An affordable and workforce multifamily project is on tap for Hollywood, offering residents a reprieve from rising rents driven by population growth and a preoccupation with luxury developments.
Housing Trust Group, an affordable housing developer based in Miami, closed on a $27.9 million construction loan helping financing a 96-unit tower. Hudson Village will rise eight stories at 901 S. Federal Highway on the corner of Washington Street.
South Florida is in the midst of an affordable housing crisis, exacerbated by the three-month business closures and recession caused by the coronavirus pandemic.
In Broward County, 147,000 people are either cost-burdened by paying over 30% of their income on housing or severely cost-burdened by paying over half of their income on housing, according to a study by Florida International University's Metropolitan Center using 2018 data.
"Broward County is among the most cost-burdened counties in the country, with very limited high-quality affordable housing, and almost all new apartment development east of I-95 is luxury product," Matthew Rieger, president and CEO of Housing Trust Group, said in a statement.
Hollywood restaurants and hotels employ hospitality workers, but many of priced out of housing in the beachfront city.
Hudson Village will be a boon for these residents, Rieger said.
"Affordable communities like this are the key to making our downtowns safer, more equitable and vibrant," he said.
Hudson Village rents will range from $501 to $1,403 a month for households with qualifying incomes. Renters have to earn 30%, 60% or 70% of the local area median income.
Housing Trust Group secured the construction loan from Chase Bank.
Other financing sources are $26 million in 9% low-income housing tax credits from Florida Housing Finance Corp. and a $9.75 million Walker & Dunlop loan through Freddie Mac.
Housing Trust Group, through affiliate HTG Fiori LLC, bought the 37,839-square-foot site from VK Development Group LLC last March for $3.5 million, according to county deed records.
Hudson Village will have 54 one-bedroom units averaging 748 square feet and 42 two-bedroom apartments averaging 1,087 square feet.
Amenities include a 6,000-square-foot pool deck, covered barbecue area, clubhouse with kitchen and bar, gym, yoga studio and bicycle storage. A three-story garage will have 122 spaces. Construction is due for completion in August 2021.
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Lidia Dinkova
Lidia Dinkova covers South Florida real estate for the Daily Business Review. Contact her at [email protected] or 305-347-6665. On Twitter @LidiaDinkova.
