TRANSITIONING IN PLACE Homelessness is a HOUSING Issue June 10, 2015 Mandy Bartle, Executive Director South Florida Community Land Trust mandy@southfloridaclt.org (954) 769-1731
Stagnant Wages / Increased Cost of Living Lack of affordable housing HOMELESSNESS IS A HOUSING ISSUE High housing cost-burdens Overcrowding / Substandard housing SFCLT South Florida Community Land Trust Increased Homelessness / risk of becoming homeless
A holistic concept that compares household income to housing costs WHAT IS AFFORDABLE HOUSING ANYWAY? Affordable means that families spend no more than 30% of their combined income on monthly housing costs Households spending more than 30% are considered cost-burdened SFCLT South Florida Community Land Trust
IN BROWARD COUNTY: 50% of households in Broward County, regardless of income, are Cost-Burdened 1 Extremely Low-Income (ELI) Households (those earning < 30% AMI) can afford a monthly rent of $475 2 The average cost to rent a 2- bedroom is $1,263 There are only 24 affordable and available units for every 100 ELI households 3 SFCLT South Florida Community Land Trust 1 2014 Broward County Affordable Housing Needs Assessment 2 2015 National Low-Income Housing Coalition 3 Shimberg Center for Housing Studies 2013 Rental Market Study
INCOME VS. HOUSING COSTS 6% Median Income 23% Owner- Occupied Housing Costs 22% Rental Housing Costs SFCLT South Florida Community Land Trust % Change between 2007-2012
THE GAP BETWEEN WHAT A HOUSEHOLD CAN AFFORD AND THE COST OF HOUSING IS GROWING $$$ Cost of Housing Incomes TIME
THE TOTAL SUBSIDY ASSISTANCE NEEDED CONTINUES TO INCREASE $$$ $ $ $ TIME
WHAT'S A CLT? Community Land Trusts (CLTs) are nonprofit organizations that provide a permanent source of affordable housing. How affordability subsidy is applied How homeownership is structured How long-term relationships with homeowners are nurtured and maintained
THE CLT CYCLE: SOUTH FLORIDA COMMUNITY LAND TRUST Land is owned and preserved by the community through the CLT Absentee landlords, vacant properties, and deteriorating conditions decrease Households own the home and lease the land OR Renters live in the housing at an affordable price When homeowners resell they do so at an affordable price to another deserving family The separation of land from the housing reduces the cost of purchasing/ renting the home Sellers recover their down payments as well as a portion of the appreciation HOUSING REMAINS AFFORDABLE FOREVER WITH ONE INITIAL PUBLIC SUBSIDY SFCLT South Florida Community Land Trust
501(c)3 nonprofit SOUTH FLORIDA COMMUNITY LAND TRUST Mission: To provide and preserve quality, sustainable affordable housing for underserved populations in South Florida Housing stock: 63 Units 5 CLT Owner-Occupied 3 CLT Lease-Purchase 46 Rental Units Currently 7 homeless 9 Undergoing Renovations SFCLT South Florida Community Land Trust
SOUTH FLORIDA COMMUNITY LAND TRUST BRICKS & MORTAR 63 UNITS BEYOND HOUSING OWNER OCCUPIED RENTAL EDUCATION & OUTREACH STEWARDSHIP & EMPOWERMENT EMERGENCY ASSISTANCE 3 LEASE- PURCHASE 9 ONGOING, COMPLETE BY END OF FY2015 46 FULLY RENOVATED & OCCUPIED CLT 101 RESIDENT COUNCIL / BOARD HOMELESS HOUSING 5 CLT HOMEOWNER TRAIN THE TRAINER COMMUNITY GARDEN INITIATIVE CLT HOMEBUYER CLUB PARTNERSHIP DEVELOPMENT TECHNOLOGY ACCESS
