Housing affordability has become one of the main topic of the times, here and across the country. In response, the county commission recently took action to help remedy the growing problem of unaffordable housing in Indian River County. In recent years, an increasing number of residents and area workers have been priced out of the housing market here, unable to purchase homes or afford rent. That group includes many of the people who care for island yards, homes and residents – cutting grass, cleaning swimming pools and taking care of elderly people who want to remain in their homes. Even some of the law enforcement officers and firefighters islanders depend on are finding it difficult to buy a home or rent a nice apartment in the county. County commissioners hope a new trust fund they created in August will encourage developers to build homes and apartments that the area’s essential workers can afford. The Attainable Housing Trust Fund will acquire properties – either donated, seized or foreclosed-upon – and other assets, and make them available to nonprofit and for-profit developers for affordable housing projects. “It’s a huge achievement,” said Commission Chair Deryl Loar the day commissioners voted 5-0 to adopt the ordinance creating the trust fund. “This is another tool for our toolbox and allows us, like other counties and municipalities, to have a mechanism in place if someone would like to donate money or property for affordable housing.” In addition to donated parcels, properties foreclosed upon due to code violations or back taxes and proceeds from the sale of county-owned properties can now be placed in the fund. No more than 10 percent of funds can be used for administrative costs. Developers can seek funding from the trust by applying to the 12-member Affordable Housing Advisory Committee (AHAC), which oversees the county’s longstanding State Housing Initiatives Partnership. Since 1993, Indian River County has received about $27.4 million in funds through the partnership, with most of the money used to assist first-time homebuyers, according to county officials. The county has also provided property and financial assistance for nonprofit affordable housing projects, such as Indian River Habitat for Humanity’s Gifford Gardens project, said County Commissioner Susan Adams, who chairs AHAC. “The trust fund will just provide a smoother way to do that,” Adams said. “I think one of the important things is that this sets up the ability for us to require that the developed properties remain affordable for a specified time frame.” When the county approves plans for special developments, such as mixed-use and higher-density planned developments, developers must set aside property or funding for public benefit, such as parks or school sites, Adams said. Those assets can now be directed toward the Attainable Housing Trust Fund instead. “Now we have the vehicle legally to do these things and allow us to have those conversations,” Adams said. “Affordable housing is certainly a public benefit.” Other larger Florida counties, such as Pinellas and Palm Beach counties, have housing trust funds, as do municipalities in other states, she added. Nonprofit groups and philanthropic islanders have been pushing back on the problem of unaffordable housing for years, motivated by sympathy for the less fortunate and awareness that their lifestyles depend on workers who increasingly can’t afford to live here. Residents of Orchid Island, for instance, have put more than their checkbooks to work for Habitat for Humanity. A revolving group of 30 to 35 volunteers periodically picks up hammers and saws to build homes that are affordable. Since 2001 they have built 37 Habitat houses throughout the county.“It’s a heartwarming scenario,” said John Morrow, a former building contractor who is the group’s current chairman. “We have bankers, a neurosurgeon, wealth management people – it’s a give-back situation and we all really enjoy it.” “The beauty and vitality of Orchid Island depend on a broad workforce with a great diversity of skills,” said Cherry Stowe, Orchid town manager and AHAC alternate member. “Town residents have long engaged with attainable housing efforts, both philanthropically and in a hands-on manner with Habitat for Humanity.” The rule of thumb during the 1970s was that rent or mortgage payments should be no more than 25 percent of monthly after-tax income. That percentage was derived from public housing regulations set in 1969 but later increased to 30 percent in the 1980s. But even 30 percent doesn’t cover today’s housing costs for many essential workers. According to U.S. Census Bureau statistics, median household income in Indian River County is $73,491. After taxes, that comes out to about $55,000. Thirty percent of that is $1,650 – but the median monthly rent is about $2,150. Most Certified Nursing Assistants and home health aides employed by Margot Kornicks, who founded Indian River Home Care in 2011, travel here from Port St. Lucie or Palm Bay because they can’t find affordable housing in Indian River County. That was not the case when she started 15 years ago, said Kornicks, adding that a majority of her clients live on the island. High gas prices this summer have made things even more difficult, said Kari Janes, president and owner of Right At Home Vero Beach, whose caregivers provide a range of in-home services to seniors, many of whom live in 32963. Most of her employees also live outside the county. “A lot of clients just want someone to help with meals or getting in and out of the shower,” Janes said. “But by the time they pay for gas, it just doesn’t make sense for a caregiver to drive all the way from Fort Pierce or Brevard County for a shift shorter than four hours.” It’s not just caregivers who are struggling – some teachers, law enforcement officers, and county and city employees also are finding it too expensive to live where they work, Adams said. “If you’re not married or coupled up, you’ve basically got no chance in this county,” said Jeff Francisco, an AHAC member who also chairs the board of directors for the nonprofit Coalition for Attainable Homes in Vero Beach. “You’d need to make $75,000 to $85,000 a year just to afford an entry-level apartment. There’s not many of those jobs here. It’s very challenging.” The Coalition has helped close to 600 couples and families find affordable homes and apartments. “By far, the largest quadrant of those homeowners by occupation work in the medical field,” he said. “So just imagine if these folks could not find housing they can afford. You’d lose about a third of all the techs and nurses from every hospital and doctor’s office in the county.” The Coalition would need at least 1,500 affordable apartments just to serve their backlog of clients, Francisco said. He hopes that the county’s new trust fund will help change things. In theory, buying a house makes more sense than renting for many people – that is, if you can find a house in your price range. But there’s the rub, says Chip Landers, a long-time Berkshire Hathaway real estate agent who serves on the AHAC. “The monthly mortgage payment will be less than what people are paying for rent, but that’s not the issue,” he said. “The issue is coming up with $20,000 or more for the down payment’ for a $300,000 starter house. With most of their income going to rent, groceries, car payments, insurance and other costs, there’s very little left to set aside for a down payment, he said. “Somehow or other, we have to find a way to help people get into a home,” Landers said. “Once they’re in, they can start building toward financial security. Now with the trust we can start pushing things more.” Indian River Habitat for Humanity CEO Trevor Loomis believes regulatory reform is needed. “There are so many restrictions that make it difficult to build anything affordable,” he told Vero Beach 32963. Building the 14 homes in Gifford Gardens has taken four years to jump through all the government hurdles, Loomis said. “Only one of those years was actually spent on construction. The other three years were spent battling through the regulatory process.” One county requirement called for more than $100,000 worth of landscaping, plus another $30,000 for a system to keep everything irrigated, Loomis said. “They’re required by law, but that works against housing affordability. “Over the course of about five years, our cost to build one house has gone up 100 percent.” These are not mansions, they’re starter homes, Loomis explained. But a basic starter house now costs around $250,000 to build, and that’s with free land and labor, he said. “So it has to be subsidized. It has to have payment assistance,” he said. “We sell our houses for a mortgage amount that’s around 50 percent of the cost. Because that’s all people can afford.” Loomis believes the best thing the county can do with the trust fund dollars is to invest in land development and infrastructure. “Infrastructure work is very expensive,” he said. Habitat will spend $3 million on infrastructure for its 32-home development near 4th Street and 27th Avenue before the first house is built, he said. “If the developer has to pay for that, it will get passed on to the end user and you’re not going to end up with anything that’s going to be very affordable,” Loomis said The shortage of affordable housing “does impact people who work here on the island,” Morrow said. “A number of people who do work for Orchid Island residents are now living in homes we built. We rely on these folks, and they do a great job for us.” <em>Photos by Joshua Kodis</em> [gallery ids="237778,237779,237780"]