Hollywood approves first major P3 affordable housing project
The Hollywood City Commission has approved its first unsolicited public-private partnership, with plans to build affordable housing on the currently vacant land.
Tuesday’s vote allows for Pinnacle Housing Group to develop a 100-unit rental building for seniors with an area median income of 60 percent or less, according to Arnstein & Lehr attorney Keith Poliakoff, who represents Pinnacle.
The current 60 percent income limit for a one-person senior household is $29,040 and $33,180 for a two-person household.
Under the Hollywood agreement, Pinnacle would purchase the land with an option to convert to a lease if needed. The city and community redevelopment agency currently own the land, which is on Adams Street, west of Dixie Highway.
Poliakoff told The Real Deal that Pinnacle first submitted a proposal in 2014, but the city of Hollywood had not yet updated its code to comply with state law, which now allows for unsolicited P3 proposals and enables local governments to open the process up to the public.
“Affordable housing is something that is increasingly needed [in] Hollywood,” he told TRD. While working on this site, “I’ve received at least 100 calls from individuals seeking housing for family members.”
The project will include a club house, gym, cyber cafe, game rooms and outdoor recreation, according to the public documents. On Wednesday, Pinnacle will apply for the 9 percent housing tax credits from the Florida Housing Finance Corporation needed to fund the development.
P3s are typically used for roads, tunnels, stadiums and other public infrastructure projects, and less so on affordable housing, according to Poliakoff, and the new law has expedited the process. If Pinnacle receives the tax credits, the project will break ground in October 2016, with an expected move-in date of October 2017.
Pinnacle, a South Florida-based real estate firm, develops affordable and workforce housing. The firm most recently completed Gibson Plaza, a 56-unit project in Miami’s Coconut Grove that targets seniors.