Agenda 01-30-07
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Med ia contact:
Margee Adelsperger
CRA Public Relations
(561) 737-3256, ext. 204
adelspergerm@ci.boynton-beach.f1.us
FOR IMMEDIA TE RELEASE
January 9, 2007
MEDIA ADVISORY
WHO: Boynton Beach CRA (www.bovntonbeachcra.oro)
City of Boynton Beach (www.bovnton-beach.ora)
WHAT: Joint CRA/City Workshop on
Proposed Workforce Housing Program
WHERE: Boynton Beach Library (Program Room)
208 South Seacrest Blvd.
Boynton Beach, FL 33435
WHEN: Tuesday, January 30, 2007
6:30 P.M. - 8:00 P.M.
WHY: The Boynton Beach City Commission, CRA, and Planning and
Development Board will meet to discuss a proposed ordinance to
create workforce housing in Boynton Beach. The ordinance would
require that a percentage of units in new residential developments
be categorized as workforce housing to ensure that individuals
employed as police officers, teachers, nurses, and other middle
income workers can afford homeownership in Boynton Beach.
CONTACT: Workshop host Vivian Brooks, CRA Planning Director,
(561) 737-3256, extension 211.
The City 0/ BOYl1ton Beach
Office Of The City Manager
100 E Boynton Beach Boulevard
P.O. Box 310
Boynton Beach, Florida 33425-0310
City Manager's Office: (561) 742-6010
FAX; (561) 742-6011
e-mail: bressnerk@ci.boynton-beach.fI.us
www. boynton-beach.org
January 23, 2007
Re: Joint Workshop on Proposed Workforce Housing Ordinance
Dear Commissioners, CRA and Planning and Development Board Members,
As you are aware, there is a critical shortage of workforce or affordable housing at the
national and localleve!. A shortage of workforce housing poses a threat to a city's future
economic growth. Retaining and recruiting businesses becomes more difficult as workers
seek areas where housing is more affordable.
Additionally, the federal government's financial role in providing workforce housing has
diminished forcing more of this function onto local municipalities. Triple digit increases in
housing prices have priced out much of the local workforce.
Many cities, and most recently Palm Beach County have passed ordinances to require or
encourage new developments to include a percentage of workforce housing in their
projects. City and CRA staff has been working together for the last six months to craft a
similar ordinance that will complement the County's ordinance.
In preparation for our upcoming Workforce Housing Workshop on January 30th, I am
enclosing for your review a draft of the Workforce Housing Program Ordinance and the
Boynton Beach Housing Needs Assessment.
I look forward to a productive meeting and your assistance in helping to solve this complex
issue.
~~
Kurt Bressner
City Manager
S :\City Mgr\Administration\JOYCE\Workforce Housing .doc
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AGENDA
Joint Workshop
Workforce Housing Program
Boynton Beach Library
January 30, 2007
6:30 - 8:00 pm
1. Introductions
2. Opening Remarks - Wilfred Hawkins, Assistant City Manager
3. What is the Issue? - Vivian Brooks, CRA Planning Director
4. Review of Proposed Workforce Housing Program Ordinance
5. Discussion
6. Adjournment
1
2
3 Workforce Housing Program
4 Drnft
5 January 22, 2007
6
7 The City of Boynton Beach recognizes that in order to sustain and grow its
8 economy, the City must have an inventory of various housing types and pricing
9 for workers. Additionally, the City and CRA have designated a CRAWLS and
10 TCEA which mandate the creation of workforce housing.
11
12 In July 2006, the FlU Metropolitan Center conducted a Housing Needs
13 Assessment for the City. The Assessment states that the City will need 10,800
14 workforce units by 2025 priced for families earning below 120% of AMI. The goal
15 of the proposed Program is to create and retain a supply of workforce housing
16 units within the City. The recent trend of rental to condominium conversions has
17 also added to the shortage of affordable rental units.
18
19 There are a number of arguments for local government involvement in
20 encouraging the production of affordable housing. First, the federal
21 government's financial commitment to the creation of affordable housing is
22 increasingly being reduced, putting the burden on state and local governments
23 which have limited resources.
24
25 A lack of decent workforce housing can be a barrier to a sustainable economy.
26 Housing costs have a major influence on a businesses decision to locate to a
27 certain area. Furthermore, young people can be discouraged from returning
28 home after college because of high housing costs thus reducing the number of
29 highly qualified workers in the area.
30
31 A lack of workforce housing also contributes to traffic congestion as workers
32 settle further outside of expensive areas. Lower capacity roads also limit a city's
33 ability to grow.
34
35 The creation of the Workforce Housing Program is being implemented in
36 accordance with the adopted Community Redevelopment Plans and the City of
37 Boynton Beach's Comprehensive Plan. The Workforce Housing Program would
38 permit amending land use to the higher density land use designations of Special
39 High Density Residential, Mixed-Use and Mixed-Use Core if Workforce Housing
40 Units are created or off-site options are performed.
41
42 In cases of hardship where all the required Workforce Housing Units cannot be
43 created entirely on site, the developer must comply with the offsite options for the
44 creation of the remaining Workforce Housing Units as described in the
45 Ordinance. All Workforce Housing Units are to be compatible in exterior design
46 and appearance, construction and contain comparable HV AC systems as the
47 proposed market units. All Workforce Housing Units are to remain as income
48 qualified units for a period of no less than 30 years and will be enforced through
49 recorded deed restrictions and liens.
50
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51 Pursuant to LDR Section 9. C. 1, approval of an LDR amendment must be based
52 upon a finding that the amendment is consistent with and furthers the Goals,
53 Objectives, and Policies of the Comprehensive Plan. This amendment furthers
54 the following Comprehensive Plan Objective 6.3.
55
56 RECOMMENDED ACTION
57
58 By motion, approve the amendment to the Land Development Regulations to
59 create a new Article _ Workforce Housing Program, which could permit a land
60 use change to the higher density categories of Special High Density Residential,
61 Mixed-Use or Mixed-Use Core provided that Workforce Housing Units are
62 incorporated into the development or offsite e, by adopting the findings of fact
63 and law contained in the staff report and finding that the request is consistent
64 with the Comprehensive Plan and meets criteria set forth in Section
65 of the Land Development Regulation, with second reading to occur on
66 , 200.
67
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68 ORDINANCE NO.
69
70 AN ORDINANCE OF THE CITY COMMISSION OF THE
71 CITY OF BOYNTON BEACH, FLORIDA, AMENDING THE
72 LAND DEVELOPMENT REGULATIONS OF THE CODE
73 OF ORDINANCES, TO CREATE A NEW ARTICLE ,
74 WORKFORCE HOUSING PROGRAM, PROVIDING FOR
75 REGULATIONS AND INCENTIVES TO BUILD
76 WORKFORCE HOUSING TO ENSURE THAT THE CITY
77 HAS SUFFICIENT WORKFORCE HOUSING; PROVIDING
78 FOR THE ABILITY TO AMEND A LAND USE
79 DESIGNATION TO SPECIAL HIGH DENSITY
80 RESIDENTIAL,MIXED-USED OR MIXED-USE CORE
81 PROVIDING THAT WORKFORCE HOUSING UNITS ARE
82 CREATED PURSUANT TO THE TERMS OF THIS
83 ORDINANCE; PROVIDING A SAVINGS CLAUSE, A
84 GENERAL REPEALER CLAUSE, AND AN EFFECTIVE
85 DATE.
86
87 WHEREAS, Workforce housing is needed by the citizens of Boynton
88 Beach; and
89
90 WHEREAS, The City Commission of the City of Boynton Beach, Florida,
91 adopts the findings in the Staff Report; and
92
93 WHEREAS, the City Commission of the City of Boynton Beach, Florida,
94 finds the ordinance is consistent with the Comprehensive Plan.
95
96 NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION
97 OF THE CITY OF BOYNTON BEACH, FLORIDA AS FOLLOWS;
98
99 Section 1. The recitations set forth above are incorporated herein,
100
101 Section 2. That Article , "Workforce Housing Program" of the
102 Land Development Regulations of the Code of Ordinances of the City of
103 Boynton Beach, Florida, be, and the same is hereby enacted to read as
104 follows:
105
106 FINDINGS
107
108 a. The City Commission having conducted a Housing Needs
109 Assessment (Attachment _) has determined that there is a housing
110 shortage within the City of Boynton Beach that is affordable to the
111 everyday working families and citizens of the City; and
112
113 b. Florida Statutes 166.04151 provides that a municipality
114 may adopt and maintain any ordinance that is adopted for the purpose
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of increasing the supply of workforce housing using land use
mechanisms not withstanding any other provision of law; and
c. The City Commission recognizes that there is a growing
gap between housing costs and wages in the City; and
d. The City of Boynton Beach has a legitimate public interest
in preserving the character and quality of neighborhoods which
requires assuring the availability of workforce housing for low and
moderate income persons in the City; and
e. The City recognizes that the need to provide workforce
housing is critical to maintaining a diversified and sustainable City
having the character and sense of community where people can live
and work in the same area; and
f. The City is encouraging the production and availability of
workforce housing and at the same time is cognizant that escalating
land costs and rapidly diminishing amounts of land hinder the provision
of sufficient workforce dwelling units by the private sector.
DEFINITIONS
a, Median Household Income (MHI) - The Palm Beach
County Median Household Income, adjusted for family size,
as published by the Department of Housing and Urban
Development (HUD).
b. Affordability Controls - Restrictions placed on Workforce
Housing Units by which the price of such units and/or the
income of the purchaser or lessee will be restricted in order
to ensure that the units remain affordable to low and
moderate income households.
c. Affordability Term - The time a workforce housing unit is
required to remain affordable to income qualified buyers or
renters.
d. Boynton Beach Housing Trust - A trust created as a
depository for in-lieu of payments, donated land, or housing
units for the purpose of providing Workforce Housing Units.
e. City - The City of Boynton Beach, Florida.
f. Deed Restriction - Each Workforce Housing Unit created
under the Program shall be deed restricted for thirty (30)
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years. The Deed Restriction shall serve to restrict the sales
or rental price and/or the income of the purchaser or renter.
g,
Development - A development at one location which
includes at least ten (10) residential units for which site
plan approval has been granted
h.
Eligible Occupant - A person who qualifies for participation
in the program whose income does not exceed 120% of
Median Household Income for Palm Beach County as set
by HUD Priority will be given to persons who have lived or
worked within the City limits of Boynton Beach continually
for one year immediately prior to the date of application for
a Workforce Housing Unit.
I.
First Time Home Buyer - A person who has not held
ownership in a residence within the past three years.
J.
Income Qualified Household - A household whose income
is verified to be either Low Income or Moderate income.
k.
Low Income Household - A household with a gross,
combined income below 80% of the Palm Beach County
Annual Median Household Income as defined by HUD..
I.
Moderate Income Household - A household with a gross,
combined income between 80% and 120% of the Palm
Beach County Median Household Income (as defined by
the Florida Housing Finance Corporation).
m.
Restrictive Covenant and Agreement - The covenants that
govern the initial sale and rental and subsequent resale
and releasing of Workforce Housing Units created under
the Workforce Housing Program. The term of the
Restrictive Covenant and Agreement is thirty (30) years,
n.
Workforce Housing Unit - A dwelling to be sold or leased to
an individual or family that is Income Qualified in which the
rent or mortgage payments (including principal, interest,
taxes, insurance and homeowner association fees) does
not exceed 35% of the gross income of households that are
classified as low or moderate income households.
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APPLICABILITY
Except as otherwise provided in this ordinance, these regulations shall apply to
development applications consistent with the following conditions:
a. A new development, a major modification of an approved
development or substantial rehabilitation of an existing
building with a residential component in which any Mixed
Use land use designation and a corresponding Mixed Use
zoning category is applied for.
b. A new development, a major modification of an approved
development or substantial rehabilitation of an existing
building with a residential component in which any Mixed
Use Core land use designation and a corresponding Mixed
Use zoning category is applied for,
c. A new development, a major modification of an approved
development or substantial rehabilitation of an existing
building with a residential component applying for a land
use designation of Special High Density Residential.
PROVISION OF WORKFORCE HOUSING UNITS
Developers may be entitled the requested higher density land use and zoning
category if providing Workforce Housing Units as stated below, subject to the
limits and requirements of this chapter.
a. To be eligible for the requested higher density land use, the
following percentage of Workforce Housing Units must be
incorporated into the Development:
I. Special High Density Residential - Twenty
percent (20%) of the total number of
proposed residential units in the Development
shall be designated as Workforce
Housing Units.
II. Mixed-Use - Fifteen percent (15%) of the
total number of proposed residential units in
the Development shall be designated as
Workforce Housing Units.
III. Mixed Use Core - Ten percent (10%) of the
total number of proposed residential units in
the Development shall be designated as
Workforce Housing Units.
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Twenty-five percent (25%) of the total Workforce Housing Units shall be set
aside for Low Income households. Seventy-five percent (75%) of the total
Workforce Housing Units shall be set aside for Moderate Income households.
b. If the required number of Workforce Housing Units results
in a fractional remainder greater than .50, the number shall
be rounded up, If the required number of Workforce
Housing Units results in a fractional number less than .50,
the number shall be rounded down.
c. Workforce Housing Units shall have the same percentage
of unit types as market rate units within the development
particularly with regards to the number of bedrooms.
d. All units shall meet the requirements for unit size and
construction as specified in this chapter and meet all
required Land Development Regulations and applicable
building codes.
e. At the time of application for Land Use classification
amendment and rezoning category change the project
must be reviewed and signed off by the Community
Improvement Division of the City as part of the site plan
approval process for compliance with affordability
guidelines and number of units qualifying as Workforce.
f. The site plan shall clearly identify the location of Workforce
Housing Units. Additionally, tabular data must be included
on the site plan showing the address or unit number, total
number of units, number of bedrooms of Workforce
Housing Units and the targeted income levels. This shall
be included with the market rate data.
g. Workforce Housing Units shall include those units in a
Development, which are regulated in terms of:
I. Initial sales price or rent levels; and
II. Subsequent resale or leasing
h. If compliance with a land development standard would
preclude construction of a residential or mixed-use
development in which Workforce Housing Units are
included, pursuant to this Chapter, the applicant may
submit a proposal for waiver or reduction of the
development standard. The applicant shall show that the
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waiver or reduction of the development standard is
necessary to make the Workforce Housing Units
economically feasible and that such a waiver will not
compromise any of the City's life or safety standards.
I. Prior to the issuance of any building permit, the Restrictive
Covenant and Agreement shall be recorded in the public
records of Palm Beach County. The term of the Restrictive
Covenant shall be thirty (30) years.
