an adjustable rate mortgage, which will eventually catch up with the buyer; and if income has only gone up, according to the CPI, three percent, the buyer will not be able to afford the mortgage in the future.  Mr. Cribb replied the problem is that four years down the road that house is three hundred thousand dollars.  Commissioner Pritchard replied that is great if homeowners sell, but where do the sellers move.  

 

Mobile World representative Flip Hoskin stated manufactured homes have not been mentioned and should be considered. Commissioner Pritchard inquired what the selling price of a 1,600 square foot manufactured home would be delivered and set up. Mr. Hoskin replied the cost includes set-up; and the best seller is 2,300 square feet, 4 bedrooms and two bathrooms; and the price is $40 a square foot.  Commissioner Pritchard inquired if there are any zoning restrictions prohibiting that type of manufactured home in residential communities.  Planning and Zoning Director Robin Sobrino responded it depends on if it is being classified as a mobile home or a prefabricated home, and if it is registered in the State of Florida and meets the building code requirements. She stated if it meets the building code requirements and is certified by the State of Florida, a prefabricated home can go in any zoning classification; a mobile home is not certified to the same building code requirements; and it is considered to be portable and must be in a mobile home zoning. Commissioner Pritchard inquired if a prefabricated home is considered the same as a manufactured home. Ms. Sobrino replied the terminology is used interchangeable; there is modular, prefabricated, mobile home; and it depends on who has signed the endorsement and certified that structure as to how it is qualified. She advised part of the building permit requirement is to submit in the building permit package information who it is certified by, if it is the Federal government or the State; and if it is State certified it meets the standard as a regular stick-built home.

 

Assistant County Manager Don Lusk commented the last Affordable Housing Workshop was five or six years ago; he did not see the group of people attending like today; and thanked everyone who worked with staff to put this workshop together.

 

 

 

Housing and Human Services Director Gay Williams stated the need was heard and now staff is working on $786,000 to do affordable housing through the home program; $2.1 million dollars is through the SHIP program; the Community Development Block Grant (CDBG) Program provides infrastructure at $1.8 million; and not all of that goes toward affordable housing projects. She advised Affordable Housing Council, as well as other partners, have worked on a community initiative that will bring forth solutions; and it is believed that there are highlights and opportunities County government can play a role into produce and provide affordable housing within the community.

 

Brevard County Affordable Housing Council Chairman Susan Baiocco stated the Council was established by the Board in 1993; it is a nine-member volunteer board representing the housing community; and thanked members Kimberly Turner, Laura Ward, and John Saxon for their support.  She stated the nine-member volunteer board represents the housing community to increase the availability of affordable housing units through the

 

 

combined efforts of private and public funds; and 550 first-time homebuyers, 450 rehab and repair clients, 45 replacement housing clients, 1,200 families with rent and security deposits, 500 rental units for the low income, and 120 hurricane replacements, along with too numerous to count hurricane and insurance deductible assistance, is a powerful list of accomplishments that would not have happened had the Board not taken the first step.  She noted since that time though the dynamics of funding and the cost to produce affordable housing has not moved in the same direction, leaving the task to find new and innovative solutions; and that is the reason for the workshop today.  She stated those innovative solutions are to accomplish affordable housing at a reduced cost; and the challenge is to accomplish the task through teamwork and partnership, and to hear from partners in the community and County staff who have helped make affordable housing a reality.  She stated as staff listens to the partners, for he or she to be open to the new and innovative ideas, direction, counsel and support to enable the partners to continue working together accomplishing the task of creating affordable housing.

 

Florida Housing Coalition Representative Wight Gregor stated she has a broad working knowledge of the State’s Affordable Housing Programs including SHIP, CDBG, HOME, and predevelopment loan programs; and she is Program Manager for the delivery of technical assistance services under numerous programs as well as providing assistance to local governments, local non-profits, and other community partners under the Florida Housing Finance Corporations, and Affordable Housing Catalyst Programs. She presented the Board with some data sets.  Chair Voltz inquired is there more current data than from 2002.

 

Ms. Gregor replied the source for some of the data is the Shimberg Center for Affordable Housing; the year 2002 was the last update available; the Shimberg Center is in the process of accumulating more current data; and due to the hurricane seasons Statewide, the 2002 data is a baseline and is understated for a hurricane impacted area.

 

Commissioner Pritchard inquired what is qualified as affordable housing. Ms. Gregor responded it is the total unit count and the total unit count for permanent units; and under substandard units the total count is 7,954 using the year 2002 data.  Commissioner Pritchard inquired what makes them substandard.  Ms. Gregor replied overcrowding, lack of plumbing, heating and air conditioning, are the standards for quantifying substandard units; projected construction needs by the year 2025 is based on several things, such as  influx of population, housing units being phased out, and older units; the Shimberg Center,  using the 2002 data, projects a need for an additional 64,000 single-family units and 13,000 plus multi-family units by the year 2025 in Brevard County alone; and the cost burden is paying more than 30% of gross monthly income for housing. She stated according to the Shimberg Center, 21.2% owner households and 37% or more of renter households are cost burdened; extreme cost burdened households pay more than 50% of their gross monthly income for rent; median sales price, according to the Florida Association of Realtors in February, was $225,000; and the Office of Federal Housing Enterprise Oversight (OFHEO) only collects data by Metropolitan Statistical Area (MSA).  She stated it may have some correlation with Countywide data, but the actual data is on the MSA itself. 

