Largo commissioners increase funding for affordable housing development
By Breanne Williams
Tampa Bay Business Journal
Published: Aug 18, 2022

An affordable housing project in Largo has received an additional $840,000 in funding from the city.

City commissioners unanimously agreed on Aug. 16 to give the funding to Archway Partners, the umbrella company for Seminole Square Partners, to build an affordable housing development at 2075 Seminole Blvd.

This brings Largo’s total investment up to $1.46 million, which accounts for 4.7% of the entire project costs, according to city documents.

The request came as “a direct result of increased interest rates for their construction and permanent financing loans as well as construction materials/labor cost increases,” according to city documents. The new investment will be broken down as $380,000 from the State Housing Initiatives Partnership and $460,000 from the Community Development Block Grant.

In August 2021, the commission approved a commitment of $610,000 from the city’s Rental Affordable Housing Development Program using SHIP funding for the acquisition costs for 15 of the 96 affordable housing units. An additional $10,000 was reserved from SHIP to cover loan closing costs. The new commitment means 25 units will now be reserved for households at 50% area median income.

The project, called Seminole Square Apartments, saw its costs increase from $27.5 million to $30.8 million. The developer has “been able to address approximately $804,277 of the shortfall” and will ask Pinellas County’s Penny IV Affordable Housing Program for $1.56 million paired with the $840,000 from Largo to cover the difference.

The project will be available for households with incomes between 30% AMI and 80% AMI. It is in one of Largo’s activity centers and along transit services.

Brett Green, president of Archway Partners, told the commission there are multiple avenues in place for residents to apply for the units. Most will be rent reduced, meaning residents making less than 80% AMI will pay between $800 and $1,100 for the units. He said they also have some units that will go through and are subsidized through project-based Section 8 vouchers. The residents who occupy those units will pay a portion of their income, and the federal government, HUD, subsidizes the rest.

“There’s kind of a blend, and also we’ll be housing residents that are from extremely low income from 30% of AMI to up to 80% AMI, so we have a really nice blend of income levels,” Green told commissioners. “Hopefully, no specific income level will be left out.”

The development is in the final stage of obtaining its development order and submitting for building permits. Seminole Square intends to acquire the property in November, according to city documents, and the project is expected to be complete by spring 2024.

The apartments will be built on appreciably 4.97 acres near the Town and Country Mobile Home Park and The Boulevard apartments.

“In a time of drastically increasing rents, this project is vital for providing affordable housing for the community,” city documents read. “The property will be placed in the Pinellas County Housing Finance Authority Community Land Trust for 99 years with an option for an additional 99-year renewal to maintain long-term affordability of the units.”