The URL can be used to link to this page

Home My WebLink AboutSubmittal-Ned Murray-Affordable Housing Master Plan PresentationSubmitted into the public record for item(s) SP. 1, on 01/31/20 . City Clerk !'/\/��(a�kh/ ■i 1 ,1 Jorge M. Perez Metropolitan Center FLORIDA INTERNATIONAL UNIVERSITY INVESTING IN THE FUTURE AND SOUL OF MIAMI 7131-Submittal-Ned Murray -Affordable Housing Master Plan Presentation Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk THE PLANNING •W..,PROCESS Submitted into the public record for item(s) SP. 1, on 01/31/20 . City Clerk The FIU Jorge M. Perez Metropolitan Center was engaged to deliver a plan addressing the Full Scope of the City's affordable housing problem The 1-year planning process included district workshops, focus groups, and open houses The primary goal of the Plan is to increase the spectrum of choice, opportunity, and quality of affordable owner and rental housing to all who want to live in Miami ■��ea�rssa�� a >,+,�,.• �i,'� y',;! "'r.'.iYi i'rs��'t ate' r(sr•" The primary objective of the Plan is to keep Miami residents in their homes and create new homeownership opportunities Submitted into the public record for item(s) SP. 1, on 01 /31/20 . City Clerk The Plan Plan contains a series of to solve the City's Affordable Housing Dilemma The City Commission is Being Asked to: Accept the Plan Authorize the City Manager's Office to develop an Implementation Plan and present that plan to the City Commission arow pirrtro • Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk *4. :•�MIAMI'S HOUSING AFFORDABILITY PROBLEM Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk WHAT'S DRIVING MIAMI'S UNAFFORDABILITY? Low Income Occupations and Earnings High Income Disparity Rapidly Rising Home Values, Sale Prices & Rents Competing in Global Residential Real Estate Market 0 While Miami isn't the most expensive housing market in the nation, it is the most unaffordable because it's housing costs are high, and incomes are lower than comparable cities Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk WHAT'S DRIVING MIAMI'S UNAFFORDABILITY? Growing Affordability Gaps 32% of all renter households are "Severely" cost -burdened - paying in excess of 50% of their incomes on Housing costs Land and Redevelopment Capacity Out of a total of 193 Million sqft. of vacant property in the City, only 43.7 Million sqft. are suitable for residential uses Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk WHAT'S DRIVING MIAMI'S UNAFFORDABILITY? Rapid Decline in The Supply of Affordably Priced Housing Units Rapidly Declining Home Ownership Miami has become a City of renters. The City's homeownership rate, at 30%, is the lowest among large cities in the U.S. Owner Occupied Unit Supply Change by Value, 2013-2017 $1,000,000 or more $750,000 to $999,999 $500,000 to $749,999 $400,000 to $499,999 $300,000 to $399,000 $250,000 to $299,999 $200,000 to $249,999 $175,000 to $199,999 $150,000 to $174,999 $100,000 to $124,999 $90,000 to $99,999 $80,000 to $89,999 $70,000 to $79,999 $60,000 to $69,999 $50,000 to $59,999 $40,000 to $49,999 $35,000 to $39,999 $30,000 to $34,999 $25,000 to $29,999 $15,000 to $19,999 $10,000 to $14,999 Less than $10,000 F Net Units Lost $15,000 - $249,000 7,439 -1,600 -1,200 -800 -400 0 400 8001 200 1,6002 ,000 Rental Unit Supply Change by Unit Value, 2013-2017 $2,000 or more $1,500 to $1,999 $1,250 to $1,499 $1,000 to $1,249 $900 to $999 $800 to $899 $750 to $799 $700 to $749 $650 to $699 $600 to $649 $550 to $599 $500 to $549 $450 to $499 $400 to $449 $350 to $399 $300 to $349 $250 to $299 $200 to $249 $150 to $199 $100 to $149 Less than $100 t • ■ r Les. Net Units Lost than $1,000/month 3,405 (1,100)(600)(100)4 00 9001 ,400 1,9002 ,400 2,9003 ,400 3,9004 ,400 4,900 5,400 Submitted into the public record for item(s) SP. 1, on 01 /31/20 . City Clerk The City has lost an average of 1,286 affordable housing units each year over the last five years due to rising market price pressure Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk WHY HOUSING AFFORDABILITY MATTERS? Opportunity: Family Wealth Building Upward Economic Mobility Increase Local Spending Promotes Employment Growth Promotes Inclusive Economic Growth Increased Tax Revenue Increased Workforce Talent Increased Public Medical Costs Increased Public Transportation Costs Loss of Young & Educated Workers Loss of Cultural Diversity Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk A FIGHT FOR THE SOUL OF MIAMI Greater housing affordability is a fight for the soul of Miami — enhancing, protecting, and preserving the neighborhoods that make Miami the most diverse and dynamic City in North America Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk THE GOAL INCREASE PERCENTAGE OF AFFORDABLE HOUSING 20% - 25% 32,000 UNITS OVER 10 YEARS = $4 - $6B TOTAL