 

 

 

 

 

Chair Voltz stated she has the Florida Association of Realtors home price trends, and the median resale price of a home in Brevard County is $219,000. Ms. Gregor stated she did not capture the resale data, but it is interesting it is so close. She further explained about appreciation when the OFHEO uses conforming loan data to put together the data set; stated every quarter it ranks the MSA countrywide by rate of appreciation; the list is on its website; and to track by quarter, in the fourth quarter of 2005, which ended in December, Palm Bay, Melbourne, and Titusville were ranked 16^th in the nation for the upward change in sales price.  She stated over the last five years there has been 130% increase in appreciation; over the past year there was 29.79% appreciation in sales prices in conforming loans; it meets lending standards for the secondary market; and in the fourth quarter there was a 5.79% increase in appreciation.  She noted the trend is still there; as of the last quarter it was still climbing; Florida ranks second in the nation for increases in appreciation; 1,000 people a day are moving to Florida; and ten of the nation’s top 20 MSA’s that are ranked with the highest appreciation are in Florida.  She advised of those ten Palm Bay, Melbourne, and Titusville MSA is ninth and Punta Gorda was 10^th; Brevard County median family income for a family of four is $57,300, a new number just released this month; the housing wage is defined as the minimum wage an earner must make in order to afford fair market rent; and fair market rent in Brevard County is $911 a month, $36,440 annually, $17.52 per hour working 40 hours a week, or working 114 hours per week at minimum wage, in order to afford fair market rent. She stated elementary school teachers start at $31,120, social workers and firefighters start around $22,000, nurses start at $30,000, and police officers start at $32,000; incomes are low as related to the median family income; using a $85 per square foot building cost for a modest three bedroom, two bathroom house, with land at low cost, the production of a $160,000 house is not beyond the realm of possibility, using a 6.75% interest 30-year fixed-rate mortgage, and $250 per month taxes and insurance; and other debts for the family affects the ability to borrow for a first mortgage. She noted a teacher can qualify for a mortgage of $63,717; additional financing of $93,782 is needed to purchase a home at the sales price of $160,000; and if there are rentals available, a teacher can afford a unit at fair market rent.

 

Commissioner Pritchard stated it used to be 20% down to qualify for a conventional loan; there are a variety of lending programs out there; all of them eventually catch up to the person who is purchasing anyway; and inquired it is 5% or 10% down payment out of reach to most people in this dollar category, or is it strictly zero. Ms. Gregor replied zero is unusual; in most of the local programs, there is some sort of contribution;  it is not 5% or 10%, but it might be 1%; Fannie Mae has a product that is 1% now; 3% down payment is standard; but to expect 10% or 20% for prices like this is not going to happen.

 

Commissioner Pritchard stated to qualify for a $160,000 house by putting 3% down, which would be $4,800, would take the price down to $155,000; then there are closing costs, which puts the price back to $160,000; and inquired what kind of income is needed to qualify for a $160,000 home.  Ms. Gregor replied with no down payment, $60,000 would be needed with no subsidy.

 

Commissioner Pritchard stated it seems two individuals working to become eligible to qualify to get a home relates to how much money people make and what they can

 

 

 

 

afford; and reducing the cost of a house is going to have some affect on a person’s ability to live, but it is not going to have a total affect.

 

 

Chair Voltz stated staff looked up the American Institute for Economic Research and with the year 2000 census data, average salary or median salary was $40,099; using the index for the conversion factor for the percentage it is $47,777; and inquired if it is considered for two income families or one person.

 

Chair Scarborough stated Ms. Gregor was confusing median and mean; mean is the average of numbers; and median is 50 above and 50 below. Ms. Gregor advised this is median, not mean.

 

Chair Voltz commented as a nurse her salary was much more than $30,000; in her first year out of nursing school her salary was $37,000; and her friend who was a school teacher for 20 years with Brevard County did not make her salary.

 

Ms. Gregor commented on strategies other communities are looking at for addressing the problem, such as down payment, assistance programs which provide gap financing, closing costs, and bringing down the cost of mortgages in programs funded through SHIP and HOME; stated Florida is the only State in the Nation that has dedicated revenue sources where every community has the program and is funded to those levels;  cost can be reduced through financing cost, square footage cost, materials in terms of using alternative of materials; in terms of what communities are doing like reduction and size of units, 10 years ago the average house built was 1,500 square feet; and now the average house is 1,200 or 1,300 square feet.  She stated the cost of construction that is hard to see is the financing cost; local governments are attempting to use some resources and leveraging the other resources from the State; and other sources for construction financing include making it more affordable for builders by reducing the interest rate to zero or low versus using a regular construction line of credit rate.

