BCC Minutes 12/09/2005 W (GAP Housing)
December 9,2005
TRANSCRIPT OF THE MEETING OF THE BOARD OF
COUNTY COMMISSIONERS GAP HOUSING WORKSHOP
Naples, Florida, December 9,2005
LET IT BE REMEMBERED, that the Board of County Commissioners
GAP Housing Workshop in and for the County of Collier, having conducted
business herein, met on this date at 9:00 A.M. in Building "F" of the Collier
County Government Center, 3301 E. Tamiami Trail, Naples, Florida, with
the following members present:
COMMITTEE:
Chairman: Commissioner Donna Fiala
Mark Strain, Collier County Planning Commission
Marie Irwin, Collier County Public Schools
Brian Settle, NCH Healthcare Systems
Bob Mulhere, RWA Consulting, Inc.
Kathleen Slobodnik, League of Women Voters
Rich Y ovanovich, Goodlette, Coleman & Johnson, P.A.
Bob Dictor, Marco Chamber of Commerce
Karen Homiak, Concerned Citizen
Kathy Patterson, C. C. Housing Development
CHAIRMAN: Commissioner Fred Coyle
Commissioner James Coletta
Commissioner Donna Fiala
Commissioner Frank Halas
Commissioner Tom Henning
Additional Committee Members Present: Brent Moore, Ken Drum, Tammie
Nemecek, Chris Straton, Jack Ulrich, Richard Woodruff
ALSO PRESENT: James Mudd, County Manager
David Weigel, County Attorney
JeffKlatzkow, Assistant County Attorney
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GAP HOUSING WORKSHOP
AGENDA
December 9. 2005. 9:00 a.m.
Board Room
Pledge of Allegiance
Introduction of Gap Housing Committee Members
Opening Remarks - Donna Fiala, Commissioner, District 1
1. Marie Irwin - Collier County Public Schools
2. Brian Settle - NCH Healthcare Systems
3. Bob Mulhere - R W A Consulting, Inc.
4. Rich Yovanovich, Goodlette, Coleman & Johnson, P.A.
5. Bob Dictor - Marco Chamber
6. Karen Homiak - Concerned Citizen
7. Kathy Patterson - Collier County Housing Development Corp.
Name that housing!
Future Challenges.
Commissioners' Discussion.
Public Comment.
Direction for Staff.
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December 9,2005
Call to Order
The Workshop was called to order by Commissioner Fred Coyle at 9:03AM.
Following the Pledge of Allegiance, Commissioner Coyle spoke, in his opening remarks,
of the definition of GAP Housing. It is not Affordable Housing, which is partially
subsidized. It is not funded by any entity and it is housing needed by the mid-income
workers and professionals (teachers, firemen, policemen, hospital workers, office
workers and service people) who provide all the services that make up our quality of life.
A large number of Riviera Golf Estates representatives were in attendance to voice
concerns of the county buying their golf course for affordable or GAP housing.
Commissioner Coyle stated that a workshop is for the purpose of the Committee to
present and discuss their findings and recommendations to the Board of County
Commissioners. It is not where any decisions or policy is made. The golf course issue
was not on the agenda to be discussed today. It would need to be taken up at a publicly
advertised regular Board of County Commissioners meeting, where substantial time
would be given to address that issue.
9:10 (5 minute break for those wishing to leave)
The workshop was then turned over to GAP Housing Chairman, Commissioner Donna
Fiala, who introduced the members of the Committee. She pointed out that there is no
GAP housing now in place, nor is there any law governing it. The goals of the committee
are to bring to the Board their recommendations to institute programs, offer suggestions
and information to bring GAP housing into being.
She stated that it takes about a year to get a law passed and added to Growth
Management Plan, then another six months to the Land Development Code.
