OKEECHOBEE – What makes housing “affordable”?

At their July 10 meeting, Okeechobee County Commissioners considered options for housing that could be built on two parcels of county-owned land the government has deemed surplus. Parcel 1, called “Browning’s Addition to East Okeechobee” is on S.E. Fourth Street. Parcel 2, known as “Wright’s first addition to East Okeechobee” is on S.E. 10^th Avenue at S.E. Fourth Street.

Recently the county received requests from two entities regarding these properties.

 Chris Roberston from Habitat for Humanity St. Lucie & Okeechobee submitted a request to the Okeechobee Board of County Commissioners to consider donating both parcels of land to Habitat for Humanity to develop for the purpose of Affordable Housing.

Rafael Nelson with Lennar Palm Atlantic has submitted a Letter of Interest to purchase both properties. Both entities have been invited to attend this meeting to discuss their interest in the properties for development of affordable housing in Okeechobee County

“We’ve looked at these two parcels,” explained Bob Calhoon, with Habitat for Humanity. “When you talk about affordable housing, it’s really a broad spectrum. We’re the one organization that provides home ownership opportunities for people in the community who live and work here but don’t have access.

“We’d like to keep what we develop in harmony with the surrounding community,” he said.

To qualify to apply for a Habitat for Humanity home, applicants must have lived or worked in Okeechobee County for at least a year and fall into income guidelines based on family size.

“Our application process is very thorough,” he explained. “Our vetting of those buyers is very thorough. We fill a niche that no one else in the community does.

“We are very thorough – more so than banks,” he said.

Calhoon said Habitat could build 8 single family detached homes on the larger parcel and either three single family detached homes or two two-family homes on the smaller parcel, for a total of 11 or 12 homes.

 “Home ownership comes with responsibilities,” said Calhoon. Applicants must complete 300 hours of work on Habitat Homes.

“We didn’t invent the term ‘sweat equity’ but we put it on the map,” he continued. The 300 hours of work includes 40 hours of training on home ownership and home maintenance to prepare the applicants for successful home ownership.

“There are income requirements – we don’t want to set people up to fail,” he said. “All of us who own a home know they can be expensive to keep.”

He said they teach the applicants to plan for the future costs of home maintenance and repairs.

He said their last application cycle in St. Lucie County, included 10 homes. They started with three public meetings which attracted 900 interested households. “We ended up with 125 applicants for those 10 homes.”

Calhoon said they build three bedroom/two bath homes with a single car garage. He said a car may never go in that one-car garage, but people need space to store things like lawn mowers and bicycles.

“We build solid starter homes,” he said. “We use CBS construction. Insurance companies love it.”   

Some labor is provided by the future homeowners and Habitat volunteers. Calhoon said they use local contractors when needed.

“We are a licensed general contractor,” he added.

Habitat for Humanity is a 501C nonprofit organization, he said.

 “The biggest act of charity that we do with the way we provide mortgage loans,” he explained. Habitat provides  30-year, fixed payment loans at zero interest. Payments are designed so the household has a mortgage payment that is 30% of their household income or less.

 Rafael Nelson with Lennar Palm Atlantic said they would like to purchase the property, subdivide the lots and build 24 two-story detached homes. These homes would be 16 feet wide and have 1,200 to 1,600 square feet under roof.

Each home would include a single-car garage and a driveway capable of parking two vehicles.

Commission Chair David Hazellief questioned the plan, saying he is concerned about all the vehicles backing out onto the road.

Nelson said Lennar would ask the county or the city to qualify potential homeowners, similar to the way local governments handle SHIP (State Housing Initiatives Partnership Program).

The homes would run in the “mid-200,000s” and would be financed through a lending institution such as Lennar Mortgage or another bank.  He said similar homes they have built were appraised around $250,000.

He said they would build the homes on “spec” and would start building before the homes are sold.

 Lennar is a for-profit business and would buy the lots from the county.

“ I think we need to go back and look at a lot of our inventory,” said Hazellief. He noted the county has other property they can surplus.

“What is affordable housing? Is there a number, affordable has to be less than?” asked Commissioner Michael Sumner.

Hazellief said they now call it “workforce” housing to take away the stigma that might go with the “affordable” label.

Sumner said a lot depends on interest rates. If a home buyer is paying 7% interest that’s a big difference from paying 3%.

For young families, a $250,000 loan, with interest and insurance is not affordable, Sumner opined.

“ I hear a lot about young people who can’t afford a house,” said Commissioner Frank DeCarlo. “I don’t see how they get started without a little assistance.”

In the public comment period, Christian Suarez said he lives about five streets from the properties under consideration.

“The big distinction between development proposals,” he said. “Habitat for Humanity is way easier to get into than other loans.

“Having lived in the neighborhood, I don’t see 24 units in that area being comfortable,” he continued. “I cannot see even myself as a young person moving into these units and being so tight against the next person.

“Habitat for Humanity’s program is a lot better for our community,” he said.

A Habitat representative  estimated income eligibility in Okeechobee would run from a low of $42,720 annual income to a high of $71,200 annual income for a family of four.

Sumner said Habitat’s zero interest, 30-year fixed mortgage is a “huge” advantage. “Now we’re talking affordability.”

 Hazellief asked county staff to bring back a list of available parcels the county owns. He said they might have lots suitable for Habitat and others suitable for Lennar.