 

Chair Voltz inquired if County government should get involved in financing homes to give a lower interest rate. Ms. Gregor replied that is a strategy that some communities are using; fee deferral or waivers are not popular in Florida; fee deferrals at the time of permitting are to collect fees; at the time of Certificate of Occupancy once an affordable buyer is proven to be moving in, the fee is rebated to buy down the cost of the house; and that is in a high impact fee area where the impact fees are around $18,000 a unit.

 

Commissioner Pritchard stated he is leaning toward per square footage of the house and having some sort of density that will make it more affordable. Chair Voltz agreed that is something to do without costing anything in the long run; it would be beneficial to the individual homeowners; the money is needed from impact fees; and it is going to make an impact on the roads some way or another.

 

Ms. Gregor stated fee deferrals or fee waivers are not a good option for Brevard County; most local governments in Florida are looking at available land inventory and identifying buildable parcels, meaning that there are infrastructures already there or nearby;  that is

 

 

not a lot of additional costs; and if there is more costs then it is not going to be absorbed in the affordable unit.  She further stated the County can provide free land at reduced cost to the development community, either by the not-for-profit or for-profit development community, to be used for the production of affordable housing units,                                               single-family housing, in fill lots, or larger tracts of land;  some communities are donating or providing at low cost larger tracts for subdivision development or multi-family use; and other than the gap financing, it is the second most popular strategy that local governments are using.

 

Chair Voltz stated she received a memorandum from County Manager Peggy Busacca on surplus land in Brevard County; there are approximately 79 total acres, with a total value of $227,000; and she requested Ms. Busacca find out how much of the land can be used.  County Manager Peggy Busacca replied she will do research and look at the values of the property. Chair Voltz inquired how long it will take to do the research; with Ms. Busacca responding a week or two, but based on the value of the land most of it is going to be inaccessible for roads. Commissioner Pritchard inquired if the value was taken from the Property Appraiser’s website because it is normally low. Ms. Busacca responded it was but $2,500 for 6/10 of an acre led her to believe that there are some build ability issues.

 

Commissioner Pritchard stated the idea of looking at available property is good; there may be issues using public lands for private purpose; and inquired if there is some alternative to provide different types of funding.  He suggested Housing and Human Services funding; and stated the property is worth $40,000 with $30,000 in funding to offset what is going to be lost in terms of value on the property, and then take $30,000 off the eventual price of the house. Ms. Williams replied there is an opportunity to utilize land acquisition, and once the Board has heard everything it will be a highlighted area to come back to the Board with.

 

Commissioner Colon stated one of the things she has heard is responsibility of government coming into the picture; profit has been going to the developer and that has not been discussed; construction has gone up a certain amount; profit has been tremendous at their end; and what keeps being discussed is government subsidizing. She further stated government should not subsidize when it is contractors and developers who should be lowering prices; profit is tremendous in the industry; contractors are making almost $100,000 in profit per home; more Brevard County municipalities are expected to build homes of 1,800 square feet or more; and not being able to build a smaller home, organizations like Habitat for Humanity and other organizations cannot afford to go into those areas because it is prohibited. She commented on the zero percent down;  homebuyers are going into those zero interest loans and are going to pay sooner or later;  and it is the Boards responsibility to protect the taxpayers.  She stated she is appalled with the idea using taxpayers money to subsidize for the industry, and contractors and developers requests to subsidize customers when he or she makes more profit; does not add up to her; it is frustrating because the Board is not who appraised the homes at $225,000 and will be blamed for raising the price of homes; and it would be interesting to find out what the County’s average pay is from the lowest paid employee to top management positions to try to be able to see the median income.

 

 

Ms. Gregor commented on increased density being considered where it is appropriate;  stated increasing density in a blanket policy is not good public policy as there are areas of communities that are appropriate for increased density and areas that are not; density results in cost savings as long as there are some controls that go directly to the consumer, low income renter, or homebuyer; increasing density through flexible zoning is effective; and communities that have been efficient are ones that have partnered with the private sector and leveraged local resources with other funding. She further commented on private funds through local employers; stated employer assisted housing initiative is going on in Florida and all over the Country; to some extent the Federal government, the non-profit sector, has access to resources that no one else does and can provide tax benefits for donations, public private partnerships, and Community Land Trusts and Inclusionary Housing; in Florida there are four community land trusts that are codified and organized and another 12 to 20 that will be organized that have boards and activities underway the next six months; and a number of communities are incorporating inclusionary housing policies into affordable housing efforts.  She stated there is one jurisdiction that has an inclusionary housing ordinance in place, and that is Tallahassee; there are a number of other cities with draft forms; and to explore and implement those, it needs to be done in an open process like this kind of forum where people can voice concerns.

 

Commissioner Voltz inquired if Housing and Human Services Director Gay Williams found the private sector, such as the developer, willing to go along with inclusionary housing. Ms. Williams replied the development community has been slow to embrace inclusionary housing due to concerns about being told what to build and where; and it will work if there are sufficient incentives to cause the development to occur where the developer will feel whole.