To implement this program will take at least a year so committee wanted to direct efforts
to tackle the GAP housing needs as soon as possible.
o Need property- Teachers, hospital public safety, hotel and restaurant employees can
find nothing being built for middle income segment. It's either market rate, for which
they earn too little, or affordable housing, for which they earn too much.
o Need for a Clearing-house through Housing Development Corp. for non-rental, non-
investor owned, $150,000 to $290,000 homes. Employers and employees to register
requirements. Many are coming from out of state.
o Need a good bankers consortium to free up red tape
Marie Irwin: Examples of what Collier County Schools are facing:
o Lost 14-15 teachers who had been interviewed and hired, who later called back to
rescind contract. Reason-- can't find housing.
o Winter recruiting fair - 25 signed contracts for new teachers, recent graduates, with
starting salary at $33,000. There is nothing to rent or buy for this kind of money.
Fear of losing these contracts.
o Testimonials from teachers who have left cite financial reasons:
1. Equity raised home value. Can buy up-graded or comparable home elsewhere for
less, on same salary.
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December 9,2005
2. Two Special Needs teachers, whose incomes total $87,000, left Collier County-
can't make it here anymore.
3. 70 new teachers needed in 2006. In 2007,6 new schools will require hiring 1,700
teachers with no places they can afford to live.
She stated Collier County Public schools is scared.
Slide presentation
Brian Settle: Shares concern with Public Schools.
o Can't provide medical care ifno available housing for employees.
o Commendable efforts of Affordable Housing and Habitat for Humanity programs
o Several positions even dual income cannot live in Collier County. 15% of first
responders lives out of county and cannot get to work in emergencies
o Median wage is $33,000. Median home is $500,000. Rule of thumb is housing cost to
be no more than 33% of income.
o NCH has 54 employees earning less than $35,000, 19% earning between $35,000 and
$50,000 and 21 % earning between $50,000 and $75,000.
o NCH spends millions on temporary employees housing. That money leaves the
County and State and doesn't help with taxes or the economy.
o Need to have the $60,000 to $70.000 range employees come here
o Dozens have moved out of County because of housing. An example given: A bi-
lingual, wheelchair bound pharmacist, offered $90,000, can't find home under
$375,000.
o Issues that need to be faced are density, financing, impact fees, NIMBY'ism (not in
my back yard), land trust and many entities involved in keeping housing for future.
As volunteer chairman of Collier County Housing Development Corp., Brian Settle
pointed out that:
1. They are here to partner with County, developers and others to build homes,
rehabilitate existing buildings, serve as land trust.
2. As reasonable priced housing is developed, it is important to keep in inventory.
3. Commissioners role--to establish reasonable regulations and processes that address
CrISIS.
4. Private enterprise will step up to the plate to help solve crises.
Commissioner Fiala spoke of another problem of childcare costs of 150.00 a week,
subtracting from employees housing funds.
Bob Mulhere continued with slide presentation showing some of the Committee's plans,
ideas and concepts
o Six thousand new jobs have been created by growth in Collier County but 83% are in
lowest paying areas-construction, agriculture, services and retail.
o If GAP housing could provide housing stock, at 6.5%, earnings of $51 ,000 can afford
$278,000 home. At 71/2%, earnings of$80,000 can afford $287,000 home.
o Higher the interest rate, the buying power goes down
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December 9,2005
Presentations showed comparisons of what could be afforded at different interest rates,
using formula of33% of income being the most families should spend on housing costs,
with insurance cost figured at $1.00 square foot.
Possible solutions and incentives: These are concepts open to any and all suggestions,
not cast in stone; working with Commissioners, staff, developers, contractors and the
public.
o Density requirements for re-zoning projects and regular development projects
o Reasonable priced house rate linkage fee based on number of units and square feet.
