Palm Beach County proposes $5 million homebuyer match pilot using developer in-lieu fees

Palm Beach County officials on Wednesday discussed a staff proposal to launch a homebuyer match pilot that would use $5 million from developer in-lieu fees to help working households buy homes.

Carlos Serrano, Deputy Director of Housing and Economic Development, told commissioners, "we were asking the board to allow us to allocate $5,000,000 of the in-lieu fees to this use," and described a dollar-for-dollar match of buyer cash contributions up to $50,000 per buyer. The funds would be provided as a county second mortgage forgiven after 15 years; borrowers must homestead the property within one year and the program would cover single-family homes, townhomes and condominiums located in Palm Beach County.

Why it matters: County staff said roughly $18 million is currently held in the in-lieu fee fund and the pilot is intended to increase homeownership without requiring new construction. Commissioners described the proposal as an attempt to convert existing for-rent inventory and developer buyouts into owner-occupied housing and to give buyers equity that other programs do not provide.

Program details and limits: Staff said buyers would need to be Palm Beach County residents or employed in the county and would be required to complete a homebuyer education course. Carlos Serrano said eligibility is targeted to households at roughly 80 —6140% of area median income; staff gave an example range for a four-person household of about $93,000 to $156,000. The county would permit transferring the county lien to another homesteaded property in Palm Beach County if the owner sells during the lien term.

Board concerns and design questions: Commissioners pressed staff on several design elements. Jonathan Brown, Director of Housing and Economic Development, noted an existing pipeline of about 63 buyers tied to a Pulte partnership and that the county has used in-lieu fees to create 246 buyers previously. Several commissioners said a $50,000 match may be far short of current single-family median sales (staff cited a recent single-family median above $600,000) and emphasized that property taxes, insurance and HOA fees would significantly affect affordability.

Timing and allocation method: Commissioners debated application mechanics. Commissioner Weiss proposed opening a short application window and selecting recipients by lottery to avoid a first-come, first-served rush; Weiss said a lottery and a vetting pool would be fairer and more transparent. Others favored a 6-month award period with straightforward, contract-based extensions (for example, an initial six months plus an extension tied to a signed purchase contract). Brown said staff can implement an application window, lottery and an extension policy.

Lender and underwriting issues: Commissioners asked whether the county would require participating lenders to change underwriting standards. Fab Brimley of Bank of America (industry representative) said lenders typically do not lock rates until a purchase contract is in hand and that lenders' underwriting and credit standards are not something the county can dictate; staff recommended counseling and credit repair to help applicants qualify without driving them to high-cost lending.

Homestead verification and fiscal implications: Property Appraiser Dorothy Jacks said homestead exemptions renew automatically under Florida law and that the county can be provided a list to verify that program recipients maintain their homestead status. She also noted that townhomes and condominiums often provide lower entry-price options than single-family homes, which could affect how the program is targeted.

Next steps and direction: Commissioners broadly supported testing a pilot but asked staff to return with more detailed proposals that address (1) a fair allocation method (lottery vs first-come), (2) a realistic encumbrance/closing timeline and extension process, (3) lender engagement and counseling, and (4) financial modeling that incorporates taxes, HOA and insurance. Staff said they will return with a refined program and additional data (including exchange program unit counts and more detailed fiscal projections). The board did not adopt the program today; it instructed staff to bring a formal proposal back for future action.

Quotes that capture the discussion: "We were asking the board to allow us to allocate $5,000,000 of the in-lieu fees to this use," Carlos Serrano said when outlining the pilot. "Under Florida law, homesteads are renewed automatically annually," Property Appraiser Dorothy Jacks noted when discussing verification.

What to watch next: Staff indicated they will return with a detailed pilot design and fiscal analysis. Commissioners flagged the county's remaining ~$18 million in in-lieu funds and said the pilot's success could inform whether more in-lieu funds are allocated to homeownership programs.