OFF-SITE OPTIONS
Developers are required to include Workforce Housing Units in any
Development in which Special High Density Residential, Mixed-Use or
Mixed-Use Core land use is requested. However, in the case of
developments in which 80% of the residential unit prices exceed
$500,000, paying a fee in lieu of creating the Workforce Housing Units
on site donating land, purchasing and donating market rate units or
building off site for the required number of Workforce Housing Units
may be permitted at the recommendation of the Community
Improvement Department.
I. Payment in-lieu Contribute the per unit price listed in Table 1 below
to the Boynton Beach Housing Trust to be utilized to subsidize the
creation of Workforce Housing within the City In-lieu of fees shall
be paid in full prior to the issuance of a building permit.
TABLE 1
PAYMENT IN LIEU FOR CREATING
REQUIREDWORKFORCE HOUSING UNITS
(per unit required)
One Bedroom
Two Bedroom
Three+ Bedroom
$80,000
$100,000
$120,000
II. Donate land (buildable residential parcels) within the City limits to
be used for Workforce Housing. The value of the land shall equal
or exceed the total "in lieu of' fee for all required workforce units or
shall be of sufficient size to develop the same number of required
units. The value of the donated land must be verified by a MAl
appraisal no more than three months old. The appraisal shall be
obtained by developer at developer's cost to verify the value of
donated land. The land shall be deeded to the City prior to the
issuance of a final Certificate of Occupancy for the Development.
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III. Off-site Construction - The required Workforce Housing Units may
be built off-site. All off-site Workforce Housing Units shall comply
with all sections of this Ordinance. Building permits shall be issued
for a minimum of 50-percent of the required Workforce Housing
Units to be constructed off-site prior to the issuance of the first
Certificate of Occupancy in the subject development. All off-site
Workforce Housing Units must receive a Certificate of Occupancy
prior to the issuance of more than 75-percent of the Certificate of
Occupancies in the subject development.
IV. Purchase Market Rate Units -Purchase an equivalent number of
existing market rate units to be deeded to the City or sold to eligible
households. Such units shall be deed restricted to comply with the
Workforce Housing Ordinance. The developer may retain the title
to off site units subject to recordation of a City approved deed
restriction. A minimum of 50-percent of the units must be purchased
and deeded to the City or deed restricted prior to the issuance of
the first Certificate of Occupancy in the subject Development. All
Workforce housing Units shall be purchased and deeded to the City
or deed restricted prior to issuance of more than 75-percent of the
Certificate of Occupancies in the subject Development.
RENTAL HOUSING UNITS
a. A Restrictive Covenant shall be recorded in the public
records specifying the income level served, rent levels,
reporting requirement and all restrictions applicable to the
Workforce Housing Units. All leases on Workforce Housing
Units shall contain language incorporating the Restrictive
Covenant applicable to the Workforce Housing Units and
shall reference the recorded Restrictive Covenant. The
Restrictive Covenant shall remain in force for thirty (30)
years.
c. Units targeted to low income households at 50% to the
80% of the Palm Beach County median income, adjusted
for family size shall not have rental rates that exceed 100%
of the HUD determined fair market rent for the area.
d. Units targeted to moderate income households at 80% to
the 120% of the Palm Beach County median income,
adjusted for family size, shall not exceed 100% of the HUD
determined fair market rent for the area.
e, Tenant income qualification records shall be maintained on
site and a yearly report shall be forwarded to the
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Community Improvement Division of the City of Boynton
Beach for compliance determination.
FOR SALE HOUSING UNITS
a. All deeds shall include the Restrictive Covenant applicable
to Workforce Housing Units, All sales contracts shall state
that the unit is part of a Workforce Housing Program and
subject to Section of the Land Development
Regulations of the City. The Restrictive Covenant shall
remain in force for thirty (30) years. The form of deed for
Workforce Housing Units shall be approved by the City
attorney.
b. The Restrictive Covenants shall state that during the
affordability term, the resale of a Workforce Housing Unit
shall be subject to the following resale requirements.
I. All Workforce Housing Unit owners shall notify the
City of Boynton Beach immediately that the unit is
for sale, The City shall have first right of refusal to
purchase the unit. Upon receipt of notice that a valid
offer has been made on the unit, the City shall have
fifteen (15) days to invoke its right of refusal to
purchase the unit(s).
II All Workforce Housing Units are to be resold
only to Low or Moderate income qualified households
at an attainable housing cost for each targeted
Income range.
c. Purchasers of Workforce Housing Units shall be required to
occupy the unit.
d. Closing costs and title insurance shall be paid pursuant to
the custom and practice in Palm Beach County at the time
of opening of escrow. No charges or fees shall be imposed
by the seller on the purchaser of a Workforce Housing Unit
which is in addition to or more than charges imposed upon
purchasers of market rate units, except for administrative
fees charged by the City/CRA, or their designee.
e. Sales prices for Workforce Housing Units will be calculated
on the basis of:
I. An available fixed-rate thirty-year mortgage, consistent
with a "blended rate" for Palm Beach County banks,
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and/or the Florida Housing Finance Authority. A lower
rate may be used in calculating workforce housing
prices if the developer can guarantee the availability of
fixed-rate thirty-year mortgage at this lower rate for all
Workforce Housing Units required for the covered
project; and
II. A down payment of no more than 10% (including any
down payment assistance provided by SHIP or other
sources) of the purchase price; and
III. A calculation of property taxes; and
iv. A calculation of homeowner insurance, mortgage
insurance, homeowner association fees, property
management fees and other closing costs.
f. Compliance - Prior to request for final Certificate of
Occupancy for the development, the developer shall
provide to the City's Community Improvement Department,
or designee, documentation sufficient to demonstrate
compliance with the Workforce Housing Program. Such
documentation shall include but is not limited to information
regarding the identity and income qualification
documentation for all occupants of the Workforce Housing
Units, proof of recordation of Restrictive Covenant in
approved form.
RESALE REQUIREMENTS
To maintain the availability of Workforce Housing Units which may be
constructed or substantially rehabilitated pursuant to the requirements of this
program, the following resale conditions shall be imposed on the Workforce
Housing Units and included in the deed and restrictive covenant recorded in the
Public Records of Palm Beach County:
a. All Workforce Housing Units constructed or substantially
rehabilitated under this program shall be situated within the
development so as not to be in less desirable locations
than market-rate units in the development and shall, on
average, be no less accessible to public amenities, such as
open space, as the market-rate units.
b. Workforce Housing Units within a market rate development
shall be integrated with the rest of the development and
shall be compatible in exterior design and appearance,
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construction, and contain comparable HVAC systems as
market rate units.
c. The developer shall provide Workforce Housing Units that
include unit types in the same proportion as the market rate
housing units.
I. If the development contains a mix of different types
of units, (e.g. condominium, townhouse, detached,
etc.), the proportion of Workforce Housing Units of
each type to total Workforce Housing Units must be
approximately the same as the proportion of market
rate units of each type to total market rate units.
II. If the development includes both for sale and for rent
units, the proportion of for rent Workforce Housing
Units to for sale Workforce Housing Units must not
exceed the proportion of for rent market rate units to
for sale market rate units.
III. The number of bedrooms per unit must be
proportionate between Workforce and market rate
units.
d. The construction schedule for Workforce Housing Units
shall be consistent with or precede the construction of
market rate units.
e. There shall be no lot premiums charged on the Workforce
Housing Units.
f. All required Workforce Housing Units shall be offered for
sale or rent at an attainable housing cost for each of the
targeted income ranges.
f. The City of Boynton Beach, its successors and assigns
may enforce the covenants. No amendments to the
Restrictive Covenant shall be made unless by written
instrument approved by the City.
MONITORING AND COMPLIANCE
a. Final Approval Conditions: Final conditions of approval
shall specify that the Workforce Housing Units are sold to
buyers whose income does not exceed 120% of median
household income for Palm Beach County as set by HUD.
The conditions will also specify the requirements for
T:\PLANNING\Workforce Housing Program\Workforce Housing Program DRAFT.doc 10
01/22/2007
528
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554
reporting to the City's Community Improvement Division on
buyer eligibility, housing prices, as well as any applicable
requirement to record the Restrictive Covenant or to
enforce resale restrictions.
b.
At the time of request for final Certificate of Occupancy for
the development, if the Workforce Housing Units have not
been sold to income qualified persons, the developer shall
deposit in the form of a surety bond, the amount equal to
110% of the applicable "in lieu" of fee to the City's Housing
Trust Fund. Upon verification that the required number of
Workforce Housing Units have been sold to income
qualified persons, the surety will be released.
c.
The City may enforce the requirements of the Workforce
Housing Ordinance through any cause of action available
at law or equity, including but not limited to seeking specific
performance, injunctive relief, rescission of any
unauthorized sale or lease, during the term of the
Restrictive Covenant.
d.
The Community Improvement Department shall submit an
annual report to the City Commissioners indicating the
status of the Workforce Housing Ordinance, including but
not limited to the number of units created, leased and sold.
T\PLANNING\ Workforce Housing Program\ Workforce Housing Program DRAFT. doc
01122/2007
11
City of Boynton Beach CRA
Housing Needs Assessment
Prepared by:
Florida International University
Metropolitan Center
~ll
Prepared for:
Boynton Beach Community Redevelopment Agency and
The City of Boynton Beach
August 9, 2006
CREDITS ,:"
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Credits
Metropolitan Center at Florida International University:
The Metropolitan Center at Florida International University delivers information and expertise to
decision makers, community leaders and citizens as they seek to forge solutions to urban
problems. The Center is engaged in the study of housing, demographics, economics and politics
in South Florida. The overall goal of the Center, as an "applied research" institute, is to provide
decision-makers with the best possible information to forge solutions to the problems confronting
South Florida's urban areas. Toward that goal, the Center provides research, training, and
technical assistance to governmental and nonprofit institutions in South Florida.
Metropolitan Center
150 S.E. 2nd Avenue, Suite 500
Miami, Florida 33131
(305) 349-1251
htto :/Imetrooolitan. fiu .ed u
Research T earn
Ned Murray, Ph. D., AICP, Associate Director
Rosa Davis, Research Associate and Project Manager
Dario Gonzalez, Research Associate
Stephanie Smith, Research Assistant
Una Duran, Research Assistant
Tonya Rapley, Research Assistant
Ines Hernandez-Siqueira, Principal, Civica Consulting Group, Inc.
Jennifer Fu, Principal, Sunshine Maps, Inc.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
ii
EXECUTIVE SUMMARY 'f.
,
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The City of Boynton Beach and CRA Housing Needs Assessment is a quantitative economic and
housing market study that attempts to capture the dynamic of the housing supply and demand
relationship in both the City and the CRA. The study considers the critical economic and housing
market factors that drive this important supply and demand relationship, including the larger
market forces that have resulted in Palm Beach County having one of the highest median single
family home prices in the State of Florida.
The housing market in South Florida and in many metropolitan areas throughout the nation is
facing serious challenges. Rapidly escalating increases in housing values in recent years has
threatened to make housing unaffordable for low and moderate income households, as well as,
the working middle class. At the local level, many in both the public and private sectors have
come to recognize the inextricable link between an adequate supply of affordable housing and
sustainable economic growth. To develop this understanding and to move forward with real
solutions to address these housing issues, it is important for communities to assess the critical
relationship between local housing supply and demand.
Future housing demand in the City of Boynton Beach will be largely determined by on-going and
planned economic development activity that will result in expanded employment opportunities.
Employment growth will occur through the retention and expansion of existing firms and new
economic growth resulting from start-ups, spin-offs, and relocations to the city and the southern
and eastern sections Palm Beach County. Basically, populations follow job growth and the
demand for housing will be defined by the location, type and wage levels of the City and County's
future employment growth.
The study concluded that occupational employment and wage statistics for Palm Beach County
and the City of Boynton Beach indicate that the labor market structure is largely skewed toward
the secondary labor market comprised of low wage retail and service sector occupations. These
low-wage occupations offer little in terms of benefits, job security and career mobility. These
occupations are also the most likely to be affected by recent changes in the real estate market.
Critical Findings
The following is a summary of the critical findings from the economic and housing market analysis
of the City of Boynton Beach and CRA.
~ The employment base of the City of Boynton Beach is generally reflective of Palm Beach
County as a whole with most employment found in the Services and Retail Industries.
~ Within the West Palm Beach-Boca Raton Metropolitan Statistical Area (MSA), in which
Boynton Beach is included, retail salespersons (21,550) comprise the largest number of jobs.
The median hourly rate for retail salespersons within the MSA is $10.17, which equates to an
annual salary of $21,153 based on a 40-hour work week. Other leading employment sectors
include office clerks ($10.61), cashiers ($8.22), waiters and waitresses ($6.42) and
landscaping and groundskeepers ($8.98).
~ The median annual salaries of "target" or "essential" workforce occupations, including
teachers, registered nurses, police officers and firefighters, are at or below 120 percent of the
area median income (AMI).
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
iii
In the last three years, the City of Boynton Beach has experienced a 16 percent loss of
renter-occupied units due to condominium conversions. The inventory of apartments has
decreased from 6,224 to 5,035 total units.
. Indications are that conversions have created added stress on the rental market including
lower vacancy rates and the reduction of affordable rental housing. Approximately 598 of the
condo conversions took place within the City's CRA.
. The vacancy rate for apartments in Palm Beach County is at an all time low. Since 2003, the
County's vacancy rate has declined from approximately 6 percent to a low of 2.4 percent in
November 2005. The City of Boynton Beach and the CRA have experienced a similar
pattern with a 2.6 percent vacancy rate.
. Within the CRA, the $222,500 median sales price for a single family home is 36 percent less
than the $350,000 median sales price for the City.
. The median sales price for age restricted units City-wide is $200,000 and $197,000 in the
CRA.
. The highest appreciation rate for single family homes took place in the CRA, with an increase
of 41 percent from 2004.
. In the City of Boynton Beach, the average rent for a two bedroom apartment increased from
$700 in 2000 to $1,146 per month in 2005. Within the last two months of 2006, rents climbed
to $1,250, a 58 percent increase since 2000.
. Housing affordability calculations reveal a substantial "affordability gap" for single family
homes in the City of Boynton Beach and the CRA with affordability gaps ranging from
$74,458 to $216,680.
. Relatively lower median sales prices combined with relatively higher median incomes provide
a certain level of affordability within certain sub-markets of the CRA. However, depressed
single family home values within a larger inflationary market may be indicative of substandard
housing conditions or other neighborhood-related factors.
. The City of Boynton Beach's projected population and employment growth through Year
2025 should create the demand of approximately 4,173 new workforce housing units (80-120
percent of the AMI) and 6,627 affordable rental housing units for new households earning
less than 80 percent of the AMI.