(number of contractors agreed, some did not, to $1,000 for homes and $.50 square
foot for commercial)
o Money to go to trust fund.
o Without subsidies to developer, must increase density-- partial bonus, partial
affordable. (Example 100 affordable, 100 GAP, 200 market rate-done by
incentives).
o Create develop Standards by Right for 200 acre or less projects.
o Density bonus in rural and coastal areas
o Not to be purchased by investors
o Need to restrict to first time homebuyer (First time buying in County or not owned
home in 3 years)
o Limit appreciation, no flipping
o Deferred impact fee incentive
o Look at Rural Fringe and Eastern lands policies/ road corridors- could be incentives
for Gap housing in that area.
o Work with others for low or no down payment. Explain what is available to them.
Extend existing affordable housing programs to include GAP housing programs
Housing and Salary Realities:
Bob Mulhere provided this information from the December 18t MLS listings of available
homes-- 2 homes less than $200,000; 64 homes from $200,000 to $300,000; 38 multi-
family and condo under $200,000 and 249 multi-family and condo from $200,000 to
$300,000 .for sale. Not a huge amount in relation to need.
Ofthe County's four major employers (Collier County Public Schools, Collier County
Government, Naples Community Healthcare and Public Safety Departments), 73% earn
under $50,000, 23% earn $50,000 to $75,000 and only 4% earn over $75,000. These
professionals have families and need family type homes.
The $64,000 median income figures reported, reflect unearned income (due to vast
majority of retirees). Earned income median is more likely at $33,000.
Committee focused on strategies and incentives to increase the housing stock in that
segment earning 50% -80% of median income. $51,000 is the income limit to qualify for
Affordable Housing; $51,000 to $96,000 to qualify for GAP housing. In place Affordable
Housing programs could be adjusted to include GAP housing category.
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December 9,2005
Committee's research has shown that there are significant problems and if solutions are
not found, the impact on the community will not be a positive pact one.
Rich Yovonovich brought out the issue of what will be incentives to builders to build
GAP housing. One incentive was buy right zoning option. Also, the true costs to a
developer are important, to find what type of incentives are needed to influence
developers. He provided an example of typical cost to developer for a 100acre project.
(Provided by the developer of Waterways)
Example: Typical 1 00 acre project, at $250.000 an acre for land acquisition (25 million)
o 25% lost to wetlands and preserve, leaving 61 acres to develop.
o engineering surveying and zoning costs - $750,000
oland development- roads, water, sewer - $71/2 million
o amenities, pool, clubhouse, tennis courts another $2/12 million
o Costs per lot or unit ranged from- 3 units per acre- $158,000 to 10 units per acre-
$37,000. The latter amount of units would require full-blown hearing process.
o With $85- $93 sq. ft. construction costs and appreciation rate 15% to 25% plus
development costs, developers will need some market rate homes to make money.
This example was given assuming no mitigation costs necessary and transportation
concurrency still met. Scenario of 5 units per acre (1 affordable, 2 GAP 2 Market rate)
could work as an incentive. If there is no profit, there will be little incentive.
Commissioner Henning suggested possibility to increase available stock by one extra
unit by combining Stormwater and Preserve regulatory uses. Will increase available,
buildable land, without reducing requirements for wetland and preserve.
Bob Mulhere: Staff will look into combining usage along with looking into what land is
available for GAP housing.
Commissioner Coyle questioned additional bonus density incentive's impact on
increased land values. Appropriate affordable ratio to market rate units. Need to insure
that increases in land values and construction costs do not continually outstrip workers
earning power or there would be no solution to problem. Government must be careful of
allocations of future densities.
Bob Mulhere: Possibility of annual cap in overall acreage could go toward density bonus
Bob Dicktor: Reported some issues facing Marco Island:
o Cost of shelter way beyond means of most workers
o Shortage in availability of lands
o Cannot attract workers for needed services who must commute from far away
o Some crucial public service employees coming from Miami and Daytona
o Hotel needing to provide 12 month work visas for international interns
o Housing crunch due to condo conversions
o Temporary employees usually renters, less and less rentals
o Competition for Immokalee workers with nearby Ave Maria University
Need collaborative efforts, innovative ideas, open minds receptive new approaches and
spirit of working together so decisive action can be taken.
