07-007
II
1 ORDINANCE NO. 01-007
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3 AN ORDINANCE OF THE CITY COMMISSION OF THE
4 CITY OF BOYNTON BEACH, FLORIDA, AMENDING THE
5 LAND DEVELOPMENT REGULATIONS OF THE CODE OF
6 ORDINANCES, TO CREATE A NEW ARTICLE X OF
7 CHAPTER 20, WORKFORCE HOUSING PROGRAM,
8 PROVIDING FOR REGULATIONS AND INCENTIVES TO
9 BUILD WORKFORCE HOUSING TO ENSURE THAT THE
10 CITY HAS SUFFICIENT WORKFORCE HOUSING;
11 PROVIDING FOR THE ABILITY TO AMEND A LAND USE
12 DESIGNATION TO SPECIAL HIGH DENSITY
13 RESIDENTIAL,MIXED-USED OR MIXED-USE CORE
14 PROVIDING THAT WORKFORCE HOUSING UNITS ARE
15 CREATED PURSUANT TO THE TERMS OF THIS
16 ORDINANCE; PROVIDING A SAVINGS CLAUSE, A
17 GENERAL REPEALER CLAUSE, AND AN EFFECTIVE
18 DATE.
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20 WHEREAS, Workforce housing is needed by the citizens of Boynton Beach; and
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22 WHEREAS, The City Commission of the City of Boynton Beach, Florida, adopts
23 e findings in the Staff Report; and
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25 WHEREAS, the City Commission of the City of Boynton Beach, Florida, finds the
26 rdinance is consistent with the Comprehensive Plan.
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28 NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
29 HE CITY OF BOYNTON BEACH, FLORIDA AS FOLLOWS:
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Section 1.
The recitations set forth above are incorporated herein.
Section 2.
That Article X of Chapter 20, "Workforce Housing Program" of the
33 Land Development Regulations of the Code of Ordinances of the City of Boynton Beach,
34 Florida, be, and the same is hereby enacted to read as follows:
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36 Sec. 1.
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FINDINGS
a. The City Commission having conducted a Housing Needs
Assessment (Attachment A) has determined that there is a housing
shortage within the City of Bovnton Beach that is affordable to the
everyday working families and citizens of the City; and
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b. Florida Statutes 166.04151 provides that a municipality may adopt
and maintain any ordinance that is adopted for the purpose 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 Bovnton 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, adiusted for family size, as published by the
Department of Housing and Urban Development (RUD).
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.
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f.
Deed Restriction - Each Workforce Housing Unit created under the
Program shall be deed restricted for thirty (30) 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.
1.
First Time Home Buyer - A person who has not held ownership in a
residence within the past three years.
1.
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..
1.
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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Sec. 3.
APPLICABILITY
Except as otherwise provided in this ordinance, these regulations shall apply to development
applications consistent with the following conditions:
a. A development that has not been the subiect of a prevIOUS
development order,
b. A maior modification of an approved development site plan,
c. Developments with a residential component for which any Mixed Use
land use designation and a corresponding Mixed Use zoning category
is applied.
d. Developments that have been previously approved for a change in
land use to either Mixed-Use, Mixed-Use Core or Special High
Density Residential and whose site plan has expired and/or are
requesting a site plan time extension.
Sec. 4.
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, subiect 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:
1. 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.
11. Mixed-Use - Fifteen percent (15%) of the total number of
proposed residential units in the Development shall be
designated as Workforce Housing Units.
111. 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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TABLE 1
LAND USE CLASSIFICATION ZONING DISTRICTS MAXIMUM DENSITY
Special High Residential (SHR) PUD 20 dwelling units/acre
IPUD 20 dwellinQ units/acre
Mixed Use-Core (MXC) Mixed Use-HiQh 80 dwellinQ units/acre
Mixed Use (MX) Mixed Use Low-1 20 dwelling units/acre
Mixed Use Low-2 30 dwelling units/acre
Mixed Use Low-3 40 dwelling units/acre
be.
Twenty-five percent (25%) of the total required Workforce Housing
Units shall be set aside for Low Income households. Seventy-five
percent (75%) of the total required Workforce Housing Units shall be
set aside for Moderate Income households.
cd.