. The CRA will absorb a significant portion of the City's projected population and employment
growth with an estimated demand of approximately 2,900 workforce housing units (80-120
percent of the AMI) and 4,606 affordable rental housing units for households at less than 80
percent of the AMI.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
iv
TABLE OF CONTENTS f'
~ ~"i
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CREDITS.................................................................................. 0'.......................................................... i i
EXECUTIVE SU M MA RY ................................................................................................................... i i i
I. INTRODUCTION AND METHODOLOGy..... ...... ............... ....... ....... ............ ...... ........... ............. ..... 1
II. HOUSING SUPPLY ANALYSIS.. ............. ....... ......... ................................. ......... .............. ....... ....... 2
Housing Inventory by Type. ............................... .......... ...................................,..........................2
Condition of Existing Housing....... .... ................................................................................... ...... 3
Housing Occupancy...... ............ .....,....... ,.., ............. ............. ... ... ................................ ......... ......5
Development Trends .........,.......,.....,.... ............ ..... ....................................... .............................7
Land Use ......... .....,..... .......,.......... ................. ......... .......................... ..................... ....... ...... .......7
III. HOUSING DEMAND ANALYSIS ..... .................. ....... ............. ...... ....... ............... ............ ...... ......... 8
Labor Market and Economic Base.......... ........ ....... ......................................... ..... ...... ............... 8
Real Estate Market.. ........................ ....... ................................................................................. 13
Household Composition and Household Income ....................................................................16
Affordability Gap and Cost Burden.................. ............. ....... ................. .............. ................ ..... 17
Cost Burden. .................................................... ..................... ........... ..........,................. ............ 21
IV. HOUSING SUPPLY AND DEMAND IMPACT ASSESSMENT ..................................................22
Assessment of the Balance between Existing and Future Housing Supply and Demand ...... 22
Housing Affordability Gap Analysis .........................................................................................24
Affordability Calculations and Targeted Populations Based on Existing and Future Demand25
V. DEVELOPMENT FEASIBILITY ANALYSIS ................................................................................ 27
VI. AP PEN DIX.............................................................,..................................................................... 30
Tables, Figures and Maps
Table 1: Substandard Housing: 2000 ..................................................................................................... 5
Table 2: Occupied Units: 2005 ......................................................................,........................................5
Table 3: Future Housing Development in Boynton Beach: Housing Permits, 2005-2008 .....................7
Table 4: Vacant Parcels in Boynton Beach as of 2005: ......................................................................... 7
Table 5: Palm Beach County: Top Five Occupations by Employment and Wages, 2005.....................8
Table 6: Non-Farm Occupations for the Employed Civilian Population 16 Years and Over 2004......... 9
Table 7: Non-Agricultural, Establishment-Based Employment/Sales by Industry & Size, Boynton
Beach 2004 .......................................................................................... ...... .............. ............10
Table 8: Area's Largest Employers, 2006 ............................................................................................11
Table 9: Occupations Gaining the Most New Jobs, Workforce Region 21 _ Palm Beach County,
2004-2012 ............................................................................................................................ 11
Table 10: Leading Employment and Essential Occupations by Wage Rates: West Palm Beach-Boca
Raton MSA, 2005.. ........................ .................................... ..............,.................................... 12
Table 11: Median Sales Price Appreciation: 2004 to Jan-Feb 2006....................................................14
Table 12: Median Price of New and Used Housing Units: 3rd Quarter 2005.......................................15
Table 13: Age and Size of Units Sold in 2005: City of Boynton Beach................................................ 15
Table 14: Appreciation in Rent Prices: 2000-2006...............................................................................16
Table 15: Household Income by Tenure (Adjusted for 2005): Boynton Beach and CRA ....................17
Table 16: Homeownership Affordability Gap by Housing Type Based on the 2005 Median Income for
the City of Boynton Beach and the Boynton Beach CRA ....................................................18
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
v
Table 17: Rental Affordability Gap Based on the 2005 Median Income for the City of Boynton Beach
and the Boynton Beach CRA ..................... ....... ............ ........ .............. ................................. 18
Table 18: Occupations by Area Median Income: 2005 ........................................................................19
Table 19: Affordability Gap by Occupations .........................................................................................20
Table 20: Affordability Gap by AMI Based on Median Income of $46,709: 2005* ...............................21
Table 21: Households with a Cost Burden of 30 Percent or More by Tenure: 2005............................21
Table 22: Future Housing Demand: 2025 ............................................................................................22
Table 23: New Residential Projects Recently Approved or Under Construction .................................23
Table 24: Affordability of Units in Pipeline Based on the 2005 Median Income of $46,709 (Units in
pipeline include units that are approved or under Construction, 2006-2008) ......................25
Table 25: Census Geographic Areas that Represent the Boynton Beach CRA .........................:........30
Table 26: Residential Projects in Approval Process.............................................................................31
Table 27: Projections of Housing Inventory in Boynton Beach Based on Housing Permits: 2005-2008
....... ...... ........ ......... ......... ...................,.. ..... ............ ........ ......... .... ..................................,..,..... 31
Table 28: Projections of Housing Inventory in CRA Based on Housing Permits: 2005-2008..............31
Table 29: Age Distribution ....................................................................,.................... ........................... 32
Figure 1: Inventory of Housing in Boynton Beach by Type: 2005.......................................................... 2
Figure 2: Inventory of Housing by Type in CRA: 2005........................................................................... 3
Figure 3: Boynton Beach: Year Structure Built, Prior to 1960 to 2005...................................................4
Figure 4: CRA*: Year Structure Built: Prior to 1960 to 2005 ..................................................................4
Figure 5: New Rental Apartments: Starts and Completions from 2000-3rd Quarter 2005..................... 6
Figure 6: Median Single Family Housing Prices by Largest Metropolitan Statistical Areas (MSAs) Year
End 2003 and 2005...................................................................................................,..........13
Map 1: CRA, Properties, Census Block Groups..................... ............. ..... .......................... .................. 33
Map 2: Median and Age by Census Block Group in CRA: 2005..........................................................34
Map 3: CRA Land Use............................................................,......,....................................................,.35
Boynton Beach CRA Housing Needs Assessment
MetropOlitan Center
vi
I. INTRODUCTION AND METHODOLOGY '~~
, --
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The housing market in South Florida and in many metropolitan areas throughout the nation is
facing serious challenges. Rapidly escalating increases in housing values in recent years has
threatened to make housing unaffordable for low and moderate income households, as well as,
the working middle class. At the local level, many in both the public and private sectors have
come to recognize the inextricable link between an adequate supply of affordable housing and
sustainable economic growth. To develop this understanding and to move forward with real
solutions to address these housing issues, it is important for communities to assess the critical
relationship between local housing supply and demand.
The City of Boynton Beach and the Boynton Beach Community Redevelopment Agency (CRA)
have sponsored this study in an effort to develop a greater understanding of the workforce
housing needs within the City of Boynton Beach and the Boynton Beach CRA. The Boynton
Beach CRA encompasses the eastern boundary of the City and the area known as the "Heart of
Boynton". The study examines the housing needs of the workforce, provides an affordability gap
analysis, and gives projections for meeting future housing demand. Specifically, the study
includes the following elements:
~ Housing Supply Analysis: This section will provide estimates of the current and future
supply of housing in Boynton Beach and the Boynton Beach CRA based on housing
type, tenure and geographic sub-area.
~ Housing Demand Analysis: The demand analysis examines current and projected
workforce demand based on a labor market and economic base analysis, as well as
population and household trends.
Housing Demand and Supply Assessment: This section assesses the relationship
between current and projected supply and demand and determines the level of impact
on housing affordability and economic sustainability.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
II. HOUSING SUPPLY ANALYSIS r:
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Housing Inventory by Type
Since 2000, the housing inventory in the City of Boynton Beach has increased by 11 percent,
growing from 30,586 units to approximately 33,940 in 2005. The CRA contains 19 percent of the
City's housing inventory with approximately 6,588 units.
As can be seen in Figure 1 below, the housing inventory in the City of Boynton Beach consists
primarily of single-family (40 percent) and multi-family units (47 percent), with a small percent of
town homes (11 percent). By comparison, the Boynton Beach CRA is primarily a higher density
area, with multi-family units comprising 58 percent of the housing inventory. Only 26 percent of
the units in the CRA are single family.
Figure 1: Inventory of Housing in Boynton Beach by Type: 2005
Mobile Homes
2%
Multi-Fam
47%
ingle Family
40%
If
Townhome
11%
Source: Palm Beach County Appraiser's Office, RealQuest, property data from the City of Boynton Beach, 2000
US Census,
'Multi-Family includes apartments, condominiums, cooperatives and multifamily structures with 5 units or more
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
2
Figure 2: Inventory of Housing by Type in eRA: 2005
Mobile Home
Park
2%
Single Family
26%
Multi-Fam**
58%
Townhouse*
14%
Source: Palm Beach County Appraiser's Office, RealQuest, Penn it Data and Fire Department Assessment Data
from the City of Boynton Beach
*Townhouse includes 2-4 units that are attached
**Multi-Fam includes Condominiums, Cooperatives and Multifamily structures with 5 units or more
***See Attachment for the list of Census Blocks and Census Block Groups that represent the CRA
Condition of Existing Housing
Age of Housing
The age of housing tends to have a general correlation to the condition of the housing stock and
is an important variable in determining the true affordability of a home. Although older homes
tend to be more affordable, the older the housing stock, the greater the likelihood of housing
problems, including substandard housing conditions.
According to U.S. Census figures, the City of Boynton Beach has an aging housing stock.
Approximately 73 percent of the housing units in the City are over 25 years old. In fact, only 10
percent of the City's housing units have been constructed since 2000. Within the CRA, the
number of older housing units is even greater, with 98 percent of the housing stock over 25 years
old.
Boynton Beach CRA Housing Needs Assessment
MetropOlitan Center
3
Figure 3: Boynton Beach: Year Structure Built, Prior to 1960 to 2005
Before 19605
8%
2000-2005
10%
19905
17%
1970s
29%
Source: Palm Beach County Appraiser's Office, RealQuest, Permit Data and Fire Department Assessment Data
from the City of Boynton Beach
Figure 4: CRA*; Year Structure Built: Prior to 1960 to 2005
19605
24%
19905-2005
2%
Before 19605
16%
Source: Palm Beach County Appraiser's Office, RealQuest, Permit Data and Fire Department Assessment Data
from the City of Boynton Beach
"Figures do not include housing units that do not represent complete Census Block Groups. These Block
Groups include: 57.01.4, 55.02,2, 60.02.1, 60,02.2, 60.03.1
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
4
Substandard Housing
According to the U.S. Census, the City of Boynton Beach had 2,417 substandard units in 2000.
The U.S. Census Bureau defines substandard units as existing housing with any of the following
problems: lack of complete plumbing, lack of kitchen facilities, no fuel, and/or overcrowding. In
the CRA, 10 percent of the housing stock (674 units) were found to be substandard. This could
be attributed to the high concentration of older housing in the CRA.
Table 1: Substandard Housing: 2000
Housing Condition Palm Beach County Boynton Beach CRA>
LackinQ kitchen facilities 2140 115 47
Lackina olumbina facilities 2513 287 14
No fuel used 9,967 503 120
1.01 or more occupants per room 25,707 1,512 493
Total Substandard Units: 40,327 2,417 674
% of Total HousinQ Units 7% 8% 10%
Source: 2000 Census
'Figures do not include housing units that do not represent complete Census Block Groups. These Block Groups include:
57.01.4, 55.02.2,60,02.1, 60.02.2, 60.03.1
Housing Occupancy
Occupied Units
It is estimated that 73 percent of the housing units in Boynton Beach are owner-occupied with the
remaining 27 percent renters. Within the CRA, the rate of homeownership is lower, with 66
percent of the housing units owner-occupied and 34 percent renter-occupied.
Table 2: Occupied Units: 2005
Boynton Beach 01 CRA %
/0
Occuoied Units 28,280 100% 6,588 100%
Owner occupied 20,644 73% 4,348 66%
Renter occupied* I 7,607 27% 2,240 34%
Population 63,913 -- 14,889 --
Source: Metropolitan Center, Florida International University
'Includes all renter occupied units (apartments, condominiums, single family homes, etc.)
Condominium Conversions
In the last three years, the City of Boynton Beach has experienced a 16 percent loss of renter
occupied units due to condominium conversions. The inventory of apartments has decreased
from 6,224 to 5,035 total units. Indications are that conversions have created added stress on
the rental market including lower vacancy rates and the reduction of affordable rental housing.
Approximately 598 of the condo conversions took place within the City's CRA.
Vacancy Rates
The vacancy rate for apartments in Palm Beach County is at an all time low. Since 2003, the
County's vacancy rate has declined from approximately 6 percent to a low of 2.4 percent in
November 2005. The City of Boynton Beach and the CRA have experienced a similar pattern,
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
5
with a vacancy rate is 2.6 percent. As previously noted, condominium conversions are
considered to be a major contributing factor for the current low vacancy rates.
Absorption of Rental Units
As shown in Figure 5 below, another major factor that has contributed to low rental apartment
vacancy rates in Palm Beach County has been the decline in rental apartment construction.
Although the annual demand for rental apartments in Palm Beach County is approximately 5,656
units, there were only 1,332 apartment units completed and a mere 450 units started as of the
third quarter of 2005. As a result of the low supply in rental units, the County has less than a
month's supply of new rental apartment units on the market at any given time. The average
number of units absorbed per month in 2005 was 182 units. In Boynton Beach, the average
absorption was 10 units per month.
Figure 5: New Rental Apartments: Starts and Completions from 2000-3rd Quarter 2005
I-+-- Starts -II- Colll>letions I
4000
3500
3000
2500
~ 2000
c
:::l
1500
1000
500
0
2000 2001
2002
2003
2004
2005 3Qtr
Year
Source: Palm Beach County Quarterly Housing Report: Fourth Quarter 2005. Reinhold P. Wolff Research, Inc.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
6
Development Trends
Housing Permits
A significant market trend in the City of Boynton Beach has been the growth in multi-family
projects. An analysis of City approved permits since 2003 reveals that multi-family units make up
94 percent of the housing units under construction, approved or pending approval. Single family
units only constitute four percent of the housing units in the development pipeline. Approximately
4,009 units or 52 percent of the multi-family pipeline are located within the CRA.
