HomeMy WebLinkAboutItem #03A - Discussion ItemRichard L. Fosmoen
City Manager
�iuL �-Ghat,.✓
Dena Spillman, Director
Department of Community Development
January 16, 1981
Land Acquisition and site
assembly for affordable rental
housing development
As you know, the lack of raw land at reasonable cost has been and continues to
be one of the major impediments to participation by the private sector in the
development of affordable rental housing. This lack of land for housing devel-
opment has precluded private housing developers from submitting responses to
HUD Section 8 development notifications effectively depriving the City of
available housing assistance resources.
Public acquisition and assembly of suitable land for housing development and
its subsequent disposition to private developers at reasonable cost is one of
the key ingredients necessary to the production of affordable housing in Miami.
A survey of potential housing development sites in the City is ongoing. To
date, several sites have been identified. Some of these are vacant. We are
confident that there are sufficient sites in the City to provide for the
development of at least 1,000 units of multifarlily rental housing.
With the City Coc,mission's endorsement of the concept of public acquisition and
assembly of housing development sites we will be in a position to proceed
immediately to develop firm plans and procedures for land acquisition. Funding
can be provided through the City's Housing Bond program. _
While, at this time, we are not in a position to provide a precise schedule
for completion of acquisition activities to reach a 1,000 unit land assembly
goal, we believe sufficient land can be acquired within a 24 month period with
some sites available as early as July of 191. City Commission approval will
be requested prior to proceeding with the acquisition for any parcel for this
purpose. Disposition of the land would also be subject to safeguards to
insure its long term use for low and moderate income housing.
At the Housing t-lorkshop City Commission approval will be requested for the
initiation of a public land acquisition program to provide suitable sites for the
production of low and moderate income housing. Also, the City Commission will be
requested to allocate S5,000,000 in Housing Bond proceeds for the acquisition
program.
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# 2 .
We have asked HUD for increased rents for the Coconut Grove elderly
housing and the Overtown family housing. We expect to know by the
end of next laeel: whether these rents will be approved. I.L they are,
we will not need an: additional carital contribution for these tti;c
projects. Actually, with the reque;,`-e incre: ed rents, the es-
timated capital contribution for tale Coconut grove el(lerl,"j and the
Overto;';n faI^,il,•* projects '.,iill amount tc. v ! 36,500 or a33,000 leas
than r;e e3ti? ate:1 last April. iiO ,,;ever, ,:e .;ill nee:i an alditional
$90, 000 for th`. ce project.- to c:: vei the short -fall cause,' by the
carital contributicl: airea,iv ;-iaJe to :': r..,. :ri n'i a': ana.
�t th:---e -yin ,:,,ct r- o i .--. dA ale
Both are �c ,. c r:mot, a �i a
April 1, and e ci: has a 12-month conotruction perioi.
These additional capital contribution needs can be met •rithin the
presently -authorized bond sale because the land ;e are proposing; to
acquire for new )sousing will involve less relocation and demolition
costs than initially estimated.
Richard L. Fosmoen
City Manager
Dena Spillman, Director
Department of Community
,T January 16; 1981
;' L E
n.rr„.•.,E_5 Land Acquisition and site
Development assembly for affordable rental
housing development
As you know, the lack of raw land at reasonable cost has been and continues to
be one of the major impediments to participation by the private sector in the
development of affordable rental housing. This lack of land for housing devel-
opment has precluded private housing developers from submitting responses to
HUD Section 8 developi:rent notifications effectively depriving the City of
available housing assistance resources.
Public acquisition and assembly of suitable land for housing development and
its subsequent disposition to private developers at reasonable cost is one of
the key ingredients necessary to the production of affordable housing in Miami.
A survey of potential housing development sites in the City is ongoing. To
date, several sites have been identified. Sorge of these are vacant. We are
confident that there are sufficient sites in the City to provide for the
development of at least 1,000 units of multifamily rental housing.
With the City Commission's endorsement of the concept of public acquisition and
assembly of housing development sites we will be in a position to proceed
immediately to develop firm plans and procedures for land acquisition. Funding
can be provided through the City's Housinq Bond program. _
While, at this time, we are not in a position to provide a precise schedule
for completion of acquisition activities to reach a 1,000 unit land assembly
goal, we believe sufficient land can be acquired within a 24 month period with
some sites available as early as July of 1931. City Com.rnission approval will
be requested prior to proceeding with the acquisition for any parcel for this
purpose. Disposition of the land would also be subject to safeguards to
insure its long term use for low and moderate income housing.
At the Housing ''Workshop City Commission approval will be requested for the
initiation of a public land acquisition program to provide suitable sites for the
production of low and moderate income housing. Also, the City Commission will be
requested to allocate S5,000,000 in Housing Bond proceeds for the acquisition
program.
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'•7
J
The Miami City Commission has:
expressed concern regarding the loss of rental
housin<" units throe h conversion to condominiums;
requested an inquiry into the possibility of
creatin:; a special zoni_ny district for multi -family
rental housin-c onl,
requested an analysis of the need for additional
multi -family zonin, includin- the identification
of areas wliere such zoning; should occur.
