X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

WINTER PARK, FL-In response to its small portfolio of affordable housing, elected officials in this affluent Orlando suburb want developers to subsidize new affordable housing when they ask the city to increase the size of their own for-profit projects. The city estimates an affordable home here will cost $196,000.

Of the 1,150 new affordable apartments built in the last 10 years, for-profit developers built only 38 units, the city maintains. The city built 75 affordable units on its own in the same period. From now on, however, the city wants 15% of all new housing to be affordable. The average volume to date has been 10% achieved by private and public projects, city staffers confirm for GlobeSt.com.

The city’s proposed new policy would have developers provide one affordable apartment, condo or house for every four extra units they might seek under a rezoning application. Under the proposal, developers could provide affordable housing on-site or off-site; give the city land to build an affordable home; or pay $150,000 cash per unit to the city.

Most developers don’t like the city’s latest idea. They would prefer to voluntarily provide affordable housing when their budget allows them to do so, area builders tell GlobeSt.com. “What this new policy will do will drive up costs of the new, for-profit homes and possibly restrict supply of new product as well,” an Orlando developer who asked for anonymity tells Globest.com.

However, Winter Park officials don’t see it that way at all. They argue voluntary development of affordable housing by for-profit builders has never worked in the past. Developers maintain they already subsidize some affordable housing by the 50-cents-per-sf fee they pay on all new for-profit projects.

This linkage fee expects to generate about $350,000 annually, city officials confirm. That would pay for the city’s near-future acquisition of two vacant lots, especially on Winter Park’s west side where six lots are currently listed from $160,000 to $180,000 each, according to city planner Jeff Briggs.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.