Table 3: Future Housing Development in Boynton Beach: Housing Permits, 2005-2008
Housing Type 2006 2007 2008+ Total
r- - - '. ~
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Apartments 538 364 404 1,306
Townhomes. 1,596 380 935 2,911
Condominium 378 1,829 744 2,951
Lofts - - 70 70
Sinale Family- 331 - 107 438
Total 2,843 2,573 2,260 7,676
~0Tt \~,~:,~:~~~>:--:~;:~l?~~f~~~~1~_~:~;t ,~:'~_; ~~~_:I'?~i~~ ~~-~: ~~~'~~0~:;~5~~~~~r~Il~;: ~~~~':~~~ ~ ~~;"~ i.;~~;~~~i~~ ~~t~~:.~:lI
Apartments - - 404 404
Townhomes. 596 70 935 1,601
Condominium 378 812 744 1,934
Lofts - - 70 70
Single Family - - - -
Total 974 882 2,153 4,009
*Townhome estimates for 2008 include 390 units that are pending approval
** Single Family estimates for 2008 include 90 units that are pending approval
Source: Permit Data from the City of Boynton Beach
land Use
Land use policies playa significant role in determining the amount and availability of affordable
housing within a community. Such policies guide the location, types of housing, and densities.
According to the City of Boynton Beach, the City is nearly at build-out. Although there are 154
acres of vacant land, most of the parcels are small lots (under two acres) that are non-conforming
and not practical for redevelopment purposes. It should be noted that many of these parcels are
located within the CRA area. The City's limited land availability for development has been a
contributing factor for the increase in higher density, multi-family redevelopment in the CRA.
Table 4: Vacant Parcels in Boynton Beach as of 2005:
Parcels Total Acres
I Under 2 Acres
I 2 Acres or More
I Total
1346
15
I 351
72
82
154
Source: City of Boynton Beach
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
7
III. HOUSING DEMAN D ANALYSIS ~
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Demand refers to the amount and type of real estate desired for purchase or rent in a given
market at a given time. The elements that affect housing demand include the labor market and
economic base, the price of real estate, household income, population and household
composition, and affordability. Each of these key elements will be discussed in this section.
labor Market and Economic Base
Existing Employment Base
Future housing demand in the City of Boynton Beach will be largely determined by on-going and
planned economic development activity that will result in expanded employment opportunities.
Employment growth will occur through the retention and expansion of existing firms and new
economic growth resulting from start-ups, spin-offs, and relocations to the city and the southern
and eastern sections Palm Beach County. Basically, populations follow job growth and the
demand for housing will be defined by the location, type and wage levels of the City and County's
future employment growth.
Through 2005, Florida continues to have the fastest job growth rate and lowest unemployment
rate of the ten most populous states in the nation. The unemployment rate (3.6 percent)
continued to remain below the national average and has remained so since mid-2002.1 Palm
Beach County's 3.8 percent unemployment rate has run similar to the state and in between its tri-
county neighbors Miami-Dade (4.2 percent) and Broward (3.5 percent).2 The unemployment rate
(2.6 percent) for the City of Boynton Beach is considerably lower than Palm Beach County as a
whole. Palm Beach County has experienced considerable employment growth in nonagricultural
industries and in 2004 the county ranked 23rd among the largest 318 counties in the nation3.
An analysis of recent economic growth in Palm Beach County shows most of the new job growth
occurring within the County's existing industrial and employment base (see Table 5 below). The
employment base of the City of Boynton Beach is generally reflective of Palm Beach County as a
whole with most employment found in the Services and Retail Industries. For example, 33.5
percent of the City's employment base is found in Services compared to 36.4 percent in Palm
Beach County (see Table 6 below). Healthcare and Support Services (7.4 percent), Building and
Grounds Maintenance (6.3 percent) and Food Preparation and Serving (6.0 percent) comprise
the leading occupations within the Services category. The City's other leading occupations
include Office and Administrative Support (16.5 percent), Retail Sales (13.9 percent) and
Management (8.3 percent).
Table 5: Palm Beach County: Top Five Occupations by Employment and Wages, 2005
2005 Annual Median 2005 Hourly Wage
Occupation 2004 Employment Income Entry Expenenced
Retail Salespersons 21,550 $21,154 7.23 15.22
Office Clerks, General 13,510 22,069 7.01 13.22
Cashiers 13,160 17,098 6.55 9.5
Waiters and Waitresses 12,930 13,354 6.1!S 7.3
Landscaping Workers 11,670 18,678 7.18 11.4
Source: Florida Agency for Workforce Innovation
1 "Florida Employment and Unemployment" Press Release. Florida Agency for Workforce Innovation. November 2005
2 Florida Agency for Workforce Innovation, Local Area Unemployment Statistics Program (revised 12/16/2005)
3 The Development Atlas of the City of Boynton Beach. October 2005
Boynton Beach CRA Housing Needs Assessment
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Table 6: Non-Farm Occupations for the Employed Civilian Population 16 Years and Over
2004
I I I u, of Total
, I P ,11m - - -----~-- --
OCCUpiltlons Boyntoll t)cdell , Palm
Beaell Boyntoll Beach
County B[ <Jell
I , , County
Management 2,374 19,440 8.30% 3.80%
Business and Financial 1,132 20,260 4.00% 3.90%
Operations 1,372 22,350 4.80% 4.30%
Professional/Science Services, including: 9,534 187,200 33.50% 36.40%
Community/Socia/ Services 348 5,350 1.20% 1.00%
Lega/ 293 6,190 1.00% 1.20%
Education/Training/Libraries 1,245 17,750 4.40% 3.40%
Art/Entertainment/Sports/Media 494 6,410 1.70% 1.20%
Hea/thcare and Support 2,099 44,460 7.40% 8.60%
Protective Services 708 14, 720 2.50% 2.90%
Food Preparation/Serving 1,716 50,510 6.00% 9.80%
Building/Grounds Maintenance 1,784 27,430 6.30% 5.30%
Persona/ Services 847 14,380 3.00% 2.80%
Sales 3,945 60,940 13.90% 11.80%
Office and Administrative Support 4,707 96,390 16.50% 18.70%
Construction/Extraction 1,894 34,280 6.70% 6.70%
Installation/Maintenance/Repairs 1,136 20,430 4.00% 4.00%
Production 1,012 19,100 3.60% 3.70%
Transportation/Materials Moving 1,367 34,530 4.80% 6.70%
Total 28,473 514,920 100.00% 100.00%
Source: Recreated from the Development Atlas of the City of Boynton Beach, October 2005. Note: Direct comparison
between City and County is approximated due to variations in occupational classifications.
Existing Industrial Base
There are a total of 2,616 firms located within the incorporated limits of Boynton Beach, of which,
the vast majority (90 percent) have less than 20 employees (see Table 7 below).4 Of these firms,
the most common industries in the City are Services (42.4 percent), Retail Trade (20.1 percent)
and Finance/lnsurance/Real Estate (10.4 percent)
The Service Industry has the highest levels of employment (10,582) and sales (approximately
$865,000,000). Within this industry, Health Services is the most significant subcategory with the
highest number of firms, employment, and sales. According to the Florida Managed Care Review
2005, the Healthcare Industry in the State of Florida is in a growth mode. The review found that
while HMO enrollment has dropped sharply, profits still soared due in part to six years of double
digit premium increases.5 Except for Tenet Health, hospitals in the state also reported strong net
income in 2004. Thus, strong hospital income also has helped to stimulate new construction.6
However, the continued growth of the Healthcare Industry in Palm Beach County has certain
caveats. According to a recent study that analyzed the West Palm Beach Market, the adjacent
market to Boynton Beach, an earlier trend toward greater hospital profitability in the West Palm
Beach area reversed in 2004, noting that eight area hospitals are in the red.? In particular, the
4 The Development Atlas of the City of Boynton Beach, October 2005
5 Florida Managed Care Review, 2005. Allan Baumgarten's Managed Care Reviews. Released February 2006.
5 Florida Managed Care Review, 2005. Allan Baumgarten's Managed Care Reviews, Released February 2006.
7 Study: Losses hit most for-profit hospitals in West Palm Beach. South Florida Business Journal. March 6, 2006.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
9
review cited that the West Palm Beach market shows declining in-patient admissions, service
duplication, a shortage of specialists to perform high-profit procedures and increased competition
from ambulatory surgery centers not owned by hospitals helped contribute to the losses. This
analysis is particularly important due to the fact that a significant number of the area's largest
employers are from the healthcare industry, and that a considerable number of Boynton Beach's
residents have jobs in health care services.
Table 7: Non-Agricultural, Establishment-Based Employment/Sales by Industry & Size,
Boynton Beach 2004
Ern pia ,ment ofTo~al
\. tl I'llt'110e,
Number ' 19 El'lployccs Salc"
INDUSTRY of F mns Total Emp,oyc2s 01 mOlc (r\~r1llons) S Flrrns Employment Sales
Construction 265 2,185 93,20% 1,50% 382 10,10% 7.90% 14,20%
Manufacturina 107 1,392 79.40% 0.90% 122 4.10% 5,10% 4,60%
Transportation/Public Utilities 78 872 80.80% 2,60% 89 3,00% 3.20% 3,30%
Wholesale Trade 90 721 92.20% 0,00% 131 3.40% 2,60% 4,90%
Retail Trade 527 6,721 86,10% 1,90% 701 20,10% 24,40% 26,10%
Finance/Insurance/ Real Estate 272 1,926 96,00% 0.00% 326 10,40% 7,00% 12,10%
10,58
Services, in which: 1,108 2 91.40% 1.40% 865 42.40% 38,50% 32.20%
Personal Services 152 576 99.30% 0,00% 23 5,80% 2,10% 0,90%
Business SeNices 178 965 95,50% 0.00% 128 6,80% 3,50% 4,80%
Leaal Services 57 274 98.20% 0.00% 49 2,20% 1.00% 1,80%
Health Services 255 4,585 86,30% 4,30% 282 9.70% 16.70% 10.50%
EducafionalServ~es 30 1,186 36,70% 20,00% 125 1.10% 4.30% 4.70%
Hotels/other Lodaina 12 101 91.70% 0,00% 4 0.50% 0.40% 0,20%
Public Administration 48 2,118 nla nla 70 1,80% 7.70% 2,60%
Other 121 984 n/a nla nla 4.60% 3.60% 0,00%
27,50
TOTAL 2,616 1 90,20% 1,30% 2,686 100% 100% 100%
Source: Recreated from the Development Atlas of the City of Boynton Beach, October 2005
Retail Trade follows a similar pattern as the Service sector having the second highest number of
firms in the city and the second highest level of employment (6,721) and sales (approximately
$701,000,000). The City's strength in retail falls in line with state trends that show an expanding
market for 2006. According to the 2006 Industrial Outlook in Florida Trend, Florida-based retail
chains are expected to ex~and despite fears that gas prices, consumer confidence, and
hurricanes may affect sales. In fact, the 2004 hurricane season had little effect on Florida's
population growth -the driving factor in retail.9 Furthermore, statewide retail sales are expected
to increase in dollars for a five-year period beginning January 2005.
Industry and Employment Growth
According to the Boynton Beach Chamber of Commerce, the area's top two largest employers
are the Palm Beach County School Board (16,800 employees) and Palm Beach County
Government (9,000 employees). Other leading employers include Pratt Whitney (5,100
employees), Columbia Palm Beach Healthcare Systems (4,000 employees) and Intracoastal
Health Systems (3,200 employees). In fact, the Healthcare Industry has a strong presence in
Palm Beach County accounting for four of the top ten employers (see Table 8 below).
8 Retail: Adding it up. Florida Trend. January 2006,
9 Retail: Dr. Location. Florida Trend, January 2006,
Boynton Beach CRA Housing Needs Assessment
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Table 8: Area's Largest Employers, 2006
Rank Area's Largest Employers Employees Product/ServIce
1 School Board of P.B.C. 21,000 Education
2 Palm Beach County Government 6,000 County Government
3 Pratt & Whitney 5,100 Jet Engines
4 Columbia Palm Beach Healthcare Systems, Inc. 4,000 Health Care
5 Intracoastal Health Systems, Inc. 3,200 Health Care
6 Flo Sun Inc. 2,500 Agriculture
7 Florida Power & Light 2,300 Electric Utility
8 Boca Raton Community Hospital 2,000 Health Care
9 Boca Raton Resort & Club 1,850 Hotel
10 Bethesda Memorial Hospital 1,600 Health Care
Source: Recreated from the Boynton Beach Chamber of Business "Facts about Boynton Beach"
The Florida Agency for Workforce Innovation (AWl) provides "industry projections" for delineated
Workforce Regions within the state for the period 2004-2012. For Workforce Region 21 (Palm
Beach County), AWl industry projections show that the occupations expected to gain the most
new jobs during the period 2004-2012 are representative of the industries and occupations that
currently comprise the county's employment base. As shown in Table 9 below, with the
exception of registered nurses, which show the largest projected gain, Retail Sales and Service
occupations are expected to gain the most new jobs during this period.
Table 9: Occupations Gaining the Most New Jobs, Workforce Region 21 -
Palm Beach County, 2004-2012
~ h,'1 " ; "
1) )" "
I', , [ 1 "1
Rd1n il,l\ )dli. /uA/ (.... (II. I( ,"\ ( C( CU,ll
1 Registered Nurses 11,643 14,682 3.26 $25.59 4
2 Retail Salespersons 23,078 25,905 1.53 12.01 2
Janitors and Cleaners, Except Maids and
3 HousekeepinQ 13,884 16,658 2.50 8.83 1
4 Waiters and Waitresses 12,319 14,945 2.66 7.34 1
Food Preparation & Serving Workers,
5 Includina Fast Food 9,288 11,715 3.27 6.63 1
6 Landscaoina and Groundskeeoing Workers 8,709 10,907 3.15 9.83 1
7 Customer Service Reoresentatives 8,853 10,991 3.02 13.56 2
Sales Reps., Wholesale and Manufacturing,
8 Other 8,107 10,104 3.08 24.03 3
9 Office Clerks, General 13,291 15,236 1.83 10.99 2
10 Cashiers 12,179 13,920 1.79 8.22 2
Source: Florida Agency for Workforce Innovation, Labor Market Statistics Industry Projection Data 2004-2012
"Education Code:
(1) Less than a High School Diploma
(2) High School Diploma or GED
(3) Post Secondary Adult Vocational Certificate
(4) College Credit Certificate, Applied Technology Diploma, Associate of Applied Science, Associate Degree's
Boynton Beach CRA Housing Needs Assessment
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11
Wages
As previously noted, populations follow job growth and the demand for housing will be defined by
the location, type and wage levels of the city and county's future employment growth. The fact
that the Services and Retail Industries provide such a disproportionate share of the employment
base for both Palm Beach County and the City of Boynton Beach has real implications in terms of
existing and future wages and housing demand.
The Florida Agency for Workforce Innovation (AWl) provides current wage rate information by
occupational category. The occupational wage statistics list the total number of jobs by
occupational category, hourly rates and annual salaries, for salary-based occupations, based on
mean, median, entry and experienced wage rates (see Table 10 below).
