Proposed incentives would aim to entice developers to build affordable housing

Developers could soon receive financial incentives if they build affordable rental housing in Manatee County.

As a way to help encourage developers to build affordable housing projects, the county will develop a workforce housing rental incentive program. The commission was presented with the program Tuesday but still must approve it during a regular commission meeting.

“This incentive will help and definitely entice them,” said Geri Lopez, the county’s redevelopment and economic opportunity director, based on her conversations with developers. “I know this is definitely an incentive that will attract some of them.”

In Manatee County, 36 percent of renter households are “cost burdened,” meaning they spend more than 40 percent of their income on housing.

With the demand for rental housing exceeding the supply, the cost for housing increases.

“Housing is a human fundamental need,” she said during Tuesday’s “All Things Housing Reset” commission work session. “We do need to try to encourage the creation of affordable housing.”

But as the county looks to encourage more affordable/workforce housing, county officials say there are challenges stopping developers from wanting to build affordable housing, including regulatory, financial and political/social barriers.

“There is really no simple answer,” Lopez said. “It’s really hard to make those numbers work. Affordable housing is about covering that gap.”

Under the proposed workforce housing rental incentive program, developers could receive up to $500,000 per project if they develop affordable units in the Urban Service Area, which is made up of neighborhoods in unincorporated Bradenton. The county would also pay up to 100 percent of impact fees and facility investment fees for utilities for the affordable units.

Currently, the county has $3 million available as an incentive to build affordable single-family units. Now officials want to have multifamily units be eligible for the funds.

“The goal was to increase supply, increase quality, get that new investment in the area,” Lopez said.

There is also a need for the affordable housing in northern Manatee County, Commissioner Vanessa Baugh said.

“I feel like we are just closing our eyes to north county,” she said. “There are schools there. There are people that live there that could certainly use affordable housing units. We need to not close our eyes, I don’t think, to north county. I think we’ve done that long enough.”

With respect to affordable housing, Commission Chairwoman Betsy Benac expressed the importance of the county being able to “show success and actually get something done.”

“We do want action,” she said. “Success breeds success.”

Manatee County is going to have to put some skin in the game, Commissioner Priscilla Whisenant Trace said.

“You don’t get started until you get started,” she said.

Several Manatee County residents who are struggling to find housing addressed the commission.

One woman, who identified herself by her first name Michelle, said she and boyfriend will be homeless two years this June. She said they both work, but it’s not enough to find a place to live.

“I feel like I need the help the most,” she said.

Commissioner Charles Smith said the woman’s plight is too common.

“She’s one of many that are working that can’t afford to live,” he said.

The problem is a lack of supply, Benac said.

“We can focus at this point at increasing the supply, but the homeless thing is going to take a different toolbox,” she said.

This story was originally published April 18, 2017 at 4:58 PM with the headline "Proposed incentives would aim to entice developers to build affordable housing."