$40.85M approved for affordable housing projects

Six affordable housing developments will receive $40.85 million in federal disaster recovery money after the St. Petersburg City Council unanimously approved the funding Thursday.

The awards will support 645 affordable rental units through a mix of new construction, rehabilitation and preservation projects across the city. The money comes from the U.S. Department of Housing and Urban Development’s Community Development Block Grant-Disaster Recovery program, which provided funding in response to Hurricane Idalia in 2023 and Hurricane Helene in 2024.

The city had previously allocated $48 million from the program to affordable rental housing, with $42 million made available through this round of applications.

Developers showed far more demand for the money than the city could meet: thirty-four applications sought nearly $246.7 million, according to the city’s presentation to council. Seven were eliminated during an initial threshold review for issues that included a lack of site control, an insufficient or omitted affordability period and incorrect zoning.

The remaining 27 applications sought about $198.5 million.

A review committee with representatives from the city’s Housing and Community Development, Strategic Initiatives and Grants, Finance, Transportation and Real Estate departments scored the proposals.

The committee considered developer experience, financial feasibility and whether projects could obtain a certificate of occupancy within 36 months. Projects also received consideration for serving seniors, people experiencing homelessness and people with disabilities, as well as access to transit, utilities and other community services.

The program required at least 51% of a development’s units to be reserved for households earning 80% or less of the area median income. Projects could score additional points by providing more units at that level or offering housing at lower income levels.

The six projects selected for funding were:

JR Tower will receive $15 million, the largest award. Blue Sky Communities plans a 12-story, 150-unit affordable apartment building at 1850 Central Ave. in the Grand Central District. The development is planned with 28 apartments for households earning no more than 30% of area median income, 88 for households between 51% and 60% of AMI and 34 for households between 61% and 80%.

Hartford & Saratoga Apartments will receive $7.4 million. Blue Sky Communities and the St. Petersburg Housing Authority plan a combination of new construction and rehabilitation at Hartford Street and 32nd Avenue N. The 109-unit project includes 81 apartments for households earning no more than 30% of AMI and 28 for households between 61% and 80%.

Trailside Estates II will receive $7.05 million. Magellan Housing plans 94 apartments for residents 55 and older near the Pinellas Trail and 40th Street S. Fifteen units are planned for households at or below 30% of AMI, 57 for households between 51% and 60% and 22 for households between 61% and 80%.

Residences at 1663 will receive $4.8 million. BendinRoad Development plans a 13-story mixed-use building at 1663 First Avenue S. with 60 apartments and 60 short-term rental or hotel units. Forty-eight of the apartments will be income restricted, and the federal award will apply only to the affordable housing portion of the project. A groundbreaking is planned for early 2027.

Southline Apartments will receive $4.1 million. Elmington Capital plans 176 affordable apartments near 38th Avenue and 34th Street S. The plans call for 18 units at or below 30% of AMI, 70 for households between 31% and 50% and 88 for households between 61% and 80%.

The Portland will receive $2.5 million for rehabilitation and preservation. Sunrise Affordable Housing’s existing development at 300 Eighth Street N. has 68 affordable apartments, including seven for households earning between 31% and 50% of AMI and 61 for households between 51% and 60%.

The six awards total $40.85 million, leaving $1.15 million of the $42 million offered through the application round unawarded.

The council’s action follows a competitive process that began with a draft request for applications in April. Applications opened in May, followed by a threshold review in June, committee scoring and deliberations and an appeals period, according to the city presentation.

The disparity between the money requested and the amount available narrowed little even after seven applications were rejected at the threshold stage. The 27 proposals that advanced sought about $156.5 million more than the city had available.

One proposal that made it through the review but was not funded was Skyway Palms, from Archway Partners. It requested $13.75 million and received a committee score of 72%, according to the city presentation.

The six projects that received awards had committee scores ranging from 70% to 90%. Hartford & Saratoga Apartments received the highest score at 90%, followed by Southline Apartments at 85%, Trailside Estates II at 79%, The Portland and JR Tower at 78%, and Residences at 1663 at 70%.

The city tied the awards to project performance deadlines and loan agreements that will have to be completed following council approval.

The approved projects will carry affordability periods of at least 99 years, according to information presented with the council action.