Isles of Pahokee II in Palm Beach County will be preserved and renovated into affordable housing for seniors
Housing Trust Group (HTG), one of the nation’s largest developers of affordable housing, in a joint venture with the Pahokee Housing Authority has closed on financing to acquire and rehabilitate Isles of Pahokee II, a 129-unit apartment community located just outside the city limits of Pahokee, Fla. The property is designated public housing and will be preserved as affordable housing consisting of 34 buildings set aside to heads of households aged 55 and over earning at or below 60 percent and 33 percent of the Palm Beach County area median income (AMI).
The Pahokee Housing Authority is providing seller financing for the building purchase amount of $4,515,000 and it is fully funded through an Annual Contributions Contract for public housing. Funding sources include $11.5 million in 9 percent Low Income Housing Tax Credit Equity (LIHTC) provided by CREA; HOME loan funding in the amount of $802,121 from Palm Beach County; and a $9.2 million construction loan from Chase Bank.
“We are grateful for the partnership with the Pahokee Housing Authority, which enables us to provide much needed affordable housing for the area’s senior demographic” said HTG President and CEO Matthew Rieger. “With the renovation of this 129-unit development, we are able to continue building upon the growth of the area and enhance what has already been established as a safe, reliable living destination within Pahokee.”
HTG will renovate the 129-units on two sites located at Padgett Circle and E. 7th Street and at Shirley Drive and Belle Glade Road, both in unincorporated Palm Beach County, with scheduled delivery in early 2020. The new community will offer a mix of affordably priced apartments ranging from 20 efficiencies, 60 one-bedroom, 41 two-bedroom, and eight three-bedroom units. The open floor plans units come stocked with full-size Energy-Star appliances and ceiling fans, washer and dryer hook-ups, and green design features. The property amenities include a communal resident space with a community center.
The reduced rents, made possible through the use of the federal LIHTC program and an Annual Contributions Contract, will vary depending on each eligible residents’ income. The community will remain affordable for a minimum of 50 years. The need for affordable housing in Palm Beach Country is severe, data reported by the Shimberg Center for Housing Studies at the University of Florida states over 60,000 households who fall in the lowest income category (30 percent AMI or less) are cost burdened by spending over 50 percent of their income solely on housing.
HTG has won several awards for its affordable properties throughout Florida, and currently has several other affordable housing communities in various stages of development around the U.S.
About Housing Trust Group
Housing Trust Group (HTG) is an award-winning full-service developer of multifamily residential communities whose real estate transactions exceed $2 billion in commercial, land and residential developments across Florida, the Southeastern U.S. and Arizona. HTG develops, builds and manages a diverse portfolio of affordable housing, workforce housing, market-rate housing, and mixed-use developments. For more information, please visit www.htgf.com.
