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Tuesday, January 16, 2007

More work-force housing needed

Study says government must step in

Julian Pecquet
From the TALLAHASSEE DEMOCRAT

Over the next five years, Tallahassee will need an extra 1,363 homes that are affordable to its work force - police officers, firefighters and teachers - according to a study released Monday.

And without government help, it's not going to happen, according to the study.

"There is very little quality, new housing inside the city limits in the $100,000 to $160,000 price range," said David Wamsley, CEO of K2 Urbancorp, which ordered the study. "The citizens of Tallahassee need to understand how important and vital this need is."

But some people say helping residents buy and fix up older homes would be a better use of taxpayer dollars than building new homes. Penny Herman, a local broker, pointed out that there are dozens of homes in the targeted price range on the market.

"Getting more people in homes is more important than getting some people into new homes," she said.

The study was conducted by GVA Marquette Advisors, a Minnesota-based real-estate research and consulting firm, as part of K2's request for a $5 million state grant to build 92 work-force housing units near Mahan Drive and Capital Circle Northeast. The state has set aside $50 million for such projects, but has yet to determine the grant winners, Wamsley said.

K2's decision to release the study, which was completed last month, comes after some residents raised questions about the city's decision to put up $2.69 million to match the state grant application, including $1.2 million from a trust fund reserved for the housing needs of low-income residents. The study indicates a need for about 273 new work-force housing units a year at a time when rising land and construction prices are making new developments more expensive.

"At the time of our study (between November and December 2006), there was nothing new going online in that price range," said Brent Wittenberg, GVA's vice president. "There is clearly a need."

Market Study [PDF]