County dedicates $12.6 million to innovative housing project

An aging apartment complex in Largo will soon provide 258 affordable homes for low-income residents with Pinellas County’s $12.16 million investment.

The Oasis at Bayside currently features 304 units at 305 Glades Circle. The apartments lack any affordability restrictions.

However, Washington D.C.-based Gravel Road Partners will transform the 16-acre property into an upgraded affordable housing development. Cofounder Michael Burke told the County Commission Tuesday that the project will dedicate 258 homes to households earning less than 80% of the area’s median income (AMI).

“What’s sitting in front of you is a collective opportunity to create a lasting impact for the residents of Pinellas County,” Burke said. “While at the same time producing a long-term asset for the county as it becomes the landowner.”

The total project cost is $59.26 million. The county will own the land, ensuring affordability restrictions remain indefinitely.

The public subsidy stems from the Penny IV affordable housing coffers, which have provided $59.8 million to projects throughout the county. Oasis at Bayside opened in 1974, and funding left from the land acquisition will go toward interior and exterior renovations.

Burke said the agreement would allow Gravel Road to “materially invest in property improvements” and increase the housing’s quality. He noted that Gravel Road will preserve the “existing renter population” and safeguard residents from “future increases in their rent.”

The commission unanimously approved the funding. Chair Kathleen Peters called the innovative project “great.”

The complex opened in 1974, and Gravel Road will use some of the county’s investment on interior and exterior upgrades. Photo: Oasis Bayside.

Pinellas officials stipulated that Gravel Road must dedicate three units for households earning up to 50% of the AMI. That is roughly $33,000 annually for one person.

Another eight units are for those earning up to 65% of the AMI, and Gravel Road will set aside 247 for residents at or below 80%. The remaining 46 units will have no income restrictions.

County documents state that the public investment will keep tenant payments below fair market rent thresholds. “For example, monthly rent for 105 two-bedroom units restricted to 80% AMI will be $131 less than FMR.”

“This is what we’re looking for – 85% of the development goes toward the affordable housing component,” said Commissioner Renee Flowers. “I just want to make sure the public gets to hear that because that’s the commitment the commission was making when it came to the utilization of Penny dollars.

“So, I want to thank you (Burke) for finding that sweet spot where you can provide well over 50% of this project for affordable housing.”

The project’s primary funding source is $35.1 million in lender financing. Gravel Road will provide $12 million in partner equity.

The affordable housing-focused development firm is a known entity throughout the area. In April, Gravel Road broke ground on South St. Petersburg’s Bayou Court Apartments, another local public-private partnership with county funding.

The affordable and workforce housing development across the street from Lakewood Elementary School will prioritize applications from school district and municipal employees. Mayor Ken Welch said Bayou Court nearly featured “very expensive, market-rate housing” at the groundbreaking ceremony.

Burke told commissioners Tuesday that the project is “under construction, on budget and on schedule.” He pledged to open Bayou Court by the end of April 2025.

“Gravel Road is a mission-driven developer,” Burke added. “We often partner with local communities up and down the East Coast.”