Land costs, other costs barriers to build affordable housing in Manatee

The cost of land and other development expenses have previously prevented Steve Rinehart from building affordable housing in Manatee County.

But when land became available for sale behind Southeast High, Rinehart Homes jumped on the opportunity and Cortez Landings is now under development.

“I have not had the opportunity to provide affordable housing in the past just because land costs, development costs prevent that opportunity,” Rinehart said Tuesday.

With the lack of affordable housing in Manatee County, Rinehart Homes has had to do very little advertising to sell the 53 lots in the development, which is on 11th Street East off 44th Avenue East. Since January, 25 homes, ranging from approximately $141,000 to $159,000, have been sold.

Through Manatee County government’s affordable housing impact fee credit program, Rinehart has had to pay less in impact fees as an incentive.

“The impact fees have definitely helped make this project affordable,” Rinehart said. “Development costs to provide a new affordable community is quite large. ... The impact fee program was a big incentive.”

As commissioners continue to tackle the affordable and workforce housing issue in Manatee County, representatives from the private sector presented to the commission Tuesday.

“Trying to buy raw land and trying to get infrastructure in, it just prevents you from making that affordable,” Rinehart said. “With those two costs right off the bat, it is just very, very difficult.”

Local landlords have not needed to advertise for renters for the past year, said Cheri Coryea, the county’s neighborhood services director.

“When a unit is not filled, it immediately has people on the list to come on in,” Coryea said, sharing feedback from landlords. “They have an abundance of people seeking their units. We indicated it means we have a lack of them.”

But while the commission is expected to hear recommendations and implementation schedule at a Aug. 16 work session, Manatee County doesn’t receive enough money from state and federal programs to assist everyone, said Denise Thomas, the county’s housing and community development coordinator.

“The bottom line is we do need more dollars to impact more houses,” she said.

Commissioner Charles Smith said they must admit that the county does have an affordable housing problem.

“We need to really focus on the fact that the housing program in Manatee County is broken,” Smith said. “The fact is that we need thousands of affordable houses in Manatee County.”

Travis Vengroff, who is working with his father Harvey, a wealthy Sarasota businessman, to transform the Knights Inn into affordable housing, told the commissioners they are looking to make a difference.

“Now more than ever there is a real need for affordable housing,” Vengroff said. “It’s easier now than ever to get into workforce housing. It is doable.”

This story was originally published May 17, 2016 at 2:17 PM with the headline "Land costs, other costs barriers to build affordable housing in Manatee."