Council approves amended transfer to East Side Housing Collaborative to speed development of eight lots

The Neighborhoods Committee approved an amended ordinance on Sept. 2 to transfer eight city-owned lots to a newly formed East Side Housing Collaborative LLC, a joint effort of Historic Eastside CDC and LiftJax, with language clarifying the collaborative’s organizational status and extending the development timeline.

Philip Peterson, representing the council office, summarized the amendment: it clarifies that East Side Housing Collaborative LLC is not yet a nonprofit but intends to seek nonprofit status under the Internal Revenue Code; it waives section 122.423 as it relates to liens on properties owned by the collaborative; it changes the required timeline for development from two years to three years with a possible two-year extension; and it attaches revised exhibits to reflect the new schedule. "The amendment will clarify the status of the East Side Housing Collaborative LLC that they are not currently a not for profit, but, that is their goal," Peterson said.

Committee discussion focused on why the properties reverted to city ownership, past efforts and the differences between donating properties through the surplus program versus transferring them to the collaborative. Renee Hunter of Public Works said the city typically reverts property to the city if the recipient fails to develop within the required timeframe. Jeffries (office of housing staff) explained the background: Historic Eastside CDC originally received nine properties and developed one; the other eight reverted to the city after not being developed, and the collaborative was formed so funding (LiftJax with LISC support) and development capacity could be combined to build affordable homes.

Committee members pressed whether the properties could be put on the surplus donation list (next scheduled in summer 2026) and whether using the collaborative would speed construction. Jeffries and counsel said funding is in place now and that the collaborative has several general contractors ready to begin design and permitting; permitting and construction timelines would likely put the first units online in roughly eight months from groundbreaking if design and permitting proceed promptly. The committee also heard that the collaborative has 27 months to file for nonprofit status under IRS rules while operating as an LLC per its operating agreement.

Council members raised concerns based on a prior round of donated lots that were not developed; supporters said the collaborative pairs land (Historic Eastside) with funding and construction capacity (LiftJax and LISC) to avoid repetition of prior failures. After questions and commentary, the committee approved the bill as amended by hand vote, 6 yeas, 0 nays. The clerk recorded the action as bill 20250608.

Ending: Committee members said they expect the collaborative to proceed with design and permitting and that the city will monitor compliance with the revised timeline and deed restrictions. The amended documents and revised redevelopment exhibits were placed on file as part of the approval.