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.
de.
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.
fe.
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.
fg.
At the time of application for Land Use classification amendment and
rezoning category change the proiect 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 Qualifving as Workforce.
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.
Workforce Housing Units shall include those units in a Development,
which are regulated in terms of:
1. Initial sales price or rent levels; and
11. Subsequent resale prices or leasing rates.
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It. 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 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.
ki. 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. A copy of the recorded Covenant and Agreement shall be
provided to the City prior to the issuance of the building permit.
Sec. 5. 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 sales prices will
exceed $500,000, paving 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.
In any case where Off-Site Options are permitted, twenty-five percent (25%) of the total
required Workforce Housing Units shall be built on-site of the subiect Development.
Off-site Options are not applicable to rental Developments. All required Workforce
Housing Units must be constructed within the subiect Development.
1. Payment in-lieu Contribute the per unit price listed in Table
below to the Boynton Beach Housing Trust to be utilized
subsidize the creation of Workforce Housing within the Ci
In-lieu of fees shall be paid in full prior to the issuance of
building permit.
TABLE2l
PAYMENT IN LIEU FOR CREATING
REQUIREDWORKFORCE HOUSING UNITS
(per unit required)
One Bedroom $680.000
Two Bedroom $801-00.000
Three+ Bedroom $10~0.000
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11. 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.
111. 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
subiect 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
subiect 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 subiect 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 subiect 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 subiect 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.
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b. Units targeted to low income households at 50% to the 80% of the
Palm Beach County median income, adiusted for family size shall not
have rental rates that exceed 100% of the HUD determined fair
market rent for the area.
c. Units targeted to moderate income households at 80% to the 120% of
the Palm Beach County median income, adiusted for family size, shall
not exceed 100% of the HUD determined fair market rent for the area.
d. Tenant income Qualification records shall be maintained on site and a
yearly report shall be forwarded to the Community Improvement
Division ofthe 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 subiect to Article X,
Chapter 20 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 subiect to the
following resale requirements.
1. 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 unites).
11 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
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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:
1. An available fixed-rate thirty-year mortgage, consistent with a
"blended rate" for Palm Beach County banks, 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 proiect; and
11. A down payment of no more than 10% (including any down
payment assistance provided by SHIP or other sources) of the
purchase price; and
111. 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.
Sec. 8.
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.
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b. Workforce Housing Units within a Development shall be integrated
with the rest of the Development and shall be compatible in exterior
design and appearance, construction, and contain comparable HV AC
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.
1. 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.
11. 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.
111. 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 reporting to the City's Community Improvement
Division on buyer eligibility, housing prices, as well as any applicable
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Section 3.
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, iniunctive
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.
Each and every other provision of the Code of Ordinances not herein
24 specifically amended, shall remain in full force and effect as originally adopted.
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Section 4.
All laws and ordinances applying to the City of Boynton Beach in
26 conflict with any provisions of this ordinance are hereby repealed.
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Section 5.
Should any section or provision of this Ordinance or any portion
28 thereof be declared by a court of competent jurisdiction to be invalid, such decision shall not
29 affect the remainder of this Ordinance.
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Section 6.
Section 7.
Authority is hereby given to codify this Ordinance.
This Ordinance shall become effective immediately.
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FIRST READING this ~o day of Yn~ 2007.
SECOND, FINAL READING AND PASSAGE this ~ day of
~
,2007.
CITY OF BOYNTON BEACH, FLORIDA
~~~
'0r-J yT ~Ol
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ATTEST:
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City of Boynton Beach CRA
Housing Needs Assessment
Prepared by:
Florida International University
Metropolitan Center
Prepared for:
Boynton Beach O:lmmunity Redevelopment Agency and
The City of Boynton Beach
April 9, 2006
CREDITS
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
httD://metroDolitan. flu. edu
Research Team
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, Suns hine Maps, Inc.
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
ii
EXECUTIVE SUMMARY
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 end 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
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~ 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.
