1. Affordable/Workforce Housing Issues and Programs

2. 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

3. 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)

4. 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

5. Availability of Affordable/Workforce Housing

6. 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

7. 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

8. 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

9. 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.

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

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

12. 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

13. Establish City Program
Advantages:
City controls share of SHIP $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)

14. 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