86-unit Palm Lake Urban Sanctuary affordable housing community breaks ground in Disston Heights
/Palm Lake Christian Church resides in St. Petersburg’s Disston Heights neighborhood | Palm Lake Christian Church
Construction is officially underway on Palm Lake Urban Sanctuary, an 86-unit affordable housing community taking shape next to Palm Lake Christian Church in St. Petersburg’s Disston Heights neighborhood.
Newstar Development, Palm Lake Christian Church, and the Pinellas County Housing Authority marked the milestone Friday with a ground breaking and cornerstone blessing ceremony at the church’s campus at 5401 22nd Avenue North.
Once complete, Palm Lake Urban Sanctuary will deliver 86 one- and two-bedroom apartments reserved for households earning up to 80% of the area median income (AMI).
The four-story building is expected to welcome residents by the end of the year, with affordability restrictions in place for at least 50 years.
The project began as a vision from Palm Lake Christian Church and its members to use underutilized land in a way that aligned with the church’s mission while also addressing St. Pete’s growing need for affordable housing.
Members of the development team, stakeholders, and city officials break ground on Palm Lake Urban Sanctuary | Newstar
“Today marks a pivotal moment in our church’s journey to live out our faith through action,” said Pastor Oscar Banks of Palm Lake Christian Church during the event. “This ground breaking represents our commitment to extending God’s love beyond our sanctuary walls and into the fabric of our community, providing homes and hope for our neighbors in need.”
Unlike a traditional land sale, the church retains ownership of the property and entered into a long-term partnership that allows the affordable housing development to move forward while keeping the campus intact.
“The church still owns the land, and this is very much a partnership,” said Justin Corder, vice president of development at Newstar Development in a conversation with St. Pete Rising. “They didn’t sell the property. They helped make this development possible and they’ll remain involved long term.”
Palm Lake Urban Sanctuary is one of the first affordable housing development approved under a city ordinance created through House Bill 1339, a state law that allows affordable housing to be built on land zoned for residential, commercial, or industrial use.
Rendering of Palm Lake Urban Sanctuary | NewStar
“Once again, St. Pete is setting the standard for housing,” said Mayor Ken Welch. “This project is a powerful example of innovation in action and what’s possible when policy, partnerships, and community come together.”
Although the church property is zoned Neighborhood Suburban-1 (NS-1), which typically allows only single family homes, the project received site plan approval in 2023 just months after the ordinance took effect.
Much of the project’s design was shaped by site conditions and neighborhood considerations.
“A lot of the changes came down to the site itself,” Corder said. “We worked closely with the city to orient the building along the street instead of backing up to single family homes, so we could minimize the impact on the surrounding neighborhood as much as possible.”
Early plans also included several small cottage style buildings, but those were eliminated due to stormwater challenges tied to the site’s high water table.
An aerial of construction progress shows the residential building under construction on the north side of the site | Newstar
“Stormwater management became one of the biggest challenges,” Corder said. “Consolidating everything into one building was the most practical solution.”
Palm Lake Urban Sanctuary will include amenities such as a clubhouse with a fitness center, computer room, kitchen, and offices for service providers.
Outdoor amenities will include a community garden, playground, native landscaping, and sidewalks connecting the residential building to the church.
Nearly 200 surface parking spaces will be provided for residents and church members, along with bicycle parking and electric vehicle charging stations.
The church already partners with organizations such as Meals on Wheels and plans to explore additional on-site services as residents begin moving in.
“As we get closer to completion, they’ll be looking at what additional support makes sense for residents,” Corder said.
Neil Brickfield, Executive Director of the Pinellas County Housing Authority at the Palm Lake Urban Sanctuary ground breaking on Friday | Newstar
Another challenge has been constructing the project while the church and a school on the campus remain fully operational.
“Normally, you’d shut down utilities and rip the site apart,” Corder said. “Here, we’ve had to carefully phase construction so the church can keep operating, parking remains available, and everyone stays safe.”
At peak construction, several dozen workers are expected to be on site. The all-concrete building will be fully hurricane resistant and built to modern energy efficiency standards.
Financing for Palm Lake Urban Sanctuary includes low-income housing tax credit equity, construction and permanent loans from Bank of America, and funding from the HOME Investment Partnerships Program, State Housing Initiatives Partnership, Community Development Block Grant funds, and Pinellas County Housing Authority resources.
“This project shows the power of partnership,” said Chloe Firebaugh, chair of the Pinellas County Housing Authority Board of Commissioners. “When faith-based organizations, public agencies, and developers work together, real solutions happen.”
