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Agenda 12/14/2010 Item #10D Agenda Item No. 10D December 14, 2010 Page 1 of 17 EXECUTIVE SUMMARY Presentation of the 2010 countywide affordable housing inventory. OBJECTIVE: To present the 2010 countywide aflordable housing inventory to the Board of County Commissioners (BCe) - inclusive of "restricted" (restricted by regulatory requirements, e,g. Affordable Housing Agreement) and "unrestricted" (markct rate) residential units. CONSIDERATIONS: At the June 22, 2010, Board of County Commissioners (BCe) meeting, staff was directed to inventory unrestricted residential units within thc County to determine the number of units that can be categorized as "affordable" based on qualifYing criteria of the State Housing Initiatives Program (SHIP), and then present the results to the Board. To create the inventory of unrestricted affordable housing units within the County, staff conducted multiple GIS qUClies of the Property Appraiscr's database in order to identifY the affordable mortgage ranges for the very low (50% of thc County's median income), low (80% of the County's median income) and moderate (120% of the County's median income) income levels (refer to specific categories in the attachment titled "Staff Analysis"), Staff mapped the affordable housing inventory jor each Commission District (and, at the request of Commissioner Fiala, who has taken the lead on this directive, for the East Naples Civic Association (ENCA) boundaries) using the following parameters, which yields twelve (12) different scenarios: . affordable housing categories - very low, low and moderate income; · household size - two and four persons (as agreed to by the BCC on June 22,2010); and, . monthly recurring debt - $0 and $300 (as possible representative figures of household debt, such as student loan, car payment, credit card, etc.). The detailed results and mapping per thc above parameters are provided as attachments to this Executive Summary; importantly, the explanation of the information depicted on the maps is contained within the attached "Staff Analysis." The range of housing units, qualifying as affordable, by specified area, appears in the table below. Area 2 -Person Household/50'Yo of Median 4 -Person Household/120% of Median Income/$300 Recllrrill!! Debt: # DUs Income/$O Recllrrin!! Debt: # DUs District 1 1,185 (28% of total) 30,293 (24% of tot at) District 2 503 (12%, of total) 24,455 (19% of Iota I) District 3 1,068 (26% of total) 31,492 (25% of total) District 4 691 (16%, oftolal) 17,837 (14% of total) District 5 762 (18% of total) 23,067 (18% of Iota I) Total 4,209 127,144 ENeA 1,246 (30% of lotal ) 33,875 (27% of lot at) --- I. The umt counts mclude all ownershIp dwellmg U1l1ts, except lllOOllc home and cooperative umts. 2. There are 196,241 dwelling units in the County, inclusive oral] unit types and both OWIICfShip & rental. BCC Directed Affordable Housing Inventory BCC Hearing Date 12/14/10 Page 1 of3 Agenda Item No. 10D December 14, 2010 Page 2 of 17 It should be noted that the dwelling unit figures in the] 20% column are cumulative, i.e. the figures in that column include those units within the 50% column and all other scenarios not shown in the table (see attached "Staff Analysis" for further explanation). The above ranges of countywide totals (4,209 and ]27,]44) represcnt 2% and 65% of the total dwelling units (196,24]) in Collier County (includes all dwelling unit types in both ownership and rental units). Additionally, the inventory results above provide only the potential supply of unrestricted affordable housing units based on sales data for a single year (May 2009 - May 2010). It is unknown how many of thcse units are actually available and how many of these units may be presently occupied by persons mceting the qualifying income levels. Further, these data do not provide the actual demand (need) for affordable housing units within the County. Based upon a recent compilation of existing restricted units prepared for the Evaluation and Appraisal Report (EAR) using best available data, the County currently has an inventory of 7,649 (plus 3,864 units approved but not yet built) restricted affordable housing units. This inventory will fluctuate over time as additional units are approved and constructed within the affordable housing categories, and as afj{)rdable units reach the end of the time period for which they are required to remain at an affordable price range. Objective I of the Housing Elemcnt presently states, "The number of new affordable-worktorce housing units shall increase by at least fifteen percent of the units approved to be built in the County per year, but not less than 1,000 units per year averaged over a five-year period in an ctfort to continue meeting the current and future housing needs oflegal residents with very-low, low and moderate incomes, including households with special needs such as rural and fannworker housing in rural Collier County." However, the University of Florida's Shimberg Center for Housing Studies indicates a need for an additional 732 affordable housing units each year beginning in year 2010 to 20]5; 881 affordable housing units each year beginning in ycar 2015 to 2020; 890 affordable housing units each year beginning in year 2020 to 2025; and, 856 affordable housing units each year beginning in year 2025 to 2030. As part of the EAR, staff