Key West Affordable Housing

On Tuesday, March 15th, Key West voters can take action on our crisis in worker housing. Two ballot proposals would authorize the city to issue bonds and buy the 157 homes at Peary Court for up to $55 million, and to forever restrict their use to worker housing. If not passed, current residents will eventually be displaced by much higher rents or by upscale redevelopment and resale.

The federal agency HUD says that families who pay more than 30% of their income for housing are cost-burdened and their housing is deemed unaffordable. HUD’s data are used to define housing affordability in our community, and a recent University of Florida study said that at least 6,500 households here pay more (many significantly) than 30% of household income for housing. And the problem is getting worse for our neighbors.

Simple supply and demand drive that shortfall. Strict Florida limits on new development, a surge in second-home purchases, expiring deed restrictions on some existing units, and illegal conversion of long-term rentals to vacation rentals reduce the supply of rentable dwellings. Meanwhile, growth in the workforce increases demand for scarce, affordable rentals. You likely know (or are) someone whose housing is deemed unaffordable.

By itself, the purchase of Peary Court will not solve this complex problem, but will ease the crisis by ensuring that those 157 units remain in the worker pool forever, and keeping most of their current residents from having to compete for affordable rentals elsewhere. The purchase price works out to only around $350,000 per two-bedroom unit, including off-street parking. That’s a good deal! Alternatively, developers would upgrade the buildings and increase rents, or replace the buildings entirely with ones that would likely be sold for upwards of $800,000.

While opponents offer untrue and occasionally preposterous arguments, please remember these key facts:

  • The proposal authorizes, but not obligates, the City to purchase Peary Court.
  • Taxpayer money will not and cannot be used for the purchase or operation of the development. The bonds and ongoing maintenance will be paid entirely from rent income.
  • The price cap of $55 million is below two recent independent appraisals, not a giveaway to the sellers.
  • A professional inspection report from 2013 showed the buildings to be in good shape, and the city’s pro forma operating budget includes $500,000 for immediate maintenance. A new inspection would be done if and when the referendum passes, and the price renegotiated accordingly.
  • There was no flooding at Peary Court during hurricanes Georges and Wilma.

Housing First PAC was founded with the sole objective of advancing affordable housing for our community’s workers. No member of our committee has any investment in Peary Court or connection to the owners.

We encourage everyone to engage with this issue: Visit our Facebook page, WorkerHousingKW, or our web site at WorkerHousingKW.org for facts and news in the run-up to this important ballot issue. Armed with the facts, Vote Yes for Worker Housing.

 

Robert Gold

Housing First PAC

Key West

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