Friday, November 24, 2006

Buyers Can Look Forward to More Affordable Homes in Palm Beach County

By Mary Damiano

Looking to bask in a Boca Raton home? Want to build a new life in a lake front home in Lake Worth? Craving a piece of Jupiter real estate? A new rule may be a boon to those considering buying homes in Palm Beach County.

According to the rule, 16.5 percent of homes built in most developments must be priced between $164,000 and $304,000. Officials actually had planned for the figure to be 20 percent, until developers balked that such a cut into profits could force them out of Palm Beach County, thus eliminating many construction jobs. The 16.5 percent figure is meant to be a compromise to keep builders in the county yet still benefit the consumer.

The goal of the new rule is to create more affordable homes for teachers, police officers, firefighters and young professionals. The housing boom of the past few years has meant that many people in this segment have been unable to purchase a home. The trend toward condo conversions have left the middle class with a housing shortage.

The median price for homes in Palm Beach County currently hovers around $400,000.

Developers can opt out if they pay $81,000 per home to a fund designed to help provide affordable housing. Palm Beach County is also considering other options to gain affordable housing, including imposing fees on luxury homes and having new businesses help pay for housing.

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