PALM BEACH COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE FISCAL YEARS

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PALM BEACH COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE FISCAL YEARS 2010-2015 Prepared By: Palm Beach County Department of Housing and Community Development Edward W. Lowery, Director June, 2010

PALM BEACH COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE FISCAL YEARS 2010-2015 Table of Contents Executive Summary... i Introduction... 1 I. Jurisdictional Background Data... 2 A. Demographic Data... 2 B. Median Income and Poverty... 2 C. Labor Force and Employment... 3 D. Housing Availability... 3 E. Concentration of Racial/Ethnic Minorities and Lower-Income Families... 3 F. Disability Prevalence... 4 G. Housing Profile... 4 1. Housing Market... 4 a. Households... 4 Household Types... 4 Households by Tenure by Race and Income... 5 Households by Tenure by Disability and Income... 6 b. Housing Stock... 7 Housing Types... 7 Age of Housing... 8 Housing Costs... 8

Housing Conditions... 9 Occupancy and Vacancy... 11 Housing Available to Serve Persons with Disabilities and Persons with HIV/AIDS... 11 2. Affordability of Housing... 12 a. Definition of Affordability... 12 b. Affordability Index... 12 3. Housing Market Analysis... 14 II. Evaluation of Jurisdiction s Current Fair Housing Legal Status... 17 A. U.S. Department of Housing and Urban Development (HUD)... 17 B. Palm Beach County Office of Equal Opportunity... 17 C. Legal Aid Society of Palm Beach County, Inc.... 18 D. Fair Housing Center for the Greater Palm Beaches, Inc.... 18 E. Summary of Fair Housing Complaints in Palm Beach County... 18 Palm Beach County Office of Equal Opportunity (OEO)... 19 Legal Aid Society of Palm Beach County, Inc.... 20 Summary of Fair Housing Complaints in the Palm Beach County Reported to Legal Aid Society of Palm Beach County, Inc.... 20 III. Identification of Impediments to Fair Housing Choice... 24 A. Public Sector... 24 Zoning and Site Selection... 24 PHA and Other Assisted/Insured Housing Provider Tenant Selection Procedures; Housing Choices for Certificate and Voucher Holders... 25 Sale of Subsidized Housing and Possible Displacement... 26 Property Tax Policies... 27 Building Codes (Accessibility)... 29

B. Private Sector... 30 Lending Policies and Practices... 30 C. Public and Private Sector... 31 Fair Housing Enforcement... 31 Visitability in Housing... 32 Where there is a determination of unlawful segregation or other housing discrimination by a court an analysis of the actions which could be taken by the recipient... 32 IV. Assessment of Current Public and Private Fair Housing Programs And Activities in Palm Beach County... 34 V. Conclusions and Recommendations... 35 Fair Housing Issues in Palm Beach County... 35 A. Issues Related To Disability And Other Bases For Discrimination... 35 B. Issues Related to Zoning, Land Use and Other Public Policies... 38 C. Issues Related to Mortgage and Credit... 39 APPENDICES... 43 Appendix 1: Concentration of Racial/Ethnic Minorities in Palm Beach County... 44 Appendix 2: Concentration of Low-Income Families... 45 Appendix 3: Disposition of Applications for Conventional Home-Purchase Loans... 46 Appendix 4: Reasons for Denial of Applications for Conventional Home-Purchase Loans... 47 Appendix 5: Samples of informational brochures for Fair Housing, Foreclosure Services and Discrimination... 48

Palm Beach County Analysis of Impediments to Fair Housing Choice Fiscal Years 2010-2015 Executive Summary JURISDICTIONAL BACKGROUND DATA Demographic Data The following was extracted from the American Community Survey (ACS) from 2006-2008. The population of Palm Beach County was estimated at 1,262,353. Persons age 65 and over comprised 21.8% of Palm Beach County population. 49% of new residents in the County come from the Northeastern United States; 21.6% of County residents were born outside the U.S. The White population in the County increased from 70.5% in 2000 to 74.5% of the total population in 2008, the Black population increased from 13.4% in 2000 to 15.7% in 2008 of the total population; and the Hispanic population increased from 12.4% in 2000 to 17.3% in 2008 (this percentage includes other Hispanic races which may be counted in previous categories) of the total population. The following was extracted from the Florida Housing Data Clearinghouse, Shimberg Center for Affordable Housing, University of Florida, 2004. Persons with disabilities accounted for 24.2% of the total population in the County. Elderly persons (62 and older) make up the largest group of individuals with disabilities totaling 102,140 (70.9%), followed by 105,180 persons age 25-61 and 18,110 (20.0%) persons age 15-24 (16.1%) 163,380 households in the County include a person age 15 or older with a disability or 34.4% of total households (474,295). Elderly-headed households (age 62 and older) make up 78,930 or 48.3% and 84,450 or 51.7% are headed by individuals age 15-61. Areas with the highest concentrations of minority households are the Glades, Riviera Beach, West Palm Beach, Boynton Beach and Delray Beach. Income Data i

The median household income in Palm Beach County, as reported by the U.S. Census Bureau, increased from $46,015 in 2003 to $67,600 in 2009, representing an increase of $21,585 (46.9%). Areas with the highest concentrations of low income households are the Glades, Riviera Beach, West Palm Beach, Boynton Beach and Delray Beach. These low income areas tend to encapsulate the areas of ethnic minority concentrations. Employment Data Between 2000 and 2008, the total number of persons in the labor force increased from 510,379 to 612,269 workers (ACS). Unemployment rose from 4.8% in 2000 to 12.1% in March 2010, representing a 7.3 percentage point increase (U.S. Bureau of Labor Statistics). Housing Profile A high demand for housing fueled by easy access to credit has driven the total number of housing units from 587,491 in 2003 to 636,938 in 2008 (ACS). The median sale price of a used home in Palm Beach County was $247,900 in December, 2009, representing a decrease of 33.3% since March, 2005 (Florida Realtors). This decrease in price was a reflection of a housing crisis which has affected the nation over the past two years, but especially Florida and Palm Beach County in particular. Of the total of 354,776 households, 274,229 (77.3%) are owners, and 80,547 (22.7%) are renters. White households comprise the overwhelming majority of all households at 87.0%, with Black households the second-largest group at 8.1%. The homeownership rate for households including persons with disabilities (PWD) age 15 or older is 131,616 (37.8% of the 348,609 total owned households) and the rental rate is 31,263 (25.1% of 124,490 rental units). In 2009, foreclosure filings reached a five year high of 30,870 according to RealtyTrac. This represents a significant increase of 1012.5% from 2005 with 3,049 foreclosure filings recorded by the County Clerk s office. Palm Beach County has the third highest number of foreclosures in the state of Florida. ii

EVALUATION OF JURISDICTION S CURRENT FAIR HOUSING LEGAL STATUS Fair Housing Legislation and Agencies The Office of Equal Opportunity and Legal Aid Society of Palm Beach County are the two primary agencies responsible for investigating and resolving complaints of discrimination in housing, public accommodations and employment in the County on the basis of race, sex, color, religion, national origin, disability, sexual orientation, familial status, marital status, age or and gender identity or expression, in accordance with Palm Beach County Ordinance. Fair Housing Center of the Greater Palm Beaches, Inc. Fair Housing Center is a member of the National Fair Housing Alliance and carries out testing, enforcement, education, predatory lending prevention, outreach and counseling programs to ensure equal and affordable housing opportunities for all people. The Fair Housing Center serves as a Fair Housing Initiatives Program (FHIP). Summary of Fair Housing Complaints The most common issues reported by the Office of Equal Opportunity and the Legal Aid Society during the period FY 2004-2005 to FY 2008-2009, were reports of housing discrimination based upon disability at 42.9% and 35.8% respectively. Race /Color ranked second with both agencies at 22.1% and 20.8%, respectively. The next most common complaint categories were Familial Status, followed by National Origin, for both agencies. IDENTIFICATION OF IMPEDIMENTS TO FAIR HOUSING CHOICE Zoning and Site Selection Palm Beach County does not designate specific areas for locating affordable or workforce housing. The Workforce Housing Program and the Affordable Housing Program contains a sector analysis process where the existing concentration of very low and low income households is evaluated in order to determine the amount of density bonus. This is done to be consistent with a State Statute requirement (Ch.163.3177(f)1.g, F.S.) to avoid the concentration of affordable housing units only in specific areas of the jurisdiction. PHA and Other Assisted/Insured Housing Provider Tenant Selection Procedures; Housing Choices for Certificate and Voucher Holders The Palm Beach County Housing Authority Section 8 Housing Choice Voucher (HCV) program waiting list has not been opened since 2002 and is not currently accepting iii

Section 8 applications at this time. Funds totaling $18,418,671 has been allocated by HUD toward 9,001 housing vouchers for FY 2010-2011. As of 2010, the Palm Beach County Housing Authority owns 495 Public Housing units from Lantana to South Bay in a series of complexes. Sale of Subsidized Housing and Possible Displacement Palm Beach County Department of Housing and Community Development and the Community Land Trust of Palm Beach County of Palm Beach County provides homebuyer subsidy to eligible low and moderate income homebuyers through various programs. The subsidy serves to lower the cost of the homes to these households by offering forgivable second mortgages, discounted first mortgages, and price discounts on properties as well as reducing housing costs. Property Tax Policies The property tax in Florida is constitutionally a local tax, administered, levied, and collected by local officials. The Florida Constitution establishes the County Tax Collectors as independent government agencies. They are Constitutional Officers and collect property taxes for every local government agency that has the power to levy taxes. Property taxes are directly related to the value of the homes. Notable exemptions to property taxes are: $25,000 Homestead Exemption for a property with an assessed value up to $50,000; Additional Homestead Exemption: Beginning at $50,000 and continuing through an assessed value of $75,000, the new additional benefit will increase with the increase in the property s value. A property with an assessed value of $75,000 or more will receive the full $50,000 exemption amount; Portability: Residential property owners with a qualified Homestead Exemption can transfer all or a significant portion of their "Save Our Homes" benefit to their new property. Portability allows you to transfer up to $500,000 of your property s actual 3% assessment cap to your new property anywhere in Florida; Senior Citizen Exemption: Certain seniors who are 65 or older may be eligible for up to an additional $50,000 exemption on their property's assessed value; $5,000 Disabled Veterans Exemption with a service-connected disability of 10% or more; Combat-disabled Senior Veterans over the age of 65 with a qualified Homestead Exemption may be eligible for an ad valorem tax discount; $500 Widow/Widower Exemption: A widow or widower who is a legal and permanent resident of Florida qualifies for this exemption; $500 Disability Exemption for persons who are permanently disabled; and Total Exemption for civilian quadriplegics and honorably discharged veterans who are 100% disabled. Discounts for property tax payments are allowed as follows: 4% in November, 3% in December, 2% in January, and 1% in February. Taxes and non-ad valorem assessments become delinquent April 1, at which time 3% interest and advertising costs are added. iv

The current millage rate is 3.7811 (FY 2009) Property tax on a Community Land Trust of Palm Beach County (CLT) home is based on the purchase price by the buyer and does not include the net of any subsidies by CLT. Building Codes (Accessibility) Federal Fair Housing Act: In 1988, Congress passed the Fair Housing Amendments Act of 1988 (the Act), which requires that most newly constructed multifamily dwellings occupied after March 13, 1991 be designed and constructed to include certain features of accessible design. In new multifamily housing, 100% of the units in a building with an elevator must be accessible. If a building with four or more units has no elevator and was ready for first occupancy after March 13, 1991, these standards apply to ground floor units. Lending Policies and Practices Data provided under the Home Mortgage Disclosure Act for 2008 showed that in Palm Beach County, American Indian/Alaskan Natives had the lowest percentage of origination (25.5%) and the highest percentage of loan denials (45.1%) for conventional mortgage loans. Blacks followed with the second lowest percentage of origination (33.4%) along with the second highest percentage of loan denials (37.7%). Joints (White/Minority) had the highest percentage of loan origination (57.8%) and Others had the lowest percentage of loan denials (20.1%). The income category with the highest percentage of origination was 120%+ of MSA Median (53.6%) while the income category with the highest percentage of loan denials was <50% of MSA Median (37.6%). Fair Housing Enforcement The Palm Beach County Fair Housing Ordinance states that it is to be the policy of the Board of County Commissioners in the exercise of its police power for the public safety, public health, and general welfare to assure, within constitutional limitations, equal opportunity to all persons to live in available housing facilities regardless of race, sex, color, religion, national origin, disability, familial status, sexual orientation, age, marital status, or gender identity or expression, and, to that end, to prohibit discrimination in housing by any person. The County s Ordinance has been deemed by HUD to be substantially equivalent to the Federal Ordinance. Informational Programs The Office of Equal Opportunity, the Legal Aid Society of Palm Beach County and the Urban League of Palm Beach County provide one or more of the following informational programs and activities throughout the year: Anti-Predatory and Fair Lending v