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December 9,2005
He congratulated Commissioner Fiala for her foresight and in gathering of experts on the
Committee. Also thanked BCC for their help to take bold action plans for expedient and
viable solutions.
Karen Homiak spoke of First-time home buyers program that Florida Housing Finance
Corp. offers to assist those who service and protect communities (teachers, police,
firefighters and health care workers). Program has 6.4 million dollars for 30yr fixed rate
mortgages (presently 5.1 %). Offers lenient underwriting guidelines, income limits of
$63.3 for 1 or 2 persons and $73.9 for 3 or more. Price limit is $354,375. Down payment
assistance programs also available. A start with financial help--still need supply of homes
Kathy Patterson: regarding concerns to keep land affordable in future. One way is a
Community Land Trust. This is a private, non-profit 501c3, whose purpose is to acquire
and hold land, purchased or donated (preferably donated). Benefits cited:
1. Ground leases can determine uses, in this case, affordable housing.
2. Homeowner purchases home not land
3. Signs 99 year inheritable and renewable land lease.
4. Must sell to income eligible.
5. Signs resale agreement that will limit appreciation.
6. Promotes resident ownership and keeps control of units
7. Removes land from speculative buying. Income is restricted by use.
8. Owner occupied only.
9. Keeps housing in inventory.
Collier County Housing Development Corp. is prepared to act as the land trust.
(12 minute break 110:36 return)
State Representative Mike Davis was introduced and spoke on work going on at State
level-
· Not a problem unique to Collier County, but a crisis all over Florida and one ofthe
main issues to be discussed this legislative session.
· Growth management common thread with affordable housing.
· Housing Finance Corp. reviewing dollars and percentages; rethinking affordable
housing to include GAP housing; getting more funds to provide assistance
· Assistance with buy down impact fees.
· New hire school teacher housing on school property. Government workers on
government property. Help for 3 years to get started before moving on to purchases.
· Incentives for developers.
· Directed state agencies to look into excess land to transfer to affordable housing.
He expressed how impressed he is with presentation. He invited the Committee to
Tallahassee to bring presentation before the House and Senate, to be a case study and
representative of what is happening in local communities. Solution is cooperative efforts
between State, local, and business communities.
Commissioners comments:
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December 9,2005
Commissioner Coletta:
· Concerned about proportion of 1 affordable for 2 GAP units.
· In past, County has been reluctant to approve higher density.
· Responsibility of businesses to provide housing to workers
· Provide gap funds, cover interest, aide in financing, retain partial ownership are
various ways employers could help.
· Professionals cash in on equity rise and leave area. Their replacements, who earn
less, can not afford to buy that home.
Commissioner Halas:
· Thanked committee for their presentation
· Approves idea of land trust
· Recent auction of 266 lots sold in excess of 300 million dollars; money is coming into
area
· Baby Boomers, college kids can't come back home to work; but, need is still to
attract professional people here
· No more "NIMBY" attitude (not in my back yard)
· All citizens impacted, need all to get involved
· Encouraged brain-bank of all citizens for ideas
Commissioner Henning:
· Favored most ideas presented, except for increasing density in eastern lands until
there are jobs there.
· In favor, close in, where there are jobs
· Great idea to use public lands for housing. Need to tax housing and need to provide
for services. Growth moves too fast and has been too regulated.
· One solution -Deregulate housing and zoning changes. Zoning by right could take
care of NIMBY
· Land codes for entry -level housing, similar to right given to Fringe area.
· Density Bonus-good idea
Commissioner Coyle: Government can not solve it alone, but can take a role. Must not
get involved in taking action that could contribute to creating increase in values.
Two biggest problems:
· 1. State and Federal Government have removed huge amounts of property from
Collier County. The little remaining that is owned by individuals has helped to create
the problem.
