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Dunedin wrestles with low-cost housing

Much like other communities across the nation, the city struggles to find a home for low-cost units amid soaring land values.

By MEGAN SCOTT
Published January 27, 2005

DUNEDIN - In the past year, at least six condominium projects have been announced in this city, offering units from the $200,000s to more than $1-million.

But nothing has been done to replace the 60 low-cost homes eliminated in 2002, when the Dunedin Housing Authority closed down Highlander Village.

As developers continue to build luxury condominiums and townhomes, some fear that an average family can no longer afford to buy a house in the city.

"Every community has to have a range of housing," said Commissioner Bob Hackworth. "How do you have waiters that work at Kelly's if they have to live in Pasco County?"

Local housing authority commissioners say they want to demolish Highlander Village and rebuild more affordable housing. They've even secured a $350,000 HOPE VI grant to raze the 5.5-acre complex.

But the authority doesn't have the money to build anything to replace them, said Darrell Irions, executive director of the Pinellas County Housing Authority, which oversees the Dunedin board. "We have to demolish it," he said, because the complex is plagued with asbestos and mold. "If it is demolished and we don't have money to rebuild and there is not a purchaser, then it could sit there."

Habitat for Humanity has stepped forward with a new proposal for more affordable housing: donate the land to the group, which would build houses there that people could afford.

But Ronald Duffey, chairman of the Dunedin board, said he has no idea how that would work.

"Habitat has nothing to do with federal money," said Duffey, a volunteer for Habitat for Humanity. "Why would we want to give land away for free? We're in the same business as Habitat. We would build on it. The way we get land is through HUD. I don't think HUD would like us giving it away."

That leaves the city with the idea it's been working on for months, to develop lower-priced housing near the wastewater treatment plant. But only 30 units would be built, and the arrangement would work only if the authority agreed to sell part of its land to the city. The city would expand a nearby sewer plant on the land.

Economic development director Bob Ironsmith said 22 of the units would have three bedrooms and 1,670 square feet each. Another eight would be two-bedrooms units of 1,200 square feet. The homes would sell for $135,000 to $160,000.

Housing commissioners have discussed the proposal several times without reaching consensus. Local residents are against the plan, saying the existing sewage plant smells.

"If a problem that exists has not been eliminated, then plans to expand would make the problem worse," said the Rev. Clem Bell of Shiloh Missionary Baptist Church in Dunedin. "That's not looking out for the betterment of the community."

William Davis, who used to live in Highlander Village, agreed.

"You can go by any other wastewater treatment center and you will not smell that odor," said Davis.

Doug Hutchens, director of public works, has said the city is working on eliminating the odor problem. The commission approved a contract late last year to replace several pipes, and to clean and repair part of the wastewater treatment plant.

He said it could be five years before the plant is expanded.

Hackworth said he is not convinced the expansion is needed. He wonders if the entire site should be redeveloped with affordable housing - 60 townhomes rather than 30.

"There's so little land available," he said. "That's why when there's an opportunity to hold on to a piece of land, you put as many affordable housing (units on it) as you can. We're going to take half of that away."

Dunedin is adding a few affordable homes in the Palmetto Affordable Housing Project in the Skinner's Park subdivision. The six homes will be sold for about $140,000 each and are a joint effort between Dunedin, Pinellas County and the private, nonprofit Tampa Bay Community Development Corporation.

One house has been sold. The others are under contract.

Ironsmith said there may be opportunities for similar projects. The problem is enticing developers to build affordable homes.

In Dunedin as elsewhere in Pinellas, the vast majority of new housing projects are upscale developments, especially near the waterfront, where units start at $500,000 and go up into the millions.

The average price for a newly built home in Pinellas was $393,000 in 2004.

A lack of affordable housing is a problem across the nation. Some people mistakenly think it means government assisted housing. In reality it means decent housing within the pay range of the average teacher, police officer or firefighter. With land values at an all-time high, some developers cannot afford to build low-cost housing, said David Star, who runs a nonprofit organization for developing affordable housing.

His company owns and operates about 15,000 multifamily units in seven states, including Florida.

Star said there is less affordable housing today than in years past and those who build affordably are generally small, regional, nonprofit organizations.

"They are not big enough to carry enough weight to get anything done," he said. "Economics aren't as great on the affordable housing side as the upperclass side. Those are the facts.

"There's a great need for it," he added. "The unfortunate part is, the direction of government is not for affordable housing."

Megan Scott can be reached at 445-4167 or mscott@sptimes.com

[Last modified January 27, 2005, 00:40:21]