INVESTMENT Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk Growing the Share of Affordable Housing SCALE: Strategies and programs that deliver the scale of production required to address the unprecedented scale of the City's affordable housing crisis SPEED: Strategies and programs that can be executed quickly FLEXIBILITY: Strategies and programs that can be implemented equitably with a minimum of red tape, and INTELLIGENCE: Smart, targeted affordable housing development based on the City's needs and its best housing redevelopment opportunities Submitted into the public record for item(s) SP.1, on 01/31/20 . City Clerk Submitted into the public record for item(s) SP.1, on 01/31/20 . City Clerk I. FOCUS ON KEY STRATEGIES & OPPORTUNITIES Growing the Permanent Supply of Affordable Housing The City's immediate and most important strategic priority is to stem the loss of multi -family rental housing affordable to households earning 80% of median income using two strategies: Preserving existing affordable housing units by providing financing for housing improvements in exchange for extended affordability provisions Preserving existing affordable housing through acquisition Focus on 5 - 50 unit developments Submitted into the public record for item(s) SP. 1, on 01/31/20 . City Clerk I. FOCUS ON KEY STRATEGIES & OPPORTUNITIES Aggressive Land Banking Single-family properties at $100,000 or less Vacant properties at $20,000 per unit or less Re-purposing/expansion of commercial uses (T-6) Tap the Strength of the City's Real Estate Development Industry Submitted into the public record for item(s) SP. 1, on 01/31/20 . City Clerk I. FOCUS ON KEY STRATEGIES & OPPORTUNITIES Build Local Non-profit Development Capacity Establish list of "preferred vendors" for working with the City Sponsor and fund rapid expansion of local housing development non -profits Organize technical assistance, training, and operating funding and improved creditworthiness Organize and Sponsor Creation of Housing Development Hybrids Focus on Long-term Ownership & Management Leverage Housing Investment to Rebuild Communities Focus on Mixed -Use, Mixed -Income Development Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk I. FOCUS ON KEY STRATEGIES & OPPORTUNITIES • Targeting the City's Best Affordable Housing Opportunities Focus on Miami 21's T 5 and T-6 Corridors Miami -Dade County Public Housing Communities Single Family Neighborhoods and Scattered Site Development Single Family Accessory Dwelling Units Cautious Development of Micro -Units Re -Purposing & Conversion of Commercial Properties Transit Oriented Development Sites Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk AFFORDABLE HOUSING OPPORTUNITIES CITYWIDE Vacant Property Analysis Vacant Property Lots Acres Potential New Units (Market & Affordable) Privately Owned City Owned Other Govt. Owned Undersized Buildable Lots TOTAL 3,501 884 97 35 232 84 3,830 1,003 967 88 4,797 1,091 77,202 3,108 9,277 89,587 967 90,554 The City's Affordable Housing Development Opportunities Total Existing Units Existing Affordable Units Potential New Units on Vacant Property (Market & Affordable) T5 and T6 Corridors 98,954 42,256 Single Family Homes 34,172 4,234 Miami -Dade County Public Housing Communities (RAD Program) Transportation Oriented Development Sites Re -Purposing & Conversion of Commercial Properties Single Family Accessory Dwelling 9,000+ 8,000+ Units 2,035 2,035 13,176 4,743 72,962 3,289 5,433 8,870 5,500 967 Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk AFFORDABLE HOUSING OPPORTUNITIES CITYWIDE O T-6 and T-5 Corridors Public Housing Communities TOD Sites Single Family Neighborhoods Properties with unit value less or equal to $100,000 Overtown Density Increase Area O 0 Model City 0 Allapattah Flagami West Flagler 1 Sou Upper Eastside Little Haiti I i Wynwood Overtown Little Havana v 4 Coral Way North Coconut Grove h Coconut Grove 3 Downtown Islands 2 Islands Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk COMMISSION DISTRICTS Cost -Burdened Renters L o\o o\o h Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk OWNER & RENTER GAPS BY DISTRICT DISTRICT District 1 District 2 District 3 District 4 District 5 OWNERS RENTERS (50% - 120% MHI) (0% - 120% MHI) (512) (612) (573) (3,244) (121) 50%-80%MHI (7,827) (5,021) 0%-80%MHI (8,482) (6,102) (6,850) Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk .WZ..M. II. MIAMI AFFORDABLE HOUSING FINANCE CORPORATION Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk II. MIAMI AFFORDABLE HOUSING FINANCE CORPORATION Continuously pool funding from a wide variety sources Finance property acquisition, pre -development, development, land banking, property re -purposing and home ownership Coordinate third -party funding to grow and develop local non- profit affordable housing capacity, and Participate as an equity investor in select development and redevelopment projects. The Corporation will focus on financing affordable housing development and rehabilitation, relying on the talent and skills of the area's builders, developers, realtors, managers, owners and non -profits to build and re -build affordable housing in the C►ty Submitted into the public record for item(s) SP. 1, on 01/31/20 . City Clerk III. MIAMI AFFORDABLE HOUSING INNOVATION .