· 2. Primary problem, County keeps drawing low- income workers here. Need
economic diversification
· Of the 4,007 affordable houses approved, only 1,000 built. In 2005, the 2,700
affordable houses approved are only 30% of need. Shortfall continues
· Difference is to get the land and hold it
· Make sure what is done is taking positive steps and understanding the issues.
Commissioner Donna Fiala: Desperate need for professional housing. Has had a
builder offer to build 40% GAP housing. Need to start building approved, but not yet
built homes.
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December 9,2005
Schools must abide by classroom size amendments. Homes for teachers are crucial.
Public Speakers
Jeff Cecil: Chairman of Affordable Housing Commission and with Porter Wright and
Arthur. Pointed out that 200,000 units are needed. If 200 units a year were built, it
would take 100 years to close gap. Entire community must work together for safe,
affordable housing.
Robert Denum: Resident of Riviera Golf Estates. If government is going to subsidize
then build and buy near to where people work to lessen burden on traffic and congestion.
Henry "Hank" Nold: His East Naples community is surrounded by manufactured, gap,
affordable and market type homes and is an excellent environment to live in. Onus is
now in hand of Commissioners. Ifthere are two or three reasonable solutions, start
working on them. Good to see that industries are giving assistance to their people. (NCH)
Dr. Sam Durso: Serves as volunteer for Habitat for Humanity, who builds over 100
homes a year. He is also a part of the recovery team for Hurricane Katrina Recovery.
Applauds the Committee for its recommendations. Habitat was offered golf course
property, but would not buy it. Habitat has land for 1,500 homes, but needs re-zoning or
zoning by right. Willing to build GAP housing in order to build Affordable. Habitat for
Humanity is a big organization that has money and has a land trust. They are ready to go.
Their goal is to make substandard housing socially, morally and politically unacceptable.
Can make it work by working together.
George Raslen, Jr.: Business community PAC. - Grateful to Committee for focus on
partnership of stakeholders. Starter homes need density by right. It is key to solution.
Subsidies not solution in long run. Engage abilities and expertise of entrepreneurs, using
all available resources mentioned.
Bob Krasowski: Twenty-five year county resident. Great to discuss complex issue.
Wondered what happened to growth pays for growth. Dislikes subsidies. Costs to long
time owners who have already paid for growth. Many leaving county; not what they
sought when came here. Favors density by right only for Affordable Housing. Some
comments made sound more like socialism, than capitalism - benefiting those who make
more than the retirees, who must pay the price. For service people, would like to see
industries in rural areas and housing built around these.
Matt Hudson: Sixteen-year county resident. Realtor and Director of Board of Realtors.
Looking to what they can do to help. Advocate for solutions. Putting together information
packet and list of existing but vanishing inventory. Mentioned the Agriculture Extension
Office of University of Florida program to help qualify buyers. Educate the membership to
this program to help match up buyers to housing that comes available to GAP Housing
program. Also, as Golden Gate Fire Commissioner, sees needs of firefighters, who must
commute to work (1/3 live out of county), but also want to have a stake in community they
serve. National and State Boards of Realtors has ancillary materials for design and
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December 9,2005
architectural standards that can help prevent NIMBYism and also help LDC. Will supply
materials to the BCC. Organization is happy to be partner in solutions.
Commissioner Fiala invited Mr. Hudson to come and talk to GAP Housing Committee.
Realizing free market economy, sees problem of Realtors, as investors, buying up stock
properties that can never be part of GAP inventory. Mr. Hudson agreed to address
Committee. Goal is to educate, as a trade organization, encourage to participate in
process and to see advantages to help make inroads into the problem.
Scott Coulumbe: Executive Vice-President of Collier Building Industry Association
Agreed with Mike Davis in commending Committee for outstanding job. Suggested that
by putting all issues together and coming up with a menu of what can work for everyone,
Building industry can follow. Create a concrete plan so that Collier County could be an
example and watermark community for the whole State. Could take to Tallahassee and
even to Washington. He remarked that Collier County could be known as- "Collier
County, the county that cares". Business and county coming together can have a positive
effect. Mixed use is great to keep communities within close proximity to services. LDC
can make it work. CCBIA stands ready to help.
