Updated incentives could bring affordable housing to east Bradenton

Affordable housing could be coming to East County. 

The first application for an affordable housing project near Lakewood Ranch was submitted for a property on Lena Road, right off Interstate 75 near Lena Business Park. Out of 606 proposed units, 152 will be affordable rentals.

The property is currently zoned for agricultural use. Rezoning usually adds four to six months to the process of getting a proposed project approved, but the project could be moved into the planning phase by the end of the year. 

Manatee County commissioners are working to address affordable housing through the Livable Manatee Incentive Program, which began in 2017 and incentivizes developers to incorporate affordable housing into their projects. To qualify, 25%-35% of units must be considered affordable and stay within rental limit guidelines. 

“We like to see the rental mix because we believe the lower-income families can learn something from those folks within the market rate,” Affordable Housing Coordinator Rowena Elliott said. “We believe that being in the mix gives them some kind of comfort to say, ‘Ok, we might be able to get there at some point,’ so having that mix is a very good thing for the county.” 

Commissioners are in support of the program expanding into the eastern portion of the county. 

“Lakewood Ranch needs service workers,” Commissioner George Kruse said. “We've got commercial, we’ve got hotels out there, so people who work out in Lakewood Ranch and support the residents of Lakewood Ranch need to have a reasonable place to live that they can afford.”

Updated incentives

Elliott was hired in November 2021 to analyze the Livable Manatee Incentive Program and make sure it was meeting requirements. Amendments were made in September 2022 to encourage more applications and approvals. 

Elliott’s recommendations included changing the quarter-mile rule and removing the $500,000 incentive cap. 

The quarter-mile rule stated that affordable housing should be built within a quarter mile of public transportation. A lack of housing is a more pressing issue than a lack of transportation within the county, so now housing can be constructed within a half mile of public transportation, Elliott said. 

As an incentive to build affordable housing, developers could previously receive up to $500,000. Elliot said the cap caused some developers to be $100,000 to $150,000 short of fully funding the projects. 

“One of my analyses of the program was that I realized if a developer came in and they were doing 100% affordable, the maximum they could get was only $500,000,” Elliott said. “To me, that kind of defeated what we were trying to accomplish. If a developer came in with 100% affordable housing, we should be incentivizing them 100% because they’re going to benefit more families.” 

Since the revisions, the county has been able to revive 18 stagnant applications and has received 15 new ones. There are nearly 80 projects at all different phases currently making their way through the program, which equates to 1,300 affordable housing units. 

The largest project in the works broke ground in March. Lincoln Avenue Capital, a development firm specializing in affordable housing, is building a project in Oneco called the 301 Flats and the Savoy at 301. 

The Flats will provide 324 units for working families, while the Savoy will offer 248 units of senior housing. Both projects will have units for rent starting in 2024, with full completion in 2025. Combined county incentives total $4.4 million for the project. 

How it works for eligible residents

While the Department of Housing and Urban Development’s Section 8 program might have the most name recognition, this is not that. HUD issues vouchers to low-income, disabled and elderly residents that are presented to landlords, then a portion of the rent is paid by the public housing agency and the remainder is paid by the tenant.

Section 8 rentals are not designated as affordable housing units. They’re rentals that anyone can apply for, but the landlord has to agree to accept the terms of the voucher.

For the Livable Manatee Incentive Program, funding comes from the State Housing Initiatives Partnership, which incentivizes local governments to form partnerships that preserve and create affordable housing for low to moderate income families.

The process is the same as renting any other apartment. If you call the county, they’ll refer you directly to the developments, no pre-approval required. Units are rented on a first-come, first-serve basis, but the tenant must fall within median income limits set forth by the Florida Housing Finance Corporation, which are based on figures provided by HUD.

To receive a Section 8 voucher in Manatee county, the household income can’t exceed 50% of the median income for the county, and 75% of vouchers must go to residents earning 30% and under. To qualify for a rental through Livable Manatee, a family can earn up to 120% of the median income in Manatee County. 

While 140% of the median average officially qualifies as “workforce housing” under HUD, Livable Manatee includes the workforce by allowing for higher salaries up to 120% of the median income. A teacher or nurse with 20 years experience most likely wouldn’t qualify at 120%, but those early in their careers would.

In September 2022, the School Board of Manatee County unanimously approved a raise for new teachers. The starting salary is now $55,177, which falls well below the eligibility requirement for a one-person household.

The program also benefits first-time homebuyers, but out of the 1,300 units in process, only about 30 are homes and mainly cottages. But if the purchase price falls within the pricing guidelines, the home is eligible even if it wasn’t intended to be affordable housing.

Eligible buyers can receive financial assistance of up to $75,000 for down payments and closing costs. Applicants must attend a Homeownership Training Course given by Step Up Suncoast and be qualified through a certified lender. The lender submits the application on behalf of the applicant. The county keeps a list of certified lenders on its website. 

There are stipulations if approved.

“The agreement for affordability is 30 years on the houses. They do have the option, after a certain period of time, to still sell. They’re still going to have equity coming out of the home, but if they’re not selling the home to another qualified homeowner, then they have to pay a portion into the affordable housing subsidy account to help someone else to get a home,” Elliott said. “If they sell that to them as a market rate home, then we have just lost one of our affordable homes to the market.”

Correction: This article has been updated to describe clarify that the project on Lena Road is outside of Lakewood Ranch.