CITY COUNCIL AGENDA ITEM
Memo Date: January 10, 2024
Agenda Date: February 27, 2024
Prepared By: Charlene Neuterman, Community Services Director
Through: Stockton Whitten, City Manager
Requested Action:
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Conduct a Public Hearing to review the affordable housing real property inventory list and approve a Resolution identifying certain real property within the City to which the City holds fee simple title that is appropriate for permanent affordable housing.
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BACKGROUND:
Florida Statutes, Section 166.0451, provides that by October 1, 2023, and every 3 years thereafter, each municipality shall prepare an inventory list of all real property within its jurisdiction to which the municipality holds fee simple title that is appropriate for use as affordable housing. The inventory list must include the address and legal description of each such property and specify whether the property is vacant or improved. The governing body of the municipality must review the inventory list at a public hearing and may revise it at the conclusion of the public hearing. Following the public hearing, the governing body of the municipality shall adopt a resolution that includes an inventory list of such property that is appropriate for permanent affordable housing.
In the future, the properties identified as appropriate for use as permanent affordable housing on the inventory list adopted by the City may be offered for sale and the proceeds may be used to purchase land for the development of affordable housing or to increase the local government fund earmarked for affordable housing, or may be sold with a restriction that requires the development of the property as permanent affordable housing, or may be donated to a nonprofit housing organization for the construction of permanent affordable housing. Alternatively, the City may otherwise make the property available for use for the production and preservation of permanent affordable housing. Approval of the inventory list does not preclude the Council from revising the list in the future if a property (or properties) is determined to be needed for municipal purposes.
The term “affordable” has the same meaning as in F.S. 420.004(3) “Affordable” means that monthly rents or monthly mortgage payments including taxes, insurance, and utilities do not exceed 30 percent of that amount which represents the percentage of the median adjusted gross annual income for the households.
Municipalities are encouraged to adopt best practices for surplus land programs, including,, but not limited to:
• Establishing eligibility criteria for the receipt or purchase of surplus land by developers;
• Making the process for requesting surplus land publicly available;
• Ensuring long-term affordability through ground leases by retaining the right of first refusal to purchase property that would be sold or offered at market rate and by requiring reversion of property not used for affordable housing within a certain timeframe.
In January 2023, the City presented an updated list of real property appropriate for use as affordable housing. In accordance with the 2023 Florida Statues 166.0451 Disposition of municipal property for affordable housing, the City has prepared an inventory list of all real property within its jurisdiction to which the City holds fee simple title that is appropriate for use as affordable housing. The inventory list includes the address and legal description of each such property and specifies whether the property is vacant or improved. All 43 properties are listed within Exhibit “A” as vacant. It should be noted that the 20 lots within the Michael C. Blake Subdivision must be developed for the purposes of permanent workforce housing. One property was added in 2023 after Brevard County deeded a parcel located at 727 Bernard to the City. Additionally, it should be noted that the five homes currently being constructed on lots in the Michael C. Blake subdivision will remain on the Inventory List until the homes are completed and sold. There are two lots currently owned by the Diamond Square Community Redevelopment Agency that are also included on this list and will be disposed of per the program developed by the City.
Staff are requesting Council conduct a public hearing to review the inventory list. The City may offer the properties for sale and the proceeds may be used to purchase land for the development of affordable housing or to increase the City’s fund earmarked for affordable housing; or may be sold by negotiated agreement with a buyer with a restriction that requires the development of the property as permanent affordable housing and such other terms and conditions required by the City Council; or may be donated to a nonprofit housing organization for the construction of permanent affordable housing. Alternatively, the City may otherwise make the property available for use of the production and preservation of permanent affordable housing. As stated previously, City Council reserves the right at any time to revise Exhibit “A” as deemed necessary.
As part of the recommendation to adopt best practices for surplus land programs, the City is developing a program that will meet the requirements of Florida Statute 166.0451 and the Live Local Act. This program will be presented to Council for approval at a later date. Since there has been some interest in various parcels, staff intends to present to the City Manager several parcels that the City may want negotiate terms and conditions of the disposition of the properties described on Exhibit “A” subject to the City Council’s approval.
Upon approval of Resolution ##-####, it will be published as required on the City’s website.
STRATEGIC PLAN CONNECTION:
Community Development (Redevelopment of the City’s Core) - Supporting the development of permanent affordable housing in the City will raise the quality of life for its residents, especially those underserved and disadvantaged.
BUDGETARY IMPACT:
If any of the parcels are sold outright, the City would use the sale proceeds for development of additional affordable housing.
PREVIOUS ACTION:
May 2020, Agenda 20-228, Staff presented the Inventory List of Surplus Property.
January 2023, Agenda 23-55, Staff presented the Inventory List of Surplus Property.
RECOMMENDED MOTION:
Recommendation
Conduct a Public Hearing to review the affordable housing real property inventory list and approve a Resolution identifying certain real property within the City to which the City holds fee simple title that is appropriate for permanent affordable housing.