St. Pete opens $42 million affordable housing grant program
- Mark Parker
- 1 day ago
- 2 min read
St. Petersburg officials have launched a $42 million competitive race for developers to replenish the city’s affordable rental housing stock, which has suffered multiple blows from hurricanes in recent years.
Funding for the new Affordable Rental Housing Program (ARHP) stems from the $160 million Sunrise St. Pete initiative. The overarching goal is to help turn the tide for low-income renters still reeling from the ongoing effects of storms.
While recent efforts have focused on direct checks to residents, the city is now shifting its focus toward long-term infrastructure by incentivizing developers to build, rehab, or convert properties into high-quality, affordable homes. At least 51% of units in proposed projects must serve households earning at or below 80% of the area median income (AMI).
Interested developers must participate in a competitive application process. Mayor Ken Welch’s administration will cap awards at $15 million, unless applicants “can demonstrate that damage due to a qualifying disaster requires additional funding to bring the property back to safety and habitability.”
The maximum per-unit subsidy is $125,000. Officials emphasize that no funding is available for homes that exceed the 80% AMI threshold, which is $73,400 for a two-person household.
City documents state that awarded developers “are responsible for overseeing all aspects of a project, from planning through long-term documents.” That includes “accepting legal and financial risk … securing and managing financing, and overseeing construction, procurement, budgeting, inspections, and permitting.”
The application period opened on Monday and ends on June 12 at 5 p.m. An evaluation committee will then score and select proposals for approval. City council members must approve awards on Sept. 17.
Developments that do not address a direct or indirect disaster-related impact are ineligible, according to city documents. Rents must remain affordable for at least 30 years.
Officials will prioritize projects with access to infrastructure, public transportation, community amenities, and employment opportunities. The city will “review all estimated development costs … to evaluate their reasonableness and may, at its option, require applicants to obtain additional quotes, bids, or estimates.”
Applicants must identify any negative site features, including proximity to industrial facilities or high-voltage power lines, and explain how they plan to mitigate those effects. Developers must also provide monthly construction reports, and the city will retain a portion of the funding until “satisfactory completion” of the project.
For more information about the program and eligibility requirements, visit the website here.
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