General Observations Re. ardi.n�; Operation of the housing Market
land is only one of the major factors in the cost
of new housin:; production but it is escalating
rapidly in strong market areas;
land currently zoned for sin;l.e family and duplex
use could be rezoned for multi -family use and not
result in reduced land costs which could be passed
on to housing consumers;
the City has numerous housin, sub -markets each re-
quirin,, special strate„ies to stimulate new con-
struction and conserve existing housin,, resources;
ri_sin;; housin;* costs will prevent most of t,iiami's
population from purcha:3i.n� now liousin- units thus .
affecting; the demand for rental units;
return on invesiment from rental apartments is being
reduced b%, increasing, O/M costs, la,;r-ing rents and
Federal tax policies reglardin- depreciation.
Specific Findin,r.'
1. in recent years Miami has had a significant rate of
housin„ production;
2. some cities in other states have enacted local condo
conversion re„ulations to assist renters;
3. althoug;li zoning; solely for rental units is not legal
there aro other approaches to stimulate the production
of rental uni t:.3 ;
4. there is considernble opportunity for residential
devolopinont and redevelopment under existing zoning;
5. Numerous studies now underway, if carried out,
provide zoning for an additional 8812 residential
units;
enactment of the n(-%v zoning ordinance would en-
courage development of multi. -family units;
More data on the specific findings follows:
1. In recent vears Nli nrli has .}lad a significant rate of
hourinIg product on :
from 1970-1975 10,000 new units were added
to the Niixni housing stock;
�. from 1975-1979 building permits were issued
�-` for 7678 units as follows:
S.F. and Dunlel M.F. And Other
1975
373 790
1976
489 534
1977
543 516
1978
595 719
1979
504 1,25S
2. Some
cities in other states have enacted local condo
conversion re,illations to assist renters:
these ordinances have provisions which regu-
late the time bet,xeen notice and the actual '
conversion of the unit; -
give existing tenants the right of first refusal
during; the sale of units;
require the private convertor to pay relocation
costs for thc' tenants;
requirO the convertor to assist the tenants in
finding Ilew rC'Iltal 110U5inrr;
require that 10U of the units to be converted
be set aside for low and moderate income
families;
3r AlthouE*h zoning solely for rental units is not
legal there are other appi'naches to stimulate
the production of rental_ Units.
tax incrernent financing could be used in
redevelopment, area-, to lower production
costs throu,h 1,and write -downs, and then man-
date snino rental units under land disposition
agreements;
new Federal programs could be enacted, e.g.
provide incentives for rental housing;
a new State housing finance agency could assist
in the financin,-/production of rental housing;
the County housing; finance a-ency can currently
aid rental projects that also assist moderate
income families;
the new County llousin r Bond Program can finance
the cost of duplexes for moderate income fam-
ilies and the second unit could be rented.
i 4. There is con:,iderabl(� opportunity for residential
development and und(?r exi:;1 in_; znnin,.
a 1975 land u:,(, survey co,npared with existing
zoning, ir.ciicat(�d "Capacity" for 51,000 units
over the current development level of 135,000
existing; uni ts; -
this "cap.ici ty" must be adjusted downward to
reflect land assembly problems adjacent to areas
of "overdevelopru>nt" and currently weal: market
demand.
Area of sig;nifican t opportunity for new units under
existing; zoning; includo:
remaining; R-5 and R-3B lots on Brickell
between 15th Road and 2Sth Road;
the Area;
portion:; of the Little ilavana/Lununus Park Area;
Overtown ;
Clauhton Island;
Northeast ?Miami west of t-95;
the Civic Center Area;
part of Coconut Grove.
5. Numerous studies now undnr'wav, if carried out,
provide zoning for an ad(iitional 8812 residential
units.
Vizcaya Transit Station 255
Coconut Grove Transit 160
Station
Brickell Transit Station MXD 1800
Areas North & South of 1500
Transit Station
Douglas Road Transit Station 411
New Washin,,ton Heights 520
Transit Station
Allpattah 'Transit Station 58
Biscayne Boulevard North 650
Civic Center Secondary 45S
Development Area
Park West - New -Town -In -Town 3000
8812
6. Enactment of the new ;.onins-- ordinance would encoura4re
dove Iopmen t: o I' mu I r, i- I'all, i. 1,; till i t ti .
the proposed land LISO intrnsi.ty for regulating
zoning is consistent with and derived from
Federal standards regulating multi -family
dcvc lopm(rnt ;
the now zonin;; ordinance eliminates unit size
regulations rf2placing them with F1IA minimum
units stnticlards providing developers maximum
flexibility to respond to market;
f
� 4
i
t
r assuming minimum unit size,130 units
per acre could be provided rather
than the current 98 units:
encourages planned area development;
more flexible parkin.:,, requirements.
Next steps:
consider support for additional regulation of
condo conversion to protect renters;
review and adopt plans for unzoning now underway;
adopt zoning changes subsequent to plan adoption
step above;
support and utilize Federal, State and County
prograris design,?d to increase the supply of
rental units;
support studs' of several areas with strong
development potential to produce the best
development strategy, specifically:
the Ed,e :tti;er Aria Nmst of Biscayne
Boulevard from NE 1.7th Terrace to
NJ-" 36th St,roet; and