P3 Pushes Out Strategic Affordable Housing

MIAMI—Two former public housing properties have been transformed to offer 212 affordable housing units for low-income families in Fort Myers, FL. A public private partnership (P3) is behind the $38.3 million project.

Pinnacle Housing Group and Southwest Florida Affordable Housing Choice Foundation, a 501(C)(3) nonprofit created by the Housing Authority of the City of Fort Myers (HACFM), partnered on the multifamily project. HACFM owned the development sites for Landings at East Pointe and East Pointe Place.

“The sound policies that have led to allocating much needed Housing Tax Credits for these two developments have ensured quality new housing, jobs, opportunity and future economic growth for the citizens of our community,” says Senator Lizbeth Benaquisto. The complexes are located just north of the Dr. Martin Luther King, Jr. Boulevard (SR 82) corridor and west of Interstate 75.

“It's a great day when public/private partnerships work together to better the lives of families who need it most while revitalizing an entire neighborhood and offering job opportunities throughout the process,” says Timothy P. Wheat, vice president of Pinnacle. The revitalized Landings at East Pointe offers 126 units. The new East Pointe Place offers 86 units. Both affordable housing projects offer a mix of floor plans and bedroom sizes.

Through the public/private partnership, the HACFM and Pinnacle secured Low Income Housing Tax Credits from the Florida Housing Finance Corporation. The partnership then tapped into the private debt and equity markets for the syndication of LIHTCs, which were purchased by Wells Fargo Bank N.A. The HACFM secured the long-term commitment of the U.S. Department of Housing and Urban Development to provide continued rental assistance for no less than 20 years.

Darryl Sharpton, CEO of Sharpton Group, tells GlobeSt.com the nature of some P3 projects is changing. During the recession, he notes, state governments increasingly turned to public-private partnerships (P3s) to finance new infrastructure projects or maintain existing assets.

“As our economy recovers and new investment pours in, municipalities have continued to view P3s as a viable strategy for sustaining growth and filling persistent budget gaps,” Sharpton says. “While this approach has helped usher in many critical projects otherwise impossible to fund, with it comes a greater responsibility for oversight. All states that permit privately financed P3 contracts impose rules to ensure accountability and protect the public from poorly designed financial agreements.”