 

Commissioner Voltz inquired what incentives Ms. Williams has seen. Ms. Williams replied she has seen flexible zoning, increased density, anything to do with set backs, and height restrictions that are difficult in some areas of Southwest Florida.

 

Commissioner Scarborough commented one group has money at risk; if the product does not sell the builder is taking the risk of losing money; incentives  are not going to work if there is no market;  it is going to be problematic to get those million dollar buyers; and all of the incentives in the world will not help sell the homes.

 

Commissioner Pritchard agreed the person who is building the house carries the cost during the construction; there is a lengthy permitting process; fast-track permitting process helps the builder not carry the cost of the land, construction, and the workforce; all of those build into the cost of the house; and it used to be that profit and overhead was at 15%, which is needed in order to pay for what is needed. He stated people can take advantage of a rising market but it is not just the developer who profits, it is the realtor, lender, title company, and government; so if the developer reduces his or her  income the realtor should not charge 6% or 7%; the lender, title company, and government should not charge what it charges; and it would reduce the whole package.

 

Commissioner Carlson inquired if inclusionary housing has been used in other communities, and then create a mitigation bank for those housing areas that are amendable to the inclusionary aspect, but pay into a mitigation bank.

 

 

Ms. Williams responded inclusionary housing has been seen but inclusionary policies are not created for the purpose of generating revenue; the fee in lieu is always used as a last resort; if the intent is when creating the policy that any builder can just pay instead, then it will not do anything for production;  and inclusionary policies exist for the inventory side of the equation.  She advised the purpose is to increase availability and number of units available; precious resources such as land could be effective as part of the inclusionary policies to allow the builder to build off site; mixed income communities, such as $500,000 and $200,000 houses, can co-exist; and median incomes of 80% and 150% are an efficient use of public resources.

 

Commissioner Colon commented in the last five years the market has gone up 130%; materials have not gone up 130%; profit to sell homes are incredible, but to be able to afford to buy another home is another story; a person can buy a house at $70,000 and sell for $170,000;  trying to buy another house and enjoy that profit is almost impossible; and senior citizens who owned a home and felt it was too much to handle could not afford a condo after selling the home.  She stated industry demands government not to raise impact fees; when affordable housing is discussed the Board is expected to use taxpayer dollars; and it should make those not willing to work with the community who enjoy the profits, to give incentives, not subsidize, but begin to build homes that are around $150,000. She stated a piece of property in Palm Bay four years ago cost $8,000 or $9,000;  now it is $65,000, for that same property; developers have to be a crucial part because he or she drive it to an extent; a person with 20 acres wants to build 225 units because affordable housing is needed; but $175,000 a unit is not affordable.

 

Commissioner Pritchard requested Bill Deatrick, a builder who was part of the development of Magnolia Point in Cocoa, come to the podium. He inquired when pricing a home and looking at the market, when building a half dozen homes or a small subdivision, how is the market and price determined.

 

Mr. Deatrick stated at Magnolia Point the market was identified to serve; the census track has very low per capita income; a base price of the home was determined; and there was a partnership with the lender, contractor, City of Cocoa, and he had to bring a piece to the table. He stated a family has 35% of median income; the absolute maximum price for a house that a family can afford to get into and stay in took about two years to put together for Magnolia Point; the first seven houses at under $60 a square foot were marketed out; and of those seven residents the highest income is 41% of median income and the rest are 30% to 32% of median income. He noted it can be done but it is partnership in which everyone has to give.

 

Commissioner Pritchard inquired how will a price be determined if building a home in another type of neighborhood;  with 2,500 square foot homes and a comparable size.

 

Mr. Deatrick replied to do a market study and a comparable on what is there, basic vertical costs do not change drastically unless intense upgrades are added; on a basic home it does not matter if building 900 square feet or 3,000 square feet; and one needs to look at the market to see what the maximum and the least is, and then structure the house for that.

 

 

 

Commissioner Pritchard inquired as to how profit is determined. Mr. Deatrick replied it is basically what is in your heart; whatever the market bores is what he went for; and in the affordable market he approached differently.

 

Commissioner Pritchard stated the market is $250,000 in the neighborhood to build a house; assumption is to build a house that would be valued at $250,000; and inquired what features and amenities will be needed to make it a $250,000 house. Mr. Deatrick replied, going plus or minus 20% value of the house, a million dollar house cannot go next to a $200,000 house; with a $250,000 subdivision, a $200,000 or $300,000 house will blend in; density plays a little and HUD is pushing towards developing a blended community, not just all single family but some multi-family; and add to the density a little bit and it brings the cost down a little more.

