Lake Worth's Housing Program Proposal

In an effort to understand my community better, on January 11, 2010, I attended the CRA/City Commission meeting in Lake Worth, FL. The topic of the meeting was the allocation of some $600,000 in funds available from the County for city projects, a part of the federal stimulus package. Mayor Varela proposed a new housing program to combat the depreciation of the housing stock in the city. Many of the houses in Lake Worth have several code violations, and some are awaiting demolition.

The proposed housing program is not a program, as it were, just yet. There are 3 initiatives that could comprise a whole package. The program will be groomed over the next few months, and will have taken shape by July, when the funds are made available. The prospective initiatives are: 1) a residential rehab program, 2) an emergency rehab/demolition program, and/or 3) a 1st time home buyer program. The overall program will contain one or all of these individual programs based on the research gleaned over the next 6 months.

Since there has never been a program like this in Lake Worth, there will be several time-consuming steps to take to find out how the funds may best serve the community. There are existing programs within city including the Community Development Corporation, neighborhood associations and local businesses, and the Adopt-a-Family program of the Palm Beaches, which was actually started by 3 local women and a radio station. The difference in the proposed program is that the funding will issued to the Community Redevelopment Agency (CRA) by the County, then to residents. In effect, the program is different because it is a government program which uses tax dollars repaid to the area for the stabilization of the city. Adding this measure sends a signal to all citizens that the City Commission finds the well being of the housing stock and rental percentages to be a consideration for the city government as well as community organizations.

Those who qualify include individuals making $31,000/year or less, and families of 4 making $64,000/year or less.

Concerns about the proposal came from Commissioner Maxwell, who pointed out that during the citizen proposal process for the funds, not one citizen proposed a new housing program. Several citizens present at the meeting echoed this concern as well as Maxwell's point that the goals of the plan are addressed through the previously mentioned community-driven programs.

Maxwell went on to say that he didn't “think we should be getting into the banking business,” and “I don't think we have the talent to implement a housing program.”

Commissioner Mulvehill, reading a CRA report, stated that several communities within the city have up to 70% rental rate. This means that the community is necessarily a temporary one, constantly changing with the businesses of the County.

City Manager Stanton added that the monies allocated, though not terribly much will find strength when they are leveraged with public funds, the rate of which could be as high as 7 or 8 to 1. It is, therefore, feasible that the city could find the effectiveness of the dollars added to the new program at 7 times the rate of investment.

As to the assessment that other programs exist within the city that share the same goals, Mayor Varela pointed out that since the city desperately needs a higher rate of ownership, additional programs to promote ownership is not a bad thing.

In theory, once the rate of ownership goes up, the rate of taxes collected will go up in turn. Increasing availability for middle class residents who are currently renting within the community will mean added security for the city, as well as increased property tax receipts. Currently, of around 12,600 properties in the city of Lake Worth, 1/3 of them produce no tax dollars, and 1/3 of them produce $100 or less.

The proposed housing program is an excellent way to signal to the citizens living in Lake Worth that the city government appreciates their living here, and would like to make it easier for them to stay. The current economic crisis affects everyone, but the city of Lake Worth is willing to take steps to make sure that the recovery of the area happens in a much more durable fashion than to simple allow developers to come in and scoop up all the property once the value drops to the level that demolition and redevelopment is the only answer.

Both Mayor Varela and City Manager Stanton tried to make it clear to the constituents present that this is a bold new move for the city that will not be quick or easy. The effort, however, will go a long way toward improving the lives of the people who consider themselves permanent residents of Lake Worth, and wish to see this community achieve the prominence that all our efforts can make possible.

The session yielded a motion that $125,000 be spent on a proposed gym renovation, $125,000 be spent on a traffic calming study, and $350,000 be spent on the new housing program. The motion passed unanimously, and the directive will be submitted to the county by January 22, 2010.

The average citizen living in Lake Worth can clearly see the degradation in the housing stock. There are homes in every district of the city that are condemned and/or set for demolition. I believe I represent a segment of people that is willing to do the work to make this place stable and secure going forward. If we are given the opportunity, we will take ownership of our city and be more capable of holding our city to a higher standard than what is possible today.

This city will see no such ownership if it sells the town to developers who will add more and more rental units to an already high market as it is. Why would someone care about the future of a town when they only consider themselves temporary residents?

This shift in policy by the city commission will create a reach back from the community as more people own, and even more look to own.

As for me personally, I was renting a place in Lake Worth so that I could pay off all my debts and move back to North Florida, where I already own land. I didn't expect to love living here, and Lake Worth is truly different from many of the other cities I've lived in during my time in South Florida. I believe this place can be great, and the steps taken by the city government in recent months has convinced me that many other people in town feel the same way.