Subject:
Title
Affordable Housing Funding Agreements with Azalea One, LLC for Azalea Cay Apartments.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of an Agency Agreement, Land Use Restriction Agreement and a Subordination Agreement with Azalea One, LLC for an affordable housing new construction project known as Azalea Cay Apartments.
• The new construction project will include 341 multi-family rental housing units that will be restricted as follows: 51 units below 80.0% AMI, 51 units below 120.0% AMI and 239 units at Market Rate.
• The project was approved by the Board of County Commissioners (Board) on January 14, 2025 (Granicus Item #24-2088A), for up to $5,250,000.00 of Penny IV funding for the construction of the affordable housing project.
• The Land Use Restriction Agreement (LURA) associated with the project will restrict 102 units for a 50-year affordability period.
• The total development cost is estimated to be $109,828,489.00. Other sources of funding include Sponsor and Limited Partner Equity ($32,223,777.00), Permanent Debt Financing ($65,897,093.00), City of St. Petersburg ($6,000,000.00) and a Sales Tax Rebate ($457,619.00).
• The project is located at 7140 22nd Avenue North, St. Petersburg, Florida.
• Authority for the County Administrator to sign the Agency Agreement, Land Use Restriction Agreement and a Subordination Agreement is granted by Board action on January 14, 2025, Granicus Item #24-2088A.
• Funding for this project is included in the FY26-FY31 Capital Improvement Plan (CIP) under the Penny IV Affordable Housing Program (project 004150A). This project is funded by Local Infrastructure Sales Surtax (Penny for Pinellas), as part of the 8.3% countywide investment for Economic Development and Housing, half of which, or 4.15%, is set aside for housing specifically.
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Strategic Priorities:
Prosperity and Opportunity
3.1 Increase the availability of attainable housing.
Summary:
Approval and execution of the Agency Agreement, Land Use Restriction Agreement and a Subordination Agreement will provide funding for Azalea Cay Apartments, a new construction project consisting of 341 units of affordable housing that will serve 51 units below 80.0% AMI, 51 units below 120.0% AMI and 239 units at Market Rate, located at 7140 22nd Avenue North, St. Petersburg, Florida. The Land Use Restriction Agreement (LURA) associated with the construction funding will ensure a 50-year affordability period on 102 units.
Background/Explanation:
On January 14, 2025, through Granicus Item #24-2088A, the Board approved funding for the multifamily new construction project originally known as Azalea Gateway Apartments, now known as Azalea Cay Apartments. The final project has increased from 340 to 341 units. The County will use Penny IV funds to provide $5,250,000.00 in support for vertical construction. The LURA associated with this project will impose a 50-year affordability period for 102 assisted units.
Fiscal Impact:
Including this item, the total amount of Penny IV affordable housing funds committed is $91,583,170.97 out of the $94,090,153.07 currently estimated in all ten years of Penny IV.
Funding for this project is included in the FY26-FY31 Capital Improvement Plan (CIP) under the Penny IV Affordable Housing Program (project 004150A). This project is funded by Local Infrastructure Sales Surtax (Penny for Pinellas), as part of the 8.3% countywide investment for Economic Development and Housing, half of which, or 4.15%, is set aside for housing specifically.
The Penny IV Affordable Housing Program (project 004150A) has an FY26 Amended Budget of $31,378,000.00. There is sufficient funding to approve this recommendation. Attached to the Granicus item is a tracking document that shows the FY27-FY32 Estimated CIP, as well as all expenditure activity, both historical and planned.”
Delegated Authority:
Authority for the County Administrator to sign the Agency Agreement, Land Use Restriction Agreement and a Subordination Agreement is granted by Board action on January 14, 2025, Granicus Item #24-2088A.
Staff Member Responsible:
Gregg Mims, Director, Housing and Community Development
Bruce Bussey, Community Development Manager
Partners:
Azalea One, LLC
City of St. Petersburg
Attachments:
Agency Agreement
Land Use Restriction Agreement
Mortgage and Promissory Note
Subordination Agreement
Reference Staff Report - Granicus Item #24-2088A, January 14, 2025