Clearwater advisory board recommends $1.39 million deferred loan for 35-unit family housing at North Betty Lane

The City of Clearwater Neighborhood and Affordable Housing Advisory Board voted to recommend that City Council approve a deferred loan of up to $1,391,938 to support the Homeless Empowerment Project’s proposed 35-unit family apartment development at 1718 North Betty Lane.

Dylan Mayhew, acting housing manager, told the board the funding would come from Clearwater’s HOME-ARP allocation and that the city received a one-time HOME-ARP award of $1.6 million from HUD. “These funds are designed to serve qualifying populations, specifically households experiencing homelessness, at risk of homelessness, or in need of services to help prevent homelessness,” Mayhew said.

The project, submitted by the Homeless Empowerment Project (HEP), would build six residential buildings plus a staffed community building on a former automobile-parts yard within a half mile of HEP’s main campus. Mayhew said the proposal targets families with minor children who are homeless or living in deep poverty and includes on-site case management, laundry facilities and outdoor play space. He described the unit mix as 12 two-bedroom units (4 at 30% of area median income, AMI) and 23 three-bedroom units (7 at 30% AMI, 9 at 50% AMI and 7 at 80% AMI). Mayhew gave the total project budget as $10,000,000 and said HEP had secured $5,790,000 in commitments and was pursuing $1,750,000 from Penny for Pinellas.

Mayhew said staff’s recommendation to the board was to support the project and forward the funding request to council “contingent upon the completion of a construction and operating pro forma, a subsidy layering analysis, environmental review, confirmation of all funding sources, and approval of the development order.”

Board members asked several implementation questions before voting. A board member confirmed the city loan would be a deferred loan with a 30-year deferment, and Mayhew said there would be an option for forgiveness at 30 years. When asked about a remaining funding gap, Mayhew said HEP was pursuing Penny for Pinellas funds and private financing and was seeking donor commitments to cover roughly a $1 million shortfall. Board members also asked about parcel size and parking; Mayhew said parcel acreage and precise parking provisions were not in his materials but that the site had been reviewed through the city's Development Review Committee and had received approval.

After discussion, the board moved and seconded a motion recommending funding approval and authorizing city officials to execute documents necessary to close the loan. The motion passed with the board’s unanimous voice vote; the recommendation will go to City Council for final approval. Mayhew noted construction is anticipated to begin in early 2026 if approvals and funding are confirmed.

In other business, Mayhew reported that the city received the Housing Resonance award at the Florida Housing Coalition conference for Indigo Apartments; staff said that project has closed and rehabilitation work has begun and that the city has received income documentation for the city’s units in that development.

The advisory board’s recommendation on the Betty Lane loan will be considered by Clearwater City Council; staff will return to the board or council with required underwriting, environmental review results and a development order before closing the loan.