education and support seminars, Presentations targeting school children, attorneys, realtors, builders, community association boards and property managers regarding what fair housing is and their rights and obligations as provided by fair housing laws, Foreclosure Prevention Clinics and counseling, housing counseling concerning affordable housing opportunities, Fair housing outreach programs, Fair Housing, counseling services to persons who lodge housing discrimination complaints, and a Disability Accessibility Awareness program geared to assist County government, countywide organizations and public facilities maintain compliance with the Americans with Disabilities Act. Visitability in Housing Visitability concepts adds some accessibility features to single-family detached housing or townhomes where Fair House Act requirements do not apply and makes houses relatively easy to adapt in the future. They allow current residents to remain in their homes as they age, rather than being forced to move as more features become necessary to maintain independence. Analysis of the actions which could be taken by the recipient to help remedy a discriminatory condition Possible actions by the recipient where there is a determination of unlawful segregation or other housing discrimination by a court or a finding of noncompliance by HUD under Title VI of the Civil Rights Act of 1964 or Section 504 of the Rehabilitation Act of 1973, or where the Secretary has issued a charge under the Fair Housing Act regarding assisted housing within a recipient s jurisdiction are: The housing provider could be restricted from doing business with the recipient or within the recipient s jurisdiction. Recipient could sue the housing provider for damages on behalf of other citizens whose fair housing rights have been violated Changes to zoning and building codes to ensure diverse communities Assessment of Current Public and Private Fair Housing Programs and Activities in Palm Beach County The Office of Equal Opportunity and the Legal Aid Society of Palm Beach County are the primary agencies whose programs were examined to analyze the fair housing programs and activities currently being undertaken in the County. Among the programs and activities provided throughout the year by either one or both of the agencies are Foreclosure Prevention Clinics, Anti-Predatory and Fair Lending vi

education and support seminars, Housing counseling concerning affordable housing opportunities, Fair Housing workshops, Fair Housing outreach programs, providing enforcement or counseling services to persons who lodge housing discrimination complaints and Disability Accessibility Awareness program geared to assist County government, countywide organizations and public facilities maintain compliance with the Americans with Disabilities Act. Between fiscal years 2004 to 2009, over 700 complaints were filed with both agencies. The prevailing basis for discrimination was disability with 292 complaints (39.4%) followed by race with 159 complaints (21.5%). FAIR HOUSING ISSUES IN PALM BEACH COUNTY Issues Related to Disability and Other Bases for Discrimination Various fair housing issues related to disability were reported to the Legal Aid Society of Palm Beach County and the Office of Equal Opportunity, including failure to provide reasonable accommodation for: persons with a disability, persons who may require the assistance of a service or emotional support animal; persons who may require the services of a 24 hour health aide or other person; or persons who may exhibit unusual behaviors and may actually be disabled with a mental illness. The lack of sufficient access for persons with wheelchairs, especially double wide wheelchairs, is reported in terms of housing for the person with the disability, as well as housing for persons not with a disability who wish to host a person with a disability Other bases which reflect high incidences of fair housing discrimination include race/color; familial status and national origin. The most frequent occurrences of this discrimination were reported in rental, and sales of housing. American Indian/Alaskan Native applicants experienced the highest incidence of mortgage loan denials. Recommendations Related to Disability and Other Bases for Discrimination Ensure that all members of the Fair Housing Board, appointed by the Board of County Commissioners of Palm Beach County, receive fair housing training upon appointment to the Board and receive periodic refresher training in fair housing issues. OEO, FHC, and the Legal Aid Society should be alert to the possibility of mental illness when receiving and investigating complaints of housing refusals based on behavior or personality that is "odd" or "difficult to deal with." When an impending refusal of housing can be linked to mental illness, agencies such as OEO, FHC and Legal Aid Society should treat the case as a claim of disability-based discrimination, and look for reasonable accommodations that could be requested. Through the OEO, FHC and Legal Aid Society of Palm Beach County, continue to undertake extensive testing to identify instances of housing discrimination on all protected bases, to test for non-compliance with the accessibility building standards vii

mandated under FHAA and other governing regulations; and to identify the education and outreach efforts needed to strengthen fair housing efforts. Promote ongoing fair housing training for planners, building design and construction professionals. When education and outreach needs are identified concerning fair housing issues, utilize the services of OEO, Fair Housing agencies and building industry professionals, as may be appropriate to educate others in Fair Housing requirements. HCD should continue to provide funding under its CDBG program for Fair Housing activities. Individuals defending against housing discrimination often lack the financial resources to pursue their legal rights on their own, and some non-profit agencies have lost funding to provide legal assistance. HCD should also focus funding on foreclosure counseling and mitigation. Concentrate fair housing education efforts, including attention to disability issues, on Boards of Directors of condominium associations, homeowners associations and apartment managers/owners, since they are most often in a position to approve or provide reasonable accommodations or modifications. Solicit appropriate authority to require fair housing retraining as a condition for license renewal of all real estate professionals. Solicit Boards of Realtors to promote and ultimately to require periodic fair housing training as a condition of continuing membership. The OEO should endeavor to investigate allegations of fair housing discrimination within HUD s target period of 100days after the OEO has received the allegation. ISSUES RELATED TO ZONING, LAND USE AND OTHER PUBLIC POLICIES County government supports several programs to make home buying affordable to low income purchasers, which includes a high percentage of persons of increased vulnerability to discrimination. Recommendations Related to Zoning, Land Use and Other Public Policies Code enforcement authorities should monitor the sources, frequency and types of code complaints received to protect the enforcement entity from manipulation into unintended harassment or discriminatory code enforcement. Code enforcement authorities should ensure that all legally mandated access requirements are included in properties before certificates of occupancy are issued. viii

ISSUES RELATED TO MORTGAGE AND CREDIT Issues reported in this category include: the higher rate of mortgage loan applications denied to minorities, especially American Indian/Alaskan Natives and Blacks, suspected manipulation of credit scoring practices to execute disguised discrimination and predatory lending practices. Recommendations Related to Mortgage and Credit In conducting its Analysis of Impediments to Fair Housing, a jurisdiction is encouraged to identify not only those impediments within its jurisdiction, but to also identify impediments which are within the jurisdiction of other bodies. This list includes recommendations in both categories. Federal and State governments should regularly review and revise protective legislation to keep pace with the changing tactics of predatory lenders. OEO, Legal Aid Society and Fair Housing Center will endeavor to ensure compliance with fair housing access to credit and other facets of fair housing law. There must be oversight of the credit scoring process by appropriate authority, since credit scoring has such a significant impact on access to credit. Appropriate authority should bring non-bank lenders up to banking institutional standards. Education for the responsible use of credit is essential, including credit utilization outside of the housing market, as poor credit history can predispose a potential homebuyer to abusive credit practices. First-time home buyer education programs should be continued and encouraged to grow. Experienced homebuyers/homeowners also need education to make them aware that the equity in their home can attract solicitations from predatory lenders. The Fair Housing Center of the Greater Palm Beaches, Urban League of Palm Beach County, and the Consumer Credit Counseling Service assist in various specialties within this area. HCD s use of CDBG funds to promote consumer education is very helpful to this effort. Administrators of public funds should require developers who receive public funds for housing development to complete fair housing training and retraining, which includes a component on mortgage and credit as it relates to fair housing. HCD should continue to provide funding under its CDBG program for fair housing activities, such as the education and outreach activities currently provided by Legal Aid Society of Palm Beach County under a CDBG Agreement with HCD and the Predatory Lending Education and Support Project Initiative now being undertaken by The Fair Housing Center of the Greater Palm Beaches with CDBG funding through Housing and ix

Community Development. HCD should also focus funding on foreclosure counseling and mitigation. x

Palm Beach County Analysis of Impediments to Fair Housing Choice Fiscal Years 2010 2015 Introduction HUD regulations at 24 CFR 91.225(a)(1) require each jurisdiction to submit a certification that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. Palm Beach County Department of Housing and Community development (HCD) is the entity that is responsible for administering HUD s Consolidated Plan Programs on behalf of the County. As part of this charge, the Department is responsible for the preparation of the Analysis of Impediments to Fair Housing Choice. HCD utilizes staff whose salaries are paid by Palm Beach County CDBG funds to undertake the Analysis of Impediments to Fair Housing Choice. Federal law prohibits discrimination on the following bases: race, sex, color, religion, national origin, handicap or familial status. In addition to the Federal Bases, Palm Beach County through its Fair Housing Ordinance has added sexual orientation, age, marital status, and gender identity or expression. The County s Ordinance has been deemed by HUD to be substantially equivalent to the Federal Ordinance. The scope of this analysis is limited to impediments to fair housing choice affecting persons on the bases identified in both the Federal and County Ordinances prohibiting discrimination. To accomplish this task, the County utilized information gathered over the past five years from the Legal Aid Society and the Office of Equal Opportunity, as well as data gathered through research by the Home Mortgage Disclosure Act, the American Community Survey, the U.S. Bureau of Labor Statistics, and services Palm Beach County non-profit agencies and County departments. Additionally, data gathered by HCD staff, data extracted from the Palm Beach County Affordable Housing Study (FY 2000-2005), the draft of the Palm Beach County Five Year Consolidated Plan (FY 2010-2015) and instructional materials distributed at fair housing educational events. Data is also utilized from the 2000 U.S. Census as directed by HUD as the results of the 2010 Census are not yet available. 1

I. Jurisdictional Background Data A. Demographic Data According to the 2006-2008 American Community Survey 3-Year Estimates (ACS), Palm Beach County had a total population of 1,262.353, an increase of 11.6% when compared to the population reported in the 2000 US Census. The county has the third largest population in the State of Florida, behind Miami-Dade and Broward Counties. Adults 45-64 had the largest growth rate in the County, increasing 28% from 249,295 to 319,753. The second largest growth was with persons age 5 24 years, who increased by 13% or 33,193. The number of students enrolled in Palm Beach County classrooms (ages 3-17) increased by 15% to 215,191. Persons over age 65 increased by 4.9% to 274,828. The population in the incorporated areas is projected to be 797,802 in 2010 and 774,063 in 2015, a net reduction of -3.0%, while growth in the unincorporated areas of Palm Beach County is projected to be 558,915 in 2010 and 571,937 in 2015, a growth rate of 2.3%. Both statistics are largely a function of projected growth in housing stock in those respective areas. Palm Beach County continues as a favored choice of retirees, but the percentage of younger residents has been increasing slightly as the economy requires working age personnel to staff businesses operations. With the growth of worker population, the school age child population has also grown. When measured by school children served, the Palm Beach County School District is the ninth largest school district in the nation. The population of Palm Beach County has become increasingly diverse, multi-ethnic and multinational. Based on 2006-2008 ACS estimate figures, 49% of new residents living in the County came from the Northeastern United States, compared to 27% of the population who are native born Floridians. The Census estimates of 2008 also reported that 21.6% of County residents were born outside the U.S., constituting a 7% increase in the number of foreign born residents living in the County since 2000. The majority of immigrants arrived from Latin America (190,384), then Europe (40,370) and Asia (25,106). The 2008 Census estimates reports that the White population in the County increased from 70.5% in 2000 to 74.5% of the total population in 2008; the Black population increased from 13.4% in 2000 to 15.6% in 2008 of the total population; and the Hispanic population increased from 12.4% in 2000 to 17.3% in 2008 of the total population. The number of persons classified as either American Indian, Asian or Other increased in the County between 2000 and 2008 from 3.7% to 8.5% of the total population. B. Median Income and Poverty HUD recognizes $67,600 as Palm Beach County s 2009 median household income for a family of four persons, representing an increase of 46.9% from the 2003 median income of $46,015. Unemployment rose from 4.8% in 2000 to 12.1% in March, 2010 (U.S. Bureau of Labor Statistics), representing an increase of 7.3 percentage points. The 2009 figures are vastly influenced by the global economic recession which manifested itself in 2008 and has caused steep increases in the Country s unemployment rate over a short period of time. 2

The unemployment rate for the County in March 2010 was 12.1%, down 0.4 percentage points from the previous month, but up 2.5 percentage points from the same month a year ago. The County s unemployment rate was slightly lower than the state s rate of 12.2% in March, and 1.9 percentage points higher than the national rate of 10.2%, not seasonally adjusted (U.S. Bureau of Labor Statistics). C. Labor Force and Employment Between 2000 and 2008, the total number of persons in the labor force increased by 20.0% from 510,379 to 612,269 workers. Additionally, during this same period, the number of employed residents in the County increased by 18.1%, from 485,093 to 573,001 respectively. Based on 2008 ACS figures, the majority of employed civilians in Palm Beach County (outside the military) are employed in educational, health and social service industries (105,215). The second largest number of workers employed in the County work in the professional, scientific, management, administrative, and waste management services fields (77,404). D. Housing Availability As a result of the housing boom of the late 1990s through mid 2000s, the total number of housing units in Palm Beach County increased 8.4% from 587,491 in 2003 to 636,938 in 2008 (ACS). The number of occupied units increased between 2003 and 2008 by 3.8%, from 487,924 to 506,341. The number of vacant units in the County increased from 99,567 to 130,597, a 31.2% rise. E. Concentration of Racial/Ethnic Minorities and Lower-Income Families For purposes of this document, areas of minority concentration are defined as areas, based on U.S. Census tract and block group data, wherein the total percentage of minority residents, i.e. Black (Non-Hispanic), Hispanic (all races), and Asian and Pacific Islander, exceeds 50% of the total population of that area. Map 1A Concentration of Racial/Ethnic Minorities Palm Beach County (Appendix 1) identifies those areas in the County with a concentration of minority residents, by U.S. Census definition. Areas of low-income concentration are defined as areas, based on U.S. Census tract and block group data, wherein the percentage of families with incomes at or below 80% of the area median income for Palm Beach County, adjusted for family size, exceeds 50% of the total households residing in that area. This definition includes populations that fall into the very-low- and lowincome categories. Map 1B, Concentration of Lower-Income Families (Appendix 2) identifies those areas of the County that contain a concentration of lower-income families, by U.S. Census definition. When these two maps are viewed together, it becomes evident that the great majority of the areas identified with concentrated racial/ethnic minority populations (Map 1A) are located within areas populated by low-income families (Map 1B), graphically representing the low-income experienced by many racial/ethnic minority families. (These maps are available in the Appendix of this document.) 3

