Florida Keys tourism workers seeking to apply for an apartment unit at the new Southcliff Estates in Key Largo would now pay monthly rent that’s equivalent to a percentage of their annual gross income.
As a result, the same-sized units located at MM 95, oceanside, would go for different prices based on how much a worker makes.
It’s a change from what Monroe County previously outlined when applications for the new one-bedroom, one-bathroom units in Key Largo opened several weeks ago. At that time, monthly rents were set by the county at 120% area median income (AMI). With water, sewer and garbage pickup included, the new units were originally going for $2,995 a month. Tenants would pay the electric bill.
Per new direction by county commissioners on Aug. 20, the county will alter the rent rate structure for the units in hopes of aiding a group needing a place to live. Discussion brought forth by commissioner Holly Raschein over the rent prices at Southcliff Estates during the meeting in Key West ended with commissioners agreeing to set the new units at 30% of an applicant’s gross annual income.
For a worker in the tourism industry to be eligible for a unit, he or she must make a minimum annual income of $71,880. As for the monthly rent, the person would pay $1,797 a month. A single worker making $80,000 would pay $2,000 a month with the new 30% formula.
For two people who aren’t married, their gross income together must be at least $125,040 a year. Their monthly rent would equate to $3,042 a month. And for a married couple, they must make a minimum $166,720 a year. They would pay $3,042 a month in rent.
A decision by commissioners came after County Administrator Christine Hurley said the federal government established a standard that a household should pay no more than 30% of its monthly income on housing. That’s the guidance from the U.S. Department of Housing and Urban Development when it comes to “affordable housing.” This policy is implemented in various housing programs to ensure households can afford other necessities.
Like other areas in the U.S., the AMI for Monroe County is set by HUD. From there, Monroe County then updates its affordable housing qualifications table with income categories by household size and the corresponding rent rates based on AMI and number of bedrooms.
Certain affordable housing developments could come with requirements, such as providing housing for those families who fall in the very low, 50% AMI, or low income, 80% AMI.
As for the Southcliff apartments, the county paid $7.5 million for the project using some of the $35 million in excess bed tax funds from the post-COVID days. The state Legislature and Gov. Ron DeSantis approved the use of funds for affordable housing. Hurley said language within the approved state bill allows the units to be rented to tourism employees who earn up to 120% AMI.
No workers in the tourism industry applied a week after the county opened it up, leading to the discussion and ensuing rent structure change based on income. Raschein said the county shouldn’t charge the maximum monthly rate, even though it could under the law.
“This is a situation that calls for adjustment,” she said.
Commissioner Michelle Lincoln said the change in rent structure based on income could allow someone who’s making less to embrace a promotion and pay increase without losing their place.
“I see it as a win-win,” she said.
Hurley said they elected to set a minimum gross income amount, which is $71,880, in order to break even on the project and “not go in the red on operations.” And before commission approval of the rent structure change, Hurley said it leads to a new dynamic of different monthly rents for those making different incomes.
As of Aug. 26, the county had received no applications for the apartment units at Southcliff Estates.
Units are available to workers in the private-sector tourism industry in the Florida Keys. These industries include the arts, entertainment, recreation, fishing and diving, hotels, restaurants, food services and sightseeing.
Additional requirements include background checks, verification from landlords and submission of all required documents through the online application portal. No paper applications will be accepted. The county said units will be rented on a first-come, first-qualified basis.
Apartment units were built by South Cliff Holdings LLC. The units and property, which can accommodate an additional 16 units, were sold to the county following commissioners’ approval of a contract during a June meeting.
More information is at www.monroecounty-fl.gov/southcliff or via email to SouthcliffApartments@MonroeCounty-FL.gov.
