FAITH is calling on the Volusia County Council to pass the Volusia Housing Opportunities Act, which would:
1. Create a countywide Housing Trust Fund;
2. Kickstart the Housing Trust Fund with $2.5 million from the American Rescue Plan;
3. Ensure at least $1 million annually to sustain the Housing Trust Fund.
1. Create a countywide Housing Trust Fund;
2. Kickstart the Housing Trust Fund with $2.5 million from the American Rescue Plan;
3. Ensure at least $1 million annually to sustain the Housing Trust Fund.
RISING COST OF RENT:
SEVERE COST BURDEN (Paying over half of income on rent):
Volusia County needs an additional 16,000 units of affordable rental housing!
Unfortunately, it's not financially viable for developers to build housing that would be affordable for working families. The development of affordable housing is dependent on outside subsides and incentives.
- To afford a one bedroom apartment, someone working full time would need to make over $16 an hour!
- Yet, the mean renter wage in Volusia county is $13 an hour!
- As the cost of rent has drastically increased, wages have not kept up.
SEVERE COST BURDEN (Paying over half of income on rent):
- 1 in 3 renter households in our area are SEVERELY COST BURDENED
- Volusia's rate of SEVERE COST BURDEN is higher than both New York City and San Francisco metro area!
Volusia County needs an additional 16,000 units of affordable rental housing!
Unfortunately, it's not financially viable for developers to build housing that would be affordable for working families. The development of affordable housing is dependent on outside subsides and incentives.
Housing Trust Funds are established by governments to assist in the creation, preservation or rehabilitation of housing that's affordable to families and individuals of a certain income bracket.
Oftentimes, money from the Housing Trust Fund are provided in grants to for-profit or non-profit developers who agree to create or renovate housing opportunities that are affordable for folks of a certain income bracket. Thus, money from the Trust Fund does not create the housing directly, but it makes the development possible.
Housing Trust Funds are a Market Based Solution in which local governments empower the ingenuity and efficiency of the private sector in order to serve the greater good.
POPULARITY:
Over 700 local communities across the United States have created their own Housing Trust Funds.
FLEXIBILITY:
The success of local Housing Trust Funds is due in part to their flexibility. The objectives of each fund is dictated by the local community leaders, rather than far away bureaucrats. For instance, in many communities suffering with lack of affordable housing are also riddled with abandon building and dilapidated housing. Housing Trust Funds can be used to fund renovation projects to repurpose existing structures into affordable housing!
Oftentimes, money from the Housing Trust Fund are provided in grants to for-profit or non-profit developers who agree to create or renovate housing opportunities that are affordable for folks of a certain income bracket. Thus, money from the Trust Fund does not create the housing directly, but it makes the development possible.
Housing Trust Funds are a Market Based Solution in which local governments empower the ingenuity and efficiency of the private sector in order to serve the greater good.
POPULARITY:
Over 700 local communities across the United States have created their own Housing Trust Funds.
FLEXIBILITY:
The success of local Housing Trust Funds is due in part to their flexibility. The objectives of each fund is dictated by the local community leaders, rather than far away bureaucrats. For instance, in many communities suffering with lack of affordable housing are also riddled with abandon building and dilapidated housing. Housing Trust Funds can be used to fund renovation projects to repurpose existing structures into affordable housing!
LEVERAGE:
By drawing investments from the private sector, and by making local projects more appealing to state and federal grants, local Housing Trust Funds consistently leverage millions of dollars every year for affordable housing! In fact, in 2016, the average countywide Housing Trust Fund leveraged $8 for every $1 invested!
By drawing investments from the private sector, and by making local projects more appealing to state and federal grants, local Housing Trust Funds consistently leverage millions of dollars every year for affordable housing! In fact, in 2016, the average countywide Housing Trust Fund leveraged $8 for every $1 invested!
Since last year, 3 counties in Central Florida have each decided to create their own countywide Housing Trust Fund! Click the logos below to learn more about each of their new Housing Trust Funds!
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LOUISVILLE KY:
In 2018, Louisville used their Housing Trust Fund of $9.5 million to fund 22 projects across the city. This resulted in the creation of 492 units of affordable rental housing, 33 single family homes, and 814 preserved/restored units. The total cost of all of this $164 million, but all of it was made possible by the $9.57 million trust fund! POLK COUNTY, IA: In 2016, Polk County, IA used their Housing Trust Fund of $2 million to fund 17 projects. This resulted in the creation of 173 affordable units as well as the preservation of 183 units. FRANKLIN COUNTY, IA: In 2019, Franklin County, OH used their Housing Trust Fund of $28 million to fund 13 projects. This resulted in the creation and/or preservation of 974 units of affordable housing! |
Across the country, the way in which Housing Trust Funds are financed greatly varies. Local leaders are able to choose which funding strategy meets their community's unique needs.
