Multi-tenant housing units (MTHU) are a proven housing option that provide clean, safe, and affordable housing to individuals with annual earnings under $35,000 per year, without the need for government assistance. Units go for around $600 per month.

MTHU’s are co-living units where each tenant has a private room of 100-120 sq ft (the area of an apartment bedroom) with a closet and sink. Residents share private, single-occupancy bathrooms and dual-capacity kitchens. The communal design allows for efficient operations and provides tenants with a social living experience at extremely affordable rents.

The monthly rents are $600 per month. This is affordable to someone making as little as $18,000 per year, which is less than 30% of the median household income of most South Florida towns.

While MTHUs are designed primarily for low-income individuals, they are not restricted to people making less than $35,000 a year. The co-living concept aims to address the affordable housing crisis, and applications from those above the very low-income threshold are also accepted if they are experiencing a lack of housing.

Typically, tenants who start making above $35,000 move into studio apartments. However, some choose to continue living in our co-living model due to the affordable rent, which allows them to spend more money on other activities like dining out and shopping.

There are three essential components to maintaining the safety, privacy, and cleanliness of shared bathrooms:

Sanitation: We clean the bathrooms at least twice per week, and our tenants do a great job at maintaining the bathrooms during the off days. This is the benefit of having long-time tenants on the property: they keep things in line. Our proposal will include an on-site employee that will ensure the bathrooms continue to be properly maintained. This person will let us know if more frequent cleaning is required.

Privacy: The bathrooms are single occupancy that lock from the inside; there is one for each four units. They are no different than what is permitted in Communal and Co-Living Residences in almost all municipalities. To ensure these bathrooms are always clean and safe we use the latest security technology for locking and securing the rooms.

Security: The facility will have Men’s and Women’s sections, and our security system will limit access to only the residents supposed to be there.

Think about all the situations where people use communal bathrooms now: airline bathrooms, firehouse living, youth hostels, college roommates, and the list can go on. Look in Facebook Marketplace and you will find dozens of ads for roommates and shared rooms for $900+. The current MTHU arrangement in Delray Beach, FL has seven units sharing two bathrooms, and four of the seven residents have lived there for over five years.

What is being described is a Studio Apartment, and the average rent for these is $1200+ in Palm Beach and Broward County. Understand that there is no world where studio apartments exist for $600 per month without heavy government subsidies, and burdensome regulations to ensure that only low income residents get these units.

There is certainly a role for micro-apartments in a strategy to tackle affordable housing. However, micro-apartments are targeted towards people making $35-$50K per year, while our focus is on people making less than that.

Each two-story building will have ADA-compliant elevators to accommodate elderly and disabled residents. There will be communal space – either inside or outside - such as courtyards or community rooms. Each tenant’s room will come with a bedframe, wireless internet access, cable box and TV at no extra cost. The exterior will have the same aesthetic as the neighborhood, if not better.

The property will have state-of-the art security both inside and outside.

MTHU’s are best built in areas in Multi-Family and Mixed Use Zoning with the following features: walking distance to public transportation, food stores and laundromat as well as hook up with city sewage. These buildings should not be located in Single-Family zoned areas.

The communities best served by MTHU’s are the ones where economic disparity is the greatest, but all communities have low-income sectors of their population that would benefit from this co-living arrangement.

We propose significant restrictions on MTHU density: no more than 32 units per building, and usually only 24. Also, buildings should be at least 750 feet apart from one another. We would also advocate a cap on the number of total units that can be built in the city.

These parameters are flexible based on the community needs, but the idea is that excessively high density of these units will be counterproductive and will sink this innovative housing concept in the long-term. MTHU’s need to be sprinkled throughout the community, not placed in just one area of a city.

For comparison, Toronto’s ordinance allow’s MTHU’s throughout their city. Max density for the majority of units is only six, but there are sections that permit density of up to 25 units per building.

There is a lot of baggage associated with low-income housing, and people can be justifiably concerned that this type of housing will undermine the stability of their neighborhoods. This is why we have developed a far-reaching regulatory regime to ensure no deterioration in neighborhoods.

The approach is based on a track record of success we have had in Delray Beach combined with great feedback from members of the community.