CLT HOUSES FOR SALE SFCLT South Florida Community Land Trust
SFCLT RESIDENTS
BEFORE AFTER 2417 NW. 9 TH AVE Wilton Manors
BEFORE AFTER 7609 TAM O SHANTER BLVD. North Lauderdale
BEFORE AFTER SUNLAND TERRACE Lighthouse Point
HOW DO YOU DEVELOP HOUSING? NEW CONSTRUCTION Lot / Land $30,000 Soft Costs $35,000 Hard Costs $165,000 TOTAL $230,000 REHABILITATION Acquisition $150,000 Soft Costs $25,000 Hard Costs $65,000 SFCLT South Florida Community Land Trust TOTAL $240,000
Source: Florida Realtors, Florida Sales by MSA (1Q15)
Source: CBRE South Florida Multifamily Market Update, Spring 2015
A LANDLORD S PERSPECTIVE
SAMPLE PROFORMA DUPLEX INCOME Rental Rate $1,650 / 2 units Gross Rents $39,600 Less Vacancy ($2,772) Total Effective Gross Income $36,828 EXPENSES Management and Leasing Fees $6,158 Utilities and WWS $750 Real Estate Taxes $2,400 Insurance $2,750 Maintenance / Repair $1,000 Pest Control $350 Landscaping $750 Miscellaneous $100 Total Expenses Operating Cost $14,258 NET OPERATING INCOME $22,570 Reserves $700 Debt Service $1,000 CASH FLOW $20,870
SAMPLE PROFORMA DUPLEX INCOME Rental Rate $1,650 / 2 units $800 / 2 units Gross Rents $39,600 $19,200 Less Vacancy ($2,772) ($1,344) Total Effective Gross Income $36,828 $17,856 EXPENSES Management and Leasing Fees $6,158 $2,986 Utilities and WWS $750 $750 Real Estate Taxes $2,400 $2,400 Insurance $2,750 $2,750 Maintenance / Repair $1,000 $1,000 Pest Control $350 $350 Landscaping $750 $750 Miscellaneous $100 $100 Total Expenses Operating Cost $14,258 $11,336 NET OPERATING INCOME $22,570 $6,770 Reserves $700 $700 Debt Service $1,000 $1,000 CASH FLOW $20,870 $5,070
SAMPLE PROFORMA DUPLEX INCOME Rental Rate $1,650 / 2 units $800 / 2 units $300 / 2 units Gross Rents $39,600 $19,200 $7,200 Less Vacancy ($2,772) ($1,344) ($504) Total Effective Gross Income $36,828 $17,856 $6,696 EXPENSES Management and Leasing Fees $6,158 $2,986 $1,650 Utilities and WWS $750 $750 $750 Real Estate Taxes $2,400 $2,400 $2,400 Insurance $2,750 $2,750 $2,750 Maintenance / Repair $1,000 $1,000 $1,000 Pest Control $350 $350 $350 Landscaping $750 $750 $750 Miscellaneous $100 $100 $100 Total Expenses Operating Cost $14,258 $11,336 $10,000 NET OPERATING INCOME $22,570 $6,770 ($3,054) Reserves $700 $700 $700 Debt Service $1,000 $1,000 $1,000 CASH FLOW $20,870 $5,070 ($4,754)
HOW DO YOU ATTRACT LANDLORDS?
HOW DO YOU ATTRACT LANDLORDS? Storytelling Developing Partnerships Mission Based Organization Long-Term Commitment
HOW DO YOU ATTRACT LANDLORDS? Renovations Grants and Subsidies Rental Assistance Monthly Stipends Security Deposits Guarantor $
HOW DO YOU ATTRACT LANDLORDS? Storytelling Developing Partnerships Mission Based Organization Long-Term Commitment $ Renovations Grants and Subsidies Rental Assistance Monthly Stipends Security Deposits Guarantor
KEYS TO SUCCESS Appeal to both mission and money Partner with mission-based organizations Work with landlords without debt Develop partnership and MOU Request a long-term commitment Offer strong, ongoing case management Ensure good communication Prepare individuals for success
SFCLT South Florida Community Land Trust THANK YOU! Mandy Bartle: mandy@southfloridaclt.org (954) 263.6055 www.southfloridaclt.org www.facebook.com/southfloridaclt @SouthFloridaCLT