Affordable to Whom?

Learn more about our October 18th event on “Affordable to Whom? The Affordable Housing Crisis in South Florida” here.

Affordable to Whom? The Affordable Housing Crisis in South Florida

Written By: Ryan Reiter

Last year, South Florida had the nation’s seventh highest population growth through migration. With that much growth, infrastructure improvements and housing supply are just a few of the things that many communities need to address.  A flourishing economy, increased housing demand, and escalating construction costs, developers have focused their attention on the market and luxury-rate rental market, creating an even greater gap in the affordability of housing for the workforce population. Multifamily market-rate rents are nearly 15 percent higher than the record peak, while wages have only increased nearly four percent. Albeit a positive turn in the economy, it still leaves the asset limited, income constrained population behind the curve – Asset Limited, Income Constrained, Employed (ALICE) is a term coined by the United Way in an annual report on the study of financial hardship.  

Multifamily market-rate rents are nearly 15 percent higher than the record peak, while wages have only increased nearly four percent…

Local municipalities have been innovative lately with their advancement of the issue, but the often-burdensome regulations of government tend to impede the pace of development which is at the mercy of the financial market.  Incentives such as land swaps and low-cost, long-term ground leases in desirable areas can be attractive to many affordable housing developers, as long as there is a win-win for both the municipality and the private sector. So, how do we create an open environment for the private sector while keeping the publics best interest at the forefront? 

The other issue deterring the number of affordable housing developments in South Florida is the dwindling dedicated revenue designed to fund community partnerships to develop affordable housing – the William E. Sadowski Affordable Housing Trust Fund.  To help with recession pains, lawmakers diverted $1.3 billion, of the $1.8 billion collected since 2008, to other purposes.  Bringing those dollars back for more affordable housing development projects would be a step in the right direction, but how do you do it without upsetting the balance of an $83 billion state budget? Hopefully, we can get started with answering that question at the next Village Square Dinner at Funky Buddha Brewery. 

On Wednesday, October 18th at 6:45 p.m. Broward College’s Village Square is ready to take on the discussion of affordable housing.  Broward County Commissioner Nan Rich and Founder of Ellis Diversified, Inc., Jim Ellis, will be representing their respective positions in a civil dialog moderated by William Russell, President and CEO of the Sarasota Housing Authority.  Aside from being named to help temporarily lead the U.S. Department of Housing and Urban Development during the 2016 transition, Mr. Russell also served as HUD Deputy Assistant Secretary for public housing before taking over the Sarasota Housing Authority in 2005.  It’s sure to be a very informative and entertaining debate accompanied by great food and engaging community leaders.

Learn more about our October 18th event on “Affordable to Whom? The Affordable Housing Crisis in South Florida” here.