Subject:
Title
Affordable Housing Program funding reclassification for Indigo Apartments.
label
Recommended Action:
Recommended Action
Recommend reclassifying Affordable Housing Program funding for Indigo Apartments.
Additionally, delegate authority to the County Administrator to execute amended funding agreement documents.
• Indigo Apartments, located at 801 Chestnut St, Clearwater, is an acquisition and renovation project of 208 multi-family affordable units. Fifty units are set-aside for 30.0% of Area Median Income households, units are set-aside for 60.0% AMI, and units are set-aside for 80.0% AMI or below.
• On September 5, 2024, the Board of County Commissioners approved $7.0M of Penny IV affordable housing funding for land acquisition and renovation of the property. Granicus file # 24-1248A. The total project cost is $47.7M.
• Land acquisition was completed on June 18, 2025, and the property placed in a land trust with the County as the beneficial owner. Construction is on schedule to be complete by the end of 2026.
• Reclassifying the $7.0M of funds from Penny IV to State Housing Initiatives Partnership (SHIP) will ensure SHIP spending deadline compliance and make additional Penny IV funds available for new project commitments.
• The project complies with SHIP grant requirements, and all funding terms and conditions will remain the same.
• Six applications requesting a total of $26.6 million were submitted before the Penny program closed. With this change, $9 million in Penny funds would be available as we review these applications.
• Funding for the reclassification is available in the SHIP fund in the Fiscal Year 2027 Budget of the Housing and Community Development Department.
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Strategic Priorities:
Prosperity and Opportunity
3.1 Increase the availability of attainable housing.
Summary:
Summary
Reclassifying the source of funds for the Indigo Apartments affordable housing project from Penny IV to SHIP will ensure SHIP spending deadline compliance and make additional Penny IV funds available for new project commitments.
SHIP entitlement funds are received annually and must be encumbered in two (2) years and expended in three (3) years. In response to the 2024 hurricanes, regular housing programs were closed and the funds diverted to a Hurricane Home Repair program resulting in slowed spending.
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Background Information:
Sunrise Affordable Housing Group was approved for $7.0M of affordable housing funding assistance for the Indigo Apartments project for land acquisition and renovation construction costs. The 208-unit development serves households earning at or below 80.0% of Area Median Income (AMI). Fifty (50) units are set-aside for 30.0% AMI or below, (82) units are set-aside for 60.0% AMI or below, and (75) units are set-aside for households at 80.0% AMI or below. The apartment community is located at 801 Chestnut St, Clearwater.
The primary funding source for the project is Tax Credit Equity of $32,247,923.00. In addition, the Clearwater CRA committed $2.0M, the City of Clearwater committed of $1.0M, and the Developer deferred their Developer Fee in the amount of $4,298,495.00 and will utilize Operating Cash Flow in the amount of $1,142,773.00.
The property has been acquired and placed in a land trust with the County as beneficial owner to provide permanent affordability. Construction is nearing completion and will be finished by the end of 2026.
Fiscal Impact:
Funding for the reclassification is not included in the FY27 Budget; however, the SHIP fund is able to absorb the cost.
Staff Member Responsible:
Gregg Mims, Director, Housing and Community Development
Bruce Bussey, Community Development Manager
Partners:
City of Clearwater
Clearwater CRA
Housing Finance Authority of Pinellas County
Attachments:
Reference Granicus Item #24-1248A - Staff Report