F. Disability Prevalence For the purposes of this analysis, an elderly-headed household is one in which the householder is age 62 or older (this age break was chosen because HUD s age of eligibility for public housing units designated as elderly housing and other program preferences generally is 62 years of age). Table I-1 shows that persons with disabilities accounted for 24.2% of the total population in the County. Elderly persons (62 and older) make up the largest group of individuals with disabilities totaling 102,140 (70.9%), followed by 105,180 persons age 25-61 and 18,110 (20.0%) persons age 15-24 (16.1%). Place Age of Person Table I-1 Individuals by Age and Disability Status 4 Disability Total Persons Yes No Number Percentage Number Percentage Palm Beach County 15-24 18,110 16.1% 94,200 83.9% 112,310 25-61 105,180 20.0% 420,030 80.0% 525,210 62-74 37,720 24.6% 115,850 75.4% 153,570 75+ 64,420 46.3% 74,740 53.7% 139,160 Total 225,430 24.2% 704,820 75.8% 930,250 Source: Florida Housing Data Clearinghouse, Shimberg Center for Affordable Housing, University of Florida, 2004. Note: This table differs from earlier data in section I-G (Households by Tenure by Disability and Income) showing the prevalence of households containing persons with disabilities (PWD). In the household-level data, a household including two individuals with disabilities would be counted only once; in these tables, these individuals would show up separately for a count of two. G. Housing Profile The following Housing Profile is adapted from the more extensive Housing Profile contained in the Palm Beach County Five Year Consolidated Plan October 2005 September, 2010. 1. Housing Market All information is for the Palm Beach County Program Jurisdiction (exclusive of the Cities of Boca Raton, Boynton Beach, Delray Beach, and West Palm Beach), unless otherwise noted. a. Households Household Types Table I-2 summarizes the basic characteristics of households in the program jurisdiction, including type, age of householder, and presence of children. The most prevalent household type was that of the married-couple family (238,358), representing 47.1% of all households. Among

married couple households, 34.7% (82,811) have children younger than 18 years living in the household. Single-parent households total 74,868, and represent 14.8% of all households. Single-mother households represent 70.7% of all single-parent households. Non-family households (193,115) are the second most prevalent type, representing 38.1% of all households. Also of note are households consisting of only one person, which totaled 159,009 and represent 31.4% of all households. Elderly households comprise 15% of all households. Table I-2 Households by Type, Age, and Presence of Children (2006-2008) Household Characteristics Households Total: 506,341 Family households: 313,226 Married-couple families: 238,358 With own children under 18 years 82,811 Other family: Male householder, no wife present: 21,977 With own children under 18 years 11,578 Female householder, no husband present: 52,891 With own children under 18 years 31,651 Non-family households: 193,115 Householder living alone 159,009 Householder 65 years and over: 76,150 Source: 2006-2008 American Community Survey 3-Year Estimates. Households by Tenure by Race and Income Table I-3 presents households by tenure, race, and Hispanic/Latino origin. Of the total of 354,776 households, 274,229 (77.3%) are owners, and 80,547 (22.7%) are renters. White households comprise the overwhelming majority of all households at 87.0%, with Black households the second-largest group at 8.1%. All together, the other racial groups comprise only 4.9% of all households. Households of Hispanic/Latino are considered as an ethnic group, can be of any racial group, and comprise 8.8% of all households. Among racial groups of significant size, rates of homeownership are highest for White households (81.4%) and lowest for Black households (47.0%). Asian households exhibited a notably higher rate of homeownership (72.2%) than those of the other smaller racial groups. The homeownership rate for Hispanic/Latino households was 58.9%. Table I-4 presents households by tenure and income distribution. Palm Beach County median household income in 1999 was $45,062. Approximately twenty-five percent of households had incomes less than $25,000; almost fifty percent of households had incomes between $25,000 and $74,999; and approximately twenty-five percent of households had incomes of $75,000 or 5

greater. In general, owners tended to be more affluent than renters. For example, approximately 31% of owners had incomes greater than $75,000, while less than eleven percent of renters had such incomes. Conversely, forty percent of renters had incomes less than $25,000, while only twenty-one percent of owners had such incomes. Table I-3 Households by Tenure, Race, and Hispanic/Latino Origin (2000) Race Owner HH % of Owners Renter HH % of Renters Total HH % of Total Rate of Ownership White 251,314 91.6% 57,481 71.4% 308,795 87.0% 81.4% Black 13,505 4.9% 15,225 18.9% 28,730 8.1% 47.0% Native American 277 0.1% 249 0.3% 526 0.1% 52.7% Asian 2,988 1.1% 1,151 1.4% 4,139 1.2% 72.2% Pacific Islander 4 n/a 18 n/a 22 n/a 18.2% Some other Race 3,183 1.2% 3,483 4.3% 6,666 1.9% 47.7% Two or more races 2,958 1.1% 2,940 3.7% 5,898 1.7% 50.2% TOTAL 274,229 100.0% 80,547 100.0% 354,776 100.0% 77.3% Hispanic or Latino 18,308 6.7% 12,773 15.6% 31,081 8.8% 58.9% Source: Census 2000, Summary File 3, Tables H11 & H12, U.S. Census Bureau. Table I-4 Households by Tenure and Income Distribution (1999) Household Income in 1999 Owner HH % of Owners Renter HH % of Renters Total % of Total Less than $5,000 6,293 2.3% 5,041 6.3% 11,334 3.2% $5,000 to $9,999 8,524 3.1% 5,836 7.2% 14,360 4.0% $10,000 to $14,999 13,160 4.8% 6,909 8.6% 20,069 5.7% $15,000 to $19,999 14,575 5.3% 6,979 8.7% 21,554 6.1% $20,000 to $24,999 15,630 5.7% 7,509 9.3% 23,139 6.5% $25,000 to $34,999 32,399 11.8% 12,872 16.0% 45,271 12.8% $35,000 to $49,999 43,185 15.7% 14,467 18.0% 57,652 16.3% $50,000 to $74,999 55,574 20.3% 12,353 15.3% 67,927 19.1% $75,000 to $99,999 32,437 11.8% 4,177 5.2% 36,614 10.3% $100,000 to $149,999 28,527 10.4% 2,671 3.3% 31,198 8.8% $150,000 or more 23,925 8.7% 1,733 2.2% 25,658 7.2% Total 274,229 100.0% 80,547 100.0% 354,776 100.0% Source: Census 2000, Summary File 3, Table HCT11, U.S. Dept. of Commerce. Households by Tenure by Disability and Income According to the Florida Housing Data Clearinghouse, Shimberg Center for Affordable Housing (2004), there are 163,380 households in the County which include a person age 15 or older with a disability or 34.4% of total households (474,295). Elderly-headed households (age 62 and older) make up 78,930 or 48.3% and 84,450 or 51.7% are headed by individuals age 15-61. The 6

homeownership rate for households including persons with disabilities (PWD) age 15 or older is 131,616 (37.8% of the 348,609 total owned households) and the rental rate is 31,263 (25.1% of 124,490 rental units). In the County, 13,310 households are of concern due to extremely low incomes (0-30% AMI) and experience severe cost burden. Of the households of concern, 6,405 (48.1%) are headed by elderly persons and 6,905 (51.9%) by persons 15-61. The County is dominated by 10,180 (76.5%) 1-2 person households of concern, 2,070 (15.6%) 3-4 person households of concern and 1,055 (7.9%) 5-6 person households of concern. Within these households, 6,629 (49.8%) are homeowners and 6,681 and renters. Substandard housing conditions exist in 2,105 (15.8%) of these households. b. Housing Stock Housing Types Table I-5 depicts housing units by type of structure. Among a total of 636,938 housing units, the most prevalent type was single-family (54.5%), followed by multi-family (42.3%), and then manufactured homes (3.1%). For purposes of this analysis Manufactured Housing refers to mobile homes, while the Other category includes boats, recreational vehicles, vans, etc. which were the occupant s primary domicile. Table I-5 Housing Units by Type of Structure (2008) Single Family (1 Multi-Family (2 Manufactured Other Total attached/detached)* or more)** Housing 347,386 269,445 19,676 431 636,938 Source: 2006-2008 American Community Survey 3-Year Estimates. * (1 attached/detached): A 1-unit structure that has one or more walls extending from ground to roof, separating it from adjoining structures. In row houses (sometimes called townhouses), double houses, or houses attached to nonresidential structures, each house is a separate, attached structure if the dividing or common wall goes from ground to roof. ** ( 2 or more) These are units in structures containing 2 or more housing units, further categorized as units in structures with 2, 3, or 4, 5 to 9, 10 to 19, 20 to 49 and 50 or more units. Table I-6 depicts housing units by the number of units within the housing structure. The predominant housing structure type was single family detached (45% of units). Close to ten percent of housing units were found amongst duplex, triplex, and quadplex structures. Close to fourteen percent of housing units were in medium-sized multi-family structures (5 to 19 units), while nearly nineteen percent were in larger multi-family structures (20 or more units). 7

Table I-6 Housing Units by Units in Structure (2008) Units in Structure Number of Units Percentage 1 unit, detached 286,510 45% 1 unit, attached 60,876 9.6% 2 units 17,880 2.8% 3 or 4 units 45,041 7.1% 5 to 9 units 42,251 6.6% 10 to 19 units 44,783 7% 20 or more units 119,490 18.8% Manufactured Housing 19,676 3.1% Other 431.07% Total 636,938 100.0% Source: 2006-2008 American Community Survey 3-Year Estimates Age of Housing Table I-7 depicts housing units by year built. The figures demonstrate the relatively recent development of the program jurisdiction s housing stock. Over eighty-three percent of housing units have been constructed since 1970, and over one percent were constructed prior to 1940. Housing development occurred most rapidly between 1980 and 1989, with over twenty-eight percent of all units being constructed during that time period. During the 1970-1979 and 1990-1999 time periods, numbers of housing units constructed were roughly (21.9% and 17.8% of all units, respectively). Table I-7 Housing Units by Year Built (2008) 2005-2000 - 1990-1980 - 1970-1960 - 1950-1940 - 1939 - Total later 2004 1999 1989 1979 1969 1959 1949 earlier 21,008 74,649 113,064 183,148 139,191 53,200 34,466 8,186 10,026 636,938 3.3% 11.7% 17.8% 28.8% 21.9% 8.4% 5.4% 1.3% 1.6% 100.0% Source: 2006-2008 American Community Survey 3-Year Estimates. Housing Costs In recent years, there has been much public discussion in Palm Beach County regarding the increasingly high cost of housing. Table I-8 depicts gross housing rents during 2008 for specified renter-occupied housing units in the program jurisdiction. The figures reveal that 29.9% of renter occupied units were renting at rates between $500 and $999. Another 64.4% rented for $1,000 or more and 5.7% rented for less than $500. Just over 5% of renter-occupied units had no associated cash rent. 8