Commissioner Fiala: Need for BCC to come to a direction
Commissioner Henning: BCC can give direction to staff to develop a linkage fee
ordinance. Allow density bonus only for housing needed. Zoning by right-fast track to get
board approval with GMP and LDC amendments. Fast track permitting to cut costs.
Jim Mudd: Mentioned that, at Affordable Housing workshop in May, linkage fees were
discussed and ordinance is being prepared. Also, balanced communities zoning
ordinance is being prepared now for adoption by the Board in 2006. Zoning by right and
density by right were also discussed. Drafting language for next GMP cycle in 2006. At
that time density by right was thought to be good idea and zoning by right, not such a
good one. Will prepare and adjust, whatever Board decides.
Commissioner Comments:
Commissioner Fiala: density by right as long as doesn't impact already congested roads.
Best Friends Park and Santa Barbara already in inventory; could be in land trust.
Commissioner Halas: Give serious thought to Community Land Trust as way to go.
Board needs strong backbone when considering zoning. Compatibility is the big thing.
Would like focus on GAP housing separate from Affordable Housing. Way to implement
without long amendment process.
Commissioner Coyle: Linkage fees good idea. Makes sense for commercial developers
and corporate owners of property who are creating jobs to use property to create
affordable housing for their employees, but will need more density. Permit additional
density for properties under control of owners, but not blanket density or right without
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December 9,2005
controlled ratio. Can't disregard issues of compatibility and concurrency. Put defined
areas in GMP.
Commissioner Coletta: Remove as much of political aspect as possible. Set standards.
Ifprojects meet certain criteria, it gets permit. Density by right tied into permitting.
Would not approve GAP separate from Affordable Housing
Commissioner Henning: no support on Board for increase in density in coastal high
hazard area. Zoning by right in Fringe area gave developer 1 unit per acre. Can build
million dollar houses. Not what is needed for GAP projects. Don't need anymore million
dollar homes. Prevent by regulations.
Commissioner Fiala: Expressed desire to keep committee meetings going and to keep
focus on GAP housing. Questioned what is needed to put into GMP or LDC. Wants
information on percentages of and number of low and mid-price homes needed, and what
type so can go forward. Wants GAP separate from affordable as different criteria apply.
Lively discussion amongst Commissioners followed regarding:
· Issues of Density by right
· Zoning by right
· Defining GAP housing within context of Affordable housing ordinance already in
place, creating separate category.
· Separate ordinance for GAP, longer time frame for implementing.
· Changes to GMP -year project or Amend LDC -6 months project
· Include within ordinance, GAP rights for density
Joe Schmidt offered clarification that any change by right, must amend GMP. Changes
in bonus density can be done by amendment to LDC within development standards.
Bob Mulhere and Joe Schmidt suggested creating a list of option with specific language
for ordinance, defining terms and any LDC amendment wording needed be put to BCC to
finalize.
Jim Mudd: Under guidance from Board can then work to put their decisions into
ordinance and follow through with his staffwith any other requirements.
Some citizens made a request to Bob Mulhere to put Power Point presentation on
Board requested Mr. Mudd do so.
There being no further business for the good of the County, the meeting was
adjourned by the order of the Chair at 12:12 PM.
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December 9,2005
*****
BOARD OF COUNTY COMMISSIONERS
BOARD OF ZONING APPEALS/EX
OFFICIO GOVERNING BOARD(S) OF
SPECIAL DISTRICTS UNDER ITS CONTROL
'1uJ- W ~
FRED W. COYLE, Chairman
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DWIGR.T 'E;,;BRÐCK, CLERK
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These minutes approved by the Board on l-lO - ZaJo ' as presented
or as corrected
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