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RESOLUTION DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO PROVIDE A WRITTEN REPORT ASSESSING THE METHODOLOGY UTILIZED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO CALCULATE AREA MEDIAN INCOME (AMI) FOR MIAMI-DADE COUNTY, AND POTENTIAL ALTERNATIVE METHODS

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WHEREAS, each year, the United States Department of Housing and Urban Development (HUD) calculates the area median income (AMI) for each county or multicounty metro area; and
WHEREAS, the AMI is used to determine eligibility for many national, state, and local housing programs; and
WHEREAS, for example, the AMI is used to calculate eligibility for the Housing Choice Voucher program (commonly known as the Section 8 program), public housing, and to set income limits and rents for properties financed with low-income housing tax credits and tax-exempt housing bonds; and
WHEREAS, Miami-Dade County specifically utilizes the AMI for programs such as the Infill Housing Initiative, Workforce Housing Administration, Section 8 Housing Choice Voucher, Section 8 Moderate Rehabilitation, Documentary Stamp Surtax, State Housing Initiative Partnerships, HOME Investment Partnership, Community Development Block Grant, and Building Better Communities General Obligation Bond programs; and
WHEREAS, other agencies, such as the Florida Housing Finance Corporation also use the AMI published by HUD for their affordable housing programs; and
WHEREAS, affordable housing developers rely on the AMI to determine which deals may be eligible for various government financing and incentive programs; and
WHEREAS, HUD calculates the AMI based on a metropolitan fair market rent area which is a specific geographic region identified by HUD; and
WHEREAS, according to a 2023 report from the Urban Institute (the �Report�), the calculation for each geographic area is based on the median family income as well as an adjustment for inflation; and
WHEREAS, for each geographic area, HUD utilizes the most recent data available from the Census Bureau�s American Community Survey (�ACS�) for the median family income estimates; and
WHEREAS, according to the Report, HUD typically starts with the ACS one-year estimates, which are more reflective of the local market, but more prone to error; and
WHEREAS, in cases where HUD deems the ACS one-year data unreliable, HUD will use a five-year estimate; and
WHEREAS, because there is a lag between when the ACS data is collected and the fiscal year for which the AMI is applied, HUD applies an inflation adjustment; and
WHEREAS, despite the inflation adjustment, the AMI may still be inaccurate if the incomes for that current year are not growing at the forecasted rate of inflation; and
WHEREAS, there have been efforts to explore alternative methods of calculating the AMI; and
WHEREAS, for example, the Report includes adjusting the AMI by using a wage index, or median weekly earnings data, or considering different time frames and economic conditions; and
WHEREAS, this Board is interested in addressing the housing affordability crisis that is facing Miami-Dade County; and
WHEREAS, Miami-Dade County is part of the �Miami, Miami Beach, and Kendall Fair Market Area;� and
WHEREAS, as of May 2026, the AMI for Miami-Dade County for all families is $89,800.00, and for a family of four specifically is $136,200.00; and
WHEREAS, this Board is interested in exploring potential alternatives to calculate the AMI to ensure its accuracy and reliability for housing programs; and
WHEREAS, this Board wishes to direct the County Mayor or County Mayor�s designee to provide a written report on the methodology used by the United States Department of Housing and Urban Development to calculate the AMI for Miami-Dade County, in particular for areas with a high-cost of living or areas with a higher rate of inflation, as well as potential alternative methodologies,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recitals are incorporated in this resolution and are approved.
Section 2. This Board directs the County Mayor or County Mayor�s designee to provide a written report on the methodology used by the United States Department of Housing and Urban Development (HUD) to calculate the area median income (AMI) for Miami-Dade County and potential alternative methods that the County could implement for its programs. The written report required by this resolution shall include but not be limited to: (a) an assessment of the current methodology used by HUD, including the benefits and shortcomings of using such a method given the economic conditions currently present in the County, and in particular for areas within the County that may have a higher cost of living; (b) the number of potential low-income, very low-income, and extremely low-income households that may face barriers accessing affordable housing due to the current methodology used by HUD to calculate the AMI for Miami-Dade County; (c) a comparison of the AMI published by HUD for Miami-Dade County and other reliable estimates of the current AMI calculated by other methodologies, broken down by Commission District; and (d) an assessment of alternate methodologies that could be used to calculate the AMI in place of the method currently used by HUD, including by considering the wage index, median weekly earnings data, geographic location and census tract data, different economic conditions and different time frames, including a description of whether and how the alternative strategy could be implemented in Miami-Dade County.
Section 3. For purposes of this resolution, the terms extremely low-, very low-, low-, and moderate-income persons, shall mean as they are defined by the United States Department of Housing and Urban Development or section 420.0004, Florida Statutes.
Section 4. The County Mayor or County Mayor�s designee shall provide to this Board the report as required by section 2 of this resolution within 90 days of the effective date of this resolution and place the completed report on an agenda of the full Board without committee review pursuant to rule 5.06(j) of the Board�s Rules of Procedure.