Bright Community Trust affordable housing projects underway

At the Aug. 21 meeting. the St. Petersburg City Council approved creating a Lease and Development Agreement with Bright Community Trust, Inc. for two new affordable housing projects.

The Port Richey-based nonprofit was selected in an open bid process to build the single-family homes at 974 23rd Avenue and 835 Queensboro Avenue S, respectively. 

Both of the properties are located in the South St. Petersburg Community Redevelopment Area. They have been owned by the City since 2010 as part of its Housing and Urban Development Neighborhood Stabilization Program. 

According to the City, this program provides “targeted assistance to acquire and rehabilitate foreclosed residential properties.” 

The nonprofit has a land trust model, Bright president and chief impact officer Frank Wells told the Catalyst. 

It will keep control of the land, while selling the homes to buyers, he explained. Bright Community Trust will provide these individuals with a ground lease that caps how much appreciation they can take out when they leave the property. 

This allows the buyers to get access to homes at a more affordable mortgage. 

“What we’re doing is trying to create a balance between preserving that public investment,” Wells said, “but also helping families that would otherwise be stuck always being renters have a chance to become homeowners.” 

As a result, Bright Community Trust’s homeowners can build up household equity that could eventually help them acquire a home in the private market. This model ensures affordability for multiple families over time because of the cap, he added. 

Once an owner decides to sell their Bright Community Trust-created home, they are required to sell it to an income-qualified buyer, Wells explained.

 “Most homeowners have no idea how to do federal income qualifying paperwork, so 99% of the time we buy it back from them at the agreed-on price.” 

The nonprofit will receive HOME Investment Partnerships Program funding from the City to help with the construction costs. Wells said that most of the organization’s houses cost between $240,000 and $260,000 to build. 

“We’re already out working with our contractors developing a design that fits on those lots,” he explained. “It always takes a while to get the contracts to actually receive the land and funding.” 

Bright Community Trust starts the design process early so that once the contracts are received, it can submit permits “soon after” and begin construction as quickly as possible, Wells said. 

He hopes to break ground on the two properties by the end of the year. 

Bright Community Trust’s goal is to help individuals “put down roots” in the area for generations to come and Wells looks forward to “continuing to address housing affordability challenges in St. Petersburg.”

The nonprofit also rents homes. 

Bright Community Trust website