Within the West Palm Beach-Boca Raton Metropolitan Statistical Area (MSA), in which Boynton
Beach is included, retail salespersons (21,550) comprise the largest number of jobs. The median
hourly rate for retail salespersons within the MSA is $10.17, which equates to an annual salary of
$21,153 based on a 40-hour work week. Other leading employment sectors include office clerks
($10.61), cashiers ($8.22), waiters and waitresses ($6.42) and landscaping and groundskeepers
($8.98). Within the "leading employment sectors", registered nurses ($26.74) and bookkeepers
and accountants ($14.67) have the highest median hourly rates.
Table 10: Leading Employment and Essential Occupations by Wage Rates: West Palm
Beach-Boca Raton MSA, 2005
Leadmg Employment (m WF Region 21) Total Jobs Mean Median Entry' Exp H
1 Retail Salesoersons 21,550 $12.55 $10.17 $7.23 $15.22
2 Office Clerks, General 13,510 11.15 10.61 7.01 13.22
3 Cashiers 13,160 8.53 8.22 6.55 9.52
4 Waiters and Waitresses 12,930 6,93 6.42 6,15 7.37
5 LandscapinQ and GroundskeepinQ Workers 11,670 10.02 8.98 7.18 11.44
6 Reaistered Nurses 10,840 27.41 26.74 21,03 30.61
Laborers and Freight, Stock, and Material Movers,
7 Hand 10,740 8.78 8.43 6.70 9.82
Janitors and Cleaners, Except Maids and
8 Housekeepina Cleaners 8,810 8.46 8.00 6.25 9,56
9 Customer Service Representatives 8,640 14.18 13.39 9.65 16.45
10 Bookkeepina, Accountina, and Auditing Clerks 8,550 15.10 14.67 10.76 17,27
Sample "Essential" Occupations Total Jobs Mean Median Entry Exp,
Elementary School Teachers, Except Special Education 5,590 $38,143 $35,079 ~31 ,619 $41,405
Secondary School Teachers, Exc. Special and Voc. Ed. 2,670 43,900 42,932 32,651 49,524
Reaistered Nurses 10,840 27.41 26.74 21.03 30,61
Police and Sheriff's Patrol Officers 2,630 23.48 23.13 16.90 26.77
Source: Florida Agency for Workforce Innovation, labor Market Statistics, 2005 .
. Entry Wage - This is the wage an entry-level worker might expect to make. It is defined as the average (mean) wage
earned by the lowest third of all workers in a given occupation.
.. Experienced Wage - This wage represents what an experienced worker might expect to make, It is defined as the
average (mean) wage earned by the upper two-thirds of all workers in a given occupation.
Also shown in Table 10 above is a sampling of "essential" workforce occupations. The essential
workforce are those occupations that serve the educational, health and public safety needs of a
community, and include teachers, nurses, police officers and firefighters. As previously noted,
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
12
registered nurses account for 10,840 jobs in the West Palm Beach-Boca Raton MSA, which
includes the City of Boynton Beach. Teachers account for over 8,000 jobs, while police and
sheriff patrol officers account for 2,630 jobs in the MSA. Significantly, the median salaries and
wages for each of these essential workforce occupations fall below the median household income
for Palm Beach County ($43,540) and the City of Boynton Beach ($46,709).
The above occupational employment and wage statistics indicate that the labor market structure
is largely skewed toward the secondary labor market (low wage retail and service sector
occupations). As previously noted, these low-wage occupations offer little in terms of benefits,
job security and career mobility. These occupations are also the most likely to be affected by
recent changes in the real estate market. The following section provides an in-depth discussion
regarding housing trends and their impact on the various occupations listed above.
Real Estate Market
Owner Market
In the last three years, the growth in values has been unprecedented at the national, state and
local level. The rapid increase in single-family home prices has been especially strong in the
South Florida market. In fact, South Florida accounted for some of the highest appreciation rates
in the nation and the state.'o
Figure 6: Median Single Family Housing Prices by Largest Metropolitan Statistical Areas
(MSAs) Year End 2003 and 2005
I_ 2003020051
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$-
West Palm
Beach (62%
Change)
Fort Lauderdale
(58% Change)
Malli (57%
Change)
Orlando (60%
Change)
Tarrpa (40%
Change)
Jacksonville
(35% Change)
Source: Florida Association of Realtors
Single Family
As can be seen in Figure 6 above, the median sales price for a single family home in Palm Beach
County was $390,100 in 2005, compared to $348,450 for Boynton Beach. Although the City's
10 Florida Association of Realtors' Sales Report for the Quarter ending December 2005
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
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median sales price was lower than the County's, it is important to note that Boynton Beach has a
large number of age restricted units, which tend to sell below the market price. When the age
restricted units are filtered, the median market price for Boynton Beach increases to $350,000.
Within the CRA, the median market rate sales price was $222,500, 36 percent less than the
market rate median for the City. The median sales price for age restricted units City-wide was
$200,000 and $197,000 in the CRA. The lower median sale prices in the CRA may be due to the
higher concentration of older homes (See Table 13 for more details).
It is important to note that the greatest appreciation of single family homes took place in the CRA,
with an increase of 41 percent from 2004. This unusually high level of appreciation, compared to
a 24 percent increase at the County and a 27 percent increase in the City, may be attributed to
the sale of newly constructed units. These units are selling at a higher price and helping to
increase the value of older homes in the CRA. The price difference between new and older
housing units can be seen on Table 11 below.
CondominiumslTownhomes
As with single family homes, condominium/town homes have also experienced a considerable
appreciation in values. The median sales price for a condominium/townhome in Palm Beach
County increased from $165,000 in 2004 to $215,000 in 2005, an increase of 30 percent. The
appreciation was similar in the City of Boynton Beach and the CRA. The only exception was
found in market price condominiums/townhomes in the CRA. Age restricted units experienced an
increase of approximately 23 to 25 percent.
T bl 11 M d' 5 I p' A
'f
2004 t J F b 2006
. .
2004' 2005' Change % Change
~. '" f. '.~ '!!G>~"- - ,~. ~"'''' .,':," 1,',',,".,-", . ~ ',' .'C"','~ "0 ~. "".".';,--W'
~~fl <'I ll} ;} T, )11'1j:~<};~~~ ~~ ~$~;-:;~.~~1i YI:'1'Jj)~~ ~t.~.:{r~\tffl~;'''-;~~~~. ~~,f~r~~~~$J~k~(!14~~ lie .~;;~~\(~~.~;
-,,""c_ .._=""...<oc'.... ~ -'-"'-""'-""'-~"""'~ ,~:.. -ca:a:.~).""~JC...."-......,."~rJS.""~'41:.........,..~:JUO""O:::::~_=.. :I....h.~~_:;~~"'"-r_t..._ _:lf~=","_;;.I;;
Palm Beach Count *** $315,000 $390,100 $75,100 24%
80 nton Beach 274,000 348 450 74450 27%
Market Price 280,000 350,000 70,000 25%
A e Restricted 157,000 200,000 43,000 27%
Bo nton Beach CRA 156,500 220,000 63 500 41%
Market Price 148,500 222,500 74,000 50%
A e Restricted 174,500 197,000 22,500 13%
Palm Beach Count *** 165,000 215,000 50,000
80 nton Beach 160 000 210000 50 000
Market Price 168,000 225,000 57,000
A e Restricted 110,000 137,750 27,750
Bo nton Beach CRA 133 000 177 000 44 000
Market Price 197,900 218,750 20,850
A e Restricted 130,000 160,000 30,000
Source: RealQuest and Florida Association of Realtors
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
14
Table 12: Median Price of New and Used Housing Units: 3rd Quarter 2005
New Units Used UnIts
I , e ~
r .:')i("ri~) [\ +1,11~:,/ ':.) J.!,~) ~ -<~.~,~ - -~~-~~ "_ ~ L - - . - - - - . - I _,' " '0. , ,~._-' . -~ .. ' :'j
Palm Beach Countv $366,043 $325,783
Boynton Beach 345,555 313,618
CRA* 210,000 225,000
~ (\"\-'~'\{J 1 :1' \11 ~ j".y;j ~--:-~::-:!~~-.-: ~ - -,~ ;~ ,'--l~";:- ~~,....., ~- [; <. ~~':. :~~';_--:, ~__,_H; - J
,_.~ .','. 1".) 'J},.:.._.."....__ ". . L'e _ . .. _ _, . _
Palm Beach County 224,179 186,791
Bovnton Beach 203,955 183,529
CRA* --- 180,000
Source: Palm Beach County Quarterly Housing Report: Fourth Quarter 2005. Reinhold P. Wolff Research, Inc,
'CRA sales figures includes Age Restricted units
Table 13: Age and Size of Units Sold in 2005: City of Boynton Beach
Under $100,000
$100,000 to $199.999
$200,000 to $299,999
$300,000 to $399,999
$400 000 to $499 999
$500.000 to $999.999
$1 Million and Over
Total
2
163
395
583
288
181
11
1623
o 0 1 1
2 100 48 13
o 159 207 29
1 52 444 82
o 14 181 89
o 5 67 62
001 4
3 330 949 280
o 0
o 0
o 0
4 0
4 0
33 14
5 1
46 15
1
4
4
4
146
157
75
22
29
6
435
1
10
223
370
147
66
1
818
3
10
134
119
86
4
356
~."""",-c~~",~,:,: :'-'""-="'''Pf: ~":'Ji!"",..;,.,~. r""4-i'" '''1::",: ~,";-"""C,,;;,,"-"'''''.,,'-r,;'.;.'''',,;'=~', 1I"'''''''I';'i'~-B-::;'''t''''I'':''}';;''r''''-::;'_''''",,,;~
~m" lJ~ 11\-1~ (1 ~1~J:L fi:~~; ~:-' - , ~:Jk;?~~;~~~ \~,~,:/~,.~~,~,,~~a'l~;ti~:r~?5/j!~:~~~ 1 ...~ti ~f0tl:., ~W,,~f;x;~jr .~"~ .;~I1!1
"-'-."" '"'" ..',...." ~ .. .'""'"' -""" - ~.....~:J. =__ ...:.'~;.,,&O__"'-'-"" 'iiiill~\.;'i':"'" )~__.Io ,~,. ~~~~~,..._~ ....,.__~_~.= ..... ~=-r. ,,~~""';U'!
Under $100,000 77 46 30 1 - - - - 66 11
$100,000 to $199,999 498 90 381 27 - - - - 202 278 18
$200,000 to $299,999 627 17 348 255 7 - - - 58 365 204
$300,000 to $399 999 136 - 39 94 3 - - - 8 48 80
$400,000 to $499,999 20 - 4 14 2 - - - 3 8 9
$500.000 to $999.999 7 - 3 4 - - - - 1 5 1
$1 Million and Over .
- - - - - - - - - - -
Total 1365 153 805 395 12 - - - 338 715 312
13
Source: RealQuest and MLS
Market Trends
Nationwide and in South Florida, there is evidence that the rapid appreciation in both single family
homes and condominiums of the last few years has directly contributed to an oversupply of
properties for sale creating significant slowdowns in the market. Factors contributing to the
slowdown in the housing market include inflationary housing values, rising interest rates,
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
15
increases in construction costs and materials and the increasing costs associated with
homeownership (taxes, insurance, etc.). These factors are indicative of issues in over-priced
housing markets and will require an extended period of time for the market to adjust.
Although there are signs that the housing market is slowing down, housing values are still
escalating. As of February 2006, the median price of a single family home in Palm Beach County
was $395,000, an increase of $5,000 from 2005. CondominiumlTownhomes escalated from
$215,000 in 2005 to $235;000 in February 2006. It is premature to determine what impact the
slowdown in the market will have on the City of Boynton Beach and the CRA. As such, sales
trends in various housing sub-markets will need to be monitored closely over the next 1-2 years.
Rental Market
Coinciding with the recent surge in home sale prices, has been the dramatic escalation of rent
prices throughout South Florida. In the City of Boynton Beach, the average rent for a two
bedroom apartment increased from $700 in 2000 to $1,146 per month in 2005. Within the last
two months of 2006, rents climbed to $1,250, which represents a 58 percent increase since 2000.
Within the CRA, rents have increased from $713 in 2000 to $1275 in 2006, representing a more
dramatic increase of 79 percent. Rising rent prices are attributed to the low inventory of market
rate multi-family rental housing, record low vacancy rates, and the demand for rental housing by
working households who are unable to afford a home purchase.
Table 14: Appreciation in Rent Prices: 2000-2006
Source: 2000 Census. RealtoLcom, and Palm Beach County Quarterly Housing Report: Fourth Quarter 2005. Reinhold P.
Wolff Research, Inc.
Household Composition and Household Income
Very Low to Moderate Income Households
Federal guidelines define very low, low and moderate-income as households whose incomes are
at or below 120 percent of the median household income for the area (the area in this case is the
City of Boynton Beach). The following describes the income limits for each category:
· Very Low Income: At or below 50 percent of the median for the area
· Low-Income: Between 51 and 80 percent of the median for the area
· Moderate-Income: Between 81 and 120 percent of the median for the area
Table 15 below identifies the number of Very Low, Low, and Moderate income households in the
City of Boynton Beach. As can be seen, in 2005 approximately 22 percent of the households in
the City and 31 percent of households in the CRA were found to be within the very low-to-
moderate income categories.
When analyzed by tenure, the table reveals that 28 percent of renter households in the City are
very low-to-moderate income, compared to 40 percent in the CRA. Owner households that earn
less than 50 percent of the AMI represent 22 percent of the households in the City and 31 percent
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
16
in the CRA. These figures indicate that the households in the CRA tend to have lower household
incomes than the City as a whole.
Table 15: Household Income by Tenure (Adjusted for 2005): Boynton Beach and eRA
<50% AMI (Very Low Income)
<80% AMI (Low Income)
<120% AMI (Moderate Income)
<150% AMI
151% + AMI
Total Very Low to Moderate Income
$23,355
37,367
56,051
70,064
Over 70,064
20%
20%
18%
22%
20%
58%
26%
22%
17%
18%
16%
66%
":,\";.,,^ \Y, ',' . .... .....:.....'''.'C......''...,"'v'''.t.,''.'.:.. ,"" r:,'''.~ ':" _~ .~.r.;.-<;'.cd."'.-l"~""
[. J:\ ~ II I r f l ('" \1 Jill ( ) (1): "/. ".., ~ , '" "1- f' 't,~ -', '. l ~'5(; . I .~'!t :'f'r/~, :~",,,,.... ,!> _ ,;.;.,..,.~ !':-~' .".1 - :: L~ - J ~ '1' -, -, ,~tt'" ,,' ~~) i ~
fi.!;" -~ _ ~" I ,~"-~~_ _'<'-,-'4-<.', ~~.t~""'"\'-:.,;,'",,'-"~';:.. l~"--~...... ~~ ~ ~ t........~,..~,.._~. ,........A- cl",~ -~.l._."...,Jop,.r.J;_~
<50% AMI (Very Low Income)
<80% AMI (Low Income)
<120% AMI (Moderate Income)
<150% AMI
151% + AMI
Total Very Low to Moderate Income
23,355
37,367
56,051
70,064
Over 70,064
28%
26%
20%
17%
9%
74%
40%
24%
18%
12%
6%
81%
f~fb'~:'f~; I r~1 /~ )~:~,: lJ~j .-<>'~ ~, ,~"'~~~~!~~~/J;,~~.:,~llr~~i:;~~J~~~~}<~~~~~J .<~f"~_ .J~(~~~~T&~:" }~, 2 ~lJ [:~~,~if{l:rji~~J~~
~ . ~ .~ ~ ,- ~ -- -- ~- ..
