County approves bond sales for 448 affordable housing units

The Pinellas County Commission recently approved two bond sales totaling $74.16 million to help finance 448 affordable housing units in Largo and Tarpon Springs.

The Housing Finance Authority of Pinellas County received unanimous support to issue the multifamily housing revenue bonds May 20. Olea on 126 in Largo is a new development, while a developer will acquire and rehabilitate the Riverside Apartments in Tarpon Springs.

Commissioners did not discuss the projects at their meeting. However, they explored increasing local affordable housing incentives at a May 15 workshop.

“The key to affordable housing is supply,” said Commissioner Chris Scherer. “So, whatever you can do to increase supply, I think, is a great idea.”

Lincoln Avenue Communities will transform nearly five vacant acres at 6727 126th Ave. N. into 144 affordable apartments. The Santa Monica, California-based developer will dedicate 36 units to households earning just 40% of the area median income (AMI).

Commissioners dedicated $7.92 million to the $54.6 million project in January. The housing authority will issue $30 million in tax-exempt bonds to support construction.

Regions Bank will also offer Lincoln Avenue $17.7 million in construction financing and a $17.4 million equity bridge loan. The developer will receive a $4.8 million fee.

The public funding includes a land-use restriction agreement that ensures the project, in a residential area known as Pinellas Groves, remains affordable for 50 years. In the firm’s latest impact report, CEO Jeffrey Bronfman wrote that Lincoln Avenue partners with several local and national organizations that connect residents with essential services, like health care, nutritional assistance and career development services.

“We also deepened our engagement with political, community and business leaders to advocate for policies that will expand our impact and support families and individuals across the country,” Bronfman wrote. “Through these partnerships, we reinforce our commitment to supporting and strengthening our communities.”

According to the City of Largo’s website, the AMI is just $43,865. Olea on 126’s 35 apartments capped at 40% equates to $17,546 for one person.

Another 72 units are for those earning up to 60% of the AMI. Lincoln Avenue will cap the remaining 38 at 80%. Largo will contribute to the project by waiving $392,544 in development fees. Lincoln Avenue purchased the land for $1.85 million in November 2022.

Future home of Lincoln Avenue Communities: A nearly five-acre site at 6727 126th Ave. N. in Largo. Photo: Google Street View.

At the May 15 workshop, County Administrator Barry Burton stressed the importance of municipalities providing affordable housing funding. “We’ve seen these where Largo has had to come up with money; St. Pete has had to come up with money,” he said.

“Otherwise, doing it alone, we just simply couldn’t afford it through our program.”

The housing authority will also sell up to $44.16 million in bonds to help OK Riverside LLC acquire and renovate the Riverside Apartments. The 304-unit complex is at 1589 Starlight Cove in Tarpon Springs.

Commissioners previously approved a $39 million bond sale to finance the project in January 2023. However, according to county documents, construction costs increased, and OK Riverside requested additional funding.

The Riverside Apartments opened in 2001 and encompass nearly 26 acres. The complex, bought in March 2022 for $41.6 million, has 19 residential buildings, a pool and a leasing office with a childcare, fitness and business center.

OK Riverside will spend approximately $45,623 to renovate each existing unit. The work will not displace current residents.

Once complete, the developer will allocate 258 apartments to households earning up to 60% of the AMI, or roughly $41,300 for one person. The remaining 46 units will have market-rate monthly rents.

The Riverside Apartments at 1589 Starlight Cove in Tarpon Springs. Photo: Redfin.