 

Commissioner Pritchard inquired if selling a house for $250,000 is the market for a neighborhood, will it allow a sub-standard house to be built and sold for $250,000.  Ms. Williams responded the importance of architectural standards when building affordable communities is critical to build things that are aesthetically pleasing, structurally sound, and no corners cut on the affordable units; the unit on the left is a four-unit floor plan and the one on the right is a one-unit; it looks the same on the front; this illustrates what happens with flexible density; and those units can exist side-by-side.  She stated those are things, in addition to architectural quality, that the Board will continue to look at.

 

Commissioner Colon stated the data is from 2002; and inquired when will accurate data be available because homes have gone up in cost and income has not.  Ms. Williams responded income and needs database is derived from census data and census updates, and funding for Shimberg Center’s ongoing work has been spotty; annual updates are done through the American Community Survey; the Federal government has struggled to get data compiled; and next year something more current than 2002 should be available, which incorporates the hurricane data.

 

Commissioner Scarborough requested going over a key variable of $778 and rent subsidies coming in to help with payments.  He stated an assumption is needed because pricing of homes will continue to go up and there will be an increase in equity; and inquired how many affordable houses are needed, how many mortgages are there, how many pay cash, and how many people need affordable housing.  He stated the market originally identifies affordable housing and devalues higher housing, causing a stigma with the house; the house will not increase in appreciation; but moving a person into standardized housing with subsidy and payment allow them to fully integrate into the community and appreciate in value like other houses.  He requested seeing more numbers.   

 

Ms. Williams stated there was a community effort in the Florida Keys working with a non-profit provider; one of the employers provided rental subsidies, because cost of housing in the Keys is so high, whether renting or owning; rental subsidy was based on the length of employment; and one challenge on rental subsidies is a family must qualify for a 30-year mortgage based on income.  She noted money available for rent subsidies  and  what  is

 

 

available through Sadowski money has continued to decrease through the years; and the environment in affordable housing in Florida  has been one of production and increasing the number of units.

 

Chair Voltz stated she is interested in what the employers can do; there could be temporary loans for down payments; small amounts at a time could be taken out of paychecks; and those are things larger employers can do.

 

Commissioner Pritchard stated one reason rental prices keep going up is that rentals are not covered under the homestead cap; rentals need to be capped at 3% like Save Our Homes with residential homes; and when a person’s residential property or commercial rental property goes up the money is passed on to the renter who can least afford it.

 

Ms. Williams requested Angela Abbott, Joe Robinson, William Deatrick, and Joe Gasman make their presentations; and go into highlights of opportunities.  She advised Nicole Tenpenny with Community Housing Initiative is not present.

 

Brevard County Finance Housing Authority Attorney Angela Abbott stated that present with her is Gene Turkowski, Chairman of the Finance Authority, and Financial Advisor Eddie Embler. She stated the Authority was created in 1979 and is composed of five volunteer members who are appointed by the Board; the purpose of the Authority is to provide quality affordable residential housing to low and moderate income families through the issuance of tax exempt bonds; and the Authority issues single-family, first time homebuyer, and multi-family bonds, which are used to finance acquisition, construction, and rehabilitation of multi-family projects, which are available only to low and moderate income families.  She stated since 1980 the Authority has provided over 6,500 families with loans for purchase of first homes; a summary of the issues that the Brevard County Housing Finance Authority did between 1983 and 1985 were over 25 projects; and almost 4,000 rental units were provided.  She noted between 1986 and 2005 the Authority only financed two projects, which was Wickham Club and Manatee Cove Apartments; it is due to the change in tax laws which reduced the benefit for tax exempt financing and a scarcity of available allocation; and the Authority made the choice to pursue single-family programs as opposed to multi-family programs. She further explained today there is enough allocation to do both; over 20 years quite a few projects were lost; the only remaining projects are still bond financed and restricted to low or moderate income; and two of those are new projects. She stated during the year of 2005 five multi-family projects were sold and the bonds were paid off; three of them will continue for six more years, but the restrictions are gone on two, Malabar Lakes and Park Village; the reason those restrictions will continue past the payment of the bond is when the bonds were refunded a few years ago there was a requirement to lengthen the restricted period; a large number of condo conversions and three of the projects used to be or originally were financed with housing tax exempt bonds; and about 1,300 units were estimated to be lost to condo conversions in the past two years.

 

Commissioner Carlson inquired if there are any elements as part of the bonding that keeps  from  going  to  condominiums  and  reducing  the market.  Ms. Abbott replied the  

 

 

1985 issues were done under different rules and there was a shorter time period that the restrictions had to be in place; it was half of the life of the bonds or 10 years from the date projects first became occupied; today the projects are also qualifying for tax credits and other subsidies that can take the restricted period out to 50 years, and that is being corrected; and the Authority is moving forward in 2006 with five new multi-family projects.  She stated it is an appropriate time due to a rapid loss of affordable rental units and is time to move forward with new financing; and developers are here from Timber Trace and Preston Pointe, which are also the developers from Wickham Club and Manatee Cove, the two most recent projects, to make presentations showing type and quality of the projects.

