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Committee authorizes up to $7 million in District 3 GOB and public‑benefit funds for Essence Miami, with equity condition
Summary
The committee approved up to $5.39 million in Miami Forever GOB funds and $1.61 million in public‑benefit trust funds for the Essence Miami project in Little Havana, bringing total city funding to $12 million; the committee asked staff to secure a minimum developer equity contribution of about $6.1 million.
The Housing Commercial Loan Committee on May 20 approved a staff recommendation to allocate District 3 Miami Forever general obligation bond (GOB) funds and public‑benefit trust monies totaling $7,000,000 to H Street Properties LLC for the Essence Miami development in Little Havana.
Staff said the allocation consists of $5,390,000 in GOB funds and $1,610,000 in District 3 public‑benefit trust funding, and that the additional award brings total city funds for the project to $12,000,000. Essence Miami is planned as an eight‑story mixed‑use building at 829 Southwest Eighth Street that will contain 88 rental units (57 one‑bedrooms and 31 two‑bedrooms) and roughly 5,090 square feet of commercial space; all 88 units will be designated as city‑assisted and targeted for households earning between 60% and 100% AMI.
The department told the committee that the project’s construction budget increased from about $12,700,000 in 2021 to approximately $27,900,000 in 2025 — a 118% increase — and that the developer attributes the rise to tariffs, supply‑chain disruptions and market inflation. Permanent financing shown in the packet lists an $18,300,000 first mortgage from Ocean Bank, the city contribution in second position, and $2,000,000 in county surtax funds in third. The project is also expected to include roughly $4,800,000 of owner equity and $1,150,000 in deferred developer fee.
Developer representatives and counsel answered detailed questions from committee members about construction pricing, guaranteed maximum price (GMP) contracts and the size of the developer’s equity contribution. Committee members and staff identified a discrepancy between earlier and current budget tables for developer equity; the committee asked the developer to confirm final equity numbers. The developer and counsel said they would work with staff to reconcile the figures.
To close the item, the committee approved a motion authorizing the department to approve the requested up to $7,000,000 in additional city funding, with a conditional representation that the developer should make a minimum equity contribution of about $6,100,000 (as reflected in the earlier memo) and that staff and the developer will reconcile final numbers prior to closing. The committee voted in favor of the motion; staff and the developer said they expect construction to begin once lender consents and permits are obtained and the capital stack is finalized.
