Affordable/Workforce Housing Issues and Programs

Purpose Provide background information on affordable/workforce housing and programs Receive direction from City Council on affordable/workforce housing programs and options The City is now eligible for direct funding from the State and Federal government for an affordable housing/workforce program

Definition of Affordable/Workforce Affordable Housing: housing that is less than 30% of household income Median Income Level < $48,541 Housing Cost < $155,500 (Monthly < $1,210) Workforce Housing: housing that is “affordable” for households with an income level below 140% of the median income Workforce Income Level < $67,963 Housing Cost < $225,900 (Monthly < $1,700)

Availability of Affordable/Workforce Housing Income Level Sales Price Maximum Quantity of Homes % of Total Residential Very Low $67,600 628 2% Low $120,400 7,078 23% Median $155,500 7,151 Moderate $190,700 6,940 22% Workforce $225,900 4,433 14% Above Workforce $225,900+ 4,851 16% Based on 2008 Property Appraiser Data

Availability of Affordable/Workforce Housing

County SHIP Program Utilizes Florida State Housing Initiatives Program (SHIP) funds Administered by County staff Affordable Housing Advisory Committee Local Housing Assistance Plan Down Payment/Closing Cost Assistance Replacement Housing Owner-Occupied Rehabilitation Disaster Mitigation/Recovery Mortgage Foreclosure Intervention

County SHIP Program Fiscal Year SHIP Distribution+ Interest & Program Income Total Expenditures Expenditures in Palm Coast % of Expenditures in Palm Coast 2002/03 $ 552,517 $ 532,623 $ 294,690 55% 2003/04 $ 569,796 $ 569,979 $ 251,194 44% 2004/05 $ 563,231 $ 568,051 $ 174,120 31% 2005/06 $ 660,412 $ 660,271 $ 408,746 62% 2006/07* $ 791,891 $ 753,921 $ 476,568 63% 2007/08* $ 839,548 $ 616,609 $ 117,067 19% *Actual figures for FY 2006/07 – 2007/08 not available until official close out

Other Funding Sources Community Development Block Program (CDBG) Both City and County eligible to receive funds through State program (grant) up to $750,000 City now eligible to receive direct funds (@ $241,000) as entitlement community County is not eligible as entitlement community Complex administrative/reporting requirements for entitlement communities Other Local Sources Developer Contributions Linkage Fees

Other Funding Sources PRESTON ALLOCATES NEARLY $4 BILLION TO STABILIZE NEIGHBORHOODS IN STATES AND LOCAL COMMUNITIES HARD-HIT BY FORECLOSURE HUD plans housing summit to explain new Neighborhood Stabilization Program WASHINGTON - U.S. Housing and Urban Development Secretary Steve Preston today allocated a total of $3.92 billion to all states and particularly hard-hit areas trying to respond to the effects of high foreclosures. HUD's new Neighborhood Stabilization Program (NSP) will provide targeted emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.

Options for City to Pursue Take no action, County still continues program Pursue Interlocal Agreement, County administers program Establish City program

Take No Action Advantages: Disadvantages: No administrative costs for City Disadvantages: City has no input on how SHIP funds are allocated and managed

Pursue Interlocal Agreement Advantages: Minimal administrative cost for City No duplication of services City may gain ability to influence changes and management of program City may be able to propose changes to LHAP City may be able to appoint members to Affordable Housing Advisory Committee Disadvantages: City does not have full control of program

Establish City Program Advantages: City controls share of SHIP funding @ $661,000 Additional CDBG funds available to City Disadvantages: Costs of additional staff to manage program Duplication of services between City and County May essentially end County program due to decrease in funding (Reduction to $179,000)

Options for City to Pursue Take no action, County still continues program Pursue Interlocal Agreement, County administers program Establish City program Staff Recommend Option #2