South Florida Regional Planning Council (SFRPC) serves a fast-growing region with a booming housing market for luxury condominiums, second homes, and short-term rentals. The South Florida region has no shortage of new housing construction with the booming Broward, Miami-Dade, Monroe, and Palm Beach Counties housing market. However, much of this housing doesn’t work to serve the region’s workforce, or low-moderate income first-time homebuyers. Recognizing this imbalance in the region, SFRPC retooled an existing RLF, Southeast Florida Community Development Fund, Inc. (SFCDFI) to address housing challenges. The SFCDFI is a separate 501(c)3 administered and managed by SFRPC. The SFCDFI was originally capitalized in partnership with the Urban League of Broward County and subsequently the Housing Finance Authority of Broward County and Broward County to provide needed affordable capital for new housing construction projects led by African-American and Hispanic minority-owned housing developer companies. Since 2017, the SFCDFI has provided financing for the construction of 21 homes across the South Florida region.
First, SFCDFI works with member cities and counties in the region to identify lots that are suitable for housing development. Many of these parcels are ripe for infill development in existing residential neighborhoods. Once a lot is identified, SFCDFI conducts due diligence checks on the lots including environmental reviews to ensure the lot is suitable for housing development. SFCDFI then coordinates with a chosen minority-owned business housing developer to construct the home using principles that keep the final sale cost down. After construction is complete, the low-moderate income homebuyers can use affordable mortgage options available through the Federal Housing Administration and first-time homebuyer downpayment assistance program to make the financing work. Once all contracts are agreed to with the mortgage providers, the new homebuyers can move in and start building equity. SFRPC staff commented that this affordable arrangement allows many residents to achieve the American Dream that many of them have been denied in the past. Additionally, SFRPC staff reported that this model is replicable and transferable across the country and can provide regional organizations the chance to alleviate housing burdens in their regions.
Through the program, homebuilders can offer up to three spec designs per project. Having multiple options for the spec designs gives flexible options to families with children, single individuals, and other residents with unique family compositions that are looking to purchase a home through the program. Recognizing the need for safe housing during severe weather events like hurricanes, each design is constructed with reinforced concrete, wind-resistant windows, and fully compliant with local codes that call for raised foundations and other mitigation measures to reduce severe weather risks. For these projects to be successful and truly serve housing-burdened residents of the region, SFCDFI uses covenants to ensure that the parcel is restricted to affordable housing development. Additionally, contractual clauses with the developers make low-moderate income verification a pre-requisite for a resident to purchase the home. These restrictions ensure that a housing burdened resident can find housing opportunities that fit their budget and family needs.