Affiliated Development Launches $125 Million Impact Housing Fund

Affiliated Development, a real estate development, investment and asset management firm, has announced the launch of an impact investment fund to invest in multifamily mixed-income workforce housing throughout South and Central Florida. Affiliated Housing Impact Fund, LP (or the “Fund”) will provide equity capital to finance Affiliated Development’s pipeline of workforce housing projects and investments. Affiliated Development’s principals, Jeff Burns and Nick Rojo, will be the sole general partners and managers of the Fund.

The Fund’s overall investment objective is to generate a positive social and environmental impact, while delivering attractive risk-adjusted returns for its investors. The Fund’s investment strategy is to capitalize the development of high-quality multifamily housing, offering a superior living experience at attainable rents. Each project will be constructed to meet the stringent requirements for green building certification standards.

“Over 60% of renters in the South Florida area are cost-burdened, meaning they pay more than 30% of their income on rent. Most South Florida residents are forced to either allocate too much income toward rent, live with one or more roommates, or move away from major employment centers in order to find reasonably priced housing.” Burns said. “The tremendous demand for attainably priced housing in South Florida has been compounded by the influx of new residents and businesses migrating to the area. We feel a sense of responsibility to work alongside local government to help find solutions to this growing issue.”

Affiliated Development specializes in public-private-partnerships, which typically result in the utilization of government financing incentives necessary to make these types of projects work. The company has a track record of completing workforce housing projects in various South Florida cities.

The Fund has the requisite capital commitments for an initial closing which is scheduled for December. Current committed investors include the Fort Lauderdale Police and Firefighters’ Pension Fund, West Palm Beach Police Pension Fund, Hollywood Police Pension Fund, Hollywood Firefighters’ Pension Fund, Miramar Police Pension Fund and a locally based family office.

“We are thrilled to be partnering with local public pension plans. We see an inherent alignment of interest with our pension partners who can reinvest capital back into the community while providing housing for their contributors and the local workforce. We are also attracting interest from family offices and individuals seeking a double bottom line outcome with both financial and social returns.” Said Rojo. “Having discretionary capital also provides us the flexibility to move quickly and take advantage of opportunities while focusing on what we do best, which is executing.”

Miami Heat Star Udonis Haslem And Magellan Housing Score Approval To Build Wynwood Works On City Owned Land

A partnership between Haslem Housing Ventures, led by Miami Heat star Udonis Haslem, and the Coral Gables-based Magellan Housing, have received approval from Miami’s Omni Community Redevelopment Agency (CRA) to build Wynwood Works, a 12-story mixed-use apartment project in Wynwood. Wynwood Works will be built on city owned land at 2035 North Miami Avenue.

The development partnership will receive a land grant from the CRA valued at $6.5 million at no charge and a contribution of $9.9 million cash grant in exchange for 50 years of income restrictions on the apartments. The total project costs are estimated at $39.9 million and with the grands provided by the CRA the development partnership will not need to seek Low-Income Housing Tax Credits (LIHTC). In 2018 the Omni CRA committed $100 million to the development of affordable housing. The development partnership will restrict 10% of the units to those earning up to 30% of the area median income (AMI), an additional 10% of units to those earning up to 50% of AMI, another 10% to those earning up to 80% of AMI, 25% up to 120% of AMI and the remaining 45% for those earning up to 140% of AMI. The partnership will also share 45% of the annual rental income from the ground-floor retail.

Wynwood Works will rise 12-stories and will feature 104-units of mixed-income apartments on a 20,238 square foot site. The project is designed by MC+G Architecture and will feature a mural designed in partnership with the Miami Light Project and Bakehouse Art Complex. Wynwood Works will also feature 6,711 square feet of ground-floor retail, 102 parking spaces and a sixth-floor amenity deck which features a fitness room, co-working space, a community room and a garden. Apartments will range from 405 square foot studios to 1,150 square foot 3-bedroom layouts. The unit mix will be broken down by 42 studios, 43 one-bedroom units, 12 two-bedroom units and 7 three-bedroom units.

Governor Ron DeSantis Announces $250 Million In CARES Act Funding Allocated For Rental And Mortgage Assistance

Florida Governor Ron DeSantis has announced that the state will allocate $250 million in CARES Act funding to rental and mortgage assistance due to the COVID-19 pandemic shutdown. $120 million of the funds will be allocated to Florida Housing Finance Corp. which will provide rental assistance to households who live in affordable housing rentals within the Florida Housing Finance Corp. portfolio and have been impacted by COVID-19. Qualified renters will be able to use the funds from July 2020 through December 2020. The announcement comes just days before Florida’s moratorium on evictions and foreclosures expires and a rush of evictions and foreclosures are expected in July.

An additional $120 million will be allocated for rental and homeowner assistance programs for those impacted by COVID-19 providing aid for rent assistance, mortgage payment assistance, downpayment and closing assistance, mortgage buy-downs, new construction, rehabs, emergency repairs and homeownership counseling. The final $10 million will be used for operating costs of the programs and technical assistance.

Miami City Commission Approves $6.9 Million To COVID-19 Rent & Utility Assistance For Low-Income Households

The Miami City Commission voted unanimously to approve $6.9 million in rent and utility assistance for low-income residents who recently lost their jobs due to the COVID-19 pandemic. Independent contractors such as realtors are not eligible for the loans, neither are those receiving rental subsidies or are behind on their payments. Those eligible for the payments are one-person households earning less than $38,400 per year, two-person households earning less than $43,920 per year, three-person households earning less than $49,380 per year, and four-person households earning less than $54,840 per year. The $6.9 million which was approved also includes $2 million in federal and state grand money for households which earn less than 60% of the Miami-Dade County median income. Each eligible household will be limited to receive a maximum of $1,500 and applicants must show proof that they have los their jobs after March 1 and have paid rent through February 2020. The payments will be sent directly to landlords and utility companies. The funds will only be available until enough applications have been received to deplete the available funding and the application period ends at 5 P.M. on May 8.

Miami has been in an affordable housing crisis due to rapidly rising rents and property values. 35.4% of city residents reportedly spend more than 50% of their household income on their housing. On April 2 Florida Governor Ron DeSantis issued an executive order which barred evictions and foreclosures for 45 days, but it is expected that there will be mass eviction cases filed due to unpaid rent when the order expires.