So you want to build a home in the Florida Keys...

You've come to the right place.

When it comes to building a home in the Florida Keys, it is important to understand the Keys' building process and guidelines. While it can feel intimidating or confusing at first, you can absolutely find the answers you need if you look in the right place.

I had the honor to sit down and discuss all the ins and outs of building in the Keys with Don Horton. Don is the the owner of Island Construction Management Inc., a company that specializes in code consultation, construction management, permit expediting, zoning, and planning.

Since Horton is a respected expert in his field, here are 10 questions and answers we discussed:

1. How do lots work here in the Keys?

Specifically, what is a buildable and non-buildable lot?

Here in the Florida Keys, we're a little different from the rest of the country. There's a difference between building in the city of Islamorada, for example, which is an incorporated area in Monroe County, and unincorporated Monroe County. Unincorporated Monroe County actually has what is called a tier system.

The tier system is just a method of determining the environmental sensitivity of a particular piece of property.

A tier three piece of property, for example, is what we call a scarified or a disturbed piece of property. And a tier one piece of property is a piece of property that have a lot of natural native vegetation, which in many instances is protected.

If somebody wanted to build a house as quickly as possible in Monroe County, they'd likely be looking for a tier three piece of property which has a unique set of expectations and requirements when it comes to building permits Florida Keys.

Takeaway: It's important to ask a realtor or real estate professional what tier system a particular piece of property is in, because this can make a tremendous difference—in price and timeline—when it comes to building Florida Keys. 

2. So how does the tier system work in the incorporated area of Marathon or other parts of the Keys?

In the Villages of Islamorada, and in certain areas in the incorporated area of Marathon, they don't have the tier system. Instead, they require you to hire a biologist to visit any particular piece of property and make a determination whether the property is disturbed or disturbed with hammock.

According to the Monroe County Land Development Code—

Disturbed land refers to land that manifests signs of environmental disturbance that has had an observable effect on the structure and function of the natural community.

Takeaway: There are many other environmental categories—such as wetlands—that would need to be conserved as well. So finding out what is on any individual piece of property whether it's in the county or in the incorporated areas of Marathon or the Villages of Islamorada is really important as you get started down the road of wanting to buy a lot and then build on it.

3. What does "hammock" mean in this context?

People who aren't from the Keys may not easily or quickly understand what a hammock is or why it's an important part of conservation.

A hammock is a piece of property that's dominated by native vegetation. 

Here in the Keys, we have a lot of trees that are protected. Some of them are actually federally protected, and others are protected by the state. Many of them are considered threatened or endangered species in Monroe County. These lots of are called hammock lots.

If a lot is considered hammock, then the county and the village require you to put those areas that you do not clear into conservation easements—essentially easements that run on the property where you can't do any further clearing.  

Monroe County has a regulation for conservation easement properties that—regardless of the size of the lot—you can't clear any more than 7500 square feet. Once you're through disturbing or clearing that 7500 square feet, which includes your construction impact zone and five feet beyond where the actual footprint of the proposed house is, then that's all you can clear on that piece of property.

Takeaway: It really is important to do your own work and rely on your professional realtor to help you understand what piece of property you're considering. Having the right professional to help you do the research, ask the questions, and make the decisions is critically important when it comes to Key Largo new construction.

4. What happens if people clear land without a permit? Is it a big deal?

It's a very big deal. Even legitimate mistakes are no small matter.

If someone is caught clearing a piece of property in Monroe County without a permit, they can be slapped with an enormous fine. Some landowners have also been tasked with re-planting their property to make up for the damage. Depending on the size of the vegetation, a person may be expected to buy $100,000 or more in plants just to mitigate the situation.

Takeaway: Respect the environment, respect the codes, and be a smart buyer. Don't think you can cut any corners without consequences. One of the reasons the Keys is as deeply respected and valued is because corners are not allowed to be cut.

5. If a buyer wants to buy a canal lot to be on the water, but the lot is filled with mangroves, can the buyer remove the mangroves?

You can clear a certain percentage of your mangroves on a canal. You can also build marginal docks. You can prune or hedge the mangroves as well (to an extent). When it comes to mangroves, make sure you hire a professional to assist, so you do not get in trouble with the county.

All work on the water—whether it's a dock in a canal or a dock on the open water—requires permitting that first must go to the Army Corps and the Department of Environmental Protection. And then it goes to either the county or the village of Islamorada.

