St. Petersburg has set aside $11.6 million to help finance affordable apartment projects in South St. Pete next year, but developers are already asking for more than three times that amount.
City records show at least $35 million in unfunded requests are under review for 398 affordable units. More applications are expected during the coming fiscal year.
The money comes from the South St. Petersburg Community Redevelopment Area, a 7.4-square-mile district created in 2015. It covers much of South St. Petersburg, including Greater Childs Park and large parts of Midtown, stretching roughly from the edge of downtown south to 30th Avenue S. and west to 49th Street.
As property values rise inside the district, the city and Pinellas County set aside a share of the additional property tax revenue and spend it back in the area. The city expects about $22.9 million in new CRA revenue in the coming fiscal year.
Council members, meeting Sept. 17 as the Community Redevelopment Agency, unanimously backed the spending plan. Housing gets the largest share, with about $15.1 million, or 66% of the new money, going toward housing and neighborhood programs.
Most of that, $11.6 million, is earmarked for a program that helps affordable apartment projects fill financing gaps.
Housing and Community Development Director Avery Slyker said demand is already much larger.
“We currently have 11 development applications in our system for over $60 million dollars in the CRA alone,” Slyker said.
Slyker did not break down the $60 million figure during the meeting. The agenda packet separately identifies at least $35 million in unfunded multifamily requests tied to 398 affordable units and says those projects may also seek money from other sources.
Council members questioned whether enough of the money is reaching people who already live in South St. Pete.
The budget puts another $2.75 million into single-family housing programs, including $2.4 million for down payment assistance, $180,000 in new money for home repairs and $75,000 for residential facade improvements. Another $90,900 goes to Paint Your Heart Out, which provides repair and maintenance work for qualifying homeowners.
Councilmember Brandi Gabbard said she continues to hear from residents who support building more affordable housing but also want more help keeping older homes livable.
“I think the rub that I continue to hear from the community is that we continue to build, which is great,” Gabbard said. “Much of that building, though, oftentimes is rental and not ownership.”
She said residents also want help keeping existing homes in families.
“People want to be able to stay in the homes, the naturally occurring affordable housing that currently exists, and keep those homes for future generations even,” Gabbard said.
The $180,000 for home repairs is only the new money coming in next year. City documents show about $2.3 million in CRA money from prior years remains available for single-family programs, and state housing dollars can also be used for repairs before CRA funds are tapped. Staff said that should be enough to meet expected demand.
Vice Chair Richie Floyd raised the same issue. He asked whether money could be shifted later if requests for home repairs or down payment help exceeded what was budgeted. Staff said it could come back to council and ask to move money between programs.
South St. Pete resident John Muhammad, co-executive director of Policy Partners, raised similar concerns during public comment. The former City Councilmember said residents broadly agree with what the CRA is supposed to do, including helping people stay in their homes, become homeowners, earn more, grow businesses and build wealth.
Muhammad said those priorities came up repeatedly in more than 300 surveys and at a Sept. 2 community gathering attended by more than 130 people. He pointed to the $11.6 million set aside for multifamily development and said residents also want more money reaching the homes and families already in the district.
Councilmember Gina Driscoll questioned how clearly the budget shows what money is actually available to spend.
Some money that appears to be left over from one year may already be committed. Staff pointed to the Fairfield Avenue affordable housing development, where the city committed $9.7 million. Roughly $7 million could carry into the next budget year because the developer has not yet drawn it down.
Driscoll said council should see that distinction before voting.
“Show us a real budget,” she said. “Show us what reality looks like as you’re going to go through the coming year.”
City staff also pointed to projects already moving with CRA help, including the 40-unit Pelican Place development, the 12-unit Grove and smaller Namaste developments. Officials are building a public dashboard that would allow residents to track CRA spending and results over time.
The city will start the new fiscal year with $11.6 million for multifamily projects, at least $35 million in requests already under review and more expected.
Muhammad said both needs deserve attention.
“I think we can continue to invest heavily in affordable housing while putting more resources directly into helping existing homeowners repair and keep the homes that they already have.”
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