Approval of Florida Housing Finance Corporation Local Government Verification of Contribution to support an affordable housing development at 3000 Okeechobee Road by authorizing $460,000 local match funding in the form of a CDBG loan from the City.

Blue Sky Communities is under contract to purchase 3000 Okeechobee Road to develop Sunrise Village, a 68-unit affordable rental community for families and seniors. Fifteen percent of the units will be for households at or below 30% AMI, sixty-five percent will be for households at 60% AMI, and twenty percent will be for 80% AMI. In order to finance this project, Blue Sky Communities is applying for 9% Low Income Housing Credits through the state. In order to make their application more viable, they are seeking a $460,000 local match in the form of a CDBG loan. The loan is proposed to be paid over a 20-year term at zero percent interest. Only the commitment to accompany the application is requested at this time, actual disbursal of funds is expected to occur in 2024. The City of Fort Pierce and St. Lucie County have an existing relationship with Blue Sky Communities through the two-phase affordable housing project Blue Sky Landing which is currently under construction. The City Commission previously approved this same Verification of Contribution in December 2022; however, Blue Sky did not win through the lottery system and is now reapplying for the 9% credits.

The Community Development Block Grant (CDBG) Program is federally funded by the U.S. Department of Housing and Urban Development (HUD). The City of Fort Pierce receives federal CDBG funds allocated through HUD’s Community Planning Development program, which are intended to primarily serve low- to moderate-income households and special needs communities. A severe shortage in affordable housing stock increases the pressure on the City's housing market. According to the City’s CDBG Action Plan, one of the biggest challenges in the City is the huge disparity between housing costs and what people with low and moderate incomes can afford to pay. It is because of these factors that maintaining the existing supply of affordable housing continues to be a priority for the City. The City of Fort Pierce will continue to develop policies that help foster the development of new affordable housing units. Additionally, the City and its municipal partners will also continue to support the efforts of local housing providers who carry out strategies to retain and create affordable housing options throughout the region. This potential partnership with Blue Sky Communities is a prime example of supporting these efforts.
 

Approval

Deny request for Local Government Contribution

Shyanne Harnage, Economic Development Manager

Finance Department
City Manager