Table I-8 Gross Rent (2008) Less than $200 $200 - $299 $300 - $499 $500 - $749 $750 - $999 $1000 - $1499 $1500 or more No Cash Rent 1,458 1,628 3,980 10,837 26,062 49,240 30,334 6,634 Source: 2006-2008 American Community Survey 3-Year Estimates. Table I-9 shows Fiscal Year 2010 Fair Market Rents for Palm Beach County. These figures as published by the U.S. Dept. of Housing and Urban Development were as follows: 0 BR--$910; 1 BR--$1,066; 2 BR--$1,259; 3 BR--$1,780; and 4 BR--$1,834. These rents are among the highest in the State of Florida, and are exceeded only by rents for the Ft. Lauderdale PMSA and the Miami PMSA. Table I-9 Fair Market Rents by Unit Bedrooms (2010) Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom Final FY 2010 FMR $910 $1,066 $1,259 $1,780 $1,834 Source: U.S. Dept. of Housing and Urban Development Table I-10 depicts housing values during 2008 for specified owner-occupied housing units in the program jurisdiction. Analysis of the figures reveals that 10.2% of housing units were valued at under $100,000, and that 17.5% were valued at under $150,000. Just over 32.7% of housing units were valued between $150,000 and $299,999. 30.5% of housing units were valued between $300,000 and $499,999. 19.4% of housing units were valued at $500,000 or greater. The countywide median value of an owner-occupied unit in 2008 was $280,000. Table I-10 Value of Specified Owner-Occupied Housing Units (2008) Less than $50,000 $50,000 - $99,999 $100,000 - $149,000 $150,000 - $199,999 $200,000 - $299,999 $300,000 - $499,999 $500,000 - $999,999 $1,000,000 and Greater 14,084 24,305 27,540 40,998 81,840 114,579 54,411 18,411 Source: 2006-2008 American Community Survey 3-Year Estimates. The Florida Sales Report for existing single-family homes provides more recent information on housing values and demonstrates a significant decrease in housing values which occurred between 2008 and 2009. The median price of an existing single family home sold during February, 2009 was $228,100, down 33.8% from $344,600 in February 2008. (Source: Florida Association of Realtors and the University of Florida Bergstrom Center for Real Estate Studies.) Housing Conditions Table I-11 details selected housing conditions for the Palm Beach County program jurisdiction, including numbers of overcrowded units, and those units lacking either heating, complete kitchen 9

facilities, or complete plumbing facilities. Per 24 CFR 91.5, a housing unit is considered overcrowded if it is occupied by more than 1.0 persons per room, depending upon square footage and other criteria. Table I-11 Selected Housing Conditions (2008) Condition Number of Units Percentage of Occupied Units 1.01 or more Persons per Room 13,523 2.7% No Heating 16,804 3.3% Lacking Complete Plumbing 1,728 0.3% Lacking Complete Kitchen 2,396 0.5% Source: 2006-2008 American Community Survey 3-Year Estimates. For purposes of this analysis, the terms substandard and substandard but suitable for rehabilitation are defined as follow: Substandard: A dwelling unit condition characterized by non-compliance with applicable housing and building code standards. Substandard but Suitable for Rehabilitation: A dwelling unit condition characterized by the need for significant structural, environmental, or aesthetic repair, including code violations. Substandard units represent an existing need for housing improvements. If not improved, substandard units which are suitable for rehabilitation will deteriorate to the point at which rehabilitation is no longer feasible, resulting in loss of the unit from the housing stock. It may be logically presumed that substandard housing conditions are more often experienced by households in the lower income groups due to limited economic means to make improvements to owned homes or to relocate from substandard to standard condition rental housing. Table I-12 presents numbers of households in substandard housing by income group. This information is available only at the countywide level, and does not include the middle income group, nor differentiate between housing types. The data demonstrates that extremely-low, low, and moderate income households account for 60.5% of all households experiencing substandard housing conditions. Among the lower income groups, moderate income households account for the greatest proportion of households in substandard housing. 10

Table I-12 Households in Substandard Housing by Household Income Group (Countywide) Income Group H.H. in Substandard Units % of Substandard Units < 30% AMI 6,995 18.6% 31-50% AMI 6,475 17.2% 50-80% AMI 9,335 24.8% > 80% AMI 14,900 39.5% Total 37,705 100.0% Source: Florida Housing Data Clearinghouse, Shimberg Center for Affordable Housing (2003) It is estimated that among households experiencing substandard housing conditions within the program jurisdiction, 11,757 households contain one or more disabled members aged 15 years or older (Source: Florida Housing Data Clearinghouse, Shimberg Center for Affordable Housing, University of Florida, 2003). Occupancy and Vacancy Table I-13 provides information on occupied and vacant housing units. Of a total of 416,075 housing units, 61,514 (14.8%) were vacant. Among vacant units, 12.4% were for rent, 8.9% were for sale, and 5.3% had been rented or sold but were unoccupied. Indicative of the Palm Beach County s position as a seasonal and vacation destination, 40,235 vacant units were for seasonal, recreational, or occasional use only, representing 65.4% of vacant units and 9.7% of all housing units. Table I-13 Vacancy and Occupancy Status (2008) Status Housing Units % of Total Total 636,938 100.0% Occupied 506,341 79.5% Vacant 130,597 20.5% Source: 2006-2008 American Community Survey 3-Year Estimates. Housing Available to Serve Persons with Disabilities and Persons with HIV/AIDS The housing market in Palm Beach County has not developed sufficient housing stock specifically for persons with mental and developmental disabilities or for persons with HIV/AIDS who are able to live independently. Unless a person needs supportive housing, the housing stock available is the same as for others of the same socioeconomic status, and is the same as was previously discussed within the Housing Market section. Countywide, there are a total of 1,087 housing units in ten housing developments specifically reserved for persons with disabilities (Source: Florida Housing Data Clearinghouse, Shimberg Center for Affordable Housing, University of Florida, 2003). Since that time, indications are that there has not been any significant increase in this housing type as evident from the number of 11

discrimination cases related to persons with disability which one reported annually by the Office of Equal Opportunity and the Legal Aid Society of Palm Beach County. 2. Affordability of Housing Though low income does not constitute a protected class under fair housing law, the disproportionately high incidence of low income within the protected classes tends to increase their vulnerability to housing discrimination. a. Definition of Affordability Per the standard definition of housing affordability utilized by HUD, a housing unit is considered to be affordable if its gross cost does not exceed 30% of the occupant household s gross income. For owners, gross housing cost includes PITI (principal, interest, taxes, and insurance), utilities, and association fees, if any. For renters gross housing cost includes rent and utilities. The term affordable housing will generally refer to housing which is affordable, per the above definition, to households falling within certain income groups of interest. Income group ranges area expressed as percentages of Area Median Income (AMI). For purposes of this consideration, the following income groups will be utilized: Extremely-low (0-30% AMI) Low (31-50% AMI) Moderate (51-80% AMI) Middle (81-120% AMI) b. Affordability Index Annually, HUD-publishes dollar figure ranges for certain identified income groups, adjusted for family/household size. Table I-14 below depicts HUD s income limits for Fiscal Year 2009, which were based on median family income of $67,600. Table I-14 Annual Income Limits for Palm Beach County (FY 2009) Household Size (# of persons) Very Low (0-30%) Low (31-50%) Moderate (51-80%) 1 $15,800 $26,400 $42,200 2 $18,100 $30,150 $48,250 3 $20,350 $33,950 $54,250 4 $22,600 $37,700 $60,300 5 $24,400 $40,700 $65,100 6 $26,200 $43,750 $69,950 7 $28,000 $46,750 $74,750 8 $29,850 $49,750 $79,600 Source: U.S. HUD, March 2009 12

By applying the definition of housing affordability to the above income limits, one can calculate the maximum affordable gross housing cost for households at the upper limit of each income group. The maximum gross housing costs depicted in Table I-15 represent the maximum affordable monthly housing payment that households at the upper limit of each group could accommodate. Table I-15 Maximum Affordable Monthly Gross Housing Costs (2009) Household Size (# of persons) Very Low (0-30%) Low (31-50%) Moderate (51-80%) 1 $395 $660 $1055 2 $453 $754 $1206 3 $509 $849 $1356 4 $565 $943 $1507 5 $610 $1018 $1628 6 $655 $1094 $1749 7 $700 $1169 $1869 8 $746 $1244 $1990 The Palm Beach County Affordable Housing Study (2000) estimated that for renters, contract rents comprised approximately 85% of gross housing costs. Therefore, one can judge the affordability of Fair Market Rents (FMRs) by comparing 85% of the maximum affordable monthly payment for a household of given income and size to the FMR for a housing unit appropriate for that sized household. Maximum affordable gross housing costs can also be used to calculate the maximum purchase price affordable to a household of a given income and size. Maximum payment is 35 percent of monthly gross income; maximum sales price is 3.5 percent of annual gross (payment includes Principle, taxes, insurance, MI and HOA, if any; sales price does not include down payment, seller concessions or other price reductions). Interest rate and term may affect +/- monthly payment. Table I-16 depicts maximum affordable purchase prices calculated for certain selected households. It is important to note that these maximum purchase prices are affordable only to those households at the upper limit of each income group. Table I-16 Maximum Affordable Purchase Prices for Selected Households Income Group HH Size Maximum Income Maximum Payment Maximum Price Low 4 $37,700 $1,099.58 $131,950.00 Moderate 4 $60,300 $1,758.75 $211,050.00 Middle 4 $75,360 $2,198.00 $263,760.00 Source: U.S. HUD, March 2009. The median sale price of an existing home during December 2009 was $247,900. To afford a home at median sale price for 2009, given the assumptions in Table I-16, a household would have to earn approximately $70,828 annually. 13

3. Housing Market Analysis The Housing Market section of this Plan describes the significant general characteristics of the County s existing housing stock, including unit types, sizes, age, cost, and condition. Therefore, information in this section pertaining to housing supply will be limited to discussion of recent and projected trends in supply. Table I-17 depicts building permits issued countywide since 2004 by unit type and average value. The figures indicate a significant decrease of 90.7% in the total number of permits issued between 2004 and 2009, from 14,652 permits to 1,364 permits. Table I-17 Residential Building Permit Activity 1995-2009 (Countywide) Single Family Multifamily Total Average Average Average Year Units Value Units Value Units Value 2004 10,043 $211,548 4,609 $91,876 14,652 $173,904 2005 8,321 $257,435 4,039 $137,838 12,360 $218,353 2006 4,192 $286,144 2,735 $200,144 6,927 $252190 2007 1,987 $331,081 956 $196,369 2,943 $287,321 2008 1,162 $348,626 273 $158,860 1,435 $312,524 2009 1,083 $310,761 281 $67,991 1364 $260,748 Source: Palm Beach County EAR, PBC Planning, Zoning, & Building Dept., 2009. The average values of permitted single family units increased by 64.8% from $211,548 in 2004 to a high of $348,626 in 2008 and then decreased by 10.9% to $310,761 in 2009. The average values of multifamily homes decreased by 26.0%, from $91,876 in 2004 to $67,991 in 2009 and a more significant decrease of 57.2% between 2008 ($158,860) and 2009. The sharp decline in the number of permits issued since 2004 is due to the County approaching build-out. A continued reduction in the number of permits issued in addition to the decline in property values correlates directly to the collapse of the housing market in 2008. Table I-18 depicts projections of the total housing units countywide up through 2025, based on current growth trends and the development potential of local areas. It is anticipated that additions to the countywide housing supply will number 12,000 to 13,000 units per year up until 2010, and will thereafter taper off as the county approaches anticipated build-out in 2025. Table I-18 Projected Countywide Housing Supply 2005-2025 Year 2005 2010 2015 2020 2025 Units 631,944 697,885 717,850 725,862 736,518 Source: Palm Beach County EAR, PBC Planning, Zoning, & Building Dept., 2004. The Needs Assessment section of this Plan discusses several measures of housing demand, including existing demand for housing by type and affordability level, and projected demand for construction of additional units by affordability level. Therefore, information in this section 14

pertaining to demand will be limited to discussion of demand drivers and recent housing demand as measured by sales activity and rental absorption. Population growth is the primary driver of housing demand, and consequently, the above housing supply projections were based in large part on the projected demand generated by population growth. Table I-19 below depicts countywide population growth projections for 2015 2025. The rate of annual population growth is expected to decrease through 2025, although the population itself will continue to grow. The increasing population will continue to exert demand for additions to the local housing supply. Table I-19 Projected Countywide Population Growth 2015-2025 Year Population Annual Growth Growth % 2015 1,346,000 12,060 0.90% 2020 1,420,400 14,880 1.06% 2025 1,491,700 14,260 0.97% Source: Palm Beach County EAR, PBC Planning, Zoning, & Building Dept., 2009. Table I-20 quantifies recent demand for owned housing units by depicting countywide sales activity for single family and condominium units in each year from 2005 through 2009. Sales dropped off significantly in 2006 to 14,779, a decrease of 33.5% compared with 2005. Contributing factors to this dramatic decline in sales were interest rates, inflationary housing values that far exceeded the income of most County residents and increased home ownership costs such as property taxes and home insurance. The ratio of single family versus condominium sales has fluctuated little over the last five years, but single family sales have consistently exceeded condominium sales by ratios ranging from a low of 1.1 to1 in 2009 to a high of 1.6 to 1 in 2005. Table I-20 Countywide Housing Sales Activity 2005-2009 Year Single Family Units Condominium Units Total 2005 13,679 8,558 22,237 2006 8,640 6,139 14,779 2007 6,971 5,674 12,645 2008 6,953 6,075 13,028 2009 8,684 7,887 16,571 Source: Florida Realtors and the University of Florida Bergstrom Center for Real Estate Studies. A measure of demand for rental housing units is absorption. Absorption occurs when a newlycompleted, never-before-occupied rental unit becomes occupied by a tenant household. Table I- 21 below depicts absorption of rental housing units countywide for each year from 1994 through 2004. Absorption has fluctuated greatly over the 1994 2004 time period, however, absorption has been much greater since 2000 than in the preceding years. Absorption peaked in the year 15

