April 24, 2024
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Apartments
Affordable Housing Market Still Booms
Developers are racing to build affordable apartments - the only segment of residential real estate still thriving - but are the projects what Florida's communities need?
Cynthia Barnett | 11/1/2008
 “Basically, we have a scenario where he who has the biggest mouth gets the most money.” — Stuart Scharaga, developer and member of the Florida Housing Finance Corporation board |
In the end, the housing finance corporation voted to spend the $100 million on the first-time home buyer programs. In addition, the housing bill passed by Congress this summer will funnel $1 billion into Florida’s housing market, including $541 million in federal Community Development Block Grants to help communities hardest hit by the downturn rehabilitate foreclosed properties and help get first-time home buyers into them.
But don’t expect the mid-level building boom to stop anytime soon. Back on Jacksonville’s west side, the state is going forward with credit underwriting on a loan to help Richmond Group build that seventh apartment complex in the area.
What is Affordable Housing? |
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| Type of housing | Income for family of four | Monthly rent/ mortgage | Financing | Builder |
| Low income/ affordable (middle market) | $30,000 - $50,000 (50% to 80% of median income) | $750 - $1,275 (Housing tax credits mandate maximum rent of 60% or less of annual median income, or about $950.) | Bank financing; limited grants from the federal and state government; local contribution required for tax credit financing | For-profit developers |
| Very low income | $19,000 - $32,000 (30% to 50% of median income) | $475 - $750 | Bank financing; housing tax credits with local contribution; other federal, state and local grants | Non-profit developers |
| Extremely low income | $13,000 - $19,000 (20% to 30% of median income) | $300 - $475 | No or very limited bank financing possible; housing tax credits; federal homeless and disability grants | Non-profit developers |
| Subsidized housing | Below $12,000 (less than 20% of median income) | Below $300 | Requires operating subsidy | Housing authority; non-profits offering transitional housing to special needs clients |
| Note: Information for Jacksonville market. Source: Local Initiatives Support Corporation of Jacksonville |
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