<50% AMI (Very Low Income)
<80% AMI (Low Income)
<120% AMI (Moderate Income)
<150% AMI
151% + AMI
Total Very Low to Moderate Income
23,355
37,367
56,051
70,064
Over 70,064
22%
22%
18%
21%
17%
62%
31%
23%
18%
16%
13%
71%
'2005 median income and household income estimates determined using the Bureau of labor Statistics Inflation
Calculator: http://www.bls.gov/home.htm
"Households Adjusted for 2005.
Source: 2000 Census
Affordability Gap and Cost Burden
Given the disparity between incomes and housing prices discussed above, it is important that a
"Housing Affordability Gap Analysis" be performed to determine the extent of workforce housing
demand. For the purpose of this study, "workforce" is defined as households that earn 120
percent of the AMI or less, as these are the households most likely to be cost burdened by the
existing housing prices. It is important to note, however, that cost burden is also evident at the
150 percent AMI range.
The following section provides a Housing Affordability Gap Analysis for the City of Boynton Beach
and the CRA. The analysis is also performed by target workforce occupations. "Housing
affordability" is defined as housing costs not exceeding the standard of 30 percent of monthly
gross income. The computation for the housing affordability was performed using the median
sales price for a single family home and condominium/town home in relation to the median
household income of the City/CRA or annual occupational wage. Favorable financing terms are
applied (Fixed 30 year mortgage at 6 percent interest with a 5 percent down payment) with taxes
and insurance included. Debt ratios are not factored into the housing affordability calculations.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
17
Affordability Gap by Owner Households
Housing affordability calculations reveal a substantial "affordability gap" for single family homes in
the City of Boynton Beach, the CRA and Palm Beach County with affordability gaps ranging from
$39,337 to $216,680. Although there may be relatively lower median sales prices in some sub-
markets, depressed single family home values within a larger inflationary market should be
viewed with caution. Depressed housing values within a geographic sub-market such as the
CRA are usually indicative of substandard housing conditions or other neighborhood-related
factors.
The affordability gaps for condominiums and town houses in th,e City of Boynton Beach, the CRA
and Palm Beach County are less than single family homes, ranging from a low of $13,542 (in the
City of Boynton Beach for households less 65 years of age) to a high of $41,580 (in Palm Beach
County). While overall affordability gaps are not as severe as those found in the single family
market, they still pose a challenge to individuals who are trying to purchase a home without being
cost burdened.
Table 16: Homeownership Affordability Gap by Housing Type Based on the 2005 Median
Income for the eity of Boynton Beach and the Boynton Beach eRA
Source: RealQuest, MLS and 2000 US Census data
'The median income for 2000 was adjusted for inflation through 2005.
Affordability Gap by Renter Households
In both the City of Boynton Beach and the CRA there is an affordability gap for rent when all age
groups are combined. However, when households over 65 are removed from the analysis, the
data indicates that these households do not have an affordability gap based on existing rental
prices. If rental prices continue to appreciate at the current rate, it is likely that many of these
households will also face affordability gaps in the near future.
Table 17: Rental Affordability Gap Based on the 2005 Median Income for the eity of
Boynton Beach and the Boynton Beach eRA
2006 Median
Median HH Affordable Rental Rent Affordabilrty
Area Income Price @ Median Price Gap @ Median
38,580
47,539
46,709
965
1188
1168
1357
1275
1275
1250
1250
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
18
Affordability Gap by Occupations
Applying the median single family home price for the City of Boynton Beach ($350,000), a
Housing Affordability Gap Analysis was performed for a sampling of occupations that represent
the majority of the workforce in Palm Beach County and the City of Boynton Beach, including
essential occupations such as teachers, registered nurses and police officers. The housing
affordability analysis excludes age restricted sales.
As shown in Table 18 below, most of the "target workforce" occupations fall at or below the 120
percent AMI category, compared to the "leading occupations" that are all under 50 percent of the
AMI.
Table 18: Occupations by Area Median Income: 2005
Tot I <500{ <800, <120% <150%
E I a I AMI AMI AMI AMI
!lip oyer
Occupational Category 2004
!';.i;;;'~,:~~(~;:,i:~i> I ',"i,'}~ (-r~)I'J.-JLfl'~:;;l'" ,;f'VI ~ ",;;'.7:):)'" t' .{I, ,;!,.)r) i )\;~,.:.:k"I'~;f~k~:~-;,ie '~,,,;:l?,j.:.,-b~i.~.t;rt' " [~J';i",,~,jj!i}' L""Jii~~
~;J;.t.;:.:;,{,_..;..,..""... ""'.........-,,,.,.~ A:~"""._ E-J, ~""~_'db..ld."-4.J.b::...t,......-=",:J_, __~"=>oW~_~....",.1. .,~>>, [...,~,_,,,,,,,,~.....~,.,__fi!:l;_-';'~,",,,"""'i:""'_.....-,,, ~..~E",Y:t-'1k=~~~'...:~
Retail Sales ersons
Janitors and Cleaners, Exce t Maids & Housekee ers
Waiters and Waitresses
Combined Food Preparation and Serving Workers, Including Fast
Food
Re istered Nurses
21,550
8,810
12,930
x
X
X
X
Cooks, Restaurant
Combined Food Preparation and Serving Workers, Including Fast
Food
Waiters and Waitresses
Hairdressers, Hairs lists, and Cosmetolo ists
Cashiers
Retail Sales ersons
Construction Laborers
Elementa School Teachers, Exce t S ecial Education*
Secretaries, Exce t Le aI, Medical, and Executive
Automotive Service Technicians and Mechanics
Maintenance and Re air Workers, General
Seconda School Teachers, Exc. S ecial and Voc. Ed.*
Re istered Nurses
Police and Sheriff's Patrol Officers
La ers
General and 0 erations Mana ers
Accountants and Auditors
4,100 X
7,170 X
12,930 X
2,500 X
13,160 X
21,550 X
4,060 X
5,590 X
6,910 X
2,560 X
6,750 X
2,670 X
10,840 X
2,630 X
3,900 X
4,960 X
5,180 X
Source: Florida Agency for Workforce Innovation, Labor Market Statistics
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
19
Using the 30 percent affordability standard, the gap analysis indicates that housing is
unaffordable for all of the occupations sampled, except lawyers. Even for general managers, the
second highest paying occupation ($86,008), the affordability gap was $5,455. Low wage
occupations, such as cashiers and waiters/waitresses, had affordability gaps of over $200,000.
This indicates that homeownership is becoming unattainable for most one-wage earner
households.
Table 19: Affordability Gap by Occupations
Annual
Total fJledlan Aftorddblc' Affordabillty
f IllfJloyccl Incomc HOI11(' Price Gap ,(1
OccupatIOnal Catc~gory 2004 ($) 2005^ ~l Median lJ1cdlan'
t ' - n~
l~~(().:l ) ~~/\.~~lf;hrl :.'..[ i '.'J/fJ')>l-1.l1l.~:iJ,",\( 1~J~'-I1L)~.,2;' ~ 1/.,,1; ~~.I/} _ _:.' ~ _ _ , '.' ':~:fl
Re istered Nurses 10,840 $55,619 $217,043.79
Retail Sales ersons 21,550 21,154 72,421.54
Janitors and Cleaners, Exce t Maids & Housekee ers 8,810 16,640 53,490.31
Waiters and Waitresses 12,930 13,354 39,686.23
Combined Food Preparation and Serving Workers,
Includin Fast Food
72,421.54
76,246.31
55,396.24
39,686.23
62,044.16
La 3,900 107515 434,573.80
General and 0 erations Mana ers 4,960 86,008 344,544.44
Accountants and Auditors 5,180 57,013 222,883.67
Elementa School Teachers, Exce t S ecial Education* 5,590 35,079 130,833.29
Seconda School Teachers, Exc. S ecial and Voc. Ed.* 2,670 42,932 163,821.23
Re istered Nurses 10,840 55,619 217,043.79
Police and Sheriffs Patrol Officers 2,630 48,110 185,515.57
Cooks, Restaurant 4,100 21,819 75,184.65
Combined Food Preparation and Serving Workers,
Includin Fast Food 7,170 14,082 42,702.96
Waiters and Waitresses 12,930 13,354 39,686.23
Hairdressers, Hairst lists, and Cosmetolo ists 2,500 20,821 71,009.97
Cashiers 13,160 17,098 55,396.24
Retail Sales ersons 21,550 21,154 72,421.54
Secretaries, Exce t Le ai, Medical, and Executive 6,910 26,582 95,177.54
Construction Laborers 4,060 22,090 76,355.50
Automotive Service Technicians and Mechanics 2,560 32,094 118,343.49
Maintenance and Re air Workers, General 6,750 30,451 111,455.85
Source: Metropolitan Center of Florida International University
**Based on Median Sales price of a single family home at $350,000
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
20
Affordability Gap by Households
Since the occupational affordability gap analysis only reflects individual earnings, the following
analysis takes into account household income. This provides a fuller assessment of households
that may have more than one wage earner. As can be seen in Table 20, housing affordability
does not improve when household incomes are taken into account. Even households that earn
up to 150 percent of the AMI cannot afford the median priced family home without being cost
burdened. Among renter households, the most affected are those with incomes under 80 percent
of the AMI. These households comprise 40 percent of the renter households in the CRA.
Table 20: Affordability Gap by AMI Based on Median Income of $46,709: 2005*
Boynton Affordabillty
B(,~lCh eRA Aftordilblc Gap'
Incof1lP Households Households Price
'--', ' , , - .', I I' , , " f' [ 'I ' " ' '. - ~.a
h"~t::j~J); ::.~,(~~)-,!~<j~,.).:~ I..::~.~f~hi"v.. ~ ~ 1~' : ~ 1_,,-_... _'2Dl~:~~~t ,"'~.::>::- J.;~J L ~J)~Jf_f:",},;t~ l.( ,~.:_,,;-<'t;~
<50% AMI (Very Low Income)
<80% AMI (Low Income)
<120% AMI (Moderate Income)
<150% AMI
Source: 2000 U.S. Census adjusted to inflation and development
*Affordability gap was calculated based on a median sales price of $348,450 for a single family home and a median rent
of $1 ,250 for a two bedroom apartment in the City of Boynton Beach.
**Affordability gap for the Boynton Beach CRA was calculated based on a median sales price of $220,000 for a single
family home.
Cost Burden
Table 21 below shows the distribution of cost burden by household income. The table reveals
that 34 percent of the households in the CRA are cost burdened, compared to 30 percent in the
City of Boynton Beach as a whole. Renters appear to be the most cost burdened, with 44
percent of the renter households paying more than 30 percent of their income toward housing.
Table 21: Households with a eost Burden of 30 Percent or More b
Total Households with a 30%+ Cost Burden
% Cost Burden
Source: 2000 U.S. Census adjusted to inflation
*The above figures do not include households with no cash rent or without a mortgage.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
21
IV. HOUSING SUPPLY AND DEMAND IMPACT ASSESSMENT ~ ,
','
.~~L.L~.:?~ "'~ ~!~, i't,.",..i" ~~: ~:" _~:T _~~ -,~_ -:.-.. tk '~""'~".!~, ~. ~ "''t ,.~.".; _;:; "'; U' ~'".. d ,:~ _=.... .~ ) .'.~ ~:i~ i~"
Assessment of the Balance between Existing and Future Housing
Supply and Demand
Rapidly escalating single family home values and rents have created a severe imbalance
between existing housing supply and demand. In terms of the rental housing' supply,
condominium conversions and lack of production have exacerbated the growing imbalance,
resulting in record low vacancy rates and soaring rents. The Housing Needs Assessment
indicates that 25 percent or 5,215 existing owner-occupied households in Boynton Beach are cost
burdened. There is a significantly higher 44 percent or 3,333 existing renter-occupied
households that are cost burdened. The percentage of cost burdened owner-occupied
households in the CRA (29 percent) is higher than the City as a whole. The CRA also has 44
percent of its existing renter-occupied households cost burdened.
As previously discussed, housing demand is largely driven by economic growth (new
employment) and subsequent population growth. In most metropolitan markets, the ratio
between new employment and housing demand is typically within the 1.2-1.5:1 range.
Historically, Palm Beach County's ratio of job growth to housing demand has been less than one.
This low ratio can be attributed to the high level of service sector employment that is absorbed by
existing households.
The methodology for projecting future housing demand calculates Palm Beach County's
population projections to 2025 for the City of Boynton Beach then disaggregates the total
according to working age groups. County data indicates that the City will grow to 92,059
residents by the Year 2025. These population projections include an increase of 12,273 persons
within the workforce age group (ages 20-64), including 3,377 persons within the younger 20-34
age group. A younger workforce is expected to create the demand for additional rental housing,
since homeownership is unattainable for most workers. Based on this analysis of projected
population and employment growth through Year 2025, there will be an additional demand for
approximately 4,173 new workforce housing units (80-120 percent of the AMI) and 6,627
affordable rental housing units for new households earning less than 80 percent of the AMI.
Within the City of Boynton Beach CRA, the population is expected to increase to 16,450 residents
by the Year 2025. The CRA is projected to absorb 8,530 or 70 percent of the City's projected
new workforce age population. This will create the demand for approximately 2,900 workforce
housing units (80-120 percent of the AMI) and 4,606 affordable rental housing units for
households eaming less than 80 percent of the AMI.
Table 22: Future Housing Demand: 2025
Source: Metropolitan Center
As previously noted in the Housing Supply Analysis section, there are currently 7,676 units in the
development pipeline, 52 percent of which are in the CRA. Of the units for which price
information was available, 2,575 are affordable for households that are between 120 and150
percent of the AMI. None of the projects are affordable for households earning below 80 percent
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
22
of the AMI. Table 23 below provides a further project description of the development pipeline for
Boynton Beach and the CRA.
Given the escalating values of new single family and condominium units in the City and the CRA,
the current and future demand for both targeted workforce populations and larger labor force will
not be addressed.