2000, and then decreased and leveled off somewhat at an incidence not seen previous to 2000. There has been a slow increase in rental absorption each year since 2002, and although the figure for 2004 represents only the first three quarters of the year, it appears that absorption for 2004 will continue the trend and exceed that of 2003. Table I-21 Countywide Absorption of Rental Units 1994-2004 Year Absorption (in units) 1994 451 1995 1,421 1996 1,850 1997 932 1998 1,990 1999 1,735 2000 3,687 2001 3,157 2002 2,584 2003 2,711 2004 2,247 Source: PBC Quarterly Housing Report, First Quarter 2001 & Fourth Quarter 2004, Reinhold P. Wolff Economic Research, Inc., 2001, 2004. The County clerk s office recorded 3,049 foreclosure filings in 2005, 4,831 in 2006, then a dramatic increase to 13,962 foreclosure filings in 2007, a 289% increase. According to RealtyTrac, foreclosure filings continued to increase significantly in 2008 with 23,399 homeowners receiving default notice, increasing still to 30,870 in 2009. 10,998 properties with foreclosure filings were reported for the quarter of 2010, ranking Palm Beach County third in the state behind Broward County (with 21,308 foreclosure filings) and Miami-Dade County (with 19,918 foreclosure filings). These figures are exacerbated by the County s rising unemployment rate, from 4.2% in March 2005 to 12.1% in March 2010. Communities throughout the County are experiencing the results of the significant number foreclosures in a variety of ways - property values have dropped significantly, the glut of foreclosed homes on the market has negatively impacted the building trades, and neighborhoods are facing increased crime and code violations due to increased vacant properties. Information provided by HUD to facilitate the NSP1 Program application, confirmed 20,806 foreclosed upon properties and an additional 25,991 residential addresses that had been vacant for at least the past 90 days. Additionally, per the Home Mortgage Disclosure Act (HMDA) data, there were 41,872 high-cost mortgage loans made between 2004 2006. These mortgages represent homes which were at great risk of foreclosure or abandonment and resulting vacancy. 16

II. Evaluation of Jurisdiction s Current Fair Housing Legal Status A. U.S. Department of Housing and Urban Development (HUD) Title VIII of the Civil Rights Act of 1968 the Fair Housing Act prohibits discrimination in the sale and rental of housing so that people in the United States have a greater opportunity to build better lives for themselves and their families. As amended by the Fair Housing Amendments Act of 1988, it is unlawful to discriminate on the basis of race, color, sex, religion, national origin, disability and familial status. The U.S. Department of Housing and Urban Development (HUD), and in some cases the U.S. Department of Justice, is responsible for investigating and enforcing violations of the Fair Housing Act. However, since HUD does not have sufficient resources, it has implemented the Fair Housing Assistance Program (FHAP). Under this program, HUD grants to a jurisdiction whose fair housing laws and remedies are substantially equivalent to those provided under the federal Fair Housing Act, as amended in 1988, the authority to enforce fair housing laws. HUD recognized Palm Beach County Office of Equal Opportunity (OEO) as a substantially equivalent agency in March, 1997 and refers cases of housing discrimination in Palm Beach County to the OEO as the local FHAP, for fair housing law enforcement action. HUD also has implemented the Fair Housing Initiatives Program (FHIP) to increase awareness of fair housing laws and to conduct enforcement activities. Governmental and non-profit agencies may apply to HUD for FHIP status and funding to conduct workshops and media campaigns and to do complaint-based and systemic testing to identify discrimination in housing. Palm Beach County has two FHIP agencies within its jurisdiction; the Legal Aid Society of Palm Beach County, Inc. and Fair Housing Center for the Greater Palm Beaches, Inc. B. Palm Beach County Office of Equal Opportunity The Palm Beach County Fair Housing Ordinance was first adopted in 1984 and was made substantially equivalent to the federal Fair Housing Act through amendments in 1995 and 1996. The Ordinance was since amended on December 18 th, 2007 to prohibit discrimination in housing and public accommodations based on gender identity or expression. In addition to protection provided by the federal law, the local ordinance also prohibits discrimination on the basis of marital status, sexual orientation, age, gender identity or expression. On March 24, 1997 the Office of Equal Opportunity (OEO) obtained HUD certification as a Fair Housing Assistance Program (FHAP) agency. The OEO investigates and resolves complaints of discrimination in housing, public accommodations and employment in the County on the basis of race, sex, color, religion, national origin, disability, sexual orientation, familial status, marital status, age or and gender identity or expression, in accordance with Palm Beach County Ordinance. Claims are received at the OEO which were first filed with the federal or state 17

government, as well as cases received directly from the public. The OEO operates as a neutral investigator. After complaints are determined to be qualified as fair housing claims, they are presented in written form to the housing provider, who is given an opportunity to respond. OEO conducts an investigation. If the investigation reveals that a violation has occurred, the parties are invited to resolve the issue. If the parties are unable to resolve the issue themselves, a notice of Failure to Conciliate is issued. The complainant is given 30 days from the date of issuance to request a hearing before the Fair Housing Board or to take the case to court. C. Legal Aid Society of Palm Beach County, Inc. The Legal Aid Society (LAS) receives CDBG funding from the County to undertake enforcement and counseling services to persons who lodge housing discrimination complaints. As part of its contractual obligation to the County, the Legal Aid Society is responsible for undertaking activities related to fair housing outreach, education and enforcement activities that are targeted at consumers, housing providers, other social service organizations, and the general public; and foreclosure prevention and/or defense that is targeted at home owners at risk of losing their house through foreclosure. Enforcement activities may include testing services, mediation, administrative action and litigation. The agency has also agreed to assist the county in assessing the effectiveness of implementing the recommendations of the Analysis of Impediments to Fair Housing Choices. The Legal Aid Society was first funded by HUD to serve as a Fair Housing Initiatives Program (FHIP) effective February 8, 2001. D. Fair Housing Center for the Greater Palm Beaches, Inc. The Fair Housing Center (FHC) is a community-based, private agency which works to ensure equal and affordable housing opportunities for all people. FHC is a spin-off of Housing Opportunities Project for Excellence, (H.O.P.E), Inc. which initiated its Palm Beach County operation in 1995. FHC is a member of the National Fair Housing Alliance. Activities carried out by the FHC include testing, enforcement, and education, predatory lending prevention, outreach and counseling programs. E. Summary of Fair Housing Complaints in Palm Beach County The Information provided under this section was provided by the Office of Equal Opportunity and the Legal Aid Society of Palm Beach County. When the incidence of housing discrimination reported by Palm Beach County Office of Equal Opportunity is compared with reports from Legal Aid Society, some observations become apparent. During the period 2004-2005 to 2008-2009, reports of housing discrimination based upon disability for the Office of Equal Opportunity and the Legal Aid Society, were 42.9% and 35.8% respectively of claims reported. Race /Color ranked second with both agencies at 22.1% and 20.8%, respectively. The next most common complaint categories were Familial Status at 14.1% and 6.8% respectively, followed by National Origin at 11.2% and 21.0% respectively, for both agencies. 18

Palm Beach County Office of Equal Opportunity (OEO) From 2004 to 2009, 437 fair housing complaints were made to the Palm Beach County Office of Equal Opportunity (Table II-1). This compares with a total of 337 complaints filed between October 1, 2000 to December 31, 2004. The major basis for complaints was disability (43%) followed by Race/Color (22.1%), Familial Status (14.1%) and National Origin (11.2%). Together, these three categories of complaints account for 90.4% of all housing discrimination complaints reported to the OEO. Table II-1 Palm Beach County Office of Equal Opportunity Fair Housing Complaints by Type of Discrimination 2004-2009 Basis FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 Total Race or Color 18 14 25 13 13 83 Gender 1 1 4 0 4 10 Familial Status 2 3 15 9 24 53 National Origin 8 10 12 6 6 42 Religion 1 1 1 1 3 7 Disability 27 21 33 37 43 161 Age 1 1 0 2 2 6 Marital Status 1 0 1 0 0 2 Sexual Orientation 2 0 1 1 0 4 Retaliation 0 1 4 1 0 6 Sexual Harassment 0 0 0 0 1 1 Gender Identity or 0 0 0 0 0 0 Expression Other 0 0 0 0 0 0 Total 61 52 96 70 96 375 19

Table II-2 Palm Beach County Office of Equal Opportunity Fair Housing Complaints by Type of Discrimination 2004-2009 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 Total Issue Refusal to rent, sell, etc. 15 11 14 13 10 63 Falsely deny housing was available 0 4 2 1 1 8 Discriminate in the conditions or terms of sale, 20 21 45 37 37 160 rental occupancy or in services or facilities Advertise in a discriminatory way 0 0 9 9 0 18 Engage in blockbusting 0 0 0 0 0 0 Discriminate in financing 2 1 1 1 2 7 Discriminate in broker s services 0 0 0 0 0 0 Intimidation, interference or coercion 0 1 13 7 1 22 Sexual harassment 1 0 0 0 1 2 Denial of reasonable accommodation 21 21 27 29 36 134 Denial of reasonable modification 1 0 1 1 0 3 Retaliation 0 0 0 0 1 1 Accessibility 0 0 0 0 0 0 Using Ordinances to discriminate in zoning and 0 0 1 0 0 1 land use Otherwise deny or make housing available 0 0 10 4 0 14 Failure to meet senior housing exemption criteria 0 0 1 2 0 3 (55+) Other 1 0 0 0 0 1 Total 61 59 124 104 89 437 Legal Aid Society of Palm Beach County, Inc. Summary of Fair Housing Complaints in the Palm Beach County Reported to Legal Aid Society of Palm Beach County, Inc. Between October 1, 2004, and December 31, 2009 (Table II-3), the Legal Aid Society of Palm Beach County opened 366 investigations related to housing discrimination. Of these investigations, 35.8% involved allegations of disability discrimination, 20.8% involved allegations of race discrimination, 6.8% involved allegations of familial status discrimination, 21.0% involved allegations of national origin discrimination, and 6.8% involved allegations of age discrimination. 20

Table II-3 Legal Aid Society of Palm Beach County, Inc. Fair Housing Complaints by Type of Discrimination 2004-2009 Basis FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 TOTAL Disability 28 32 31 25 15 131 Color 0 0 0 0 0 0 Race 18 16 11 16 15 76 Sex 3 3 6 3 1 16 Religion 0 0 1 1 0 2 Age 8 3 2 4 8 25 Marital Status 0 2 1 0 0 3 National Origin 11 17 12 20 17 77 Familial Status 3 0 5 3 14 25 Sexual Orientation 0 0 3 2 2 7 Color/Race/Familial Status 2 0 0 0 0 2 Race /Sex/Familial Status 1 0 0 0 0 1 Disability/Race/Familial Status 1 0 0 0 0 1 TOTAL 75 73 72 74 72 366 From 2004 to 2009, the proportion of Legal Aid Society investigations involving ethnicity-related bases for complaint (race, color, national origin) increased from 25.3% in 2005 to 48.7% in 2008 then decreased slightly to 44.4% in 2009. During the same period, the proportion of investigations involving disability-related bases for complaint decreased to 20.8% in 2009, and the proportion involving household composition-related bases for complaint (familial status, marital status) increased from 4.0% in 2005 to 19.4% in 2009. Table II-4 shows that Hispanic complaints were consistent during 2007 to 2009 averaging 22%. Although Black complainants outnumbered White complainants for the first time in the history of the Legal Aid Society s fair housing project with 38.0% in 2003-04, Black complaints now averaged 29.3% during this five year period peaking at 34.7% in 2009. White complainants again outnumbered Black complaints every year since 2003-04, averaging 47.4% during 2005 to 2008 then decreased to 37.5% in 2009. 21

Table II-4 Legal Aid Society of Palm Beach County, Inc. Housing Complaint Analysis by Race 2004-2009 Race FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 Asian, Native Hawaiian, Other Pacific Islanders 2 1 1 1 1 Black or African American 22 20 21 19 25 Hispanic or Latino Only 0 0 16 17 15 Hispanic/Latino and Black/African American 11 14 0 0 0 Hispanic/Latino and White 0 0 0 0 0 American Indians or Native Alaskan 0 0 0 0 0 White 35 36 34 33 27 Other Individual Race 0 0 0 4 1 Other Multiple Combinations 5 3 0 0 0 Unknown at time of Report 0 0 0 0 3 Total 75 74 72 74 72 Of 366 investigations opened by the Legal Aid Society between 2004, and 2009 (Table II-5), 26.0% involved allegations of harassment, intimidation, or retaliation; 1.4% involved allegations of rental discrimination, and 26.0% involved alleged denials of reasonable accommodation. Table II-5 Legal Aid Society of Palm Beach County, Inc. Fair Housing Complaints by Type of Discrimination 2004-2009 ISSUES FY 2004- FY 2005- FY 2006- FY 2007- FY 2008- TOTAL 05 06 07 08 09 Refusal to Rent 2 2 1 0 0 5 Discrimination/Sale 0 1 0 4 0 5 Harassment 14 26 25 15 6 86 Intimidation 1 0 1 0 0 2 Denial of Accommodation 24 25 16 17 13 95 Rental Terms 16 8 12 14 37 87 Retaliation 3 0 3 1 0 7 Predatory Lending 5 1 4 18 10 38 Selective Code Enforcement 0 9 1 0 0 10 Other: Home Ownership 10 1 9 5 6 31 TOTAL 75 73 72 74 72 366 The Legal Aid geographic data captures where the victims of alleged discrimination currently live but does not completely capture where the housing that is the subject of alleged discrimination is located. Therefore, complainants reporting discrimination is moving from areas of heavy minority concentration to areas of low minority concentration, Legal Aid s geographic 22

data will overstate the current residence of the victim and will understate the locus of the actual discrimination. Finally, table II-6 shows that the Legal Aid s fair housing data remains consistent with low income and very low income groups filing the highest number of complaints, averaging 63.1% during 2005 to 2009, down slightly from over 75% during 2001 to 2004. The proportion of complainants whose income is moderate or greater increased from 3.7% in 2004 to 30.6% in 2009. The proportion of complainants who have low income or less has decreased from an average of 75% during 2003 and 2004 to an average of 65% over the past five years, and the majority of complainants remain at low and very low income levels. Table II-6 Legal Aid Society of Palm Beach County, Inc. Four Year Fair Housing Complaint Analysis by Income of Complainant 2004-2009 Income Group FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 Very Low Income 24 18 18 27 20 Low Income 20 30 26 24 24 Moderate Income 30 19 11 16 17 Moderate Income and Higher 0 6 8 6 7 Unknown at Time of Report 1 0 9 1 4 TOTAL 75 73 72 74 72 23

