Buying an Affordable or Workforce House at Islander Village
Most frequently Asked Questions about buying an Affordable or Workforce Home in Monroe County.
1.
Question:
 What does an affordable house or a workforce house mean?
 
Answer:
 The Monroe County Code calls out certain rules and regulations for housing that is built in four different categories. Islander Village is a Moderate Affordable Housing community, and is subject to all of the rules and regulations of the code, including income level and sales price restrictions. A copy of the Affordable Housing section of the Monroe County Code will be provided to you with your Homeowners Association Documents.
2.
Question:
 How much income can I make and still buy a home at Islander Village?
 
Answer:
 Every year in March the State of Florida through HUD publishes a county by county “median income” increase or decrease. From this, Monroe County creates a chart that sets the maximum a person or a married couple can make and qualify to purchase a Moderate Rate Affordable Home. For 2009 the maximum that an individual or family can make are as follows:
Individual Married
2 Bedroom Home $99,748 $132,997
3 Bedroom Home $110,720 $147,626

NOTE: When calculating income only the first 40 hours of pay per person are counted (overtime and bonuses are not counted), and income from dependants, regardless of age, does not count.
3.
Question:
 What do you use to Income Qualify Applicants?
 
Answer:
 You will need to provide us with the last two years tax returns, last two years W-2’s, your last two pay stubs from your current employer, and a letter from your current employer stating that you are employed in Monroe County. You will also be required to sign an income affidavit stating that all of the information you have provided is true and accurate, and that you understand the affordable housing resections
4.
Question:
 Will I have to re-qualify every year for the income limits for workforce housing?
 
Answer:
 If you Homestead your home you will not have to re-income qualify each year.
5.
Question:
 Do I have to work in Monroe County?
 
Answer:
 Yes, you must be gainfully employed and make 70% of your income in Monroe County.
6.
Question:
 Can I retire and still live in my home?
 
Answer:
 To retire in your home you must continue to be gainfully employed in Monroe County for five (5) years after you purchase your home. If not you must sell your home to a qualified buyer. After five years there is no employment requirement and no requirement to sell your home upon retirement.

7.
Question:
 What is the price of a home at Islander Village?
 
Answer:
 Just like the income levels, the prices of the homes at Islander Village are set by the Median Income which changes every March. The prices for the homes can adjust based on the change in the Median Income. The current price of a two bedroom is $265,000, and the price of a three bedroom is $299,750. In the past 5 years the maximum allowable sales prices have increased an average of 3% per year.
8.
Question:
 If I decide to sell my home who can I sell it to?
 
Answer:
 If you decide to sell your home you must sell to people like yourself, who at the time of purchase qualify according to the Moderate Rate Affordable Sections of the Monroe County Code.
9.
Question:
 If I decide to sell my home how do I determine the maximum I can sell it for?
 
Answer:
 The maximum sales price is determined by the Monroe County Median Income at the time of sale. While no one can guarantee a profit on the future sale of any home, the Median Income has historically increased. Sales price increases have been approximately 3% per year. For example, if you had bought a two (2) bedroom Moderate Rate Affordable home in 2001 (at $221,425) and sold it in 2009 (at $294,100) you would have an increase in selling price of $72,675. Considering the amount the buyer placed down on the home, and how much has been paid on the mortgage principle, this could be considered a sizeable return on one’s investment. However it should be realized that as with all real estate there is no guarantee of tomorrow’s value.
10.
Question:
 Can I ever sell this house at market value?
 
Answer:
 No.

11.
Question:
 In your opinion, recognizing that you may be incorrect in your reasoning, what are some pluses about owning a workforce home at Islander Village?
 