 

Commissioner Carlson inquired what are the rental ranges of the units as the County has $911 as the median price. Ms. Abbott responded the range is $600, $700, and $800 a month at Timber Trace, Providence Commons is $550 to $750, and Silver Sands and Magnolia Pointe are in a different category which is much lower, below $500 down to $363, and subsidized with Section 8 Housing.  Commissioner Scarborough inquired if it is appropriate for someone to pay more than the 30% of their gross income for an apartment rental; and noted if a County employee is earning $22,000 that employee will have to pay substantially more even for these units being referenced.  Ms. Abbott responded there are units set aside for very low income housing, which is generally below 60%, and rents are lower.

 

Commissioner Pritchard stated the Board discussed 220 units on 22 acres; this is 204 units on 18 acres;  and inquired what is going to determine the price to begin with and then is it creative incentives that bring it into the realm that people can afford.  Ms. Abbott responded it is an excellent way to partner with developers in the private sector to provide something that is good for the community; and the project is going to be rented to persons earning 60% of median income and below.

 

Commissioner Pritchard inquired what is the market ability for ownership instead of rent. Ms. Abbott responded that has not been looked into, but it would be a completely different structure. Commissioner Pritchard stated if it is $700 to $800 for rent, if it were $1,000 a month to own, a portion would be taken off the homeowners income tax and then he or she will have equity.  He inquired if Ms. Abbott could run some numbers over the next couple of weeks to give the Board an idea what it would cost to sell the units outright.

 

Commissioner Colon inquired who is responsible for the projects accountability not only now but ten years from now to keep them beautiful.  Ms. Abbott responded there is a land use restriction agreement that is recorded in the Public Records requiring certain standards be met by the developer; particularly regarding the tenant; and it is required that the developer pay for a third party compliance monitor who sends reports on a monthly basis making sure he or she lives up to the obligations, which is part of the bond issue itself.

 

Commissioner Colon inquired about the obligations keeping communities from turning into projects that are not attractive. Ms. Abbott stated reserves for maintenance are required to keep the project well maintained at a certain level; and there are funds built into the bond issue to require that management companies and

 

 

 

developers address the qualifications, tenant background checks, and screening to ensure there are no problems.

 

Richmond Group of Florida Representative Todd Fabbri addressed questions such as the importance of the Housing Finance Authority, rental housing being provided, the amenities that are being seen, and ways to provide market rate housing.  He further commented on market rate housing with all the amenities, rent offered to residents at basically a below market rent level, the key being the tax exempt bonds, being able to utilize the bonds, and the bonds used as primary financing for the development at the rate which pays the debt on the bonds below what is done for market or conventional type financing in conjunction with the bonds with four percent tax credits as equity into the development.  He further explained different sources of financing.  He advised there is primary financing, which is the bonds, and tax credit equity, which is generated through the sale of tax credits; and that can only be used with the tax exempt bonds. He stated the idea of being able to condo or sell those at an affordable rate does not exist at this point because the program does not allow for that; the units have to be set aside for a minimum of 15 years and rented below market levels; it is multi-family rental houses versus for sale condominiums; and it is offered as a management company with no charge to resident’s activities, social activities, and recreational activities for children.  He further explained rentals are a stepping stone for those who cannot afford to buy, and be able to save money, and be in a position to buy a home; also provided for residents are financial advisors, local bankers, and community members who talk about how to save money and get into a position to be able to buy a home someday; and there are several challenges as a group to be able to provide developments, including land costs, construction costs, increasing taxes, insurance increases, and impact fees. He stated incentives are necessary; having worked in many other counties in Florida and having partnered with different municipalities, a density bonus is provided; and deferral of impact fees, and sewer and water connection fees allow the development to get to the point where it is stabilized, and then begin to pay those impact fees over a period of time.  He stated fast track permitting is good; rents are set by the Federal government; Florida Housing Finance Corporation publishes the maximum rent a person can charge in a development set by the State, not the developer; and units are provided at the 60%.  He stated those employees making at or less than 60% of the median income are only allowed to be charged a certain rent; rent for a two bedroom would be approximately $670 after utility allowances are deducted; and a three bedroom would be $780.

 

Commissioner Scarborough stated some people only make $22,000 a year; 30% equals $550; it would be a problem to pay more than 30%; and inquired if there are any programs available that can bring down rent to the mid $500’s. Mr. Fabbri responded the answer is no.