~ Projected population and employment growth through Year 2025 should create the demand
for approximately 4,172 new workforce housing units (80-150 percent of the AMI) and 6,627
affordable rental housing units for new households earning less than 80 percent of the AMI.
~ The workforce age population of the CRA should create the demand for 5,780 new housing
units, including 3,121 workforce housing units (80-150 percent of the AMI) and 1,965
affordable rental housing units for households at less than 80 percent of the AMI.
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TABLE OF CONTENTS
CRE DITS .................................................................................... ...................... ..... ............ ...... ii
EXEC UTIVE SUMMARy............................................................................... ....................... .... i ii
Critical Findings...... ................................................ ......................................................... jji
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 Demand 25
V. APPEN DIX .......................................... ................................... ...................... ......................27
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
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
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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: New Residential Projects Recently Approved or Under Construction............................ 23
Table 23: 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 24: Census Geographic Areas that Represent the Boynton Beach CRA .............................27
Table 25: Residential Projects in Approval Process............... ....................... ...... ................. .......28
Table 26: Projections of Housing Inventory in Boynton Beach Based on Housing Permits: 2005-
2008............. ............................................................. ..............................................28
Table 27: Projections of Housing Inventory in CRA Based on Housing Permits: 2005-2008..........28
Table 28: Age Distribution with Linear Projection Model .............................................................29
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: CRN: 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............................... ......................... .................30
Map 2: Median and Age by Census Block Group in CRA: 2005..................................................31
Map 3: CRA Land Use .............................................................................................................32
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I. INTRODUCTION AND METHODOLOGY
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.
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II. HOUSING SUPPLY ANALYSIS
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%
Townhome
11%
Source: Palm Beach County Appraiser's Office, RealQuest, properly data from the City of Boynton Beach, 2000
US Census.
"Multi-Family includes apartments, condominiums, cooperatives and rrultifamily structures with 5 units or more
Boynton Beach CRA Housing Needs Assessment
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Figure 2: Inventory of Housing by Type in CRA: 2005
Mobile Home
Park
2%
Single Family
26%
Multi-Fam"
58%
Townhouse'
14%
Source: Palm Beach County Appraiser's Office, RealQuest, Permit 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, he City of Boynton Beach has en aging housing stock.
Approximately 73 percent of the housing units in the City are over 25 years old. In fact, ally 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.
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Figure 3: Boynton Beach: Year Structure Built, Prior to 1960 to 2005
Before 1960s
8%
2000-2005
10%
1990s
17%
1970s
29%
Source: Palm Beach County Appraiser's Office, RealQuest, Pennit Data and Fire Department Assessment Data
from the City of Boynton Beach
Figure 4: CRA*: Year Structure Built: Prior to 1960 to 2005
1960s
24%
19905-2005
2%
Before 19605
16%
Source: Palm Beach County Appraiser's Office, RealQuest, Pennit 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
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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*
Lacking kitchen facilities 2140 115 47
Lacking plumbinq 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 Housing 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, lhe 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 % CRA %
Occupied Units 28,280 100% 6,588 100%
Owner occupied 20,644 73% 4,348 66%
Renter occupied* 7,607 27% 2,240 34%
Population 63,913 - 14,889 -
Source: Metropolitan Center, Florida International University
*Includes all renter occupied units (apartments, condominiums, sngle 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
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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 -tI- Completions I
4000
3500
3000
2500
J!3
'2 2000
::I
1500
1000
500
0
2000 2001
2002
2003
2004
2005 3Qtr
Year
Source: Palm Beach County Quarterly Housing Report: Fourth Quarter 2005. Reinhold P. V\.blff Research, Inc.
Boynton Beach CRA Housing Needs Assessment
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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
Apartments 538 364 404 1,306
Townhomes. 1,596 380 935 2,911
Condominium 378 1,829 744 2,951
Lofts 70 70
Single Family" 331 107 438
Total 2,843 2,573 2,260 7,676
Apartments 404 404
Townhomes. 596 70 935 1,601
Condominium 378 812 744 1,934
70 70
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 nOll-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 Imited 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:
. . . . . .