MTHU’s currently exist in Delray Beach at 105 NW 5th Avenue. They have had this form of housing since 1960 when the building was first built. Its zoning status is legal/non-conforming since this form of housing is no longer permissible in the city, or in most cities. That is what we are looking to change.

The success can be tracked back to 2018, when Delray Housing Group (DHG) took over the management of the properties. DHG is the property management arm of the Delray Housing Authority (DHA), and DHA is in the business of vetting and placing low-income and marginalized people. Since DHG took over management there has been ZERO criminal activity or neighborhood complaints. DHG uses the standard established by the U.S. Department of Housing and Urban Development (HUD), so these standards will be included in any proposed MTHU ordinance.

When you first accept that not every – or even most - low-income applicant has a criminal history or drug problems, it’s not so hard to imagine a standard vetting process working to place good tenants. The HUD vetting process includes a criminal background check and a check for history of evictions. Applicants with a felony or drug conviction within the past five years are disqualified. Tenants are interviewed by DHG staff to ensure they understand the rules of occupancy. DHG also uses a zero-tolerance policy for violations of nuisance and illegal drug-use.

Tenants are required to lease for at least six months and then the lease moves to month-to-month. This structure is due to the financial hardships faced by low-income tenants; we don’t want to burden them with a longer-term lease if they experience disruptions in their income.

A typical tenant stays 2-3 years. Of the seven MTHU tenants in Delray, three have been there for five years; two are brand new, and the other two have been there for about one year.

In the thyee ears since the Delray Beach property has been under our ownership, it has been a mix of transitioned homeless, seniors on a fixed income, working poor and people on disability. We also coordinate with local veterans advocates to place low-income veterans. Of the seven tenants now, five were homeless just before they moved in. Four of them work local jobs; the other three are retired or on disability.

Here are all the elements that we are proposing to ensure the success and stability of these housing units:

• Density restrictions (noted above)

• Standard applicant vetting process (noted above)

• State-of-the-art security cameras and room access.

• Annual licensing by the city with two property inspections per year. These will be paid for by annual impact fees paid by the owner.

• Licensing of the property managers of these properties.

• Requirement to have one management representative living onsite.

• Appointment of a neighborhood oversight council to meet monthly.

• No children. Non-family households only. 1.25 people per room.

A building with 24 units can fit on 0.2 acres; 0.3 acres for 32 units.

Keep in mind that the tenants are Very/Extremely Low income. Most will be making $20K per year or less. Very few of them can afford cars. Therefore, we are proposing one parking space for every three units. That means 8 spaces for 24 units and 11 for 32 units.

The beauty of this model is that it helps people greatly in need, and it is profitable! That means no government tax breaks or subsidies are required. MTHU’s are a free market solution to a serious social problem.

The low square feet per room, and the minimal fixtures and furniture within each room means money can be reinvested in quality-of-life features that will ensure the long-term success of this idea.

We are in this for the long-term. This is a big idea that has application to just about every community in the country. We need to make this work to prove to other communities that it can work. If this project fails, the broader vision and the broader value to those in need fails, and we won’t let that happen.

All these ideas have merit to address the affordable housing problem. Their main shortcoming, however, is that none of them help Very or Extremely Low Income people.

MTHU’s are the only affordable housing solution that is geared towards people making 20-50% of the AMI. These people account for 1-in-5 households in most communities, and no one is talking about helping them. Many of them are homeless or living in their cars. Others live four to a room in a slum house. If they live in a decent dwelling there is an 80% chance (according to the US Census) that they pay more than 1/2 of their income to rent.

There is no evidence that this would happen. Values around our current MTHU building in Delray Beach have doubled. An abandoned 1,000 sq ft house on less than 1/4 acre next to our building recently sold for almost $500K.

The whole MTHU concept is designed to enhance, not detract, from the neighborhood. That is why are proposed regulations are so extensive.

We propose a multi-pronged approach to ensure bad actors do not ruin this concept:

1. Significant city regulation for prospective MTHU landlords

2. Licensing of property managers of these properties

3. Rigorous vetting requirements for tenants using the HUD gold standard for screening tenants.

4. Density restrictions to ensure any potential problems are contained to a small area.

If the initial execution is successful, then this concept can be rolled out to other areas. Some cities may also want to make each MTHU building a conditional use where the city commission would need to approve each new one.