Council approves fee waivers, trust-fund help for two large affordable housing projects

The City of Fort Myers on March 3 approved requests from two developers for impact-fee waivers and contributions from the city’s Affordable Housing Trust Fund to help close financing gaps on two affordable housing projects.

Legacy Park Phase 2 (Legacy Park 2) Housing Trust Group sought a three-part package for Legacy Park 2: a partial payment of water and sewer connection fees from the city’s Affordable Housing Trust Fund ($450,294, representing 60% of the connection fee), waivers of specified impact fees (excluding water and sewer impact fees) totaling $594,418.47, and a waiver of building permit fees totaling $216,105.18. The developer said construction costs have risen since initial underwriting and that the combined request will help bridge a financing gap and allow the project to reach a planned September closing and shovel-ready status. The project would deliver 130 senior units (80 units in the southern building and 50 in the northern building) with a mix of one- and two-bedroom units restricted to households at 30%, 60% and 70% of area median income; rents were presented in ranges from roughly $526 up to about $1,400 depending on unit type and income set-aside. The council approved the package; the vote was recorded with two no votes from Councilmembers Beauchette and Burson and the remainder in favor.

Reserve at Eastwood Council also approved a similar package for Reserve at Eastwood, a larger development of 360 affordable apartments. The city approved a waiver of impact fees (excluding water and sewer) totaling $1,603,415.27 and a contribution from the Affordable Housing Trust Fund of $1,246,906.68 toward partial payment of connection fees. Councilmember Geraldo recused herself from that vote. The developer said the project uses multiple funding sources including 4% low-income housing tax-exempt bonds, low-interest loans and CDBG-DR and Florida Housing Finance Corporation awards; staff noted the projects require some fronting of costs by developers and are later reimbursed by federal sources.

City staff warned that approving these waivers reduces the local trust-fund balance and noted the trust fund had commitments to other projects; staff said the city dedicates $750,000 per year into the Affordable Housing Trust Fund and that after these approvals the remaining uncommitted balance would be roughly $720,000. Developers and advocates said the waivers and contributions are critical to close financing gaps caused by rising construction costs, Davis-Bacon and other programmatic requirements.

Developers emphasized high-quality design and senior services. Housing Trust Group showed renderings and described amenities including a pool, fitness center, community garden and on-site support services. The council approved both requests, with recusal noted for the Eastwood vote.