Data shows extent of rent surge
South Florida Sun Sentinel, December 9, 2021, Amber Randall
Rents in South Florida jumped more than 19% year over year, showing how expensive it’s becoming to live in the tri-county area, according to three different data sets.
Reports from CoStar Group, Zumper and Apartment List show that rents have only continued to rise as the rental market makes a comeback from the drop it experienced during the pandemic.
When compared to November rents from a year ago, Palm Beach County prices jumped 31% while in Broward County rents went up almost 22% and Miami-Dade County rents similarly rose about about 17%, according to data from CoStar Group, a provider of multi-family home real estate information.
Amid state’s affordable housing crisis, DeSantis proposes highest spending in a decade
Miami Herald, December 9, 2021, Mary Ellen Klas
The panel of academics and housing professionals assembled before the Florida Senate committee last week delivered a unified message: Florida is in the throes of an affordable housing crisis and more money is needed to keep the economy humming.
Fueled by taxes on soaring real estate values, Gov. Ron DeSantis on Thursday found $144 million more than he had last year in the state account and proposed $355 million in affordable housing initiatives as part of his $99.7 billion budget proposal.
If legislators approve, it will mean the state would spend more than the $209 million they dedicated to workforce and low-income housing this budget year. And it could mean the largest amount spent on the issue in more than a decade.
Build Back Better includes $170 billion for affordable housing–here’s where it would go
CNBC, November 24, 2021, Taylor Locke
House Democrats passed the $1.75 trillion Build Back Better Act on Friday, which includes a number of provisions for housing aid, including investments in public housing, rental assistance and down payment assistance. It now goes to the Senate, where it is likely to be revised again.
In total, the legislation allocates about $170 billion to provisions for affordable housing. It’s the largest investment in affordable housing in history, according to the Biden administration, and will build or preserve more than 1 million affordable homes.
HUD Awards $20 Million For Eviction Protection and Diversion
HUD Press Release, November 23, 2021, HUD Public Affairs
The U.S. Department of Housing and Urban Development (HUD) on Tuesday announced $20 million in inaugural grants from its Eviction Protection Grant Program, the first of its kind for the Department. These grants will be awarded to legal service providers to assist in providing legal assistance to low-income tenants at risk of or subject to eviction. The Eviction Protection Grant Program is part of HUD’s continued work, as part of a whole of government approach, to support families recovering from the public health and economic impacts of the COVID-19 pandemic.
HUD has selected and offered grants to 10 organizations from across the country to support their ability to expand resolution options for clients at risk of eviction. Over 100 applications were submitted for consideration, making the grant selection process highly competitive.
The Eviction Protection Grant Program supports experienced legal service providers in providing legal assistance at no cost to low-income tenants at risk of or subject to eviction. Through HUD’s Office of Policy Development and Research, the grants were made available to legal service providers serving or expanding services in areas with high rates of eviction or prospective evictions, including rural areas. This grant program plays an integral role in helping individuals and families, including people of color who are disproportionately represented among those evicted, people with limited English proficiency and people with disabilities, avoid eviction or minimize the disruption and damage caused by the eviction process.
Institutional Investors Funneling Funds Into Affordable Housing To Hit ESG Targets
Bisnow Atlanta, November 22, 2021, Jarred Schenke
As the nation's affordable housing crisis worsens, institutional investors and private companies are stepping in with their capital, propelled by the growing demand for environmental, social and governance investing.
Cecil Phillips, the CEO of developer Place Properties, said at a Bisnow multifamily conference last week that a demographic shift is occurring at institutional investment firms with younger leaders with more awareness of ESG. At the same time, institutional investors are still expecting market returns for investments into projects that, on their own, wouldn't provide that guarantee.
The easiest way to provide returns in exchange for new affordable product is to reduce construction costs, Phillips said, especially through modular construction, which can be upward of 20% less than traditional construction. Place Properties has launched an affiliate company called Impact Housing, which develops modular single-family housing geared toward lower-income buyers. Place purchased a modular construction plant in March and has so far delivered 100 homes, and has contracts to produce 50 houses per month starting in January, Phillips told Bisnow in an email after the event.
Lauderdale Lakes celebrates completion of homes — more than a decade in the making
South Florida Sun Sentinel, November 14, 2021, Lisa J. Huriash
Lauderdale Lakes’ largest planned community was supposed to be finished a long time ago: back in 2009. More than a decade later, the homes are finally all done — perfect timing to meet the high demand for new housing.
Bella Vista is now a sprawling community of 541 homes, retail space and a library, situated along Oakland Park Boulevard, just east of State Road 7. The massive development is considered a crowning achievement for the city, flinging open the remaining doors to its rental apartments.
There are 317 rental apartments, and 132 villas and 92 townhomes for purchase. The commercial space, 2,000 square feet, is ready to start leasing to tenants.
South Florida’s affordability crisis is only getting worse. Here’s what it would take to fix it.
South Florida Sun Sentinel, November 13, 2021, Amber Randall
The housing crisis in South Florida has only grown worse over the past decade, and with most fixes taking years to implement, the lack of affordability could lead to negative effects on South Florida’s economy.