Table 23: New Residential Projects Recently Approved or Under eonstruction
Boynton Lofts Mixed Use 48 $265-$550K Jul-07 Yes
W/Condos
Mixed Use T otal1 ,120
W/Residential;
Boynton Village Townhomes 458 townhm Yes
And Condos 648 condos
Heritage Club Mixed Use wIt Total 166 Townhomes $300k-$400k; Townhomes
Condos and 96 condos Aug-07; Yes
(Gulfstream Mall) T ownhomes 70 townhms Condos high $200k to $400k condos Apr-08
Mixed Use wIt 318 condos;
The Promenade Residential 68 condo- winter 2007 Yes
(Condos) hotel units
Mixed Use
Uptown Lofts @ Wrrownhomes
Apartment and Rents $1,300-$3,000 Apr-08 Yes
Boynton Place Lofts (All
Rental
Gulfstream Gardens
Ocean Breeze West
Seaview Park Club
Bo nton Dixie
Montere
Venetian Villas
Waterside
Carria e Pointe
Largo Pointe
Parkside
The Canterbu
Townhomes
Townhomes
Townhomes
Townhomes
Townhomes
Townhomes
Townhomes
Townhomes
Townhomes
T ownhomes
T ownhomes
Townhomes
Townhomes
Townhomes
Townhomes
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
180
48
64
30
198
37
64
82
300
50
115
172
20
271
155
$300k and up
Jul-08
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
from mid $300k to $900k
$500k +
Hi h $100s
$200-$350s
$500s-$1.5 million
mid $200s
$200,000-$280,000
$177,000 to $230,000
$170,000 to $290,000
Summer 2006
Jun-07
Jun-06
Feb-06
Jun-07
Feb-06
COMPLETED
COMPLETED
first Otr 2006
23
PrOject Name PrOject 1 ype NurnlJ('r of Price I ProJcctpeJ eRA
U flI ts Rent RangE Build out Datc
L'JLC~L;_~~J.j11'a..::.:- '6:,:,,":__ -'_:~~::-~ t~ ,,;_.;; -' L~ ~.' L~... ' < [ '-~-,~'",
, ,~ ~~ , - - . ,
Townhomes Total 174 $300,000- $400,000
High Ridge Single Family 48SF townhomes $400,000- Jan-09 No
126 townhm $600,000 SF family homes
Townhomesl Total 70
Peninsula at BB Condos 40 condos Avr. $600k Oct-07 Yes
30 townhms
The Residences at T ownhomes 338 condos, $130,000 - $200,000 condos Jun-06 Yes
Marina Villaae Condos 12 townhm $400,000 townhomes
The Arches Townhomes 378 $200k-$700k fall 07 Yes
Condos
Townhomes Total: 1,691
Renaissance Condos 607 condos $180,000-$280,000 condos, By phase; last No
Commons Apartments 310 townhm $250,000-$350,000 townh m Dee 07
364 apts
Source: Palm Beach County Quarterly HOUSIng Report: Fourth Quarter 2005. Reinhold P. Wolff Research, Inc
Housing Affordability Gap Analysis
The housing affordability calculations in the Housing Demand Analysis section indicate
substantial affordability gaps for single family homes in the City of Boynton Beach and the CRA
with affordability gaps ranging from $74,458 to $216,680. Affordability gaps were not evident in
CRA households less than 65 years of age due to a combination of relatively lower median sales
prices and relatively higher median incomes. However, depressed single family home values
within a larger inflationary market are usually an indicator of substandard housing conditions or
other neighborhood-related factors.
The housing affordability calculations also indicate that condominiums and town houses in the
City of Boynton Beach, the CRA and Palm Beach County are generally more affordable than
single family homes. However, while overall affordability gaps are not as severe as those found
in the single family market, they still pose a challenge to the majority of the workforces who are
trying to purchase a home without being cost burdened. This situation is further exacerbated by
rising insurance rates and condominium fees.
Housing affordability calculations for targeted and essential workforce populations also show
substantial affordability gaps. Registered nurses, at the upper end of the wage scale, are able to
afford a home purchase of approximately $217,000, which leaves an affordability gap of
approximately $133,000 based on the current median sale price of a single family home in the
City of Boynton Beach. At the lower end of the wage scale, elementary school teachers are able
to afford a home purchase of approximately $131,000, leaving an affordability gap of nearly
$219,000 based on the median price of a single family home. Affordability gaps for
condominiums within the City are substantially less than for single family homes. However, the
$222,500 median price of a condominium is still out of reach for most workforce populations. Of
particular concern is the fact that condominiums appreciated by 31 percent from 2004-2005.
Should double-digit appreciation continue, condominium ownership will soon become less of an
option for much of the workforce.
Existing single family home and condominium prices within the CRA are less than the city as a
whole. The existing single family median value of $225,000 is substantially less than the City.
However, age and condition of the properties may contribute to these depressed real estate
values. The $218,750 median sale price of condominiums within the CRA are comparable to the
City and reflect the increasing values of new multifamily projects of the past few years.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
24
Affordability Calculations and Targeted Populations Based on
Existing and Future Demand
Based on the housing demand and supply assessment, the City of Boynton Beach and CRA
should target both the essential workforce populations identified above and those "leading
occupations" that are projected to increase between 2004-2012, according to the Florida Agency
for Workforce Innovation (AWl).
Given the population and employment projections for the City and the CRA, it is important to
identify the number of housing units currently in the City's development pipeline that fall within the
estimated housing need. Table 24 below provides an illustration of the units that are currently
planned or under construction and their affordability based on the housing needs assessment.
Although price information was not available for all projects, the table provides an estimate of the
housing units to be produced under each price category and the level of affordability.
Table 24: Affordability of Units in Pipeline Based on the 2005 Median Income of $46,709
(Units in pipeline include units that are approved or under Construction, 2006-2008)
Type of Number of Affordability at AMI
Units Price Range Planned Units <50 <80 <120 <150 151+
Single Less than 230,000 0 - - - - -
Family $230,000 to $290,000 195 X
$300,000 to $600,000 406 X
Townhomes Less than 169,000 0 - - - - -
$170,000 to 299,000 966 X X X
300,000 to 399,000 260 X
400,000 or Greater 239 X
eondos Less than 129,000 0 - - - - -
130,000 to 199,000 338 X X X
200,000 to 399,000 703 X X
400,000 or Greater 40 X
Apartments $1,250-$1,500 183 X X X
(Rent) $1,475-$1,625 385 X X
Source: City of Boynton Beach
*Number of Planned units only accounts for projects which had a price range that could be tabulated.
It is clear that the development pipeline for the City of Boynton Beach and the CRA will not
address the demand for workforce housing nor the larger affordable housing needs of its
population earning less than 80 percent of the AMI. As previously noted, to address its total
workforce housing demand the City will need to produce approximately 4,173 housing units by
the Year 2025, of which, 2,900 units will need to be apportioned to the CRA.
As previously established, the price points for workforce housing in the City and the CRA will
need to be affordable for household earning between 80-120 percent of the area median income
(AMI). As such, a range of affordable units would begin at approximately $130,000 (elementary
school teachers) and include various price points up to $217,000 (registered nurses), which will
then capture other targeted workforce groups, including secondary school teachers, police and
sheriff patrol offices and firefighters.
Boynton Beach CRA Housing Needs Assessment
MetropOlitan Center
25
In order to address the housing demand of occupations that earn less than 80 percent of the area
median income (AMI), the City of Boynton Beach and the CRA will need to apportion a significant
amount of new housing units as affordable rentals. Based on the population and employment
projections above, there is a need to produce approximately 6,627 new affordable renter units in
the City with approximately 4,606 of these units apportioned to the CRA. Affordable rent prices
would range from approximately $600-$900 per month.
In total, the City of Boynton Beach will need to produce approximately 10,800 units that are
affordable for households at or below 120 percent of the AMI by the Year 2025. Approximately
7,506 of these units will need to be apportioned to the CRA.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
26
V. DEVELOPMENT FEASIBILITY ANALYSIS tOO
'~"l;,~"~::...I '...' <.-":~:"J j_'n.~r.,~~t ~.i, .1 ".t~'~ :-:: :.~.~. "~_d."~ + ;; :~. ~~" ~ .. '~. ~"_ l. -:; , ",: L ~.~ ':." ~~ ~:;f"'
The feasibility of developing affordable housing in a community is dependent on a number of
factors, including the price of land, the costs of construction, labor and materials and available
financing. In a highly inflationary housing market where housing values have far exceeded the
affordability levels of the majority local households the rising cost of land becomes the single
greatest obstacle to affordable housing development.
Local governments can playa key role in the production of affordable housing by creating zoning
incentives, providing various economic stimuli and expediting the local approval process.
However, during times when the housing market is in flux with significant property appreciation
and speculation resulting in a severe imbalance in supply and demand conditions, local
governments and the real estate development community will need to explore the full array of
options to produce an adequate supply of new affordable housing units.
In calculating the demand for affordable housing and a reasonable percentage of affordable
housing units for each individual project, a baseline should be determined by the number and
percentage of households within a jurisdiction, whether it be a municipality or sub-area such as a
Community Redevelopment Area (CRA), that fall within each income category targeted for
workforce housing development. Based on the Boynton Beach CRA Housing Needs
Assessment, the income categories for households and workers are captured within the 80-150
percent of area median income (AMI) groupings.
The workforce housing assessment of the Boynton Beach CRA indicates that 40 percent of
households fall within the 80 percent AMI income category,' followed by 31 percent of households
in the 120 percent AMI category and 29 percent households in the 150 percent AMI category.
Therefore, to meet the affordable housing need of households within the Boynton Beach CRA, .
the same fixed percentage of units in each housing development would need to be allocated
based on the affordable price levels of these income groups.
The following development scenarios depict the feasibility of producing new affordable housing
units in the Boynton Beach CRA based on the prevailing price of land and costs of construction.
Scenario # 1 is a 6-story condominium mid-rise consisting of 400 units. Scenario # 2 is a mixed-
use development with 300 townhouse units. In each scenario, three (3) development alternatives
are depicted. In the first "market rate" option, the development pro forma shows the actual hard
and soft costs of the project along with the net profit and return on investment based on project
sellout. The second option "mixed-income maximum affordability" shows the feasibility of
developing the project using the maximum allocation of affordable housing units based on the
income categories and price points of affordability for those households. Lastly, option three
depicts the same project but with a twenty (20) percent allocation of affordable units based on the
same percentages of income categories and price points. The twenty percent allocation has
been viewed as the standard for affordable housing allocation per development project.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
27
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i~",,,_~,~"!;. ~~... :r~,,,,-.~ ,;,,-,, ~~;:-~+::.- d ""~~'';'" ~~..~ ..'" r."'" _~.,~t .~; "';' ~:~_ ~''- ''':;'':~ ~ ,~ ~.;.~-...... :.~.~~
Table 25: eensus Geographic Areas that Represent the Boynton Beach eRA
Tract Block Group Block Census Geo Area Area
57.01 4 4002 Block NW
57.01 4 4003 Block NW
57.01 4 4006 Block NW
57.02 2 2000 Block NW
57.02 2 2020 Block NW
57.02 2 2021 Block NW
57.02 2 2022 Block NW
57.02 ' 2 2023 Block NW
57.02 2 2024 Block NW
57.02 2 2025 Block NW
57.02 2 2026 Block NW
57.02 2 2027 Block NW
60.02 1 1000 Block SE
60.02 2 2000 Block SE
60.02 2 2001 Block SE
60.02 2 2002 Block SE
60.02 2 2003 Block SE
60.02 2 2004 Block SE
60.03 1 1000 Block SE
57.02 1 ALL Block Group NE
61.00 1 ALL Block Group Heart of Boynton
61.00 2 ALL Block Group Heart of Boynton
61.00 3 ALL Block Group Heart of Boynton
61.00 4 ALL Block Group Heart of Boynton
62.02 1 ALL Block Group SE
62.03 1 ALL Block Group SE
63 1 ALL Block Group SE
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
30
T bl 26 R . d f I P . t . A I P
. .