Under 2 Acres 346 72 I
2 Acres or More 5 82 I
Total 351 154 I
Source: City of Boynton Beach
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III. HOUSING DEMAND ANALYSIS
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
$21,154
22,069
17,098
13,354
18,678
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
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Table 6: Non-Farm Occupations for the Employed Civilian Population 16 Years and Over
2004
I I Palm I % ofTot"
I Boynton -- - ---- --~
Occupations I I Beach
I Beach Boyntonl Beach
I County Beach C t
I oun y
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%
Educationlrraining/Libraries 1,245 17,750 4.40% 3.40%
Art/Entertainment/SportslMedia 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%
Bui/ding/Grounds Maintenance 1,784 27,430 6.30% 5.30%
Personal 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/Maintena nce/Repa irs 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/Insurance/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.7 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.
B 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 Joumal. March 6, 2006.
Boynton Beach CRA Housing Needs Assessment
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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 healthcare services.
Table 7: Non-Agricultural, Establishment-Based Employment/Sales by Industry & Size,
Boynton Beach 2004
Employment "" of Total
WI1I1 '" With 100
Number 1.19 employees Sales
INDUSTRY of Firms Total Employees or more (MillIOns) S Firms Employment Sales
Construction 265 2,185 93.20% 1.50% 382 10.10% 7.90% 14.20%
Manufacturing 107 1,392 79.40% 0.90% 122 4.10% 5.10% 4.60%
T ransportation/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%
Financell nsurancel Real Estate 272 1,926 96,()()''1o 0.00% 326 10.40% 7.00% 12.10%
Services, in which: 1,108 10,582 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 Services 178 965 95.50% 0.00% 128 6.80"10 3.50% 4.80%
Legal Services 57 274 98.20"10 0.00% 49 2.20"10 1.00% 1.80%
Health Services 255 4,585 86.30"10 4.30"10 282 9. 70"10 16. 70"10 10.50%
Educational Services 30 1,186 36.70"10 20.00% 125 1.10"10 4.30% 4. 70"10
Hotels/other Lodging 12 101 91.70"10 0.00% 4 0. 50% 0.40% 0.20"10
Public Administration 48 2,118 nla nla 70 1.80% 7.70% 2.60%
Other 121 984 nla nla nla 4.60% 3.60% 0.00%
TOTAL 2,616 27,501 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.
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Table 8: Area's Largest Employers, 2006
Rank Area's Largest Employers Employees ProducUService
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
Employment Annual Average
Percent HOUII, Education
Rank Title 2004 2012 Change Wage I Code'
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 Housekeeping 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 Including Fast Food 9,288 11,715 3.27 6.63 1
6 Landscaping and Groundskeeping Workers 8,709 10,907 3.15 9.83 1
7 Customer Service Representatives 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
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
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
11
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 4Q-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
1 Retail Salespersons 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 Landscaping and Groundskeeping Workers 11,670 10.02 8.98 7.18 11.44
6 Registered 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 Housekeeping 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 Bookkeeping, Accounting, 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
Registered 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 lwcrthirds 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,
registered nurses account for 10,840 jobs in the West Palm Beach-Boca Raton IVSA, 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
Boynton Beach CRA Housing Needs Assessment
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12
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. 10
Figure 6: Median Single Family Housing Prices by Largest Metropolitan Statistical Areas
(MSAs) Year End 2003 and 2005
I- 2003 020051
$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)
Miami (57%
Change)
Orlando (60%
Change)
Tampa (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
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.
10 Florida Association of Realtors' Sales Report for the Quarter ending December 2005
Boynton Beach CRA Housing Needs Assessment
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Within the CRA, the median market rate sales price was $222,500, 36 percent less than tle
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/town home 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.