 

Executive Vice President of CED Companies Scott Culp stated focusing 100% effort on affordable housing profits is restricted; CED Companies developed about 30,000 apartment homes mostly in Florida; he sits on the Governor’s Affordable Study Commission; he was a member of the Hurricane Housing Work Group; and he was Vice-chair of the Coalition of Affordable Housing Providers in Florida, which focuses primarily on rental communities.  He stated services provided are after school programs free of charge, computer classes, credit counseling,  and  typical  qualities  seen  in  market rate

 

 

communities, like swimming pools and fitness facilities; an allocation of tax exempt bonding authority is provided by the Federal government down through Florida Housing Finance Corporation to be able to take funds, not even actual dollars, but an allocation of tax exempt buying authority; coupling that with an additional subsidy is required when housing costs have increased on the construction side in excess of 50% in the last 5 years; and income has increased less than 10% overall in the last 5 years. He stated there is a significant gap filled by the Sadowski Act and by the Housing Trust Fund; and today in Tallahassee people are working on allocations out of the Housing Trust Fund and looking toward the future to try to cap the money going into the Housing Trust Fund, which actually comes out of real estate documentary stamps to fund affordable housing.  He stated the key is to be able to take the leverage of the Federal Tax Exempt Bonding Authority and Federal tax credits and make them work economically to subsidize the construction on the front end so debt service is lower, and serve down at  the 40% and 50% income level; and Housing Trust Funds were set up and designed with steep increases.  He stated the Housing Trust Fund goes up and more money is flowing through the Fund and coming back to the County and State in order to provide the type of communities discussed; the main thing is to lobby for the Sadowski Act and the Housing Trust Fund dollars; it is an important subsidy that  realtors, bankers, and developers all chose in the 80’s to tax themselves additionally on the documentary stamps so there will be funds available for affordable housing and incentive strategies; the SHIP Statute 420.9076(4)(A) thru (J), lists things that have been discussed today; and density is key and an incentive. He advised the rental communities funded through Brevard County Housing Finance Authority and Florida Housing Finance Corporation have a HOME program where a portion of rent goes toward the down payment as assistance to be able to move into a home at some later point; expedited permitting process is law; other than density infrastructure, reservation for affordable housing is necessary; and the State’s Growth Management Laws will be in full force in 2008, which is going to make it very difficult, specifically for affordable housing, to provide opportunities. He stated House Bill 1363 is in the Legislature now; he encourages everyone to take a look at it; it is the first year where there has been a lot of political focus on the whole workforce housing issue and essential services, trying to find ways to make it affordable; and the market can correct itself over time, but Brevard County is competing with Georgia, Alabama, North Carolina, and other Florida counties for essential services.  He encouraged everyone to support House Bill 1363 and to continue to look at incentives the market has to be partners.

 

Commissioner Colon stated communities in South Brevard will not allow that kind of zoning; she went to Jacksonville, Tampa, Orlando, and Miami; she researched to protect her community; and it is still not good enough because it comes down to profit.

 

Mr. Culp stated the units are owned and managed by CED Companies; since 1985 strong programs have been developed due to changes in the tax law; the Federal Tax Credit Program was started resulting in very strong monitoring and regulations; the Brevard  County Housing Finance Authority and the Florida Financing Corporation support programs because infrastructure is in place with a  very successful track record; and invited visitation to any communities the Corporation has developed unannounced on any day. 

 

 

He stated it will be a quality community proud to be in Brevard County; the Federal Tax Credit Program and the Tax Exempt Bond Program support home ownership programs designed to have a private incentive to maintain; projects have no private incentives and are publicly funded on a monthly basis; and there are no private incentives to maintain.

 

Commissioner Colon commented on the naming of the Monster Club and inquired if it could be called something else, such as the Champions Club, or Angels Club; with Mr. Culp responding the name Monster Club was given by the children.  He suggested the Board stop by the Wickham Club, just off Wickham Road, in the City of Melbourne, to talk to the manager, and check out the community and facilities.

 

Commissioner Pritchard commented on legislation working its way through the Legislature; there are 12 Bills between the House and the Senate; two in particular are House Bill 1363 and Incentive Bill 132; both relate to affordable housing, compiling a list, and providing for disposition of County and municipal property, and State lands for said housing; and it creates the Affordable Housing Property Tax Relief Initiative.

 

Mr. Culp stated it is a clarification on existing language in the Florida Statutes  regarding communities that are restricted  as to what can be charged in affordability; it says to take into account those restrictions when doing a just valuation of the assessed value of that community; if that community cost $120,000 a unit to develop, the price has to be backed based upon the restricted rents or purchase price; it is a clarification of a Statute that already exists; and sometimes assessors do not  want to recognize Statutory provisions as it relates to constitutional law  regarding assessment of taxable value and how non-profit and public entities are assessed  with regard to affordable housing to keep from having an over inflated tax burden on renters.

Commissioner Pritchard stated while the Bills are not exactly the same, both include proposals for many of the other 20 plus housing bills; and it is expected the differences will be reconciled; and those Bills will be the ones that eventually will become law.

 

Commissioner Scarborough inquired if any county school boards are helping with home payments through homeowner subsidies as a part of employment packages.  Mr. Culp responded a number of counties are considering doing that; there is a lot of money available right now in the Housing Trust Fund; and the County should be lobbying strongly to have that money being focused on as essential services personnel. Commissioner Scarborough stated it is the new doctor and teacher to think about; and requested data on the number of people that are new to the workforce in Brevard County.  Mr. Culp replied dual income owners typically can make it but when recruiting from the front end out of college and single they do not have that dual income yet.  Ms. Williams stated the Housing Finance Authority put out a product to help recruitment of teachers; and that was the lower bond interest cost to make the house more affordable.

