Miami.- The Council of Hialeah He approved in the first reading, at his last meeting on April 22, an ambitious initiative presented by the councilor Jesús Tundidor to relieve the shortage of affordable homes in the city. The measure, which could well be called the “Tundidor Ordinance”, raises incentives to private urbanizers and creates for the first time a municipal fiduciary fund aimed at subsidizing the rental of needy families.
Unlike the LIVE LIVE ACT state law, this ordinance conforms to the economic reality of Hialeah, establishing as a reference 60% of the average income of the area to determine the price of affordable rentals created by the program.
True local law
Hialeah faces a severe housing crisis, where real estate market prices exceed the purchasing power of many of its residents. Although the LIVE Local Act state law, approved in 2023, was conceived to promote the construction of affordable housing, its application fixes the rentals under this program to 120% of the average income of the area. In Hialeah it can translate into more than $ 2,500 per month for an apartment in a room. A figure nothing affordable, “is equivalent to the market price,” said the councilor’s councilor in an exclusive interview with Diario Las América.
Faced with this lag, more than a year ago, the councilor Tundidor leads a working group on affordable homes, where he collaborates with urban planners, local authorities and developers. The result of that effort is this initiative that establishes as a goal rentals for approximately $ 1,300 per month, while stimulating urbanizers to build homes for moderate income.
Tundidor Ordinance
Tundidor explained that his proposal offers the developing incentives key to building in Hialeah. First, it raises the permitted construction density limit from 70 to 100 units per acre. A measure aimed at improving the profitability of affordable housing projects. In return, urbanizers must compromise at least 15% of the built units and allocate accessible rentals, with income set around $ 1,300 per month. That is, 60% of the average income of the area.
Another key arrangement of the ordinance is the reduction of parking requirements for affordable units. Urbanizers participating in this initiative will not be required parking for studies for older adults benefiting from the affordable housing program, which significantly decreases development costs.
Additionally, a mechanism of financial compensation for those developers interested in releasing part or all of the units built from the commitment to rent them below the market price is established. To do this, they only have to pay the new housing fund in the city about $ 30,000 for each exonerated unit. This fund will allow Hialeah to grant temporary subsidies to low -income residents for rent, explained the councilor.
The background
The affordable housing fund, created by the Ordinance, will be administered by the Hialeah Community Housing and Community Services Department, previously known as the Department of Subsidies. The resources collected will be allocated to the rental assistance program, which will partially cover the income of families that qualify. They may remain a period of up to three years, after annual renewal, said the councilor. The objective is to provide temporary support to residents in critical economic situations, facilitating their stability without generating permanent dependence on the system, said Tundidor.
Key differences between Live local Act and the Tundidor Ordinance:
- BASE INCOME:
- Live LIVE ACT: 120% of the average area of the area.
- TUDADOR ORDER: 60% of the average area of the area.
- Requirements of affordable units:
- Live LIVE ACT: 40% of the units at prices controlled for 30 years.
- TUDADOR ORDER: 15% of the units for 20 years.
- Fiscal incentives:
- Live LIVE ACT: 75% reduction in property tax.
- TUDADOR ORDER: Increase in density and reduction of parking requirements for affordable units.
- Flexibility and fiduciary fund:
- Live LIVE ACT: It does not include a local direct subsidy mechanism.
- TUDADOR ORDER: Create a municipal fund with contributions of $ 30,000 per unit exempted.
Temporary help
The ordinance will be submitted to second reading in the Council on May 13. If approved, it will immediately enter into force after the signing of the mayor.
The councilor did not dare to give figures on the expectation of the program. He clarified that it would have an initial duration of five years and that he would be satisfied if he generated between 500 and 1,000 affordable homes and if he manages to gather about $ 250,000 to the trustee.
Approval
Tundidor stressed that the initiative already has support from several developers interested in taking advantage of the incentives offered by the city. “The ordinance is a realistic model and adjusted to the local economy, which seeks concrete results without overloading the private sector.” The next meeting of the Council of Hialeah will be key to defining the immediate future of this proposal.
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