Takeaway: The reason for the lengthy approval process is, again, due to the importance of our environment. The Florida Keys knows how to take care of its natural environment and does so in the highest possible way without exceptions.

6. What is ROGO? How does it work? What is it?

ROGO stands for rate of growth ordinates.

ROGO is unique to the Florida Keys and Key Largo real estate. According to the Monroe County page—

ROGO was implemented in order to provide for the safety of residents in the event of a hurricane evacuation and to protect the significant natural resources of Monroe County, as required by the State of Florida. It is a competitive permit allocation system whereby points are allotted and building permits are given based on highest number of points.

Quick example: You can earn additional points for building above the base flood elevation. And Florida building code requires us to build at least a foot above the baseline elevation—called design flood elevation. Code requires the first living floor to be at least nine feet above sea level.

Takeaway: You can see the ROGO points criteria here.

7. Can a property be ROGO exempt?

No property can be ROGO exempt.

That said, there are properties that already do have a ROGO allocation, so you don't have to go through the ROGO process a second time. So it is possible to buy a piece of property with the proper allocations in place.

One answer to a common question: If someone buys a property with a mobile home, the owner can tear down the mobile home and build their dream home. As long as the replacement structure meets code as far as wind load, flood zones, and setbacks. The replacement structure doesn't need to match the original structure in size or specification. But it is always critically important that current codes and requirements are met.

Takeaway: You can replace a home without going through the ROGO process. You can even replace a 1500 square foot house with a 3000 square foot house as long as you make the necessary code requirements according to our local codes.

8. What is the typical timeframe for getting the necessary permits to build a house?

It's possible to receive the necessary permits in less than a year. 

In other states, it's possible to receive the permit in a week, but when it comes to building permits Florida Keys, we live in a sort of paradise where lots of people are competing for a limited number of permits, so it's more difficult. But it's not impossible.

If you have the right team of people working with you to accomplish your goal, the sky's the limit.

Takeaway: The best thing to do is either to buy a piece of property that's going to have an allocation coming out, or to find your dream property already established.

9. What are some common fees that the Key Largo new construction owner should be aware of regarding permits?

While the answer depends on many factors—size of the home, amount of clearing, etc.—it is safe to say that building fees can be expensive. Specifically, the permit fees can be in the low tens of thousands.

Florida mandates how many permits can be issued each year, and the state also mandates when they feel the number has reached saturation. In those situations, redevelopment will only happen if the state can go back and look at the actuarial lease and determine a new number that would be acceptable to allow additional homes to be built.

Takeaway: Competition for getting a building permits can be a long lengthy process.

10. So how long does it take to build a typical home in the Keys?

Again, the timeline for Key Largo new construction depends on many factors, but here are a few thoughts regarding timeline—

Building in the Florida Keys usually means building concrete block and steel houses that require curing times between each bore. And depending on the size of the house, many areas are undeveloped and require ground elevation. So in many instances, we have to drill holes into solid rock and drive pilings.

For a typical 2000 square foot home, the timeline is probably close to 12 months. A 7000 square foot home would probably be projected closer to eighteen months. This may seem like a long time, but keep in mind that many steps need to be taken and many professionals need to be consulted in this timeframe. So you aren't sitting on building permits with nothing to do.

There is much to be done for a new home to be constructed in the Florida Keys.

Takeaway: Assuming no additional problems or delays, the average home requires roughly 12 months to build. Of course, the larger the home, the longer the process.

Conclusion

Building in the Florida Keys can definitely cost more time and money than building in other places. But what makes it more expensive is precisely why it's so attractive to build and live here. The Florida Keys is a beautiful place to live. Our waterways are gorgeous and our views are best, bar none.

There's truly no place like the Keys. 

In terms of the cost of living in the Florida Keys, here are a few final considerations—we're 70 miles from downtown Miami. Our materials are brought in from the mainland. The labor costs are higher because of commute time. It definitely adds up. 

If you're looking for a rough estimate per square foot of house to build, the current price starts around $400 per square foot. For comparison, though, in places like California, the current price is $500 a square foot. So it's not unthinkable that you would pay more to live in a place like the Florida Keys.

If you're considering building a home in paradise, you'll certainly face strict regulations to make your dream a reality. But without these tough regulations, the same details that make the Keys beautiful will be depleted.

Bottom line: Build the right team and follow the regulations and you'll be just fine.

Check out my podcast page to hear the full interview with Don Horton and Building in the Keys.