 

Chair Voltz requested completing the community initiatives and save the Board discussion for another time.  She noted a Cultural Alliance Workshop is scheduled on May 2, 2006 at 9 a.m., and the Affordable Housing Workshop could be scheduled to continue after that meeting.   

 

 

 

Ms. Williams requested finishing the Community Partner Presentations before adjourning. 

 

North Brevard Charities Sharing Center Representative Joe Robinson stated he catches the renters who are rejected, do not make payments on time, or cannot pay the rent. He explained that North Brevard Charities is trying to create a program to help renters back on their feet; North Brevard Charities has concerns about the families because if the family unit does not stay together crime goes up and other things fall apart in the community; Up To Present (UTP) Housing Program is bringing families up to the present economic state; it is the key to unlock the door to home ownership for families that are falling off the traditional road of home ownership; and it is working as Community Partners in Palm Bay, Cocoa, Titusville, and the County helping to put the program together. He stated on transitional, emergency, and UTP housing, within emergency housing a family can stay up to 30 days, but they have to be employed and show how it helps them; food is provided; and normally the people are homeless or are about to be homeless, or they do not have a clean record of paying their rent on time.  He noted a move from emergency  housing into transitional housing is where renters can stay up to 60 days and are required to pay $75 to $100 a week donation; in the process it is a savings when moving out or transition into the community for permanent housing; and the renters receive the savings. He stated over the last couple of weeks there have been five homeless families a day; the condo process is sending a lot of clients to North Brevard Charities Sharing Center to help with renters who have to go to an interview and be clean from drugs; and the drug issue is big within the population served.  He presented examples of some of the homes where families can go and stay six months; stated the families will have paid utilities, and pay $200 a month, which will be returned at the end of the stay if he or she goes through the whole program; it is a nine-month program; and a person can leave the program with over $2,000, plus all of the resources offered to help pay the first month’s rent.

 

Commissioner Colon inquired what is the success record of the program; with Mr. Robinson responding it has been 100% successful; transitional housing is tracked from when clients leave the housing; and most of the clients are able to be self-sufficient as far as housing.

 

Brevard County Housing Authority Representative William Deatrick stated he represents seven organizations, including three housing authorities in the Cities of Melbourne, Cocoa, and Brevard County, as well as the four non-profits that have been formed. He stated the Housing Authority is one of the largest developing entities available in the County for affordable housing; nationwide 3,340 housing authorities control a tremendous amount of property in the local jurisdictions, through various acts of Congress, HUD becomes very flexible as far as use for redevelopment;  and three housing authorities in Brevard County control a considerable amount of acreage and are free for development.  He noted stigmas are attached as a housing authority and now developers are getting people to recognize it has been difficult, but over the last three years there has been some success.  He stated the key to success of developments include free and inexpensive land, waived and reduced permits, dumping fees, and impact fees, local and State funding support, controlled material costs, such as total standardization, volume purchasing, future contracts, donated materials, controlled labor

 

 

 

costs, such as deferred developer fees, critical project management, donated materials, low cost construction financing, and creative permanent financing with soft guarantees.

 

President and CEO of Habitat for Humanity Joe Gasman presented his staff’s study, including certified nursing aides income of $14,500 gross a year, adolescent rehab center assistants, landscapers, social service workers, military pension, cleaning technicians, transportation clerks, assembly workers, and medical assistants. He stated correctional officers are only some of the clients needing affordable housing. He stated challenges are such as homes being $83,000 per unit; Habitat for Humanity has been successful in keeping mortgages from $350 to $400 a month with partnership with HUD, the County, cities, and private donations; a majority of homes are built by the faith community; and 50% have been built by churches.  He stressed how partnership is the key to overcome these challenges.

 

Commissioner Colon commented on restrictions with square footage.  Mr. Gasman replied restrictions make it difficult; the challenge of the single parent is he or she makes 30% of the median income and cannot afford a Habitat house; and square footage for two bedrooms is 1,000 square feet at $55 a square foot.  He commented on a conference hosted for Green Building, which says the bigger the house the lower the score; right now Habitat for Humanity is building in the positive score; there are still funding possibilities in Green Building; most of the families have reinvested in educating themselves and making sure children attend college; and all the other funds are going into the local economy, contractors, and volunteers.

 

Lisa Rice requested that her presentation on Community Initiatives be continued to the May 2, 2006 meeting.

Commissioner Pritchard summarized the meeting; and commented on partnerships, cost of ownerships, incentives, redevelopment exclusions, multi-use zoning, various subsidies, and documentary stamps.

 

 

 

Upon motion and vote, the meeting adjourned at 12:52 p.m.

 

 

 

ATTEST:                                                           ___________________________

                                                                         HELEN VOLTZ, CHAIR

                                                                         BOARD OF COUNTY COMMISSIONERS

                                                                         BREVARD COUNTY, FLORIDA

 

 

 

______________________

SCOTT ELLIS, CLERK  

 

 

 

    

        (S E A L )