Since Ken Welch was sworn into office as the 54th Mayor of the City of St. Petersburg, there has been a noticeable uptick in the number of City-owned lots being considered for residential development. This should come as no surprise, as affordable housing has always been high on Mayor Welch’s list of issues to tackle.

“As you all know, increasing access to affordable and workforce housing was a top priority in my campaign, and it remains a top priority in my administration,” said Mayor Ken Welch in response to a comprehensive affordable housing study recently completed by a team of students from the Harvard Kennedy School.

Last month, the City received an unsolicited offer from St. Pete-based Namaste Homes to purchase a City-owned lot located on the northwest corner of 18th Avenue South and 18th Street South. The subject property sits four blocks away from Tangerine Plaza.

Namaste has proposed to construct 11 affordable townhomes on the vacant lot. The homes would be sold to households earning below 120% of the Area Median Income (AMI) as defined annually by the United States Department of Housing and Urban Development (HUD).

The 3-bed 2.5-bath homes would be sold for a proposed $215,000 per unit.

The company is currently constructing Sixteenth Square Townhomes, an 11-unit affordable community at 1523 Dr. Martin Luther King Jr. Street South that will be completed by the end of the year.

As a result of Namaste’s unsolicited offer, the City invited alternative proposals from any person or developer interested in leasing or purchasing the site. Alternative development proposals were due March 9th and the City received two additional proposals to consider.

The submissions will be reviewed by Mayor Ken Welch and, if selected, will ultimately need to be approved by City Council. However, Mayor Welch’s staff has informed St Pete Rising there is no specific timeline for selecting a proposal.

Habitat for Humanity

Similar to Namaste’s proposal, Habitat for Humanity proposes to construct townhomes that will be sold to income-qualified homebuyers. The community, called The Grove, would contain either 10 or 12 units.

The three-story townhomes would contain around 1,224 square feet of livable space and include a garage as well as laundry/storage room. A total of two parking spaces per unit would be provided.

Each unit would be sold to individuals or families at or below 80% of the Area Median Income.

To assist homebuyers, Habitat would only require $1,000 in closing costs with no down payment and a no interest mortgage. Additionally, no private mortgage insurance (PMI) would be required.

Habitat projects an average sales price of $225,000 per unit. Monthly expenses, including a mortgage payment, taxes, insurance, and HOA fee, are estimated at $1,075.

“We believe our resource center just blocks away from the site location will be a tremendous benefit for recruitment,” stated Habitat for Humanity in their submission to the City. “We intend to partner with community partners, such as first-time homebuyers’ programs and potentially the city to hold homeownership information events for residents.”

Habitat for Humanity has significant development experience particularly working within the South St. Petersburg CRA and have completed well over 200 homes in St. Petersburg. Additionally, Habitat has proposed a 44-unit townhome project on another city-owned lot three blocks away.

Habitat intends to self-finance the construction development. In return, the group is requesting the land be provided at no cost. Additionally, Habitat would seek a total subsidy of $740,000 (for the 10-unit plan) or $825,000 (for the 12-unit plan) to assist in offsetting the funding gap. Further funding may be requested from the Housing Capital Improvement Fund or other relevant funding source.

If awarded the project, Habitat expects to break ground early next year with a completion in late 2023.

Pinellas Ex-Offender Re-Entry Coalition (PERC)

A second alternate proposal was submitted by Pinellas Ex-Offender Re-Entry Coalition (PERC). The group has proposed a tiny house community with 18 affordable housing units. Each unit would contain around 420 square feet of living space.

Different from Namaste’s and Habitat for Humanity’s proposals, which would provide affordable homeownership, PERC’s project would create affordable rental units.

Rent would be restricted to those making at or below 80% of the Area Median Income and is expected to fall between $600-700 per month. Units would not be restricted to ex-offenders.

PERC is a local non-profit founded in the early 1990s with a mission of helping ex-offenders reunite with family through advocacy, education, and programming.

In 2017, PERC launched the Second Chance Tiny House Manufacturing Company, which trains people coming out of jails and prisons for construction jobs. Participants in the program receive Carpentry and Occupational Safety and Health Administration (OSHA) Certification at Pinellas Technical College. After graduation, participants are given paid on-the-job training and placement assistance with contractors in the St. Petersburg area.

“Pinellas County and St. Petersburg are beyond a critical junction in developing affordable workforce housing for our residents,” said Executive Director of PERC Michael Jalazo in a statement to St. Pete Rising. “We feel our proposal to develop these multi-family lots that are smaller in size into Tiny Home communities is the best combination of density and affordability with a sense of community. It combines a 'cool' factor while creating housing that a law enforcement officer, teacher, service industry worker, and other populations can afford and enjoy in the Sunshine City.”

PERC has multiple potential funders for this project. The group is currently in discussions with the Florida Community Loan Fund and Tampa Bay Black Business Investment Corporation (TBBBIC). Additionally, any available grant opportunities will also be utilized. Like Habitat for Humanity’s proposal, PERC is asking the City to donate the property.

This would be the first Tiny House Community developed by PERC, which has also submitted proposals to acquire city-owned land at 2034 9th Street and 634 22nd Avenue South.