The Evolution of StateLocal Housing Policy in Florida

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 1900s lack of housing and condition of
  housing were the critical problems
• By late 1970s, 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
• 1960s 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-1980s 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 theres 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 Todays 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 InformationNancy Muller850.488.4197na
ncy.muller_at_floridahousing.org