Project Name Project Type Numlwr of Units eRA
Golfstream Gardens II T own homes 108 Yes
Hemmin9way Square Townhomes 22 Yes
Miller Rd Townhomes 121 Yes
Oceanside Townhomes 45 Yes
Riviera Townhomes 8 Yes
Tuscan Villas Townhomes 25 Yes
Yachtman's Cove Townhomes 61 Yes
Lawrence Road Zero-lots 90
Table 27: Projections of Housing Inventory in Boynton Beach Based on Housing Permits:
2005-2008
2005 2006 2007 2008'
Single Family 13,690 14,021 14,021 14,038
Townhome 3,651 5,247 5,627 7,132
Condominium* 10,127 10,505 12,334 13,148
Cooperative 303 303 303 303
Apartments 5,467 6,005 6,369 6,773
Mobile Homes 702 702 702 702
Total 33,940 36,783 39,356 41,616
*Includes 70 Lofts
*"ncludes 480 town home units that are pending permit approval
Source: Palm Beach County Appraiser's Office, RealQuest, Permit Data and Fire Department Assessment Data from the
City of Boynton Beach
Table 28: Projections of Housing Inventory in eRA Based on Housing Permits: 2005-2008
2005 2006 2007 2008
SinQle Familv 1,708 1,708 1,708 1,708
Townhouse/Attached 2-4 929 1,525 1,595 2,530
Condominium/Cooo/Multi-Familv 3,827 4,205 5,017 6,235
Mobile Home Park 125 125 125 125
Total 6,588 7,562 8,444 10,597
"Includes 390 townhome units that are pending permit approval
Source: Palm Beach County Appraiser's Office, RealQuest, Permit Data and Fire Department Assessment Data from the
City of Boynton Beach
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
31
Table 29: Age Distribution
Age 2005 2010 2015 2020 2025
0-4 3,823 4,077 4,383 4,642 4,819
5-9 3,605 4,047 4,291 4,599 4,849
10-14 3,558 3,695 3,827 3,988 4,221
15-19 3,348 3,524 3,649 3,958 4,147
20-24 3,614 4,092 4,364 4,413 4,476
25-29 3,803 4,292 4,702 4,865 4,915
30-34 3,924 4,154 4,717 5.036 5;327
35-39 4,512 4,497 4,299 4,557 4,864
40-44 4,991 4,851 4,572 4,740 5,214
45-49 4,746 5,381 5,224 5,208 4,930
50-54 4,011 5,269 5,915 5,673 5,378
55-59 3,844 4,804 6,085 6,706 6,490
60-64 3,275 4,277 5,373 6,721 7,399
65-69 3,213 3,995 5,350 6,450 7,909
70-74 3,160 3,379 4,218 5,369 6,647
75 or over 8,955 8,441 8,224 8,802 10,474
Total 66,382 72,775 79,193 85,727 92,059
Source: Metropolitan Center, Florida International University
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
32
CRA, Properties, Census Block Groups
Age 65 and up in CRA
by Census Block Groups
Median Income Over 65
by Census Block Groups
Legend
~ Major Roeds
-*_11
Legend
= Major Roads
- streets
Persons Age_55_up
c=J 85
c:J 86 - 126
_127-149
_ 150-163
_ 164-599
_ 600-825
eRA
2000 Median Income
Adj. for Inflation/Age Over 65
0,9,803
G:J 25,5'"
.21,4'"
_29,Q18
_ 30,280
_ 32,888
_53,581
_ 64,594
IEICRA
Median Income Under Age 65
by Census Block Groups
Overall Median Income
by Census Block Groups
N
A
1 :68,000
Legend
~ Major Roads
-slreets
2000 Median Income
Adj. for Inflation/Age Under 65
EJ 21,885
G",,35'
~ '0,08'
_ 45,458
_ 50,835
_ 63,355
_",208
_",251
CCRA
Legend
~ Major Roads
-streets
2000 Median Income
Adjusted for InflaUon
EJ 30,261
EJ 30,600
_ 35,871
_ '6,833
_ 31,828
_ 38,302
_ 48,'58
_ 64,110
"CRA
- .. -- --
eRA LandUse
"Special High Density Residential"
/'
"High Density Residential"
"Medium Density Residential"
"Moderate Denstty Residential"
"Low Density Resldenliar
"Industrial"
"Public & Private GovemmentaVlnstitutional"
--------
AGENDA
Joint Workshop
Workforce Housio,gProgram
Boynton Bea:eh Library
January 30,2007
6:30
1. Introductions
2. Opening Remarks - Wilfred Hawkins, Assistant City Manager
3. What is the Issue? - Vivian Brooks, eRA Planning Director
4. Review of Proposed Workforce Housing Program Ordinance
5. Discussion
6. Adjournment
The City of Boynton Beach
OFFICE OF THE CITY MANAGER
100 E Boynton Beach Boulevard
P.O. Box 310
Boynton Beach, Florida 33425-0310
City Manager's Office: (561) 742-6010
FAX: (561) 742-6011
e-mail: hawkinsw@ci.boynton-beach.fI.us
www.boynton-beach.org
Workforce Housing Workshop
January 30, 2007
Executive Summary
Prepared by
Wilfred Hawkins
Assistant City Manager
Based on a housing study conducted in 2000, commissioned by the Palm Beach
County Board of County Commissioners, and updated in 2003, Palm Beach County
officials implemented requirements on developers to set aside 16.5 per cent of new
homes to be priced between $164,000 and $304,000. The county commissions also set
up a Community Land Trust and are working on other incentives including mitigation
or linkage fees on big-box stores or large mansions to help fund workforce housing.
2006 home prices were $390,000 in Palm Beach County; the average home prices have
dropped slightly but are likely to end up around $370,000. A similar scenario is taking
place in a county north of us; long considered the affordable housing capital of the
Treasure Coast, Port St. Lucie has seen its home prices skyrocket in recent years. The
cost escalation in the housing market there is putting home ownership out of reach for
very low, low, and even moderate wage earners. According to an article in the Scripps
Treasure Coast Newspapers, the median home price in the City of Port St. Lucie is
$255, 738, as of December 2006. However, a home mortgage at that price is
unaffordable for workers such as elementary school teachers making an average
$44,000 annual salary, a retail salesperson or even a civil engineer making $58,000 a
year.
The news media has done a very good job of demonstrating to the public that the
American dream of home ownership is swiftly turning into a nightmare for the
majority of people. South Florida is at the top of the list and Boynton Beach is faced
with this critical situation also. According to Palm Beach County housing statistics the
median housing price for a single family home in Boynton Beach is $270,000 in 2006;
moreover, 50% of the current Boynton Beach residents earn below $26,000. And in
south Florida, essential workers earn below 120 per cent of median household income.
2
City of Boynton Beach Housing Costs
Housing Affordability is defined as housing costs not exceeding the standard 30 per
cent of monthly gross income. The current median household income in Boynton
Beach is $45,000, the affordable home price for that median income is $138,500; the
median sale price for a single family home in Boynton Beach is $270,000; therefore,
the affordability gap at that median income is ($131,500). This illustrates the need for
the City and the CRA to continue to develop mechanisms to address the problem of
affordable home ownership.
There is a critical need for affordable/workforce housing in the City of Boynton Beach.
The majority of the jobs in Boynton Beach pay below the median household income,
the availability of developable land for homes in the City is scarce, and the federal
funds to assist with home ownership have been drastically reduced.
Condition of the Housing Stock in the City of Boynton Beach
The housing stock particularly in the north-east and south-east sections of the city is
aging and in some state of transition. According to the CRA commissioned
Metropolitan Center Housing Study 50 per cent of the city's housing stock is over 25
years old and within the CRA 98 per cent of the housing stock is over 25 years old.
Replacement of older housing stock must be a priority goal along with increasing the
availability of affordable rental units in the city. Another critical fact that must be
considered is the availability ofland in the city. Based on 2005 data there are only 154
acres of vacant residential land left in the city, this clearly places the city in "re-
development mode". Accomplishing these important goals will require a successful
re-development strategy with the proposed Affordable/W orkforce Housing
Program/Ordinance as the framework for that strategy. Insuring a supply of
Affordable/Workforce Housing in the City of Boynton Beach will strengthen the local
economy, reduce traffic congestion, and help retain and recruit essential workers, and
will assist with the retention and attraction of new businesses.
According to the Metropolitan Center Study the future housing demand both
workforce and rental in 2025 totals 10,800 dwelling units, 7,506 will be within the
CRA area. The potential number of units in the Boynton Beach development pipeline
is a concern. Of the units for which price information was' available, 2,575 are
affordable for households that are between 120 and 150 per cent of the average median
income. None of the projects are affordable for households earning below 80 per cent
of the area median income (AMI). Given the escalating values of new single family
and condominium units in the City and the CRA, the current and future demand for
both targeted workforce populations and larger labor force may not be addressed.
"ill/ERICA '~.., GA Tk'H".11' TO TIIJ( Ol'LPSTNk'.:UI
3
Features of the Proposed Workforce Housing Program/Ordinance
The Proposed workforce housing program/ordinance is consistent with the City of
Boynton Beach Comprehensive Plan, it is voluntary for developers, it is consistent
with Palm Beach County's workforce housing ordinance, the program disperses
workforce units throughout the City, it meets Transportation Concurrency Exception
Area (TCEA) requirements, and this program was triggered by request for increased
density and land use by developers.
In conclusion, both the City and CRA staff have been working on this proposal for
over six months. Staff conducted national and local research in order to develop the
document. Staff wrote the document to best fit the needs of the City and provided
consideration to the real estate market, developer concerns, and legal realities. The
following staff committee worked together on the document:
Vivian Brooks, CRA Planning Director
Hanna Matras, City Economist/Planner
Mike Rumpf, City Planning and Zoning Director
Eric Johnson, City Planner
Gabriel Wuebben, City Planner
Octavia Sherrod, City Community Improvement Manager
Quintus Greene, City Development Department Director
Wilfred Hawkins, Assistant City Manager
Ajl/ENJ('A 'S' OA'T'}{n'.-11' TO TIlE Ol7-,PSTNb"'.411I
~
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Boynton Beach
City Manager's Office
Memorandum
TO: Honorable Mayor & City Commission
FROM: Kurt Bressner
City Manager
DATE: January 29,2007
SUBJECT: Workforce Housing Presentation
Attached please find an advance copy of a power point presentation that will be
presented at the joint City/CRA Workforce Housing Meeting on Tuesday, January
30th at 6:30 in the Library Program Room.
Jc
Attachment
C: Wilfred Hawkins, Ass't City Manager
Quintus Greene, Dir of Development
The City
of
Boynton
Beach
Workforce Housing Ordinance
Majority of Boynton Jobs Pay
Below 80% of MHI
Table 5: Palm Beach County: Top Five Occupations by Employment and Wages, 2005
21 550 $21 154 7.23 15.2
13,510 22,069 7.01 13.2
13 160 17 098 6.55 9.5
12 930 13 354 6.15 7.3
11 670 18 678 7.18 11.4
th FI
",~ n B
Ho
ial Workers
Median
me
Since 2000, Rents in Boynton
. Have Increased By 79%:
$700 to $1 ,250 (2bedr/2bath)
. ~_""* I
., .~~~.
. .,liJii'
Vacant Residential Land is Scarce
Table 4: Vacant Parcels in Boynton Beach as of 2005:
Parcels Total Acres
Under 2 Acres 346 72
2 Acres or More 5 82
Total 351 154
Source: City of Boynton Beach
Wages Have Not Kept Pace With
Housing Prices
Sample "Essential" Occupations Total Jobs* Mean' Median Entry Exp.
Elementary School Teachers 5,590 $ 38,143 $ 35,079 $ 31,619 $ 41,405
Secondary School Teachers 2,670 $ 43,900 $ 42,900 $ 32,651 $ 49,524
Registered Nurses 10,840 $ 57,013 $ 55,619 $ 43,742 $ 63,669
Police Officers 2,630 $ 48,838 $ 48,110 $ 35,152 $ 55,682
*Palm Beach Coun~
*Source Bureau of Labor Statistics
Median Housing Prices for Boynton Beach
Single Family Home $ 270,000
Condo/Town Home $ 216,000
*
*Fourth Quarter 2006
*
ilk"""" ~~_'M_""'~
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~-1
~ ...~Iit l>..~r.-llIJtl:!1
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':.
, ,,s. ~
> ",.,!
"i
4.
Affordability Gap
SINGLE FAMILY HOME CONDorrOWNHOUSE
MEDIAN AFFORDABLE MEDIAN AFFORDABILlTY MEDIAN AFFORDABILlTY
HOUSEHOLD HOME PRICE SALES GAP SALES GAP
INCOME @MEDIAN INCOME PRICE @MEDIAN INCOME PRICE @MEDIAN INCOME
$45,000 $138,500 $270,000 ($131,500) $216,000 ($77,500)
Notes:
* Sales data: fourth quarter 2006
* Median household income 2005 Clartas, Inc, CIP-adjusted to 2006
* Loan parameters: Interest rate 6%, downpayment 5%, taxes/insurance/HOA fees 4.5%
Affordability Gap for Renters
38 500
47.53tl
46.700
965
1188
1168
1357
1275
1275
1250
1250
Growth Drives Housing Demand
Table 22: Future Housing Demand: 2025
Area Workforce Housing Rental Housi ng Total Housing
(80-1200/0 AMI) (<80% AMI) Need
City of Boynton Beach
Bo ton Beach eRA
4, 173
2900
61627
4606
10,800
7506
Source: Metropolitan Center
An Adequate Supply of
Workforce Housing Will:
· Strengthen the City's Economy
· Reduce Traffic Congestion
· Retain Our Essential Workers
· Attract and Retain Businesses
Boynton Beach Needs
Workforce Housing, Because...
· Majority of Jobs Pay Below MHI
· Developable Residential Land is
Scarce
· Federal Funds Have Been Drastically
Reduced
The Workforce Housing Program Is:
· Consistent with Palm Beach County's Program
· Meets TCEA Requirements
· Consistent With Comprehensive Plan
· Voluntary
· Disperses Workforce Units Throughout City
· Triggered by Request for Increased Density Land Use
Percent of Workforce Units
Required
· Special High Density Residential (20
du/ac) - 20% of Total Units
· Mixed-Use (20-40 du/ac) - 15% of Total
Units
· Mixed-Use Core (80 d u/ac) - 1 0% of Total
Units
How do Developers Benefit?
Example of Special High Density Residential
3.5 Acre Parcel
Base Density (10.8)
Density at SHDR (20 du/ac)
200/0 Workforce Units
Net Gain of Market Units
37 units
70 units
14 units
19 units
How do Developers Benefit?
Example of Mixed-Use
3.5 Acre Parcel
Base Density (10.8)
Density at MUL 3 (40 du/ac)
15% Workforce Units
Net Gain of Market Units
37 units
140 units
21 units
82 units
How do Developers Benefit?
Ex.ample of Mixed-Use Core
3.5 Acre Parcel
Base Density (10.8)
Density at MUC (80 du/ac)
10% Workforce Units
Net Gain of Market Units
37 units
280 units
28 units
215 units
Workforce Housing Program
Features
· Workforce Units Shall Have the Same 0/0
of unit types
· Similar Exterior Appearance
· Units to Be Built on Site
· Luxury Developments ($500,000+) May
Elect Off-Site Options
· 25% of Total Units - Low Income
· 75% of Total Units - Moderate Income
Program Income Levels
· MHI for Housing Programs - $64,400*
· Low Income - > 50% - < 80% of MHI
($32,522 - $51 ,519)
· Moderate - > 80% - < 120% of MHI
($51,520 - $77,280)
Off-Site Options
· Donate Land
· Fee in Lieu
· Purchase Units Elsewhere
· Construct Units Off-site
PAYMENT IN LIEU FOR CREATING REQUIRED
WORKFORCE HOUSING UNITS
(per unit required)
One Bedroom
$80,000
Two Bedroom
$100,000
Three+ Bedroom
$120,000
Purchase Example
$240,000 $ 72,128 Annual Household Incom
$ 9,600 $ 6,011 monthly income*
$ 300 $ 2 104 35% allowed for housing
HOA Monthl Fee ' expenses
$ 1 004 income available for
, mort age pa ent after
$167,414 Maximum Mortgage
$ 72,586 Fundin Ga
$ 12,000 downpa ent 5%
$ 60,586 Subsi Needed
$ 30,293 City or Count
$ 30,293 CRA
!*Assumption: household has no debt. I
Purchase Price
Real Estate taxes
and insurance 4%
Annual interest rate
Monthl interest rate
Loan term in months
6%
0.50%
360
I Shared Equity Resale Formula
[;. 20/80% Split
i~ale after 5 years {2.5~ CP~l:! $__~?1 ,538
iAppreciation ! $ 31,538
r ---;-------
I
Borrower's Equity
$
$
$
,
!
r-----
. .
-------<-...-.--..-.---------------
,
I
Pri ncipal
Down payment
SUBTOTAL
11 , 130
12,000
23,130
I
- ---------
Appreciation Share
Borrower
$ 6,308
!
I
I Borrower's equity:
r--- ____
!
I
I
I
City
! $ 23,130J_Subsidy
'CRA
i Subsidy
TOTAL
DUE
$ 29,438 CITY/CRA
I
I
I
! TOTAL DUE BORROWER
L
$ 97,130
I
I
I
I City/CRA I
$ 25,230
i $ 35,950 .
, $ 35,950 !