Volusia County delays $1.7 million award for Banyan Development after debate over timing, rents and tax credits

Volusia County Council voted to table consideration of a proposed $1,700,000 award to Banyan Development Group LLC for an 84-unit affordable housing project after more than an hour of public comment and council debate on March 18.

Carmen Hall, community assistance director, told the council the proposed award would come from federal and state affordable-housing allocations that must be used for development or rehabilitation of affordable units; she said the Banyan proposal would leverage roughly $32 million in additional private and tax-credit equity and would provide a 50-year affordability period required by the state program. Alexander Kiss, managing partner of Banyan Development Group, described use of federal Low Income Housing Tax Credits and a private-equity investor structure to lower borrowing costs and keep rents constrained.

Council discussion focused on three areas: (1) whether the county should use limited taxpayer-controlled affordable-housing funds to add 84 units when council members said the residential market shows elevated inventory; (2) whether a new development near the DeLand SunRail station is prudent given uncertainty about SunRails future and station ridership; and (3) the affordability bands and rent levels the new development would produce.

Councilman Don Dempsey repeatedly urged caution and opposed using county funds to add housing to a market he described as glutted, saying data show fewer net new Florida residents and a rising inventory of homes for sale. Dempsey said, "I don't think the general population wants more development," and questioned whether taxpayer-subsidized units would compete with private-sector rentals or with existing lower-cost housing.

Councilman Jake Johansen urged the county to invest in workforce housing rather than wait for state preemption or be forced by the Live Local Act. Johansen said the proposed units would help local workers including police, firefighters and hospital staffwho cannot afford market-rate housing close to jobs. "This type housing is giving those people a place to live close to where they work," he said.

Carmen Hall and staff explained program limits: HOME and SHIP rules set income bands and rent ceilings by area median income (AMI); the developer proposed an average AMI of roughly 60% across the project with units ranging down to 30% AMI, and Hall said a 2-bedroom at 60% AMI in Volusia would have a rent cap in the neighborhood of $1,119.93 (state-published thresholds), while the developer noted maximums could be higher for 80% AMI units but that the affordability mix creates lower rents for the lowest-income households.

Council members also pressed whether Banyan or the county could forgo later statutory tax benefits (for example, property-tax exemptions available after a statutory period) to reduce long-term taxpayer impacts. County attorney staff said they could not resolve that legal issue at the dais and recommended staff-to-staff work and a follow-up report.

After public comment that included supporting and opposing speakers and a short presentation from Banyan, Councilman Jake Johansen moved to table the item to the second meeting in April to allow the developer and staff to clarify outstanding questions and for council to assess potential state actions that could alter local options. Vice Chair Matt Reinhardt seconded; the motion carried 5-0.

Ending: County staff will work with the developer to respond to council questions about the rent mix, long-term tax implications and flood/engineering issues, and will return the item to council at the April meeting or sooner if state legislative activity requires faster action.