III. Identification of Impediments to Fair Housing Choice A. Public Sector Zoning and Site Selection Palm Beach County does not designate specific areas for locating affordable or workforce housing. The Workforce Housing Program and the Affordable Housing Program contains a sector analysis process where the existing concentration of very low and low income households is evaluated in order to determine the amount of density bonus. This is done to be consistent with a State Statute requirement (Ch.163.3177(f)1.g, F.S.) to avoid the concentration of affordable housing units only in specific areas of the jurisdiction. The following are methods or tools that the Board of County Commissioners has established to increase opportunities for the provision of attainable housing. The Workforce Housing Program: On November 21, 2006 the Palm Beach County Board of County Commissioner s adopted a Mandatory Workforce Housing Program (WHP) that requires the development of workforce housing units in all new residential developments with 10 or more dwelling units in unincorporated Palm Beach County. In exchange for a density bonus (from 30% up to 100%) and traffic impact mitigation, this program requires a portion of the housing units be rented or sold to households with incomes from 60 to 140 percent of the AMI. All required WHP for-sale units must remain affordable for a period of 15 years (recurring) and all required WHP rental units must remain affordable for a period of 30 years. Since the mandatory WHP became effective in late 2006, a total of 1,262 WHP priced units have been approved as of May 2010. The Affordable Housing Program: On October 22, 2009 the Palm Beach County Board of County Commissioner s adopted a voluntary Affordable Housing Program (AHP) that allows a development of 10 or more dwelling units in unincorporated Palm Beach County to receive a density bonus (from 30% up to 100%) and traffic impact mitigation. The AHP requires a minimum 65% of the total units to target households at incomes of 60% of AMI and below, with a maximum of 20% of all units to target incomes of 30% and below AMI, adjusted for household size. AHP units shall not be subject to restrictions beyond income qualifications except those restrictions imposed by a governmental agency providing affordable housing financing. Consideration may be given to developments requesting both WHP and AHP units within their proposal 24

All required AHP for-sale units must remain affordable for a period of 15 years (recurring) and all required AHP rental units must remain affordable for a period of 30 years. Since this program was recently established in late 2009, no AHP units have been approved as of May 2010. Traffic Performance Standards Special Methodologies: The TPS Special Methodologies allow developers to have additional trips for their traffic counts as an incentive to construct Workforce Housing and Affordable Housing Program units. These additional trips contribute to the development of housing units for the very low, low, moderate and middle income households by permitting developers to build more units thereby offsetting the cost of the WHP and AHP units. The Transfer of Development Rights Program: The TDR Program allows a property owner to achieve a density bonus by purchasing the increase in density from the PBC TDR Bank. Since 2007, 50% of all TDR density bonus units are required to be provided as WHP units. In addition, when using the voluntary AHP, all TDR density bonus units shall be provided as AHP units. The TDR bonus units that are to be WHP or AHP units are provided at a reduced purchase price. The Urban Redevelopment Area: In 2005, the Comprehensive Plan s Future Land Use Element was amended to establish the Urban Redevelopment Area (URA) within a specific geographic area of Palm Beach County. The purpose of the URA is to focus the County s redevelopment and infill efforts by promoting economic growth, improving the present conditions of infrastructure, investment and reinvestment in the area, and discouraging urban sprawl by directing development where resources exist. The intent of the redevelopment within the Priority Redevelopment Areas (PRAs) of the URA includes a balance of housing, with employment, commercial, and civic uses and to provide a variety of housing types to support residents of diverse ages, incomes, family sizes, ethnicities, and lifestyles. A minimum of 15% of all new housing shall be provided as low, moderate, and middle income workforce housing units. PHA and Other Assisted/Insured Housing Provider Tenant Selection Procedures; Housing Choices for Certificate and Voucher Holders The Palm Beach County Housing Authority Section 8 Housing Choice Voucher (HCV) program waiting list has not been opened since 2002 and is not currently accepting Section 8 applications at this time. Funds totaling $18,418,671 has been allocated by HUD toward 9,001 housing vouchers for FY 2010-2011. The County cautions that when Housing Authorities open applications for the Section 8 Housing Choice Vouchers program, an onslaught of applications is to be expected. Due to the potential of riots, housing authorities should utilize an online application system. It is recommended to submit the received applications to a random lottery selection instead of simply a first-come firstserved (time/date stamp) order. 25

Once the applications are selected by lottery, the applications must be screened for sexual offenders, criminal history, debts owed to Housing Authorities, among other criteria. Thereafter, they may be entered into the waiting list. Each Housing Authority is allowed to create 'local preferences' for their waiting list. The Palm Beach County Housing Authority has a local preference for working families (one family member must be working full time 30 hrs or more per week for one full year ) for both Public Housing and Section 8. As of 2010, the Palm Beach County Housing Authority owns 495 Public Housing units from Lantana to South Bay in a series of complexes. One of the sites has 100 seniors only (Drexel Apartments, WPB). During 2009, the waiting list has opened on occasion for particular bedroom sizes as needed to keep the waiting list ahead of the vacancies. Palm Beach County Housing Authority also supports a new Quiet Waters Facility in Belle Glade with 93 Section 8 Projectbased vouchers. These units have vouchers attached them as opposed to tenant-based vouchers which follow the tenant. The Palm Beach County Housing Authority is considering providing 70-100 additional Projectbased vouchers to another new community, depending on availability of (tax-credits, NSP, etc) funds in construction of same. Sale of Subsidized Housing and Possible Displacement Palm Beach County Department of Housing and Community Development and the Commission on Affordable Housing provides homebuyer subsidy to eligible low and moderate income homebuyers through various programs. The subsidy serves to lower the cost of the homes to these households by offering forgivable second mortgages, discounted first mortgages, price discounts on properties as well as reducing housing costs by, under the CLT model, separating the ownership and value of the housing structure from that of the land and thereby allowing a household to purchase only the property. Below is a brief description of the specific programs used to achieve this objective: The Neighborhood Stabilization First Mortgage Loan Program is designed to provide assistance to individuals and households earning up to 120% AMI. Only those foreclosed, abandoned and vacant residential properties located within the designated Eligible Areas can be purchased with this loan funding. Each foreclosed upon home or residential property shall be purchased at a discount of at least one percent of the current market appraised value of the home or property. All sales must be approved by the County and the resale price should not be less than 75% of the purchase price. The NSP2 Second Mortgage Loan Program provides funds to be used as a second mortgage to reduce housing costs principal and closing costs of homebuyers with incomes at or below 120% AMI with at least 25% of the funds going to households with incomes no greater than 50% AMI. The program will be implemented by HCD. Second mortgage criteria will vary for each income group with very low income households receiving a greater amount of funds. 26

The Community Land Trust of Palm Beach County was formed in early 2006 to help address the need for affordable housing in Palm Beach County. The CLT of PBC is a county-wide housing non-profit corporation established to: preserve the quality and affordability of housing in perpetuity for low and moderate income families; combat deterioration in economically disadvantaged neighborhoods; protect the natural environment; and promote the ecologically sound use of land and natural resources. The CLT of PBC s expressed purpose is to obtain land and make it available in perpetuity for housing. Ownership of the land is separated from ownership of its specific uses. The CLT of PBC will make the land available to income eligible households through a 99 year ground lease. Property Tax Policies The property tax in Florida is constitutionally a local tax, administered, levied, and collected by local officials. The Florida Constitution establishes the County Tax Collectors as independent government agencies. They are Constitutional Officers and collect property taxes for every local government agency that has the power to levy taxes. Property taxes are directly related to the value of the homes. Notable exemptions to property taxes are as follows: $25,000 Homestead Exemption for a property with an assessed value up to $50,000. Additional Homestead Exemption: Beginning at $50,000 and continuing through an assessed value of $75,000, the new additional benefit will increase with the increase in the property s value. A property with an assessed value of $75,000 or more will receive the full $50,000 exemption amount. Every person who has legal title on January 1 to a residential property and lives there permanently qualifies for this exemption. You must be a permanent resident of Florida on January 1 of the initial application year. Portability Residential property owners with a qualified Homestead Exemption can transfer all or a significant portion of their "Save Our Homes" benefit to their new property. Portability allows you to transfer up to $500,000 of your property s actual 3% assessment cap to your new property anywhere in Florida. Senior Citizen Exemption Certain seniors who are 65 or older may be eligible for up to an additional $50,000 exemption on their property's assessed value. For example, a home valued at $100,000, would be taxed on only $25,000, after the standard $25,000 Homestead Exemptions and the maximum $50,000 Senior Exemption are applied. $5,000 Disabled Veterans Exemption 27

U.S. Military personnel with a service-connected disability of 10% or more are entitled to a $5,000 exemption. Combat-disabled Senior Veterans Combat-disabled veterans who are now over the age of 65 with a qualified Homestead Exemption and were Florida residents at the time they entered the service, may be eligible for an ad valorem tax discount. $500 Widow/Widower Exemption A widow or widower who is a legal and permanent resident of Florida qualifies for this exemption. If the surviving spouse remarries, they are no longer eligible. If the husband and wife were divorced before their spouse's death, the survivor is not eligible $500 Disability Exemption People who are permanently disabled are eligible for this exemption. Total Exemption Civilian quadriplegics and honorably discharged veterans who are 100% disabled are exempt from ad valorem taxation. Discounts for property tax payments are allowed as follows: 4% in November (Or within 30 days of when the notice is mailed if it is not mailed before November 1st. The discount is determined by postmark of payment; the total amount is due in March.) 3% in December 2% in January 1% in February Taxes and non-ad valorem assessments become delinquent April 1, at which time 3% interest and advertising costs are added. The amount due on delinquent payments is determined by date received, not by postmark. Property tax on a Community Land Trust of Palm Beach County (CLT) home is based on the purchase price by the buyer and does not include the net of any subsidies by CLT. After the sale of a CLT property, a form is submitted to the property appraiser s office (PAO) informing them that the unit is a CLT home and listing the purchase price that is on the HUD statement. The homeowner is then assessed on 85% of their purchase price. For example: 28

Total of all CLT s cost $300,000 Less CLT subsidies, etc. - $135,000 Purchase/Sale Price to the buyer reported to the PAO $165,000 x.85 Just value calculated by the PAO $140,250 The just value is then used as the basis for the assessed and taxable values and calculated in a manner similar to all other homesteaded properties. In each future year, the CLT affordable housing authority will annually report any changes in the property value to the PAO. The Board of County Commissioners has not raised the millage rate of 3.7811 (FY 2009) in spite of the severe revenue loss caused by the crisis now prevailing in the housing sector where values have declined significantly. Building Codes (Accessibility) Federal Fair Housing Act: In 1988, Congress passed the Fair Housing Amendments Act of 1988 (the Act), which requires that most newly constructed multifamily dwellings occupied after March 13, 1991 be designed and constructed to include certain features of accessible design. In new multifamily housing, 100% of the units in a building with an elevator must be accessible. If a building with four or more units has no elevator and was ready for first occupancy after March 13, 1991, these standards apply to ground floor units. These requirements for new buildings do not replace any more stringent standards in State or local law. Developers, builders, owners, and others responsible for the design, construction, or operation of housing are held liable for meeting a myriad of design requirements. In order to be in compliance with the Fair Housing Act, there are seven basic design and construction requirements that must be met. These requirements are: 1. An accessible building entrance on an accessible route. All covered multifamily dwellings must have at least one building entrance on an accessible route unless it is impractical to do so because of the terrain or unusual characteristics of the site. An accessible route means a continuous, unobstructed path connecting accessible elements and spaces within a building or site that can be negotiated by a person with a disability who uses a wheelchair, and that is also safe for and usable by people with other disabilities. An accessible entrance is a building entrance connected by an accessible route to public transit stops, accessible parking and passenger loading zones, or public streets and sidewalks. 29

