Developers Look to Build Affordable Housing

FORT LAUDERDALE, FL - Broward County commissioners will be asked on Tuesday to authorize the issuance of close to $98 million in tax-exempt bonds for construction of nearly 1,000 low to moderate income housing units in Hollywood, Fort Lauderdale, North Lauderdale and Pompano Beach. It's the first step in a lengthy process that would need state approval and comes at a time when many developers are finding it difficult to get financing for construction projects.

But, that hasn't stopped developers, said Ralph Stone, director of the Housing Finance Authority of Broward County. "We haven't had this many multifamily developers knocking on our door for several years," he said. "The tax credit multifamily projects in the county and there are hundreds of them are running full."

According to county documents, $7.5 million of the $98 million would be used to acquire and renovate 96 units at the Broward Gardens Apartments in Fort Lauderdale. Chesapeake Community Advisors in Maryland is listed as the developer. Total construction/renovation costs are $1.2 million; the remainder would be used to purchase the property.

Nearly $35 million in bond financing would be used to build a new 360-unit complex on South Dixie Highway in Pompano Beach to be called Captiva Cove.

The developer, Cornerstone Development and Management Services in Coral Gables, would need to come up with an additional $22 million in financing. Cornerstone also wants to construct a 420-unit development – to be called Tuscany Village – in North Lauderdale, and has requested $41.3 million in bond money. The company would need $25 million more in private financing for the $66.6 million project.

A 120-unit project called Gardens at Driftwood in Hollywood would be built at a cost of $29 million. Mansfield, Mass.-base Gatehouse Group, which is listed as the developer, would receive $14 million in bond financing and need to come up with the remaining $15 million in private funding.

Stone said the developers appear confident in their ability to get financing. "They had to spend $7,500 apiece just to apply," he said. "If they didn't believe there was a market, they would not be doing this."