Monroe County's plan to eliminate a waiver on building and planning fees for affordable housing projects has housing advocates concerned about future efforts to construct work-force housing in the Florida Keys.

The County Commission later this month will conduct a public hearing on ending the waiver, which was enacted in 2005. The fee waiver policy, intended as an incentive for construction of worker housing, applies to both private and nonprofit developers whose projects meet affordable housing guidelines.

Since the policy was adopted, the county has lost about $2.3 million in permitting revenue, said Mayor George Neugent, who is in favor of revoking the waivers.

Neugent said developers making a profit on affordable housing projects were taking advantage of the waiver, even though "it wasn't impacting the prices of the homes." He said the county can, and most likely will, establish a policy that will allow nonprofits, such as Habitat for Humanity, to request fee waivers.

"I support the work of Habitat and would support giving them a waiver if they requested it," Neugent said.

Bob Calhoun, executive director of Habitat for Humanity of the Lower Keys, said revoking the waiver would slow the organization's efforts. Habitat is constructing an 18-unit development on Big Coppitt Key, and is expected to start work soon on another 12-unit development at the site.

Habitat also is planning to redevelop a 12-unit rental property on Stock Island, Calhoun said.

For each of the projects, the county waived an $8,484 minor development application fee and a $1,500 building permit fee, according to county records.

"It would drain resources for getting things done," Calhoun said.

Calhoun is not alone in his concerns. Realtor Donna Windle, a former member of the county's Affordable Housing Committee, said the county has begun to neglect the affordable housing issue. She said the county has cut back how many times a year the committee meets, and is diverting housing funds toward the purchase of land for environmental conservation.

State law also requires local governments to institute fee waivers for affordable housing projects in order to comply with the State Housing Initiative Partnership program, which offers financial assistance to first-time home-buyers for down payments and closing costs, Windle said.

The commission last month agreed to schedule a public hearing and a vote on revoking the waivers. At the same meeting, commissioners agreed to grant Ocean Reef -- an exclusive gated community in North Key Largo -- a $73,413 waiver of building fees for a wastewater upgrade project.

"State law requires permit fees to be applied consistently," Commissioner Kim Wigington said of that waiver. "The county attorney stated during the Aug. 19 meeting that the [board] cannot just waive fees for someone, so it had to be done in an unorthodox manner. ... To now revoke the waiver of permit fees for those like Habitat for Humanity on the heels of instituting a waiver for those at Ocean Reef appears hypocritical. ... And the private gated community of Ocean Reef receives fire service, police protection, school availability and other services available to other taxpaying private property owners in the county."

Building permit records indicate other homeowners associations, municipalities and nonprofit organizations pay, and have consistently paid, their share of sewer permitting fees, Wigington said. Among them are the Boy Scouts of America, Key Colony Beach, KW Resort Utilities and Key Haven. Even the Key Largo Wastewater Treatment District paid permitting fees for their treatment plant. All were improving nearshore water quality, she said.

The public hearing on fee waivers is scheduled for Oct. 21 at Harvey Government Center in Key West. Meetings start at 9 a.m.

tohara@keysnews.com