Palm Beach County commissioners back work on $5 million homebuyer match pilot using in-lieu fees

Palm Beach County staff asked commissioners to approve development of a Homebuyer Match Pilot that would use $5 million of the county's in-lieu workforce-housing fund to match homebuyers'cash 1-for-1 up to $50,000 per buyer.

The proposal, presented by Carlos Serrano of the Department of Housing and Economic Development and Director Jonathan Brown, would provide matching funds as a second mortgage forgiven after 15 years. Eligible purchases would be single-family homes, townhomes or condominiums located in Palm Beach County; buyers would be required to apply for homestead exemption within one year of purchase. The program would serve households earning roughly 80'2140% of area median income (for a four-person household, approximately $93,000 to $156,000 under staff figures) and operate on a first-eligible, first-served basis unless the board chooses a different selection method.

"We were asking the board to allow us to allocate $5,000,000 of the in-lieu fees to this use," Carlos Serrano said, laying out the principal terms and eligible costs: down payment, closing costs, rate buy-downs and related fees. Jonathan Brown told commissioners the $5 million would come from about $18 million currently in the in-lieu fund and that the pilot is intended to leverage buyer contributions rather than require a single large county outlay.

Why it matters: commissioners said the pilot could convert county-held in-lieu funds into homeownership and equity-building opportunities faster than relying solely on exchanges or developer-built units. Staff said the county has used in-lieu fees previously to enable home purchases; Brown noted the county had created 246 new homebuyers using those funds.

Key points and debate

- Program mechanics: Staff proposed the county hold a forgivable second mortgage with no monthly payments and zero interest; the principal would be forgiven after the chosen term (staff recommended 15 years for the pilot). If an owner sells within the term, the county's lien could be repaid or transferred to another homesteaded property within Palm Beach County.

- Eligibility and market fit: Property Appraiser Dorothy Jacks told the board homestead status and annual verification could be used to ensure county funds support primary residences, and noted market medians differ by housing type. "These folks will be permanent Florida residents who have qualified. This is their primary home," she said, stressing the importance of homestead verification.

- Selection and timing: Commissioners debated methods to allocate limited funds. Commissioner Weiss urged an application window and lottery rather than strict first-come-first-served. Several commissioners questioned a 6-month period to find and close on a home; some preferred a longer period with a simple extension process tied to an executed purchase contract.

- Concerns about in-lieu funds and inventory: Commissioner Flores criticized reliance on in-lieu and exchange programs, calling in-lieu "an easy way out for builders" that can yield net profit for developers while not creating for-sale inventory. Staff pushed back that multiple tools are needed and a pilot could put existing funds to work for buyers now.

- Numbers and pipeline: Commissioners confirmed there are 63 buyers in the current workforce-housing queue that could be affected by allocation choices, and staff reported roughly $18 million in the in-lieu fund and a proposed $5 million pilot start.

What the board directed: Commissioners did not adopt a final ordinance or program today but gave staff direction to refine program mechanics, selection windows and verification, and to return with details. Staff also agreed to provide additional data on exchange-program units and the in-lieu fund history and to present a deeper analysis at the board's November follow-up meeting.

Quotes

"We were asking the board to allow us to allocate $5,000,000 of the in-lieu fees to this use," Carlos Serrano said as he outlined eligible uses and income bands.

"These folks will be permanent Florida residents who have qualified. This is their primary home," Property Appraiser Dorothy Jacks said about homestead verification and the county's role.

Board next steps: Staff will return with a more detailed program proposal, fiscal modeling, and exchange/in-lieu program data for further direction and a potential future vote. No formal adoption of the pilot occurred at this workshop.