Place
New senior housing development rent starts at $300
Construction has commenced on a long-planned affordable housing development in St. Petersburg that will dedicate homes for seniors and veterans, starting at just 22% of the area’s median income.
Fort Lauderdale-based Green Mills Group (GMG) announced Wednesday that it broke ground on Burlington Post II. The affordable housing-focused firm began preparing for the mixed-income project almost immediately after opening Burlington Post in July 2018.
The second phase will provide 75 apartments for seniors earning up to 80% of the area median income (AMI). Mitchell Rosenstein, principal and co-founder of GMG, noted that some residents will pay “just under” $300 in monthly rent.
“There are people in need of safe and affordable shelter – and they deserve it,” Rosenstein. “And that’s sort of the ethos that my company has.”
That ethos has led GMG’s principals to build and finance over 7,000 affordable and workforce housing units, representing $1 billion in total development value. Rosenstein said he and his co-founder, Oscar Sol, are “personally invested and passionate” about their work.
The $30.4 million project at 3295 Burlington Ave. N. will feature a fitness studio, library/computer room, and community gathering space. Most importantly, it will provide affordable housing to seniors who typically rely on fixed incomes and are particularly susceptible to soaring housing costs.
Rosenstein said GMG caters to three demographics – seniors, families and households that require supportive housing. He said a site’s characteristics and proximity to specific services and amenities help inform development decisions.
Burlington Post I also serves low-income residents aged 55 and older. Rosenstein said those complexes typically have less tenant turnover and “wear and tear” issues.
“On the other hand, it requires a greater level of onsite management and care,” he explained. “So, we have additional daily activities and 24-hour support at our senior communities. They’re harder to please sometimes, but that’s OK. That’s understood.”
Rosenstein credited his firm earning neighborhood and local government trust through Burlington Post I for the second phase coming to fruition. GMG’s leadership left about half of the adjacent property in St. Petersburg’s Kenwood neighborhood open, hoping a second phase would one day become feasible.
Burlington Post I opened in July 2018. Photo by Bill DeYoung.
However, several development aspects first had to align. The firm’s initial break came when city officials increased the area’s allowable density.
That allowed GMG to “at least try to put things in motion, piece by piece,” Rosenstein said. “We weren’t sure if there would be a second phase, but we thought we should plan for it, just in case.”
The developers faced financial hurdles as construction costs skyrocketed after the pandemic. The City of St. Petersburg committed $5.83 million in federal emergency rental assistance (ERA), American Rescue Plan Act and community redevelopment area funding.
Pinellas County Commissioners approved dedicating $3.75 million in ERA money and housing trust funds. The county’s Housing Finance Authority provided $16 million in short-term bonds.
GMG also received roughly $12 million in low-income housing tax credit equity. Rosenstein said it took nearly five years to secure the funding needed to make the numbers work.
Rosenstein noted that construction costs and interest rates have stabilized over the past year. He said that predictability – and market-rate developers “catching their breath” – allowed the firm to lock in construction pricing, a prerequisite to securing loans.
“We counted 14 layers of financing at every level,” he said. “It was a kitchen sink approach to get this underway.”
The wait will pay dividends when Burlington Post II welcomes its first residents in early 2026. The development includes five units for households earning less than 22% of the AMI, 12 up to 30%, 34 at 60% and below, and GMG capped the remaining 24 at 80% of the AMI.
Monthly rents for one-bedroom apartments will range from roughly $300 to $1,360. Rosenstein said tenants will pay about $550 to $1,630 for two-bedroom, two-bathroom units.
He explained that elderly residents can often sell their homes without the assets counting against their income allotment. Rosenstein noted that many seniors can no longer afford property insurance, taxes and condominium special assessment fees.
“I think people are realizing that housing affordability has to be viewed in the same way we think about types of public infrastructure,” Rosenstein said. “We’re all experiencing the effects of this … and in a way, I think that makes it more palatable for the public and elected officials to help continue supporting the creation and preservation of affordable housing.”
L. Coll
September 21, 2024at8:38 pm
How do we apply to be a tenant at Burlington Post II?????? and, when?
JS
August 25, 2024at5:10 pm
I heard builders contract for % of income based housing then rent/sell way above and just pay the penalty of $25k. They run and leave our city a mess.
Why do over 55 need to live IN THE CITY. Housing is less outside and can come in to shop or have delivery.
Im 62 and about to list my NE St Pete home because of costs. Im trying to find further N with less traffic.
Jamie
August 23, 2024at10:32 pm
My husband & I live in the Burlington Post apts that this one is being built next to. We have lived here for two years soon to be three. We are on a fixed income too but the time that we have been living here, our rent has gone up. Once in the first year & twice back to back the second year. There is only one elevator for the whole building & it breaks down quite often. In fact, in Jan it was down for a whole month. There is only one laundry room that has only 4 washers, which one doesn’t work & 4 dryers. Maintenance hardly does anything & they blame the person for doing whatever it is that needs fixed. You have to leave the A/C on ALL YEAR long because they don’t want mold. The fire alarm goes off for no reason either even in the middle of the night. The only good thing about living here is the neighbors are nice & it’s in a good area with Walmart across the street & the bus station a few blocks down along with Sunrunner.
Velva Lee Heraty
August 23, 2024at4:27 pm
Please fellow posters, BE happy for whoever benefits. It’s long overdue.
S. Rose Smith-Hayes
August 23, 2024at1:09 pm
I did not see this as a taxpayer financed project. What did I miss????
SB
August 22, 2024at3:14 pm
I need to stop saving, insuring, and planning and maybe I’ll get a brand new apartment, too. Courtesy of the taxpayers. And to some extent, my next door neighbors.
What do we learn about government programs?
Whenever we subsidize bad behavior, or behavior we should actually discourage, we tend to get more of it.
There weren’t older apartments that could be made available?
Why do I find that hard to believe.
SB
August 22, 2024at3:09 pm
So people who presumably didn’t save, plan, or insure properly (or maybe all three) are going to be rewarded with brand new apartments… And who is going to pay for this?
There is a cost to everything. And to someone.
Is it going to be the other renters in this building? Subsidizing their neighbors? Kind of like how the YMCA charges much more than market rate to subsidize other people using the gym?