Answer:
 While no one can foresee the future here are our observations:
   
  1. Price! The homes at Islander Village are priced well below similar market rate homes.
  2. Income tax advantages and deductions for homeowners.
  3. A past history of a steady increase in re-sale value for workforce housing.
  4. Stable cost of monthly outlay for housing fixed by a mortgage not by a landlord.
  5. Tax stability tied not to the local market but to a known value provided by the affordable housing code.
  6. A say in the rules and in the neighborhood through your Homeowners Association.
  7. Construction that meets and exceeds current codes.
  8. The lowest possible windstorm rates that take advantage of multiple discounts offered for adherence to the latest hurricane standards in construction and storm resistant windows and doors.
  9. Being part of a real neighborhood with other people who live and work in our community year round. Kids will play in the park. Neighbors will know each other. Halloween “Trick or Treater's” will find people actually at home. No second homeowners, no transient renters…a real sense of community.
  10. Because of the controlled price increases, we believe that if you decide to sell your home you will have buyers ready to purchase your home. Unless there is some unforeseen problem or catastrophic change of community-wide economic circumstances, we believe that in 10 years, 20 years, 50 years and more these homes will still be in demand. Again this is just our guess but looking around us at the land available for new workforce homes and at the high price of market rate homes leads us to think that these homes will be in demand in the future.

Certainly there is risk in making any decision to own a home, but we would guess that Islander Village will be a good decision for new homeowners in our community.

Our team at Islander Village, LLC is dedicated to helping you become a new homeowner and to assisting you to make the right decision as a buyer. Please feel free to contact us with any further questions you may have.

Debbie Swift (305)293-3255
Joyce Unke (305)294-3225
Islander Village 99 Year Land Lease

The homes at Islander Village are built on land that is owned by Monroe County and leased back to the homeowners for 99 years.

Below you will find some of the most frequently asked questions and answers regarding long term land leases as opposed to “fee” simple land ownership.

1.
Question:
 How long is the lease?
 
Answer:
 99 years.

2.
Question:
 What does it cost me?
 
Answer:
 Your homeowners association will pay the County $10 per year.

3.
Question:
 Can I get a mortgage with a 99 year land lease?
 
Answer:
 Yes, most lending institutions treat a long term land lease in the same manner they do fee simple ownership. In fact, here in Key West, across the USA, and in almost all countries long term land leases are a fairly common occurrence. In Key West homes over 3 million dollars and even hotels have been sold and financed with long term leases in place. You may use any bank you like for your mortgage, however, if you would like, we can provide you with a list of banks that have reviewed and are comfortable with the 99 year lease.
4.
Question:
 What happens when the lease runs out?
 
Answer:
 A variety of things can occur. However, we are looking ahead at least 100 years from now so the best we can do is make an educated guess. In the case of Islander Village, the county government owns the land. Therefore, it would be our guess that the lease would actually never run out. Looking ahead, we would presume that after 60 to 70 years, with 30 years or so remaining on the land lease, that the owners then would petition the county to add additional years to the lease to facilitate the ease of mortgaging of the property for future buyers. Because workforce housing will continue to be important to the community and the County Government we would foresee this extension being granted and thus the lease would continue on.
5.
Question:
 Can I rent my house if I do not want to live there?
 
Answer:
 No, the lease prohibits the homeowners from renting their units with the exception of a few emergency situations. These are detailed in the lease.
6.
Question:
 Can my children inherit my house?
 
Answer:
 You may leave your home to anyone you choose. However, whomever inherits the house must read and accept the 99 year lease and “income qualify” under the then current Monroe County Affordable Code.
7.
Question:
 What happens when I sell the house?
 
Answer:
 The lease continues with the sale.

8.
Question:
 Is there any other advantage to buying a land lease workforce home?
 
Answer:
 Yes, when you are ready to sell Monroe County or their assigns will provide a list of pre-qualified buyers. This should help you sell your home faster. Of course if they do not present you with a ready to go buyer you can sell your home in the normal way by advertising it or signing a contract with a real estate company. The county or their assigns will charge an approximately 3% transaction coordination fee for qualifying the perspective buyers and working on both parties’ behalf to have the home transfer smoothly.
9.
Question:
 Will I get to read the lease before I purchase my home?
 
Answer:
 Yes, it will be part of your Homeowner’s Association Documents and will be provided to you prior to signing a Purchase and Sale Agreement.
10.
Question:
 Will the county have day to day oversight of Islander Village?
 
Answer:
 No, once the Islander Village Homeowners Association is in place you and your neighbors are the oversight of your community.
     

Please feel free to ask us any further questions that you may have regarding the 99 year lease and the homes at Islander Village.

Debbie Swift (305) 293-3255
Joyce Unke (305) 294-3225
 

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Keys Work Force Housing
201 Front Street
Key West, Florida 33040

Phone: 305-293-3255
Fax: 305-295-7384