Bradenton affordable housing project proposal is fourth to seek tax credits

Projects relying on tax credits through the Florida Housing Finance Corporation have a 10 percent chance of success. Bradenton’s recent support of a fourth proposed affordable housing project for this year’s application cycle, which begins this month, increases the odds somewhat.

“I guess you can say it helps to play the numbers game,” said Carl Callahan, city administrator. “The more applications that are in, the better the chance. But the liklihood of us getting something, well, we’ll still be very lucky if we do because it still comes down to a lottery system. You have to draw a good number and then the project is considered on its merits.”

Like the other applications, the latest proposal guarantees funding assistance, but only if the project is successful in the application process. Cadell’s Way development is a 100-unit apartment building on 8 acres of the southwestern corner at 27th Street Avenue East and 26th Street East.

The development would feature one to three bedroom units for those making up to 60 percent of the area’s median income, which is $47,474 per household. Ninety percent of the complex would be reserved for that income range and another 10 units would be devoted to those making only up to 35 percent of the median income.

Those making up to 60 percent would pay $697 for one bedroom and $996 for three bedrooms. A one bedroom unit for those in the lowest income bracket would cost $406 and $563 for up to three bedrooms. Vicki White, housing and community development manager, reports approximately 9,695 Bradenton households, or 42 percent, are housing burdened because more than 30 percent of gross monthly incomes go toward housing costs.

“Developments such as Cadell’s Way can help alleviate this cost burden by providing rentals that are affordable, decent, safe and sanitary,” White said.

Tampa developer Southport Development’s vice president Michael Molinari said a show of financial support from a muncipality is essential in the tax credit application process, “To successfully compete in this extremely competitive process.”

The means of financial commitments can vary. For Cadell’s Way, the city is offering $37,500 of State Housing Initiatives Partnership funding if the application succeeds. For one of the competing projects, the redevelopment of the 1950s era Love Apartments, the city is offering to split predevelopment costs with general funds. The Village Lofts project also is in submission to develop the site of the old Manatee Inns hotel on 14th Street West and the city is offering Community Development Block Grant funding.

BlueSky Communities is seeking to build workforce rental housing at the corner of Ninth Street and Sixth Avenue East and has been trying since 2014. The only successful application within the city thus far is the 72-unit Grand Palms senior housing facility currently under construction in the 1700 block of 14th Street West.

Until private investors are willing to overlook profit margins, Callahan said all the city can do for now is stand behind the limited chances involved with the tax credit applications for affordable housing developments.

“We can’t just say, ‘Yes, we support this.’ We have to show an actual source of funding that will strengthen these applications,” Callahan said.

However, affordable housing is a priority for the city and officials are looking at ways to focus more funds in support of affordable housing projects while looking at ways to streamline codes to make affordable housing easier and more enticing for private development.

This story was originally published November 26, 2016 at 4:55 PM with the headline "Bradenton affordable housing project proposal is fourth to seek tax credits."