Palm Beach Coun
Bo nton Beach
Market Price
Age Restricted
Bo nton Beach CRA
Market Price
Age Restricted
$315,000
274,000
280,000
157,000
156,500
148,500
174,500
Palm Beach Coun 165,000
Bo nton Beach 160,000
Market Price 168,000
A e Restricted 110,000
Bo nton Beach CRA 133,000
Market Price 197,900
Age Restricted 130,000
Source: RealQuest and Florida Association of Realtors
Boynton Beach eRA Housing Needs Assessment
Metropolitan Center
$390,100
348,450
350,000
200,000
220,000
222,500
197,000
215,000
210,000
225,000
137,750
177,000
218,750
160,000
$75,100
74,450
70,000
43,000
63,500
74,000
22,500
50,000
50,000
57,000
27,750
44,000
20,850
30,000
14
Table 12: Median Price of New and Used Housing Units: 3rd Quarter 2005
Palm Beach County
Bo nton Beach
CRA*
224,179
203,955
186,791
183,529
180,000
Source: Palm Beach County Quarterly Housing Report: Fourth Quarter 2005. Reinhold P. Wolff Research, Inc.
'CRA sales figures indudes Age Restricted units
Table 13: Age and Size of Units Sold in 2005: City of Boynton Beach
Under $100,000 2 0 0 1 1 0 0 1 1
$100,000 to $199,999 163 2 100 48 13 0 0 4 146 10 3
$200,000 to $299,999 395 0 159 207 29 0 0 4 157 223 10
$300,000 to $399,999 583 1 52 444 82 4 0 4 75 370 134
$400,000 to $499,999 288 0 14 181 89 4 0 22 147 119
$500,000 to $999,999 181 0 5 67 62 33 14 29 66 86
$1 Million and Over 11 0 0 1 4 5 1 6 1 4
Total 1623 3 330 949 280 46 15 13 435 818 356
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
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
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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. Condominium/Townhomes 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, Realtor.com, 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-lncome: 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
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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 CRA
<50% AMI (Very Low Income) $23,355 20% 26%
<80% AMI (Low Income) 37,367 20% 22%
<120%AMI (Moderate Income) 56,051 18% 17%
<150% AMI 70,064 22% 18%
151%+AMI Over 70,064 20% 16%
Total Very Low to Moderate Income 58% 66%
<50% AMI (Very Low Income) 23,355 28% 40%
<80% AMI (Low Income) 37,367 26% 24%
<120% AMI (Moderate Income) 56,051 20% 18%
<150%AMI 70,064 17% 12%
151%+AMI Over 70,064 9% 6%
Total Very Low to Moderate Income 74% 81%
<50% AMI (Very Low Income) 23,355 22% 31%
<80% AMI (Low Income) 37,367 22% 23%
<120% AMI (Moderate Income) 56,051 18% 18%
<150% AMI 70,064 21% 16%
151%+AMI Over 70,064 17% 13%
Total Very Low to Moderate Income 62% 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 afford ability 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 eRA 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
$74,458 to $216,680. However, affordability gaps are not evident in City of Boynton Beach CRA
households less than 65 years of age. Relatively lower median sales prices combined with
relatively higher median incomes provide a certain level of affordability. However, 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 the City of Boynton Beach, the CRA
and Palm Beach County are less than single family homes, ranging from a low of $13,542 (City of
Boynton Beach less 65+) to a high of $41,580 (Palm Beach County as a whole). 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. Once
again, home purchase for Boynton Beach CRA households less than 65 years of age is
attainable.
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
I M'd;," I AHo,d,bl, ~
HH Home Price
Area Income @ Median
Boynton Beach CRA (all ages) $38,580 $145,541.69 $220,000 ($74,458.31) $177,000 ($31,458.31)
Boynton Beach CRA (minus 65+) 64,952 256,221.53 222,500 33,721.53 218,750 37,471.53
City of Boynton Beach (all aQes) 46,709 179,62754 348,450 (168,822.46) 210,000 (30,372.46)
City of Boynton Beach (minus 65+) 54,289 211,457.53 350,000 (138,542.47) 225,000 (13,542.47)
Palm Beach County 43,540 173,419.35 390,100 (216,680.65) 215,000 (41,580.65)
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. However, 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 City of
Boynton Beach and the Boynton Beach CRA
2006 Median
Median HH Affordable Rental Rent Affordability
Area Income Pnce @ Median Pnce Gap @ Median
Boynton Beach CRA (all ages) $38,580 $965 $1275 ($311 )
Boynton Beach CRA (minus 65+) 64,952 1624 1275 349
City of Boynton Beach (all ages) 46,709 1168 1250 (82)
City of Boynton Beach (minus 65+) 54,289 1357 1250 107
Source: RealQuest, MLS and 2000 US Census data
"The median income for 2000 was adjusted for 2005 inflation.
