SUBJECT/RECOMMENDATION:
Title
Recommend funding approval to City Council of a deferred loan in an amount not to exceed $1,391,938 provided by the City of Clearwater for the development of real property, located at 1718 North Betty Lane, into affordable multifamily housing and authorize the appropriate officials to execute documents required to affect closing of the loan.
Body
SUMMARY:
The U.S. Department of Housing and Urban Development (HUD) provided a one-time allocation of $1,637,567 in HOME-ARP (America Rescue Plan) funding to the City of Clearwater. HUD requires HOME-ARP funding to be used to assist Qualifying Populations defined as populations experiencing homelessness or at-risk of homelessness and others requiring supportive services or assistance for homelessness prevention.
In June 2022, the first Substantial Amendment (SA-1) was approved by Council to add HOME-ARP funding to the City’s FY 2021/2022 Annual Action Plan by inclusion of the required HOME-ARP Allocation Plan.
The second Substantial Amendment (SA-2) was to allocate HOME-ARP funding to a new Supportive Services project category and to reprogram funding across several new and existing consolidated projects.
In June 2025, the third (SA-3) amendment to the 2021/2022 Annual Action Plan and HOME-ARP Allocation Plan to reallocate HOME Investment Partnerships Program American Rescue Plan (HOME-ARP) funding was approved by City Council. The reallocation moved funds from Supportive Services and Tenant-Based Rental Assistance (TBRA) to Affordable Rental Housing.
The reallocation was intended to increase housing stability by expanding the affordable rental housing stock within the city for individuals and/or families in the specified “qualifying populations” described in HOME-ARP.
Following the approval of the third substantial amendment, staff issued a Notice of Funding Availability and invited interested parties to submit applications. The 30-day application period closed on August 8, 2025. The City received one application, submitted by the Homeless Empowerment Project, Inc. (HEP).
The proposed project involves the development of 35 apartment units specifically for families with minor children who are experiencing homelessness or living in deep poverty. The site plan features six residential buildings and a centrally located community building which will house a 24/7 staffed case management office and a dedicated laundry facility. Outdoor amenities will include a playground and picnic area, creating a safe, family-friendly environment.
Located less than half a mile from HEP’s main campus, the development will provide residents with direct access to services, including employment coaching, childcare referrals, transportation assistance, and health and wellness programs.
The breakdown of the units is as follows:
• 2-Bedroom Units (12 total)
o 4 units at 30% AMI
o 4 units at 50% AMI
o 4 units at 80% AMI
• 3-Bedroom Units (23 total)
o 7 units at 30% AMI
o 9 units at 50% AMI
o 7 units at 80% AMI
HEP has secured $5.79 million toward the $10 million total project cost, with construction expected to begin in the first quarter of 2026. HEP is also requesting $1,750,000 from Penny for Pinellas funding. The proposed development meets the qualified population requirements for the HOME-ARP program and aligns with the City’s Strategic Plan.
Staff recommends approval of funding, contingent upon the receipt of a construction and operating proforma, the completion of a subsidy layering analysis, an environmental record review, confirmation and/or approval of all other funding sources, and approval of the development order by the Planning and Development Department.
APPROPRIATION CODE AND AMOUNT:
Funding is to be provided by HOME American Rescue Plan Program Funds. No General Fund monies will be appropriated.
STRATEGIC PRIORITY:
2.4 - Supports equitable housing programs that promote household stability and reduce the incidence of homelessness within Clearwater.