••••• FUND Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk III. MIAMI AFFORDABLE HOUSING INNOVATION FUND 4,,,,,"0 r,,,,,eiii../„Its, The Master Plan's Affordable Housing Innovation Fund is a "layered" fund, which combines multiple sources of capital from across different sectors — public, private, and philanthropic (social impact investment) —into a single revolving loan fund for nonprofit and private affordable housing developers Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk III. MIAMI AFFORDABLE HOUSING INNOVATION FUND MM The City will create a Miami Affordable Housing Innovation Fund — a single, tightly organized, professionally managed Fund that will finance the City's affordable housing development Reaching scale quickly followed by continuous fundraising A local, privately funded plan Flexibility Replenishment Partnerships and long-term commitments Funding under one roof MIAMI AFFORDABLE HOUSING INNf /AT Ifn FUND - 10-YEAR CAPITALIZATION PLAN PRIMARY SOURCES The City of Miami Forever Bond Commercial Loans (Private Loan Pool) Philanthropy (Social Impact Investing) Real Estate Investment Trusts (REITs) Opportunity Zones (OZs) O T IytK Po I tiN1 I lAL SOURCES New Market Tax Credits (NMTC) Proposed Empty Home (Vacancy) Tax Affordable Housing Linkage Fees ')OTENTIAL ACTIVITIES Acquisition & pre -development loans, first time homebuyer and rehabilitation grants & low-cost loans, shared equity investment, accessory dwelling unit (ADU) construction Senior debt, mezzanine debt ADU financing, mortgage loans, home repair loans Subordinate debt, start-up grants for non-profit developers Equity investments in acquisitions, affordable housing development and preservation Mixed -use, mixed -income project financing Acquisition & pre -development loans, affordable housing development, rehabilitation financing, shared equity investment, accessory dwelling unit (ADU) construction Acquisition & pre -development loans, affordable housing development and rehabilitation financing, shared equity investment, accessory dwelling unit (ADU) construction TARGETED AMOUNT $85 M $400 - $500 M $300 M - $500 M $100 M $100 M $75 M - $200 M $200 M - $800 M (1) $200 M - $800 M (1) Submitted into the public record for item(s) SP. 1, on 01/31/20 . City Clerk Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk INNOVATION FUND FINANCING PRODUCTS Shared Equity Investment Property Acquisition and Pre -Development Loans Traditional Down Payment Assistance Shared -Equity Mortgage Loans Lease -Purchase Agreements Housing Co-Ops Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk CUSTOMIZED LOAN PRODUCTS Local Affordable Housing Loans Federal Home Loan Affordable Housing & Community Investment Program Loan Guarantees PROPERTY TAX ABATEMENTS Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk Submitted into the public record for item(s) SP. 1, on 01/31/20 . City Clerk IV. AFFORDABLE HOUSING DEVELOPMENT FOR ALA Simplify and Centralize Access to Affordable Housing Developmen and Finance Programs Streamline Zoning and Permit Review The Housing Technology Construction Innovation Fund Drive the City's Climate Change Agenda Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk V. DRIVE SMALL BUSINESS CREATION & •:.••• NEW SKILLED W ..1.4t. • DEVELOPMENT Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk V. DRIVE SMALL BUSINESS CREATION & NEW SKILLED EMPLOYMENT Skilled trade contractor education, job training, mentorship, licensing, certification and on -site training program assistance program Equipment grants and loans for small women and minority architecture, design, and construction firms New construction and development business incubators and accelerators Single unified Community Benefits Agreement (CBA) Incentives and priorities for small, minority, and women -owned businesses Local hiring information and assistance network Preferred access to the City's affordable housing programs Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk PERFORMANCE _ � MANAGEMENT Submitted into the public record for item(s) SP.1, on 01 / 31 / 20 . City Clerk PERFORMANCE MANAGEMENT INSTITUTION BUILDING POLICY & MANAGEMENT THE MUNICIPAL SCORECARD FOR AFFORDABLE HOUSING DELIVERY DEDICATED FUNDING PLANNING & LAND USE f Submitted into the public record for item(s) SP. 1, on 01 / 31 / 20 . City Clerk Jorge M. Perez Metropolitan Center