2. Accessible common and public use areas. Covered housing must have accessible and usable public and common-use areas. Public and common-use areas cover all parts of the housing outside individual units. They include -- for example -- building-wide fire alarms, parking lots, storage areas, indoor and outdoor recreational areas, lobbies, mailrooms and mailboxes, and laundry areas. 3. Usable doors (usable by a person in a wheelchair). All doors that allow passage into and within all premises must be wide enough to allow passage by persons using wheelchairs. 4. Accessible route into and through the dwelling unit. There must be an accessible route into and through each covered unit. 5. Light switches, electrical outlets, thermostats and other environmental controls in accessible locations. Light switches, electrical outlets, thermostats and other environmental controls must be in accessible locations. 6. Reinforced walls in bathrooms for later installation of grab bars. Reinforcements in bathroom walls must be installed, so that grab bars can be added when needed. The law does not require installation of grab bars in bathrooms. 7. Usable kitchens and bathrooms. Kitchens and bathrooms must be usable - that is, designed and constructed so an individual in a wheelchair can maneuver in the space provided. B. Private Sector Lending Policies and Practices Data provided under the Home Mortgage Disclosure Act (HMDA) for 2008 (Appendices 3 & 4) showed that in Palm Beach County, American Indian/Alaskan Natives had the lowest percentage of origination (25.5%) and the highest percentage of loan denials (45.1%) for conventional mortgage loans. Blacks followed with the second lowest percentage of origination (33.4%) along with the second highest percentage of loan denials (37.7%). Joints (White/Minority) had the highest percentage of loan origination (57.8%) and Others had the lowest percentage of loan denials (20.1%). The income category with the highest percentage of origination was 120%+ of MSA Median (53.6%) while the income category with the highest percentage of loan denials was <50% of MSA Median (37.6%). Examination of this information revealed that White applicants experienced the highest number of mortgage loans originated and denied across all five income categories. 30

Examination of HMDA data by Race, Ethnicity, Gender and Income of Applicant reveals that the overall rate of mortgage loan applications denied in Palm Beach County increased dramatically from 12.4% in 2003 to 28.7% (as a percentage of the total of loans originated, approved-not accepted, and applications denied). C. Public and Private Sector Fair Housing Enforcement The Palm Beach County Fair Housing Ordinance states that it is to be the policy of the Board of County Commissioners in the exercise of its police power for the public safety, public health, and general welfare to assure, within constitutional limitations, equal opportunity to all persons to live in available housing facilities regardless of race, sex, color, religion, national origin, disability, familial status, sexual orientation, age, marital status, or gender identity or expression, and, to that end, to prohibit discrimination in housing by any person. The County s Ordinance has been deemed by HUD to be substantially equivalent to the Federal Ordinance. Agencies which ensures the enforcement of the fair housing laws are the Office of Equal Opportunity, the Fair Housing Center of the Greater Palm Beaches and the Legal Aid Society of Palm Beach County. Informational Programs The Office of Equal Opportunity, the Legal Aid Society of Palm Beach County and the Urban League of Palm Beach County provide one or more of the following programs and activities throughout the year: Anti-Predatory and Fair Lending education and support seminars for community based organizations, civic and faith-based groups and Condo/Homeowner Associations Presentations targeting school children, attorneys, realtors, builders, community association boards and property managers regarding what fair housing is and their rights and obligations as provided by fair housing laws Foreclosure Prevention Clinics and counseling Housing counseling concerning affordable housing opportunities Fair housing outreach programs conducted at various public events throughout the County Conduct Fair Housing workshops to various citizens and professional groups held throughout the County covering all protected classes as defined by the County 31

Counseling services to persons who lodge housing discrimination complaints Disability Accessibility Awareness program geared to assist County government, countywide organizations and public facilities maintain compliance with the Americans with Disabilities Act See Appendix 5 for samples of informational brochures from the Office of Equal Opportunity and the Legal Aid Society of Palm Beach County. Visitability in Housing Visitability concepts are important because it adds some accessibility features to singlefamily detached housing or townhomes where Fair House Act requirements do not apply. Visitability makes houses relatively easy to adapt in the future, allowing current residents to remain in their homes as they age, rather than being forced to move as more features become necessary to maintain independence. Visitability focuses on the three structural features most essential for a person with mobility impairments to visit or live in a home at least temporarily and possibly even permanently, depending on an individual's needs. These three features are: 1. one zero-step entrance on an accessible path of travel 2. doorways that are 32 inches clear throughout the floor plan 3. basic access to at least a half bath on the main floor If included during design and planning, these features are extremely cost-efficient and provide advantages to non-disabled consumers as well. Visitability concepts are not required or encouraged in new home construction or housing rehabilitation projects. Where there is a determination of unlawful segregation or other housing discrimination by a court or a finding of noncompliance by HUD under Title VI of the Civil Rights Act of 1964 or Section 504 of the Rehabilitation Act of 1973, or where the Secretary has issued a charge under the Fair Housing Act regarding assisted housing within a recipient s jurisdiction, an analysis of the actions which could be taken by the recipient to help remedy the discriminatory condition, including actions involving the expenditure of funds by the jurisdiction. Possible actions to be taken by recipient to remedy discriminatory conduct: 32

The housing provider could be restricted from doing business with the recipient or within the recipient s jurisdiction. For example, if a real estate developer has violated the Fair Housing Act, the recipient could bar the developer from building any new residential developments until the discriminatory act is remedied Recipient could sue the housing provider for damages on behalf of other citizens whose fair housing rights have been violated Changes to zoning and building codes to ensure diverse communities Ensure equal access and placement of recipient s services such as utility, rental assistance, and social services Education and outreach campaign o Development of educational materials to be distributed to the recipient s citizens to prevent future discriminatory conduct o Development of public service announcements (PSA) on protection of rights under the Fair Housing Act 33

IV. Assessment of Current Public and Private Fair Housing Programs And Activities in Palm Beach County The Office of Equal Opportunity and the Legal Aid Society of Palm Beach County are the primary agencies whose programs were examined to analyze the fair housing programs and activities currently being undertaken in the County. For the purposes of this section, Fair Housing means building awareness of and compliance with Title VIII of the Civil Rights Act of 1968, as amended, and the Palm Beach County Fair Housing Ordinance. The following is a list of programs and activities provided throughout the year by either one or both of the agencies: Foreclosure Prevention Clinics and counseling are conducted throughout the County to educate various citizens, specifically targeting low and moderate income persons on how to prevent mortgage foreclosure Represent clients in foreclosure and discrimination cases Anti-Predatory and Fair Lending education and support seminars for community based organizations, civic and faith-based groups and Condo/Homeowner Associations Housing counseling concerning affordable housing opportunities Conduct Fair Housing workshops to various citizens and professional groups held throughout the County covering all protected classes as defined by the County Co-sponsoring fair housing symposiums and a student fair housing poster, essay and video contest annually to highlight and accentuate updates in the fair housing arena Presentations targeting school children, attorneys, realtors, builders, community association boards and property managers regarding what fair housing is and their rights and obligations as provided by fair housing laws Fair housing outreach programs conducted at various public events throughout the County Provide enforcement or counseling services to persons who lodge housing discrimination complaints Disability Accessibility Awareness program geared to assist County government, countywide organizations and public facilities maintain compliance with the Americans with Disabilities Act Between fiscal years 2004 to 2009, over 700 complaints were filed with both agencies. The prevailing basis for discrimination was disability with 292 complaints (39.4%) followed by race with 159 complaints (21.5%). 34

V. Conclusions and Recommendations Fair Housing Issues in Palm Beach County The Office of Equal Opportunity and the Legal Aid Society of Palm Beach County report the basis and issues of housing discrimination allegations reported to them. These reports are compared to identify similarities of experience by these agencies and the overall experience of alleged housing discrimination on the federally and County protected bases. By these comparisons, supplemented by input from other interested agencies such as the Department of Planning, Zoning and Building and the Fair Housing Center of the Greater Palm Beaches, fair housing issues and recommendations to address those issues were developed. The issues affecting fair housing choice are grouped into three categories in this report: Issues Related to Disability and Other Bases for Discrimination; Issues Related to Zoning, Land Use and Other Public Policies; and Issues Relating to Mortgage and Credit. A. Issues Related To Disability And Other Bases For Discrimination The incidence of fair housing complaints related to disability remains high in Palm Beach County, accounting for 39.4% of the complaints filed with the OEO and the Legal Aid Society. The Census of 2000 reported 117,932 persons, or 20% of the County population aged 21 to 64 years to be disabled, compared to a national average of 19.2% for that age group. The population of persons with a disability reported in 2000 comprised 10.4% of the County s total population. Evictions, non-renewals, refusal to rent, and refusal by homeowners associations to approve purchase based on "strangeness" or "oddity" of personality may actually be based on mental illness-related behaviors for which reasonable accommodations may exist and could be requested. Complicating this problem is the inadequacy of funding for community mental health services in the County and the stigma associated with mental illness, which combine to leave many mental illnesses undiagnosed. Barriers to employment encountered by persons with disabilities contribute to fair housing discrimination, as some of those same persons find themselves denied housing opportunities if they are solely reliant upon SSI or Social Security Disability benefits, even if those benefits are sufficient to meet the financial obligation of their chosen housing. Issues Related to Disability and Other Bases for Discrimination Persons who exhibit unusual or eccentric behaviors may actually be persons disabled with a mental illness, but may not be so recognized. Therefore their rights to protection under the law may be overlooked and reasonable accommodations are not sought. Complaints that certain behaviors violate rules or are disruptive, such as noise emanating from an individual s unit, may be caused by a hearing or other disability. Some housing providers send letters threatening to evict in such cases, rather than exploring reasonable accommodations. 35

Accessibility of some units is inadequate to accommodate needs of the occupant person with a disability. Similarly, some units occupied by persons without a disability are inadequate to accommodate visitors with a disability. Architectural barriers limit accessibility of common needs and amenities within housing communities e.g., routes to recreation facilities sometimes have steps or other obstacles, or planned paved pathways in construction plans were not built; insufficient access width and other general access issues; ramps not being permitted by property owner/manager or condominium/homeowners associations. Refusal to rent/sell to persons with disabilities, especially those supporting themselves with SSI and SSDI, even when the income is more than adequate to cover cost of the chosen housing. Persons with disabilities are refused the use of a service or emotional support animal as a reasonable accommodation by property owners or condominium/homeowners associations with no pet rules. Some developments lack sufficient parking spaces for persons who have disability parking placards. Some disability parking spots are reserved for visitors only and cannot be used by residents even if the spot is closer to their unit. If spots are assigned or reserved, reasonable accommodation may require negotiation with other residents for a closer spot, and may conflict with ownership rights. Parking for scooters or large power wheelchairs which cannot fit into the apartment is sometimes an issue. Persons requiring 24 hour Personal Care Attendants encounter problems of housing providers/associations considering the Attendant to be a visitor or occupant and then demanding an application fee and a completed application for every Personal Care Attendant who visits the home. Some providers also want to count the Attendant(s) as occupant(s) and, if the additional person(s) takes the number of residents over the lease or community rule limitation, the person with the disability who leases/owns the apartment is then cited for violation of the lease agreement or the community rule. The NIMBY (Not In My Back Yard) mentality continues to challenge location of group homes and rehabilitation facilities. Recommendations Related to Disability and Other Bases for Discrimination Ensure that all members of the Fair Housing Board, appointed by the Board of County Commissioners of Palm Beach County, receive fair housing training upon appointment to the Board and receive periodic refresher training in fair housing issues. OEO, FHC, and the Legal Aid Society should be alert to the possibility of mental illness when receiving and investigating complaints of housing refusals based on behavior or 36

personality that is "odd" or "difficult to deal with." When an impending refusal of housing can be linked to mental illness, agencies such as OEO, FHC and Legal Aid Society should treat the case as a claim of disability-based discrimination, and look for reasonable accommodations that could be requested. Through the OEO, FHC and Legal Aid Society of Palm Beach County, continue to undertake extensive testing to identify instances of housing discrimination on all protected bases, to test for non-compliance with the accessibility building standards mandated under FHAA and other governing regulations; and to identify the education and outreach efforts needed to strengthen fair housing efforts. Promote ongoing fair housing training for planners, building design and construction professionals. When education and outreach needs are identified concerning fair housing issues, utilize the services of OEO, Fair Housing agencies and building industry professionals, as may be appropriate to educate others in Fair Housing requirements. HCD should continue to provide funding under its CDBG program for Fair Housing activities. Individuals defending against housing discrimination often lack the financial resources to pursue their legal rights on their own, and some non-profit agencies have lost funding to provide legal assistance. Concentrate fair housing education efforts, including attention to disability issues, on Boards of Directors of condominium associations, homeowners associations and apartment managers/owners, since they are most often in a position to approve or provide reasonable accommodations or modifications. Solicit appropriate authority to require fair housing retraining as a condition for license renewal of all real estate professionals. Solicit Boards of Realtors to promote and ultimately to require periodic fair housing training as a condition of continuing membership. The OEO should endeavor to investigate allegations of fair housing discrimination within HUD s target period of 100 days after the OEO has received the allegation. 37