It’s a tale of ups and downs. During the real estate boom of 2005, affordability, defined as how much housing costs relative to income, in South Florida plummeted as housing prices rose, according to data from ATTOM Data, a provider of nationwide property data. After the housing crash, prices became more affordable before beginning to take a turn for the worse in 2012, growing steadily worse until now.
The main driver is a lack of overall supply in the market, followed by the forces that make it difficult to build more units in our area: lack of land, zoning policies, the permitting process, impact fees and overall funding for affordable housing.
Affordable apartments for seniors unveiled in Flagler Village as housing crisis worsens
South Florida Sun Sentinel, November 3, 2021, Amber Randall
A developer celebrated the opening of 100 affordable apartments for seniors in Flagler Village Tuesday morning, offering some market relief as rents continue to rise in South Florida.
The apartment complex, Village View, caters to seniors and comes at a time when South Florida renters are struggling to find affordable places to live.
Located on Andrews Avenue, the building is already fully leased, which is an indication as to how serious the housing crisis has become in South Florida, according to Matthew Rieger, CEO and president of Housing Trust Group, the developer of the building.
The units are available for families where one person is 55 years or older, with apartments from one to two bedrooms ranging from 700 square feet to more than 1,100 square feet. The complex also has a swimming pool, a fitness center and parking garage. Rents are set at a more affordable range, from $402 to $1,296 per month, with spaces reserved for seniors who earn at or below 30, 60 and 70 percent of the area median income.
Growing Resilient Communities Initiative
Special Announcement, November 1, 2021, Urban League of Broward County
"We are grateful to Florida Blue for their investment in creating a sustainable foundation for families to thrive. Such investments empower us to focus more on population impact through proven solutions initiated by providing safe and affordable residence for our community," says Urban League of Broward County President and CEO Dr. Germaine Smith-Baugh. "Affordable, sustainable housing sits at the core of human survival, and it is here that we build strong communities."
Florida Blue, Florida’s Blue Cross, and Blue Shield plan, announced it is investing nearly $2 million into organizations doing work in Fort Lauderdale’s 33311 zip code as part of the insurer’s initiative to address generational poverty.
This summer, Florida Blue launched its Growing Resilient Communities initiative, a philanthropic program focused on breaking the cycle of generational poverty in five select ZIP codes across the state.
The initiative partners with residents and organizers in each community on specific needs, including access to quality education, financial security, safe and healthy living conditions, improved health status, and focused support from organizations and services.
The Urban League of Broward County was selected as one of three organizations, receiving $1 million to invest into The Village at Oakland Park. The Urban League plans to build a vibrant, intergenerational neighborhood in the heart of Oakland Park. The first phase of the new development will offer affordable, and workforce housing options for families, seniors, and individuals and will aim to improve the social and economic mobility of low- to moderate-income residents in the area.
Florida Blue awarded gifts to Greater Fort Lauderdale Alliance and Broward College’s BrowardUp program during a ribbon-cutting ceremony for a new Partners in Education for Business Success (PEBS) facility at Dillard High School in late October.
We know Miami rents are rising. Now we know where they rank nationally. Spoiler: Higher
Miami Herald, October 29, 2021, Rebecca San Juan
South Florida renters are already living in one of the priciest markets in the country. And, according to a new study, it’s only getting more expensive. The median rent rose by about 18% for the City of Miami, to $2,070 a month from $1,750 a month for one-bedroom units, over the last year, according to the October 2021 Zumper National Rent Report. Rents also jumped by 18% for two-bedroom units, to $2,730 a month from $2,310 a month, in that same time frame from October 2020 to October 2021.
The rent hike led to Miami ranking as the seventh city with the highest median rent for one bedrooms, up from its ninth slot last year. Fort Lauderdale followed the same trend line as Miami. Fort Lauderdale
ranks as having the 12th highest median rent for one bedroom units, falling two spaces below its rank from last year.
Bisnow South Florida, October 21, 2021, by Deirdra Funcheon
Miami Mayor Francis Suarez and City Commissioner Joe Carollo announced Monday that the city will develop a 104-unit condominium and sell off its units at cost. The city is seeking a builder for the project, dubbed Patria y Vida.
Suarez said the project was spearheaded by Carollo, known for his outspokenness and strong ties to Miami's community of exiled Cubans.
“Usually, we look for funds that we put in the hands of the private sector so that they are the ones who build affordable rental housing," Suarez said at a ceremony, according to Diario Las Americas. "Private developers bear all risk. In this case, we, the city, have taken more risk, but we are sure that we will obtain a better product for our residents at a better price."
The condominium will be built at 1251 Southwest Seventh St. with one- and two-bedroom units. Suarez said on Twitter that there would be income restrictions for buyers. Sales contracts will have language preventing buyers from flipping the condos for huge profits. They will be allowed to sell their units, but only for slightly more than they paid, Diario Las Americas reports.
With proceeds from condo sales, the city could develop another such project, recoup costs, build another one and so on. Carollo said it could be a model for other cities.
"This is the first affordable homeownership project not only in the city of Miami but in the entire state of Florida," he said.