St. Pete City Council approves $9.7 million for 264-unit affordable housing project slated for 31st Street

Yesterday St. Pete City Council approved funding to construct a 264-unit affordable housing development at 31st Street South and Fairfield Avenue near the Warehouse Arts District.

The project, dubbed the Fairfield Avenue Apartments, was first proposed in early 2022 by HP Capital Group, the developers behind Reflection, an 18-story condominium tower under construction near Mirror Lake in downtown St. Pete.

Fairfield Avenue Apartments will consist of 264 affordable and workforce apartments in three buildings with 74 one-bedroom units, 163 two-bedroom units, and 27 three-bedroom units.

The community is planned for a 6.92-acre site on Fairfield Avenue between 31st Street and 34th Street that previously housed the Tibbetts Lumber Company.

The apartment project will front the Pinellas Trail and include 345 vehicular parking spaces and 278 bicycle parking spaces.

Amenities include three computer labs, a community room with a kitchen, bike pavilions with bike repair stations, a community pool, a playground, and picnic and barbecue areas.

THE PROJECT CONTAINS A TOTAL OF 345 VEHICULAR PARKING SPACES ALONG WITH 278 BICYCLE PARKING SPACES | HP CAPITAL

While the development was approved in August 2022, delays in securing financing led to project delays and cost increases. As a result, the developers requested additional funding from Pinellas County and the City of St. Petersburg. City Council voted yesterday to approve $9.7 million in funding, allowing the project to move forward.

Fairfield Avenue Apartments will cost $87.8 million to construct and will be financed using several sources including a $56.1 million HUD 221(d)(4) construction loan, $12.4 million from Pinellas County, $8.2 million in developer equity, and a $1.5 million sales tax rebate, in addition to the grant from the City of St. Petersburg.

A portion of the funds from Pinellas County will be used for land acquisition meaning the project will be permanently affordable.

FAIRFIELD APARTMENTS WILL HAVE THREE BUILDINGS WITH 264 UNITS | HP CAPITAL

According to a presentation given to City Council, the total cost per unit is $332,575 which is below the cost of other similar projects that average $343,000. The per unit subsidy of $36,742 is also below other similar projects that average $46,288.

As a result of the public investment in the project, all of the units will be income-restricted affordable or workforce housing:

53 units of the units will cater to households making 50% of area median income and below (currently $39,150 annually for a household of three) including 36 one-bedroom units, 15 two-bedroom units and 2 three-bedroom units.
67 units will cater to households making 80% of area median income and below (currently $62,550 for a family of three) including 19 one-bedroom units, 43 two-bedroom units and 5 three-bedroom units.
144 units for households at 120% of area median income and below (currently $93,960 for a household of three) including 19 one-bedroom units, 104 two-bedroom units and 21 three-bedroom units.

THE COMMUNITY WILL FEATURE AMENITIES SUCH AS A POOL, SECURE BIKE AREAS, PICNIC AREA, AND COMPUTER LABS | HP CAPITAL

The project is proposed for a site that is zoned Industrial Traditional which typically does not allow for the development of housing.

However, in 2020 the Florida Legislature passed House Bill 1339 which allows local municipalities to “approve the development of housing that is affordable, as defined in s.430.004, on any parcel zoned for residential, commercial, or industrial use.” House Bill 1339 was a precursor to the Live Local Act, which was approved earlier this year, that more broadly allows affordable housing projects in commercial areas.

Construction on the Fairfield Avenue Apartments is expected to begin in the first quarter of 2024 and will wrap up in late 2025. KAST Construction will serve as the general contractor for the project.