Palm Beach County seeks ‘best bang for our buck’ with affordable housing investments
Writer: Ryan Gandolfo
June 2024 — The discussion on affordable housing doesn’t appear to be going away anytime soon, as Google Trends data indicates search interest near an all-time high. In Palm Beach, the issue is palpable. But in another step towards addressing the affordable housing crisis, the Palm Beach County Board of Commissioners recently approved close to $60 million in funding for five multifamily development projects, set to add over 700 units of affordable housing.
The approved projects include substantial investments such as $13 million for Waterview Apartments at Mangonia Park, which includes 140 county assisted units, $7.36 million for Isaiah Clark Apartments adding 125 county assisted units, and $13.19 million for 222 government-assisted units at Drexel Road Senior Apartments. These developments, which are subject to additional county funding and a one-year commitment, will undergo evaluation by a third-party underwriter before loan agreements are finalized.
“We all have an idea of what we like to see when we are putting dollars out on the street, and we all want to see the best bang for our buck,” said Vice Mayor Maria Marino during the June 4 Board of County Commissioners meeting. “I’m perfectly fine with units that service the 30 to 40 to 50% area median income (AMI) because one of our pillars is also homelessness and if we are able to keep seniors that are on a fixed income in an apartment then they don’t become homeless and cost twice as much money to take care of and rehabilitate.”
These new units are a crucial addition to the county, which is in the midst of a severe affordable housing shortage as prices have surged in recent years. According to real estate technology company Redfin, the median sale price for all home types was $505,000 in April 2024 – a 65% increase compared to April 2020.
The commissioners also unanimously supported workforce housing projects, allocating $14.9 million for Gallery at Sunset Park and $13 million for Residences of Lake Worth Beach. An additional $13 million was allocated for Judge Rodgers Court by the Riviera Beach Housing Authority, contingent on the submission of necessary documents, including zoning approval. These projects aim to provide much-needed housing for the county’s workforce, addressing a critical gap in housing availability for middle-income earners.
This comprehensive approach reflects a broader trend seen across the United States, where local governments are increasingly stepping in to address housing affordability issues. Recent migration patterns have highlighted the prospective homebuyers pursuit of affordable housing particularly to the South, according to the Freddie Mac House Price Index (FMHPI).
In the fifth anniversary edition of Invest: Palm Beach, released in February 2024, there are 42 mentions of ‘affordable housing’ and ‘workforce housing’ – a nearly 25% increase from the inaugural copy of Invest: Palm Beach in 2019.
Top image via Palm Beach County
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