St. Petersburg City Council Unveils Plans to Assist Cost-Burdened Employees with Affordable Housing Programs

Strategic Insights -

A growing concern in St. Petersburg is the rising cost of rent and homeownership, forcing some city employees who are required to reside in the city to seek employment elsewhere. According to the Department of Housing and Urban Development, hundreds of city employees fall under the category of being cost-burdened, spending over 30% of their household income on housing rent or mortgage plus utilities. In response, the city council has taken the first steps towards implementing employer-assisted housing programs for its employees, with the aim of making housing more affordable and reducing recruitment and retention challenges.

Key Takeaways:

  • The city's Department of Housing and Urban Development defines cost-burdened households as those spending over 30% of their household income on housing rent or mortgage plus utilities.
  • Hundreds of city employees, including sanitation workers, mail clerks, and library assistants, fall under the category of being cost-burdened, with the average pay for these employees being $36,702 and an average housing cost of $1,500 per month.
  • The city's administration has unveiled plans for a rental assistance program for city employees earning less than $48,000 annually, which would provide direct payments to landlords to ensure employees spend less than 30% of their income on rent.
  • The rental assistance program is envisioned to last two years and would require an annual funding allocation of $1.47 million, assuming all 246 qualified employees apply.
  • The city has also expanded its down payment assistance program to $60,000, but notes challenges in meeting the growing demand for affordable housing in St. Petersburg.
  • Councilmember Gina Driscoll proposed providing rental assistance with the condition that employees undergo financial literacy training for two years, with the aim of preparing them to purchase a home.
  • The city's city administrator, Rob Gerdes, noted that employee retention and recruitment have become a primary issue in St. Petersburg over the past four or five years.

Statistics:

  • 28.2% of city employees rent, 58.5% own a home, and 13.3% are either currently looking to purchase or are interested in buying a home.
  • 74% of employees surveyed stated their annual income was above $50,000.
  • The average pay for city employees with a residence requirement is $36,702, and they should pay less than $917.55 of their monthly income for housing to avoid cost-burdened status.
  • The median rental in St. Petersburg is approximately $1,500 per month.

Sources:

  • Department of Housing and Urban Development
  • St. Petersburg City Council meeting transcript
  • January 2021 city employee survey
  • City of St. Petersburg documents