Funding hiccup downsizes affordable housing project, for now

Although downsized because of a deadline it most likely can’t meet for $7 million in funding, Sarasota Housing Authority’s plan for a new affordable housing development was unanimously approved at its July 15 City Commission meeting.

Just more than a week after the SHA cut the ribbon at the adjacent Cypress Square apartments, it presented to the City Commission its plans to replace 64 aging public housing units with, ultimately, 144 units across four three-story buildings.

All will priced as affordable for occupants earning 80% of area median income or less. 

Affordable, but not attainable, as defined by the SHA President and CEO William Russell.

“To me, there's a difference between affordable and attainable, but for this development it'll be 100% affordable, meaning all the residents will be at or below 80% of area median income,” Russell said.

Added development consultant Joel Freedman, “whereas attainable goes all the way up to 120% AMI.”

The non-addressed 6.65-acre site is located southeast of Amaryllis Park Place at 2012 N. Orange Ave. and South of Amaryllis Park Place II located on 21st Street. 

Planned for four buildings plus a community center, for now the project will comprise only three residential buildings. 

At its July 9 meeting, the Sarasota County Commission told Russell that, because of timing requirements for spending the federal dollars, it cannot grant $7 million in Resilient SRQ funds unless the SHA can close on all other funding sources and be under contract for construction by September. 

The request for the additional funding from Resilient SRQ, which has a pool of $40 million for affordable multifamily housing projects and $150 million in asks, was made because of escalating construction costs. County commissioners were concerned SHA may not meet the deadline requirements for the grant, and the $7 in million federal funds would be lost.

Prior to that decision, Russell told county commissioners he didn't expect to meet its requirements until nearly year's end.

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As a result, Russell, Freedman and Chris Gallagher of Hoyt Architects told city commissioners the project will likely require two phases to complete.

“Some of you probably know there were some recent funding discussions at the county, and so therefore in the application we show you in the site plan, three of the buildings will be going forward at this time,” Russell said. “The fourth building will be done at a future phase along with the community center.”

Amaryllis Park Place III will have a unit mix of approximately 20% one-bedroom, 50% two-bedroom and 30% three-bedroom apartments. 

Vice Mayor Jen Ahearn-Koch questioned why the project, unlike the new Cypress Square, doesn’t include four-bedroom units.

“We're seeing projects now with more one-bedrooms and two-bedrooms than anything else,” Gallagher said. “This one still has a pretty high percentage of three-bedrooms, but the development team along with the Housing Authority must have, in terms of the number of four-bedrooms in Cypress Square, felt that they were meeting the market with that.”

With the displacement of 64 families prior to the start of demolition of the existing buildings followed by construction, Commissioner Erik Arroyo inquired about where those individuals and families will go.

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“We are in the relocation process as we speak,” Russell said. “Approximately 25 of them are going to be moving next door into the brand-new Cypress Square. Quite a few of them have already moved. They all have Section 8 vouchers. We've been meeting with them and helping to facilitate their relocation. There are 10 to 12 families who haven't yet found a place so we're working with them.”

Russell told the Planning Board before it unanimously recommended approval at its June 12 meeting that assisting displaced residents includes covering all moving and relocation-related costs, such as utility deposits.

Absent the $7 million Resilient SRQ request, the SHA has secured $54.25 million, including $25.1 million in federal Low Income Housing Tax Credits, $10 million from the Florida Rental Recovery Loan Program, a $12.9 million permanent loan and $3.7 million in deferred developer fees, among others.

The aging current structures, Mayor Liz Alpert noted, are not longer habitable and were built without central air conditioning. Instead, they employ window units.

“The buildings are like the ’60s projects, buildings that you shouldn’t be living in anymore, said Mayor Liz Alpert.