GENERAL FUNDS:
Many cities and counties governments choose to finance their Housing Trust Funds with allocations from their General Fund. For instance, Volusia's neighbors in Orange County and Hillsborough County have each dedicated $10 million a year from their general funds to finance their new countywide Housing Trust Funds. However, it is generally preferable for local governments eventually to create a dedicated revenue source that will continuously fund the Housing Trust Fund from year to year.
LINKAGE FEES:
Some localities fund their Housing Trust Funds by using fees on commercial or high end residential development. Communities like Arlington County, VA, Montgomery County, MD, Ann Arbor, MI, Santa Fe, NM and many more, all finance their Housing Trust Funds with some type of Development Fee. Currently, Seminole County and Orange County are pursuing a NEXUS study on creating their own Linkage Fee programs, as is the City of Daytona Beach.
INCLUSIONARY ZONING:
Inclusionary Zoning is a policy local governments implement which asks that a certain percentage all of new residential housing developments are affordable for working families. While this in and of itself creates affordable housing options, many communities allow for developers to forgo this requirement by paying a fee, which is then placed into the Local Housing Trust Fund. Many communities finance their Local Housing Trust Fund with these Inclusionary Zoning Fees, such as Key West, FL, Longmont, CO, Austin, TX, Portland, ME, Evanston, IL, etc.
GENERAL FUNDS:
Many cities and counties governments choose to finance their Housing Trust Funds with allocations from their General Fund. For instance, Volusia's neighbors in Orange County and Hillsborough County have each dedicated $10 million a year from their general funds to finance their new countywide Housing Trust Funds. However, it is generally preferable for local governments eventually to create a dedicated revenue source that will continuously fund the Housing Trust Fund from year to year.
LINKAGE FEES:
Some localities fund their Housing Trust Funds by using fees on commercial or high end residential development. Communities like Arlington County, VA, Montgomery County, MD, Ann Arbor, MI, Santa Fe, NM and many more, all finance their Housing Trust Funds with some type of Development Fee. Currently, Seminole County and Orange County are pursuing a NEXUS study on creating their own Linkage Fee programs, as is the City of Daytona Beach.
INCLUSIONARY ZONING:
Inclusionary Zoning is a policy local governments implement which asks that a certain percentage all of new residential housing developments are affordable for working families. While this in and of itself creates affordable housing options, many communities allow for developers to forgo this requirement by paying a fee, which is then placed into the Local Housing Trust Fund. Many communities finance their Local Housing Trust Fund with these Inclusionary Zoning Fees, such as Key West, FL, Longmont, CO, Austin, TX, Portland, ME, Evanston, IL, etc.
Grants from the federal and state government play a vital role in creating affordable housing. However, these grants are highly competitive and often come with certain requirements that don't always meet the needs of the local community.
For instance, in Florida, State Housing Initiative Program (SHIP), funded through the Sadowski Act, requires at least half of all funds to be earmarked for home ownership projects, whereas Volusia County has indicated in it's own Consolidated Report that the lack of affordable rental units is the most pressing housing need.
More over, the funds from the Sadowski act have been consistently depleted by Florida's state legislature for over a decade. In 2021, the state legislature permanently swept 50% of the funding for Sadowski.
Local communities can't rely on Tallahassee or D.C. to fix our housing crisis. That's why over 700 communities across the nation have created locally controlled Housing Trust Funds.
For instance, in Florida, State Housing Initiative Program (SHIP), funded through the Sadowski Act, requires at least half of all funds to be earmarked for home ownership projects, whereas Volusia County has indicated in it's own Consolidated Report that the lack of affordable rental units is the most pressing housing need.
More over, the funds from the Sadowski act have been consistently depleted by Florida's state legislature for over a decade. In 2021, the state legislature permanently swept 50% of the funding for Sadowski.
Local communities can't rely on Tallahassee or D.C. to fix our housing crisis. That's why over 700 communities across the nation have created locally controlled Housing Trust Funds.
Commitments from County Council Members
At FAITH's assemblies in 2019, 2020, and 2021, Council Members Billie Wheeler, Heather Post, and Barb Girtman each committed to personally advocate and vote to create a countywide Housing Trust Fund in Volusia County. In 2021, each of these Council Members also committed to advocate for Volusia County to commission a study on Linkage Fees as a way to finance the new Volusia Housing Trust Fund.
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