St. Pete Sets Aside $11.6M for Affordable Apartments, But Requests Already Top $60M

St. Petersburg has set aside $11.6 million to help affordable apartment developers close financing gaps in South St. Pete next year, but the city says builders 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, with more applications expected before the fiscal year is out.

The money comes from the South St. Petersburg Community Redevelopment Area, a 7.4-square-mile district created in 2015 that covers Greater Childs Park and much of Midtown, running roughly from the edge of downtown south to 30th Avenue S. and west to 49th Street. As property values inside the district climb, the city and Pinellas County set aside a share of the added property tax revenue and reinvest it there. The city expects about $22.9 million in new CRA revenue for the coming fiscal year.

City council members, meeting Sept. 17 as the Community Redevelopment Agency, voted unanimously to approve the spending plan. Housing and neighborhood programs got the largest cut, about $15.1 million, or 66% of the new money. Of that, $11.6 million is earmarked for the fund that helps affordable apartment projects fill gaps in their financing.

Housing and Community Development Director Avery Slyker told council the demand already dwarfs what's available. Eleven development applications are pending in the CRA system totaling more than $60 million, Slyker said, though staff did not break down how that figure relates to the $35 million in unfunded multifamily requests tied to specific units. Those projects may also draw on other funding sources beyond the CRA.

Homeowners versus new rentals

Several council members pushed back on how the money is split. Councilmember Brandi Gabbard said she keeps hearing the same tension from residents: they support new affordable housing, but most of what gets built is rental, not ownership, and existing homeowners feel left out.

"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, according to the meeting record.

The budget sets aside $2.75 million for single-family housing programs. That includes $2.4 million for down payment assistance, $180,000 in new money for home repairs, and $75,000 for facade improvements. Another $90,900 goes to Paint Your Heart Out, which funds repair and maintenance work for qualifying homeowners.

City staff said the $180,000 figure only reflects new money coming in next year. About $2.3 million left over from prior years is still available for single-family repair programs, and state housing dollars can be tapped before CRA funds are used. Staff told council that combination should cover expected demand.

What council wants to see next

Councilmember Gina Driscoll questioned whether the budget clearly shows what's actually available to spend. Staff pointed to the Fairfield Avenue affordable housing project, where the city committed $9.7 million; roughly $7 million of that could roll into next year's budget because the developer hasn't drawn it down yet. Driscoll said council needs that distinction spelled out before it votes on future budgets, telling staff to "show us a real budget" that reflects what will actually be available as the year goes on.

Vice Chair Richie Floyd asked whether money could be shifted later if home repair or down payment requests run ahead of what's budgeted. Staff said that would require coming back to council to move funds between programs.

South St. Pete resident John Muhammad, co-executive director of Policy Partners and a former city councilmember, told council that residents broadly support the CRA's mission, but want to see it do more than fund new construction. He said the same concerns came up repeatedly across more than 300 resident surveys and at a Sept. 2 community meeting that drew more than 130 people: help people stay in their homes, become homeowners, and build wealth, not just add rental units.

City staff also flagged projects already underway with CRA support, including the 40-unit Pelican Place development, the 12-unit Grove, and smaller Namaste projects, and said a public dashboard is being built to let residents track CRA spending over time. No date has been set for when that dashboard will go live.

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