Mayor Welch selects Habitat for Humanity for two Southside affordable housing projects
St. Petersburg, FL — St. Petersburg Mayor Kenneth T. Welch has selected a developer for two properties located on 18th Ave. South.
Habitat for Humanity is recommended to develop land on the 2100 and 1800 blocks of 18th Ave. South.
The project will provide affordable homeownership opportunities to residents with mortgages as low as $1,075 per month up to $1,300, incredible affordability made possible by Habitat’s 0% interest mortgage program.
“After reviewing all proposals for these sites, Habitat for Humanity offered an innovative opportunity for homeownership, made affordable by their zero-percent interest mortgage program. This is a life-changing opportunity for homeownership and wealth-building for residents within the Southside Community Redevelopment Area. The monthly mortgage payment is truly affordable, and Habitat for Humanity is also a trusted organization in the community who we believe will deliver a quality project,” said Mayor Ken Welch.
Habitat’s proposal includes the development of 44 three-story townhome units for homeownership, each with attached garages and driveways. The units will range in size from 1,000 square-feet to 1,300 square-feet, with nine two-bedroom units, 26 three-bedroom units and nine four-bedroom units.
All units will be reserved for individuals and households earning at or below 80% of the Area Median Income (AMI).
Current terms of the agreement include a $725,000 property purchase price, with $750,000 in public funding from the City ($16,500 per unit) with $1.012 million in funding from Penny for Pinellas, pending approval.
Total development costs are estimated at $13.54 million.
Habitat estimates the first phase of the project including 15 units will be complete by February 2024; the second phase will be complete with another 15 units by October 2024; and the final phase will be complete with 14 units by July 2025.
Habitat has also been selected to develop a smaller parcel of land on the 1800 Block of 18th Ave. South. That project includes 10-12 three-story townhome units for homeownership with attached garages and driveways.
All units in this project will be three-bedrooms at 1,704 square-feet. All units will be reserved for individuals and households earning at or below 80% AMI with a selling price of $225,000 per unit.
For that project, the City will donate the land and provide $640,000 ($64,000 per unit) in public funding if the project includes 10 units; or $705,000 ($58,750 per unit) if it includes 12 units.
Development costs are estimated to cost $2,890,233 for 10 units or $3,406,617 for 12 units. Construction is expected to begin in January 2023 with completion by December 2023.
For both projects, the proposed affordability period will be for 10 years. However, the city is seeking a longer affordability period as part of its negotiations with Habitat to create a term sheet.
Once established, a term sheet will be used to draft a Development Agreement for City Council consideration and approval.
Three other development teams submitted proposals for the 2100 block, including Green Mills Group of Fort Lauderdale; Blue Sky Communities of Tampa; and Sugar Hill Group/New Urban Development of St. Petersburg and Miami.
Two other development teams submitted proposals for the 1800 block, including Namaste and Perc “Tiny Homes,” both of St. Petersburg.
Habitat’s selection was determined after consideration of strengths and weaknesses for each development by City staff, the Citizens Advisory Committee and a private citizen.