Turning a Hotel Into Homes for Seniors, Vets in Palm Beach County

Palm Beach County, Florida is about to lose 1,000 affordable units over the coming five years. Why? Agreements with developers established restrictions that reserved affordable units for 15 to 30 years. Those restrictions are about to expire. This comes at a time when Palm Beach County will need nearly 81,000 new affordable housing units to meet its needs in the decade ahead.

Feeling the loss, local officials are now pressing to have developers protect the affordable unit inventory for 50 years on future developments.

La Quinta Conversion

In Palm Beach County, the typical rental unit costs around $3,000 a month. Even efficiencies measuring less than 400 square feet cost $1,500+.

Seniors and vets are struggling to handle the pressure. Local commissioners have been creatively stepping in. Last month, on March 18, they voted to go ahead with a proposal to convert a La Quinta hotel near the Florida Turnpike into permanent housing.

When it’s ready, in about six months’ time, the building will provide 114 efficiency apartments at below-market rent, dedicated to seniors and veterans 55+ who currently lack reliable living situations.

Here are the facts about the hotel-to-homes conversion, as reported by WPTV News Channel 5:

• Palm Beach County is paying $16.7 million for the hotel. This includes a $1.8 million franchise charge.

• In addition, the county will allocate $3.8 million for the conversion work.

• Applications will be accepted from people with modest incomes who are aged 55+ and independent.

• Up to half of the new senior units will be offered to vets.

• Monthly rents would depend on income, and start at less than $600. Residents would agree to kick in up to 30% of their income for rent plus a 20% surcharge for support services. Still, residents won’t be fully covering the county’s costs, and local taxpayers will likely cover close to $1 million.

• The initiative will be cheaper and faster than new construction — which could take three years to get done. 

Some local “not in my back yard” Floridians opposed the initiative, citing crime fears. The county commissioners point out, though, that applicants must already have lived in the county for at least a year, and all will be carefully screened. Locals say the hotel attracts drug activity. Commissioners say the renovated site’s 24/7 security will ensure better safety.  

What About People Trying to Acquire a Deed Despite Affordability Challenges?

The typical price tag on a house for sale in this county is $500k. Even residents who have supportive employment or run small businesses are daunted by the costs. Many are renting although it’s draining them, and they want to own. So, what is Palm Beach County doing to support residents who hope to get their hands on their own deeds?

First, it’s quite possible that hotel conversions for affordable housing do support future homeownership. Keeping housing costs down can enable some residents to save and try and buy homes of their own.

But there’s more to see in this county. A local fund is set aside for hopeful first-time home buyers. Approved applicants who have mortgage pre-approvals can get county loans of up to $100,000 for their down payments and closing costs.

Jonathan Brown, head of Housing and Economic Development, told WPTV News that the assistance is available twice yearly. (The next round of applications starts online on May 5.) Funds are distributed in the order eligible applications are received.

But within the first hour, the funds are usually gone. To help meet demand, the county is now trying to secure more funds.

It’s a sign of our unaffordable times.