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The Evolution of State/Local Housing Policy in Florida Nancy Muller September 2006

The Evolution of State/Local Housing Policy in Florida Nancy Muller September 2006. Current Conditions. Construction costs are falling, but hurricane recovery has created a shortage of materials and qualified workers

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The Evolution of State/Local Housing Policy in Florida Nancy Muller September 2006

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  1. The Evolution of State/Local Housing Policy in Florida Nancy Muller September 2006

  2. Current Conditions • Construction costs are falling, but hurricane recovery has created a shortage of materials and qualified workers • Steep appreciation in land values and limited vacant land available in some areas • Over-valued markets, although cooling now occurring • Rising insurance costs, property taxes and energy costs • Property appreciation reduced the number of Florida households able to afford a median priced home from 69% in 1999 to 33% in 2005 • Many communities are experiencing problems filling and retaining critical workforce jobs such as teachers • In Florida and other places across the country, middle income families are impacted by these trends

  3. How Did We Get Here? • National and state housing policy was built on the goal of general economic stability for the country as a whole • Early 1900’s – lack of housing and condition of housing were the critical problems • By late 1970’s, problem became more about cost of housing, which had outpaced household incomes

  4. How Did We Get Here? • Up until the 1960s, housing programs were primarily implemented through federal agencies and PHAs • 1960’s – private sector entry into the affordable housing arena • Federal programs financed thousands of rental units throughout U.S. into the mid-’80s • 1960 – 1983: creation of state housing finance agencies • Mid-1980’s – beginning shift of affordable housing programs to the states

  5. How Has this Shift Worked? Rental Housing • State-administered programs target higher income levels than older federal programs • Therefore, lower subsidies per unit are needed, allowing creation of many more units over 20 years • Federal agencies have received less funding to continue serving extremely low income families • Now there’s a push to get states to meet that need

  6. How Has this Shift Worked? Homeownership • Middle & upper income homeowners supported through federal tax preferences, mortgage insurance & development of the secondary market • Low income households supported through low interest mortgages & down payment assistance, implemented at state & local levels – with credit counseling & homebuyer education

  7. Who Is Served by Today’s Affordable Housing Programs? • 275,000 subsidized rental units in Florida – • ~40% serve households with incomes up to 30% of median income (mostly funded through the older federal programs) • ~55% serve families with incomes at 50-60% of median income (financed by Florida Housing Finance), and ~5% serve incomes above 80% • Extremely low income families more likely to be paying large portions of their income for housing and thus are unable to afford other necessities • Increasing interest in “workforce” housing

  8. What Are the Impacts on Florida? • Households – more limited home buying opportunities & fewer rental units available, leading to higher home prices & rents; families accepting longer commute in exchange for lower housing costs – but more household income spent on transportation • Businesses – as workers move further away to find affordable housing, can affect worker recruitment, retention, productivity • Communities – increased transportation costs; potential problems attracting new employers without the economic spectrum of workers needed; aging housing units may contribute to dilapidating neighborhoods

  9. Where Does This Leave Us? • Affordable housing programs have NEVER fully met the need • Recent trends have exacerbated the need • Funding for federal programs that traditionally financed most of the lowest income housing is disappearing • Increased need at the upper end of the spectrum • Need for paradigm shift – opportunity lies in current interest of elected officials

  10. Components of a Meaningful State/Local Housing Policy • Land use planning • Expedited permitting • Flexible funding • Education/public awareness campaigns • Technical assistance • Involvement of business community • Access to data • Political will

  11. Contact Information:Nancy Muller850.488.4197nancy.muller@floridahousing.org

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