B. Issues Related to Zoning, Land Use and Other Public Policies The primary goal of the Housing Element of the County s Comprehensive Plan is to facilitate the provision of an adequate supply of safe, sanitary and affordable housing to meet the needs of the County's residents, with special attention to the needs of very low, and low income households and special populations. A number of County policies and programs have as their main focus the promotion and development of affordable housing, the removal of barriers to fair housing, and compliance with the Americans with Disabilities Act (ADA). The zoning laws of Palm Beach County have been examined and determined not to contain obstacles to fair housing. Palm Beach County currently provides a variety of housing types that include: (1) mobile home parks, (2) group living or assisted living facilities (aka Congregate Living Facilities), (3) accessory dwellings, (4) Planned Unit Developments, (5) townhouses, (6) single family dwellings, and (7) multifamily dwellings. The eighty six (86) mobile home parks are dispersed throughout the County and are home to residents who live in mobile units. Single family dwellings can be accompanied by accessory dwelling units, which are complete, independent dwelling facilities equipped with a kitchen, and sanitary and sleeping accommodations. These dwellings are no longer limited to the elderly, low income or persons with disabilities. Planned unit developments provide a wide range of living environments that vary from detached singlefamily residences and zero lot line homes to townhouses. Pursuant to the recent Code amendments, townhouses are permitted in non-planned developments with a reduced minimum lot dimension from 1, 600 of 800 square feet. In addition, the County offers programs that are designed to promote and enrich the diversity of housing options available in our communities. These programs include: the Workforce Housing Program (WHP), Transfer of Development Rights (TDR), and Infill and Redevelopment. These initiatives contain incentives meant to encourage fair housing development. Issues Related to Zoning, Land Use and Other Public Policies Legally mandated access requirements are sometimes not included in finished construction projects. Recommendations Related to Zoning, Land Use and Other Public Policies Code enforcement authorities should monitor the sources, frequency and types of code complaints received to protect the enforcement entity from manipulation into unintended harassment or discriminatory code enforcement. Code enforcement authorities should ensure that all legally mandated access requirements are included in properties before certificates of occupancy are issued. 38

C. Issues Related to Mortgage and Credit The incidence of fair housing discrimination in the areas of mortgage and credit are often linked with a homebuyer s lower income status which increases their exposure to predatory lending practices. As means to enable avoidance of the increased risks associated with the noninstitutional lending market, the programs discussed below assist homebuyers through education, access to fair market mortgage rates or to subsidized mortgage loan financing, assistance with impact fees, rental subsidies, and ethics training within the practice of real estate. The Commission on Affordable Housing (CAH) assists in the development of multi-family and single family affordable housing opportunities; and serves as a review committee that makes recommendations to the Board of County Commissioners regarding housing issues. The affordable financing options made available through the CAH enable first-time homebuyers and homeowners in mortgage delinquency to address their problems through traditional financial institutions, rather than having to resort to non-traditional and unregulated financing. Clients who are purchasing a home with the assistance of the CAH are required to complete a Homebuyer Education Class. CAH networks with thirteen local providers to make that instruction available. The Utility Connection Service Program (UCSP) (formerly Hardship A Assistance Program) can assist with impact fees for certain connection fees, new home construction or substantial rehabilitation. The Purchase Assistance Program (PAP) (formerly Hardship B Assistance Program) provides state financial assistance to create home ownership opportunities for lower income families. The CAH also provides local contribution funding for the new construction of affordable units. The use of HOME, NSP1 and NSP2 funds all serve to make prospective homebuyers (low and moderate-income), otherwise ineligible for a standard rate loan, viable and competitive borrowers. Four public housing authorities operate within the Palm Beach County Urban County Jurisdiction: Belle Glade Housing Authority, Pahokee Housing Authority, Palm Beach County Housing Authority, and Riviera Beach Housing Authority. Collectively, they operate a total of 1,662 public housing units. In addition, these housing authorities expect to receive funds totaling $26,255,993 for FY 2009-10 to help meet housing needs. When these Housing Authorities open applications for the Section 8 Housing Choice Vouchers program as housing units become available, an onslaught of applications is to be expected. Due to the potential of riots, it is suggested that housing authorities utilize an online application system. It is recommended to submit the received applications to a random lottery selection instead of simply a first-come first-served (time/date stamp) order. Once the applications are selected, the applications must be screened for sexual offenders, criminal history, debts owed to Housing Authorities, among other criteria. Thereafter, they may 39

be entered into the waiting list. Each Housing Authority is allowed to create 'local preferences' for their waiting list. Four Boards of Realtors are quartered in Palm Beach County: Realtor Association of South Palm Beach, Inc.; Realtor Association of the Palm Beaches, Inc.; Palm Beach Board of Realtors; and Jupiter-Tequesta-Hobe Sound Realtor Association, Board, Inc. Boards of Realtors offer training and encouragement for the professional, legal and ethical practice of real estate. Issues Related to Mortgage and Credit Though the practice of credit scoring was adopted to induce more objectivity and thereby to lessen discrimination, credit scoring methods can be manipulated to include discriminatory practices. Predatory Lending victimizes homeowners and makes them more likely to lose their home to foreclosure. Potential borrowers lacking a significant credit history, having a blemished credit history, or persons unfamiliar with mortgage transactions are prime targets for predatory lenders. For low-income individuals with less disposable income, higher rates will reduce their mortgage capacity and may disqualify them from receiving a loan. A disproportionately high number of persons victimized by predatory lending practices are minorities and persons with disabilities. According to the National Association of Consumer Advocates, the practice of predatory lending includes purposeful charging of unreasonably high fees and charges and/or otherwise structuring the loan so that the homeowner will default and be subjected to foreclosure. Examples of predatory lending practices include: Extensive marketing in targeted neighborhoods, which are often low-income or minority neighborhoods Using mortgage broker s fees and kickbacks Steering borrowers to high rate lenders, even though the borrower may qualify for a conventional loan Making unaffordable loans Falsified or fraudulent applications High interest rates High points Balloon payments Negative amortization 40

Padded closing costs, such as higher than market credit report fees, document preparation fees, appraisal costs, recording fees, bogus broker fees, and credit insurance being sold as if required Excessive prepayment penalties Flipping (successive, repeated refinancing of the loan by rolling the balance of the existing loan into a new loan). Though predatory lending may not necessarily be a fair housing violation, its practitioners do tend to target undereducated, lower-income populations, which tend to be more vulnerable to discrimination than the general population. Recommendations Related to Mortgage and Credit In conducting its Analysis of Impediments to Fair Housing, a jurisdiction is encouraged to identify not only those impediments which it has within its jurisdiction, but also to identify impediments which are within the jurisdiction of other bodies. This list includes recommendations in both categories. Federal and State governments should regularly review and revise protective legislation to keep pace with the changing tactics of predatory lenders. OEO, Legal Aid Society and Fair Housing Center will endeavor to ensure compliance with fair housing access to credit and other facets of fair housing law. There must be oversight of the credit scoring process by appropriate authority, since credit scoring has such a significant impact on access to credit. Appropriate authority should bring non-bank lenders up to banking institutional standards. Education for the responsible use of credit is essential, including credit utilization outside of the housing market, as poor credit history can predispose a potential homebuyer to abusive credit practices. First-time home buyer education programs should be continued and encouraged to grow. Experienced homebuyers/homeowners also need education to make them aware that the equity in their home can attract solicitations from predatory lenders. The Fair Housing Center of the Greater Palm Beaches, Urban League of Palm Beach County, and the Consumer Credit Counseling Service assist in various specialties within this area. HCD s use of CDBG funds to promote consumer education is very helpful to this effort. Administrators of public funds should require developers who receive public funds for housing development to complete fair housing training and retaining, which includes a component on mortgage and credit as it relates to fair housing. HCD should continue to provide funding under its CDBG program for fair housing activities, such as the education and outreach activities currently provided by Legal Aid Society of Palm 41

Beach County under a CDBG Agreement with HCD and the Predatory Lending Education and Support Project Initiative Program to be undertaken by The Fair Housing Center of the Greater Palm Beaches with CDBG funding through Housing and Community Development. HCD should also focus funding on foreclosure counseling and mitigation. NOTE: Though an individual s credit history by itself is not within the protection of fair housing law, the reporting of negative credit history information, whether correct or incorrect, may provide a discriminatory lender a convenient justification to deny credit to an applicant. The public, most especially first-time homebuyers, should be encouraged to access a copy of their credit report on a regular basis, review it carefully, and to have any errors corrected. When the need for credit rehabilitation is identified, that it should be undertaken promptly, utilizing legitimate help, before their credit is irreparably damaged. Maintenance of good credit worthiness enables homebuyers to utilize mainstream financial institutions for their mortgage loans, thus avoiding the increased risks of predatory lending practices associated with the non-institutional lending market. The public should also be advised to access one free copy of their credit report annually. 42

APPENDICES Appendix 1. Map 1A - Concentration of Racial/Ethnic Minorities in Palm Beach County Appendix 2. Map 1B - Concentration of Low-Income Families Appendix 3. Table III-1 Disposition of Applications for Conventional Home-Purchase Loans 1-4 Family Homes by Race and Income of Applicant, 2008 Appendix 4. Table III-2 Reasons for Denial of Applications for Conventional Home-Purchase Loans 1-4 Family Homes by Race and Income of Applicant, 2008 Appendix 5. Samples of informational brochures for Fair Housing, Foreclosure Services and Discrimination provided by the Office of Equal Opportunity and the Legal Aid Society of Palm Beach County: Legal Aid Society: Fair Housing Project Office of Equal Opportunity: Fair Housing It s the Law Legal Aid Society: Foreclosure Services Office of Equal Opportunity: Fact Sheet on National Origin Discrimination 43

Appendix 1 Map 1A Concentration of Racial/Ethnic Minorities in Palm Beach County 44

Appendix 2 Map 1B Concentration of Low-Income Families 45

Appendix 3 Disposition of Applications for Conventional Home-Purchase Loans 1 to 4 Family Homes by Race and Income of Applicant, 2008 West Palm Beach-Boca Raton-Boynton Beach, FL MSA/MD Number of Loans Applicant Characteristics Apps. Received Loans Originated % Originated Apps. Approved But Not Accepted % Approved But Not Accepted Apps. Denied % Denied Apps. Withdrawn Files Closed as Incomplete Race Amer. Ind/Alaskan Native 51 13 25.5% 9 17.7% 23 45.1% 4 2 Asian/Pacific Islander 509 245 48.1% 55 10.8% 123 24.2% 65 21 Black 1652 551 33.4% 237 14.3% 623 37.7% 117 124 Hispanic 2567 943 36.7% 296 11.5% 936 36.5% 209 183 White 12461 6739 54.1% 1391 11.2% 2713 21.8% 1094 524 Other 1882 964 51.2% 224 11.9% 379 20.1% 264 51 Joint (White/Minority) 109 63 57.8% 9 8.3% 26 23.8% 10 1 Race Not Available 1908 970 50.8% 237 12.4% 395 20.7% 251 55 Income < 50% of MSA Median 1021 426 41.7% 98 9.6% 384 37.6% 72 41 50-79% of MSA Median 2370 1143 48.2% 287 12.1% 645 27.2% 190 105 80-99% of MSA Median 1487 743 50.0% 186 12.5% 359 24.1% 133 66 100-119% of MSA Median 1522 786 51.6% 177 11.6% 366 24.1% 118 75 120% + of MSA Median 10057 5388 53.6% 1156 11.5% 2104 20.9% 986 423 Income Not Available 302 129 42.7% 40 13.2% 68 22.5% 46 19 Source: Federal Financial Institutions Examination Council 46

Appendix 4 Reasons for Denial of Applications for Conventional Home-Purchase Loans 1 to 4 Family Homes by Race and Income of Applicant, 2003 West Palm Beach-Boca Raton-Boynton Beach, FL MSA Debt-to-Income Ratio Employment History Credit History Collateral Insufficient Cash Applicant Characteristics Number % Number % Number % Number % Number % Race Amer. Ind/Alaskan Native 2 40% 1 20% 1 20% Asian/Pacific Islander 9 43% 1 5% 3 14% 2 10% 1 5% Black 67 34% 7 4% 57 29% 14 7% 6 3% Hispanic 75 38% 13 7% 37 19% 18 9% 10 5% White 175 33% 26 5% 109 21% 63 12% 23 4% Other 162 36% 22 5% 108 24% 38 8% 18 4% Joint (White/Minority) 2 17% 4 33% 2 17% Race Not Available 31 41% 1 1% 9 12% 7 9% 5 7% Income < 50% of MSA Median 45 45% 1 1% 22 22% 8 8% 6 6% 50-79% of MSA Median 104 43% 10 4% 46 19% 31 13% 10 4% 80-99% of MSA Median 49 35% 6 4% 34 24% 16 11% 3 2% 100-119% of MSA Median 36 29% 7 6% 33 26% 8 6% 6 5% 120% + of MSA Median 49 23% 8 4% 46 21% 25 12% 11 5% Income Not Available 4 33% 3 25% 2 17% Source: Federal Financial Institutions Examination Council 47

Appendix 5 Samples of informational brochures for Fair Housing, Foreclosure Services and Discrimination Please see the following attached brochures from the Office of Equal Opportunity and the Legal Aid Society of Palm Beach County: Legal Aid Society: Fair Housing Project Office of Equal Opportunity: Fair Housing It s the Law Legal Aid Society: Foreclosure Services Office of Equal Opportunity: Fact Sheet on National Origin Discrimination 48

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