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 A ffordability 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 a-e all under 50 percent of the
AMI.
Total <50% I <80% <120% <150%
Employed AMI AMI AMI AMI
Occupational Category 2004
-----
Table 18: Occupations by Area Median Income: 2005
Retail Salespersons
Janitors and Cleaners, Except Maids & Housekeepers
Waiters and Waitresses
Combined Food Preparation and Serving Workers, Including Fast
Food
Re istered Nurses
Retail Salespersons
Office Clerks, General
Cashiers
Waiters and Waitresses
Landsca i and Groundskeepin
Cooks, Restaurant
Combined Food Preparation and Serving Workers, Including Fast
Food
Waiters and Waitresses
Hairdressers, Hairst lists, and Cosmetolo ists
Cashiers
Retail Salespersons
Construction Laborers
Elementary School Teachers, Except Special Education'
Secretaries, Except Legal, Medical, and Executive
Automotive Service Technicians and Mechanics
Maintenance and Repair Workers, General
Secondary School Teachers, Exc. Special and Voc. Ed.'
Re istered Nurses
Police and Sheriffs Patrol Officers
Lawyers
General and Operations Mana ers
Accountants and Auditors
Source: Florida Agency for Workforce Innovation, Labor Market Statistics
Boynton Beach CRA Housing Needs Assessment
Metropolitan Center
21,550
8,810
12,930
x
X
X
X
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
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 $200,000.
This indicates that homeownership is becoming unattainable for most one-wage earner
households.
Table 19: Affordability Gap by Occupations
~--Annual---
Total Median Affordable Affordability
Employed Income Home Price Gap @
Occupational Category 2004 ($) 2005^ @ Median Median*
~'B\qJ':). "~"/:' j~" ",:""~ 4:;~; i !,~" \ r f~" ,9 " ~'"j ~"" {l i"d "I '" ~:;f~3}iN5;$.1tdI4tlt1: ~ "L, , ~"' ;"It,:C ^" 1"1 , ~'\:
~;J'~k:J..&~ ~n>L~~~~".i~~Ad,~,",M)J~"~#,^~<M.JtFL:fuili;illill&(t;\~~~illi!i#;"d>~~r'~.I"~ ,Will: I ktilillU~1Th$~
Registered Nurses 10,840 $55,619 $217,043.79 ($132,956.21)
Retail Salespersons 21 ,550 21,154 72,421.54 (277,578.46)
Janitors and Cleaners, Except Maids & Housekeepers 8,810 16,640 53,490.31 (296,509.69)
Waiters and Waitresses 12,930 13,354 39,686.23 (310,313.77)
Combined Food Preparation and Serving Workers,
Including Fast Food
Retail Salespersons 72,421.54 (277,578.46)
Office Clerks, General 76,246.31 (273,753.69)
Cashiers 55,396.24 (294,603.76)
Waiters and Waitresses 39,686.23 (310.313.77)
Landscapin and Groundskeepin 62,044.16 (287,955.84)
Law ers 3,900 107,515 434,573.80 84,573.80
General and Operations Managers 4,960 86,008 344,544.44 (5,455.56)
Accountants and Auditors 5,180 57,013 222,883.67 (127,116.33)
Elementar School Teachers, Except Special Education' 5,590 35,079 130,833.29 (219,166.71)
Second a School Teachers, Exc. Special and Voc. Ed.' 2,670 42,932 163,821.23 (186,178.77)
Registered Nurses 10,840 55,619 217,043.79 (132,956.21)
Police and Sheriffs Patrol Officers 2,630 48,110 185,515.57 (164,484.43)
Cooks, Restaurant 4,100 21,819 75,184.65 (274,815.35)
Combined Food Preparation and Serving Workers,
Including Fast Food 7,170 14,082 42,702.96 (307,297.04)
Waiters and Waitresses 12,930 13,354 39,686.23 (310,313.77)
Hairdressers, Hairstylists, and Cosmetologists 2,500 20,821 71,009.97 (278,99003)
Cashiers 13,160 1 7,098 55,396.24 (294,603 76)
Retail Salespersons 21,550 21,154 72,421.54 (277,578.46)
