St. Pete complex with $305 rents welcomes residents

The second phase of an affordable housing community in St. Petersburg’s rapidly evolving Skyway Marina District is now welcoming residents. Some will pay just over $300 monthly for rent.

Public and private stakeholders celebrated the completion of SkyWay Lofts II with a ribbon-cutting ceremony Tuesday. The $25 million addition offers 66 income-restricted apartments, at 3900 34th Street S.

Blue Sky Communities completed the first phase in March 2022. The St. Petersburg-based affordable housing developer now provides 131 units at the site for households earning between 22% and 80% of the area median income (AMI).

“This is an important moment for our city,” said Mayor Ken Welch. “It reflects the power of partnership, vision and intentional focus on the critical issue of truly affordable housing.”

In St. Petersburg, 22% of the AMI is $16,060 for one person. That resident would pay $305 per month at SkyWay Lofts II.

Monthly rents for the development’s 33 one-bedroom apartments gradually increase to $461 (30% AMI), $1,048 (60% AMI) and $1,439 (80% AMI). Most new affordable housing projects fall under the latter category due to soaring property and construction costs.

“Between 22% and 80% of the area median income – those are folks making $6.50 an hour to $22 an hour,” Welch noted. “So, that is real affordable housing, right here in the midst of all this market-rate development. That we’re proud to have.”

An aerial view of SkyWay Lofts II. Photo provided.

The four-story, mid-rise community features a state-of-the-art fitness center, a library with computer stations, a club room and an outdoor play area. Welch called the building “thoughtfully designed to meet real needs.”

“That’s why I love working with Blue Sky,” he added. “These homes are supported by amenities that truly enhance the quality of life.”

The recently completed development is already at capacity. Welch said that underscores the importance of the city’s investment.

St. Petersburg contributed $6.5 million in pandemic-era American Rescue Plan Act (ARPA) funding to the project. Scott Macdonald, executive vice president of Blue Sky, noted that the city was “at the forefront” of dedicating that money to create affordable housing.

“Almost $50 million, in fact,” he added. “And Blue Sky was fortunate enough to be entrusted with two awards.”

Pinellas County allocated $3.4 million to the project and owns the land. That prevents the development from ever charging market-rate rents.

City Council Chair Lisset Hanewicz said progress “happens in phases.” She also believes the area is fortunate to have Blue Sky “in our community doing this meaningful work,” and noted the homes will “remain affordable for perpetuity.”

“I have to emphasize that,” Hanewicz said. “Perpetuity – it means forever, a very long time. That permanence matters because public dollars are best invested in solutions that are built to last.”

Mayor Ken Welch explores the fitness center at SkyWay Lofts II. Photo by Mark Parker.

Macdonald called the project “truly a public-private partnership – all the way from the federal level down to the city level.” The Pinellas County Housing Authority issued $13.75 million in construction bonds for SkyWay Lofts II through a private placement with TD Bank.

Blue Sky also received $2.15 million in state financing and leveraged approximately $10.9 million in 4% tax credit equity from Raymond James Affordable Housing Investments. The St. Petersburg-based firm’s bank provided a $2.2 million loan.

Commissioner Rene Flowers acknowledged that 66 additional affordable homes “does not put a significant dent in the needs of our community.” However, she said stakeholders are “well on our way” and working “extremely hard to put a roof over the heads of those who not only want one, but deserve one.”

Flowers noted that Pinellas municipalities and agencies are “pooling resources” to create affordable housing rather than fighting over projects and land. She said those efforts are helping people remain in the place “where they grew up.”

SkyWay Lofts II caters to people who rely on Social Security and families who receive government assistance despite often working full-time jobs, Flowers said. “I am forever and eternally grateful for the residents of Pinellas County who thought it was not robbery years ago to vote for the Penny for Pinellas (tax).”

“We are doing exactly what we said we would do with your tax dollars,” Flowers continued. “And that’s important, especially at a time when individuals are looking for elected officials to keep their word.”