will be recommending the Objective be changed. This inventory of unrestricted affordable housing units may also be useful in supporting the recommendation to lower the requirement in this Objective. FISCAL IMPACT: The infonnation presented has no fiscal impact, as this is an intonnational item only. GROWTH MANAGEMENT PLAN (GMPl IMPACT: The infom1ation presented has no GMP impact, as this is an informational item only. LEGAL CONSIDERATIONS: There are no legal considerations, as this is an int{)rmational item only. -STW RECOMMENDATION: Reeommendation that the Board of County Commissioners accept the methodology and tindings in this Executive Summary and associated attachments; and, direct staff to submit these documents with the Evaluation and Appraisal Report as data and analysis that could potentially support the County's recommendation to reduce the number of restricted affordable housing units that are required to be constructed annually. BCC Directed Affordable Housing Inventory BCe Hearing Date 12/14/10 Page 2 of3 Agenda Item No. 10D December 14, 2010 Page 3 of 17 Prepared by: Michele Mosca, A1CP, Principal Planner, Comprehensive Planning Section, Land Development Services Department, Growth Management Division/Planning and Regulation Attachments: 1) Staff Analysis 2) Atfordable Housing Map Series BCC Directed Affordable Housing Inventory BCe Hearing Date 12/14/10 Page 3 of3 Item Number: Item Summary: Meeting Date: Agenda Item No.1 OD December 14, 2010 Page 4 of 17 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 10D Presentation of the 2010 countYWide affordable housing inventory, (Michele Mosca, Principal Planner, Land Development Services Dept., Growth Management Division) 12/14/20109:0000 AM Prepared By Michele R. Mosca. AICP Community Development & Environmental Services Principal Planner, AICP Date Zoning & Land Development Review 111221201011 :05:52 AM Approved By Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Date 111221201011 :14 AM Approved By Norm E. Feder, AICP Transportation Division Administrator M Transportation Date Transportation Administration 11/22/201011:22 AM Approved By Mike Basi, AICP Community Development & Environmental Services Manager - Planning Date Comprehensive Planning 11/2212010 11:25AM Approved By William D. Lorenz, Jr., P.E. Community Development & Environmental Services Director - CDES Engineering Services Date Engineering & Environmental Services 11122/20101:20 PM Approved By Steven Williams County Attorney Assistant County Attorney Date County Attorney 11122/2010 1 :31 PM Approved By Nick Casalanguida Transportation Division Director - Transportation Planning Date TranspOltation Planning 11/22/20102:25 PM Approved By OMB Coordinator County Manager's Office Date Office of Management & Budget 11/23120101:01 PM Approved By Therese Stanley Manager - Operations Support - Trans Date Agenda Item No, 10D December 14, 2010 Page 5 of 17 Office of Management & BudfJet Office of Management & Budget 11/29/20105:35 PM Approved By Jeff Klatzkow COUtlty Attorney Date 12/1/20108:39 AM Approved By Leo E. OChs, Jr. County Manager Date County Managers Office County Managers Office 12/5/201012:12 PM Agenda Item No, 10D December 14,2010 Page 6 of 17 Staff Analysis - BCC Directed Affordable Housing Project Steps to create the inventory of "unrestricted" affordable housing units within the County: · Conduct a GIS query from the Property Appraiser's database of all residential sales from May 2009 through May 2010, by the closing sales price, and based on the State Housing Initiatives Program (SHIP) 20 I 0 income limits for two and four person households, and assuming that those househo Ids have no ($0) monthly recurring debt. The affordable mortgage for those households earning 50% (very low), 80% (low) and 120% (moderate) of the County's median income of $72,300 is as follows: a. A 2- person household earning 50% of the median income could afford a mortgage of $74,952; and, a 4- person household earning 50% of the median income could afford a mortgage of$103,430. b. A 2- person household earning 80% of the median income could afford a mortgage of $143,576; and, a 4- person household earning 80% of the median income could afford a mortgage of$189,260. c. A 2- person household earning 120% of the median income could afford a mortgage of$235,259; and, a 4- person household earning 120% of the median income could afTord a mortgage of$303,607. · Conduct a GIS query from the Property Appraiser database of all residential sales from May 2009 through May 2010, by the closing sales price, and based on the SHIP 2010 income limits for 2 and 4 person households, and assuming that those households have a three hundred dollar ($300.00) monthly recurring debt. The atTordable mortgage for those households earning 50% (very low), 80% (low) and 120% (moderate) of the County's median income of $72,300 is as follows: a. A 2- person household earning 50% of the median income could afford a mortgage of $27,489; and, a 4- person household earning 50% of the median income could afford a mortgage of$55,967. b. A 2- person household earning 80% of the median income could afford a mortgage of $96,113; and, a 4- person household earning 80% of the median income could afford a mortgage of $141 ,496. c. A 2- person household earning 120% of the median income could afford a mortgage of$187,796; and, a 4- person household earning 120% of the median income could afford a mortgage of$256,143. · Establish a "discount" factor for the specified one-year period by comparing the Sales Price to the Total Just Values for qualifying properties (affordable housing threshold range of $0- $303,607), followed by averaging the percentage change (sum of percentage change for all properties divided by the total number of properties) for those same properties; this yielded a discount factor of -12.42 percent. 