Secretaries, Except Le ai, Medical, and Executive 6,910 26,582 95,177.54 (254.822.46)
Construction Laborers 4,060 22,090 76,355.50 (273,644.50)
Automotive Service Technicians and Mechanics 2,560 32,094 118,343.49 (231,656.51)
Maintenance and Repair Workers, General 6,750 30,451 111,455.85 (238,544.15)
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 Affordability
Beach CRA Affordable Gap'
Income Households Households Price
-_IIBEmI~~mJII_
<50% AMI (Very Low Income)
<80% AMI (Low Income)
<120% AMI (Moderate Income)
<150%AMI
23,355
37,367
56,051
70,064
20%
20%
18%
22%
26%
22%
17%
18%
71,894
115,047
172,570
215,722
(276,556)
(233,403 )
(175,880)
(132,728)
City of Boynton Beach
Boynton Beach CRA""
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 3) 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 Cost Burden of 30 Percent or More by Tenure: 2005
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
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IV. HOUSING SUPPLY AND DEMAND IMPACT ASSESSMENT
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 imbalanc~
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. 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 approximately 1.5:1. 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.
Bureau of Economic and Business Research (BEBR) population projections for the City of
Boynton Beach indicate that the City will grow to 110,339 residents by the Year 2025. These
population projections include an increase of 12,273 persons within the workforce age group
(ages 20-54), including 17,556 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. Projected population and employment growth through Year 2025
should create the demand for approximately 4,172 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 14,516 residents
by the Year 2025. The workforce age population of the CRA should create the demand for 5,780
new housing units, including 3,121 workforce housing units (80-120 percent of the AMI) and
1,965 affordable rental housing units for households at less than 80 percent of the AMI.
If the CRA undergoes aggressive redevelopment, it is likely that the area will need as many as
9,205 new housing units, including 4,970 workforce housing units and 3,129 units for households
below 80 percent of the AMI.
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, only 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
of the AMI. Table 22 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.
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Table 22: New Residential Projects Recently Approved or Under Construction
. . Number of Pricel Projected eRA
Project Name Project Type Units Rent Range Build out Date
.:\!?\T'ls'::;V;\J;P0Xlli__D0'a;~"0!1;01{^;7"i;m(ffi;;"{;:;~\r7I' {I;A' k;;1k;';;:W;\':;h;;U,;jA'[i!:';j4tJN;;;:; '," ;', r' " ;', ,';: i;; ['{!;i}l
~~~dN5&ktd6:~.~m~~m.~Billi,'O:;;;;~ """ ;;;;W:~~t 10;;;.tb;;=~VM~S. &.:.:iiJJ;"" ,""r.; """I,'b !};"';"d~~~~
Apartments
Boynton Lofts Mixed Use 48
W/Condos
Mixed Use Total 1,120
W/Residential;
Boynton Village Townhomes 458 townhm
And Condos 648 condos
Heritage Club Mixed Use wit Total 166
Condos and 96 condos
(Gulfstream Mall) Townhomes 70 townhms
Mixed Use wit 318 condos;
The Promenade Residential 68 condo-
(Condos) hotel units
Mixed Use Total 494
Uptown Lofts @ W/Townhomes 20 townhms.
