Public, Private, and Faith-Based Development Partnership Promotes Affordability

Public, Private, and Faith-Based Development Partnership Promotes Affordability

The first phase of St. Peter Claver Place Apartments provides 136 family-sized affordable housing units in Fort Myers, Florida, where rental costs have increased substantially in recent years. Photo credit: National Development of America

Rising construction costs and high housing demand are impacting housing affordability in Fort Myers, Florida, reflecting statewide trends. The opening of the first phase of the St. Peter Claver Place Apartments in April 2023 demonstrates how efforts among public, private, and faith-based partners can overcome challenges to affordable housing development, help cities meet revitalization goals, and assist residents in meeting educational and financial goals. St. Peter Claver Place Apartments is the third project from developer National Development of America, Inc. (NDA) in partnership with the Roman Catholic Diocese of Venice in Florida. The development partners also worked closely with the city of Fort Myers and the Fort Myers Community Redevelopment Agency to overcome market challenges and bring St. Peter Claver Place Apartments to fruition.

Project Details and Challenges

The first phase of St. Peter Claver Place Apartments consists of 136 two- and three-bedroom units spread across several residential buildings on a 17-acre site. The project's second phase, built on the same site, will add 78 units. Income limits for the units range from 30 to 60 percent of the area median income (AMI), with 14 units set-aside for extremely low-income (ELI) households earning up to 33 percent of AMI. Of the 14 ELI units, 7 are set aside for households having at least one member with special needs. These units are the result of Florida's Link program, which requires affordable housing developers to set aside a certain percentage of ELI units for special needs households. Through the Link program, these households receive community-based supportive services from a partnering referring agency.

Development costs for St. Peter Claver Place Apartments totaled slightly more than $41 million. Initial cost estimates from 2016 totaled $26.8 million, but rapid increases in construction, material, and other development costs inflated the budget. To ensure that the project could continue despite these structural economic challenges, which were not unique to St. Peter Claver Place Apartments, the Florida Housing Finance Corporation helped bridge the financing gap, reports Matt Miller, director of real estate at NDA. Recovery from Hurricane Ian, which hit the region in the fall of 2022, caused additional delays.

Affordable Housing and Neighborhood Revitalization

The need for affordable housing in the Fort Myers area has risen in recent years, which motivated the development team to take action. At the time of the project's groundbreaking, a Florida Atlantic University study showed that the Cape Coral-Fort Myers metropolitan statistical area was experiencing the state's largest year-over-year increase in rent, at 13.59 percent. Although Fort Myers has been spared the worst of the recent pandemic-era boom in Florida real estate prices, Miller reports that over the past decade, the area's growing population has increased the need for infrastructure spending and affordable housing development, especially as rising material costs are causing housing construction and financing costs to spike.

St. Peter Claver Place Apartments' 17-acre site will eventually host a second phase with 78 units. The project represents the joint efforts of developer National Development of America, the Diocese of Venice in Florida, and local public agencies and governments. Photo credit: National Development of America

In addition to contributing to the area's affordable housing stock, St. Peter Claver Place Apartments also is helping the city realize its plans to transform the Dr. Martin Luther King Boulevard Redevelopment Area. The city's goal is to cultivate a mixed-income, walkable, family-friendly neighborhood anchored by a commercial corridor. Area improvements include the Art Stumble, a series of murals highlighting diversity in Fort Myers; a garden learning center; and a community center offering job skills training, basic education, and a health center — amenities benefiting the residents of St. Peter Claver Place Apartments. Thanks to the project's location within the redevelopment area, says Miller, NDA was able to secure tax increment financing for the project from the Fort Myers Community Redevelopment Agency, which helped offset some of the project's real estate tax liability.

Supporting Resident Well-Being

Miller stressed the importance of the partnerships that made St. Peter Claver Place Apartments possible, including partnerships with the city, the Fort Myers Community Redevelopment Agency, the Lee County Housing Authority, and the Diocese of Venice as the primary development partner. The diocese remains actively involved with the property and its residents, ensuring that the services offered help residents improve their lives, says Miller. Services include an afterschool program for children; a financial management program that includes retirement planning and homebuyer education; and an adult literacy program. The apartments are adjacent to the African Caribbean American Center, a diocese program providing afterschool youth mentoring.

Miller says that the diocese has been an excellent development partner, with a mission-driven understanding of the importance of family affordable housing and the patience and long-term vision to see projects such as St. Peter Claver Place Apartments through any delays. Together with the resources and commitment of local government agencies, St. Peter Claver Place Apartments is helping to keep Fort Myers affordable despite systemic affordability headwinds.