1 Agenda Item No. 100 December 14. 2010 Page 7 of 17 · Apply the established discount factor of -12.42 to the countywide residential inventory to derive the number of atlordable units at the various affordable mortgage thresholds described abovc. The following two tables depict the number of unrestricted housing units categorized as affordable, organized by Commission District and the area encompassed by the East Naples Civic Association (ENCA). This data provides the potential supply of affordable housing units. However, it is unknown how many ofthesc units are actually available; it is unknown how many of these units may bc presently occupied by persons meeting the qualitying income levels; and, the data does not identify the demand (need) for atlordable housing units. The need for affordable housing by geographic arca may he more readily identified using the 2010 Census data, once it is released. It should be noted that the dwelling unit figures listed in each row is cumqlative. For example, in District I, the 4-person household count within the 50% median inconie range includes those units within the 2-person household count within the 50% median income range, and the 4- person household count within the 120'% median income rangc includes all units listed in the table for District ]. Similarly, the data shown on the attached maps also retlect cumulative figures. $300 Monthly Recurring Debt 50% of Median Income 80% of Median Income 120% of Median Income 2-Person 4-Person 2-Person 4-Person 2-Person 4-Person Area Household Household Household Household Household Household District 1 1,185 2,389 10,422 17,180 21,540 27,768 District 2 503 1,388 3,691 10,572 16,588 21,796 District 3 1,068 2,412 9,307 18,214 24,285 29,645 District 4 691 1,787 4,680 10,479 13,779 16,486 District 5 762 2,570 8,237 14,767 19,202 22,226 Total 4,209 10,546 36,337 71,212 95,394 117,921 ENCA 1,246 2,932 12,523 22,676 27,966 32,463 The uml counts mclude all ownershIp dwellmg umts, except rno bile home and cooperative llm!s. There are 196,241 dwelling units in the County, inclusive of all unit types and hoth ownership & rental. Overall, the above table shows District 3 contains the largest inventory of potential affordable housing units, followed by District], and District 4 contains the least amount. 2 Agenda Item No, 10D December 14, 2010 Page 8 of 17 The following identifies each respective Commission District's highest range of affordable housing dwelling units as a percentage of the countywide dwelling unit total (196,241) in Collier County (includes all dwelling unit types in both ownership and rental units). District I: The highest (27,768) dwelling unit count represent 14 percent of the countywide dwelling unit sum. District 2: The highest (21,796) dwelling unit count represent 11 percent of the countywide dwelling unit sum. District 3: The highest (29,645) dwelling unit count represent 15 percent of the countywide dwelling unit sum. District 4: The highest (16,486) dwelling unit count represent 8 percent of the countywide dwelling unit sum. District 5: The highest (22,226) dwelling unit count represent II percent of the countywide dwelling unit sum. $0 Monthly Recurring Debt 50% of Median Income 80% of Median Income 120% of Median Income 2-Person 4-Person 2-Person 4-Person 2-Person 4-Person Area Household Household Household Household Household Household District 1 5,513 11,941 17,365 21,679 26,301 30,293 District 2 2,033 4,604 11,003 16,733 20,514 24,455 District 3 5,437 11,225 18,381 24,474 27,619 31,492 District 4 2,681 5,480 10,610 13,905 15,720 17,837 District 5 4,844 9,206 14,961 19,351 21,471 23,067 Total 20,508 42,456 72,320 96,142 111,625 127,144 ENCA 6,655 14,778 22,884 28,177 31,414 33,875 The unit counts include all ownership dwelling umts, except InO blic home and cooperative units. There are 196,241 dwelling units in the County, inclusive of all unit types and both ownership & rental. Overall, the above table shows District 3 contains the largest inventory of potential affordable housing units, followed by District 1, and District 4 contains the least amount. 3 Agenda Item NO.1 OD December 14, 2010 Page 9 of 17 The following identifies each respective Commission District's highest range of affordable housing dwelling units as a perccntage of the countywide dwelling unit tolal (196,241) in Collier County (includes all dwelling unit types in both ownership and rental units). District 1: The highest (30,293) dwelling unit count reprcsent 15 percent of the countywide dwelling unit sum. District 2: The highest (24,455) dwelling unit count represent 13 percent of the countywide dwelling unit sum. District 3: The highest (31,492) dwelling unit count represent 16 percent of the countywide dwelling unit sum. District 4: The highest (17,837) dwelling unit count represent 9 percent of the countywide dwelling unit sum. 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