TAMPA, FL - Rubble and empty land make up 28 acres earmarked for an $800 million redevelopment project north of downtown, but that could change as early as spring. The Tampa Housing Authority, which is building The Encore along with Banc of America Community Development Corp., said there's little doubt it will receive $17 million in tax credit funding next month through the Florida Housing Finance Corp. to help build The Ella, a 160-unit, $26 million senior citizen housing complex named after entertainer Ella Fitzgerald, who died in 1996.
The Housing Authority already has an investor that would see $20 million in tax credits spread over the next 10 years, said senior VP and COO Leroy Moore. Missing out in this round of tax credits, however, looks to be The Tempo, a neighboring 203-unit affordable housing complex carrying a $35 million price tag that would help line the proposed Ray Charles Jr. Boulevard south of Central Avenue. Moore, however, is convinced that both projects could come out of the ground at the same time next year if bond funding can be secured through the Housing Finance Authority of Hillsborough County.
Debra Koehler, chairman of the Housing Finance Authority, said her quasi-government agency hasn't received any formal application for bond funding on The Tempo as of this week but was familiar with the Housing Authority's interest in taking that route.
Bonds are funded through federal money that is passed through state agencies and eventually trickle down to local agencies. The Housing Authority has used the bonds in the past, especially in construction of Gardens at South Bay and Belmont Heights, Koehler said. "The bank and the Housing Authority are working feverishly to make The Tempo happen," Moore said. "We want to go vertical on both projects by March."
The Encore already is delayed at least a year and could see even a longer wait. The project designed to replace decades old affordable housing confronts not only struggling housing market conditions but also a Florida Supreme Court decision nearly a year ago that put infrastructure funding through tax incremental financing in question.
The Encore was slated to use such TIF funding to help pay for $22 million in proposed infrastructure improvements that would have to be started by the time ground is broken on the rental units, Moore said. The community development arm of Bank of America Corp. (NYSE: BAC) already has a plan of action in case TIF isn't available, but it still doesn't know exactly what the Supreme Court meant when it ruled in Strand v. Escambia County.
Not only has that vague ruling delayed construction of the rental units, but it also has made it difficult for the developers to sell four parcels of entitled land to create some of the commercial aspects of The Encore, including a grocery store, hotel and condominiums.
"The court is in recess without clarifying Strand, which really surprised everyone in the state," Moore said. "Not having a decision is hurting more than having a decision that we're not happy with. At least then we could proceed in a different manner, but this uncertainty is hurting us. We need a decision by the Supreme Court so that we know whether we can use it or we can't use it."
Having construction move forward on the residential side could help get those commercial lots sold, Moore said. The only project standing in the way of The Ella from getting tax credit financing this year is a 144-unit, $26.6 million project planned by Atlantic Housing Partners out of Winter Park known as Lakewood Pointe that had the highest ranking out of 17 Hillsborough County applicants in the current cycle of Florida Housing funding.
While most counties are limited to the number of units that can be funded each cycle, Moore is quite confident The Ella will get tax credit funding as the second-ranked project in the county since Atlantic Housing is below the maximum threshold for Hillsborough.
If funding is secured for both The Ella and The Tempo, the Housing Authority's work won't be done yet. The final two pieces in the affordable housing side are two 172-unit projects known for now as Lot 4 and Lot 8, which are expected to cost $30 million each to build, bringing the entire Housing Authority contribution to $121 million for the community, or $171,000 a unit.
Even with the slowdown in the housing market, the Housing Authority is required to replace nearly 500 affordable housing units razed to make way for The Encore. However, the 1,232 condominiums proposed for the project have been reduced to as low as 700 units with hotel and office use taking their place, Moore said.
Source: Tampa Bay Business Journal