Boynton Place Apartment and 404 apts
Lofts (All 70 lofts
Rental)
1 bdr $875-$1075
2 bdr $1250-$1500
3 brd $1475-$1625
Jan-06
$265-$550K Jul-07 Yes
Yes
Townhomes $300k-$400k; Townhomes
Aug-07; Yes
Condos high $200k to $400k condos Apr-08
winter 2007 Yes
Rents $1.300-$3,000
Apr-08
Yes
arr Property Townhomes 180 $350-$450k
Bayfront Townhomes 48 $250-$320s
Coastal Bay Colony Townhomes 64 $295.000 to $375,000
Estancia T ownhomes 30
Gulfstream Gardens Townhomes 198 $300k and up Jul-08
Ocean Breeze West Townhomes 37
Seaview Park Club Town homes 64 Summer 2006 Yes
Boynton Dixie Townhomes 82 Jun-07 No
Monterey Townhomes 300 Jun-06 No
Venetian Villas Townhomes 50 Feb-06 No
Waterside Townhomes 115 Jun-07 No
Carriage Pointe Townhomes 172 Feb-06
Largo Pointe Townhomes 20 COMPLETED
Parkside 271 COMPLETED
The Canterbury 155 first Qtr 2006
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
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Project Name Project Type Number of Price! Projected CRA
Units Rent Range BUild out Date
Town homes! Total 70
Peninsula at BB Condos 40 condos Avr. $600k Oct-07 Yes
30 townhms
The Residences at Townhomes 338 condos, $130,000 - $200,000 condos Jun-06 Yes
Marina Village 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 townhm Dec 07
364 aps
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 rome 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.
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Affordability Calculations and Targeted Populations Based on
Existing and Future Demand
Bases 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 23 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 23: 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 Pnce 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
Condos 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. In order to address the demand for workforce
housing, the City will need to produce approximately 4,172 new affordable units by the Year
2025. Within the CRA an additional 3,121 affordable housing units would need to be produced by
the Year 2025.
As previously established, the price points for workforce housing in the City and the CRA will
need to be affordable Dr household earning less than 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.
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In order to address the housing demand of occupations that earn less than 80 percent of the area
median income (AMQ, 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 provide approximately 6,627 ctfordable renter units in the
City and an additional 1,965 affordable renter units in the CRA. Affordable rent prices would
range from approximately $600-$900 per month.
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V. APPENDIX
Table 24: Census Geographic Areas that Represent the Boynton Beach CRA
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
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Table 25: Residential Projects in Approval Process
Project Name Project Type Number of Price! Projected CRA
Units Rent Range BUild out Date
Golfstream Gardens II Townhomes 108 Yes
Hemmingway Square Townhomes 22 Yes
Miller Rd Townhomes 121 Yes
Oceanside T ownhomes 45 $250-$3205 Yes
Riviera Townhomes 8 Yes
Tuscan Villas Townhomes 25 Yes
Yachtman's Cove Townhomes 61 Yes
Lawrence Road Zerl>-Iots 90
Table 26: Projections of Housing Inventory in Boynton Beach Based on Housing Permits:
2005-2008
Sin Ie Famil 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
Coo erative 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
*Indudes 70 Lofts
""Includes 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 27: Projections of Housing Inventory in CRA Based on Housing Permits: 2005-2008
Single Family
Townhouse/Attached 2-4
Condominium/Coop/Multi-F amily
Mobile Home Park
Total
1,708
929
3,827
125
6,588
**Indudes 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
1,708
1,525
4,205
125
7,562
1,708
1,595
5,017
125
8,444
1,708
2,530
6,235
125
10,597
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Table 28: Age Distribution with Linear Projection Model
Age I 2005 2010 2015 2020 2025
0-4 3,823 4,223 4,737 5,262 5,776
5-9 3,605 4,192 4,637 5,213 5,812
10-14 3,558 3,827 4,136 4,521 5,059
15-19 3,348 3,650 3,943 4,487 4,970
20-24 3,614 4,238 4,716 5,002 5,365
25- 29 3,803 4,445 5,081 5,515 5,891
30-34 3,924 4,302 5,098 5,709 6,385
35-39 4,512 4,658 4,646 5,166 5,830
40-44 4,991 5,024 4,941 5,373 6,249
45-49 4,746 5,573 5,646 5,904 5,909
50-54 4,011 5,457 6,392 6,431 6,446
55-59 3,844 4,976 6,576 7,602 7,779
60-64 3,275 4,430 5,807 7,619 8,868
65-69 3,213 4,138 5,782 7,311 9,479
70-74 3,160 3,500 4,558 6,086 7,967
75 or over 8,955 8,742 8,888 9,977 12,554
Total 66,382 75,374 85,583 97,176 110,339
Source: Metropolitan Center, Florida International University
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