Atlantic Housing Partners, a leading developer of affordable multifamily projects in Florida, will start construction this year on 392 apartments on a main thoroughfare in Daytona Beach.
The project, called Clyde Morris Landings Apartment Homes, will eventually consist of nearly 800 units spread across 38 acres on the east side of Clyde Morris Boulevard, just south of LPGA Boulevard. The first phase, which should be finished in early 2021, will have 392 units, 304 of which will be considered affordable for low- and moderate-income residents. The other 88 units will be market-rate rentals.
Atlantic paid $6.4 million for the land, according to the seller, Consolidated-Tomoka Land Co. of Daytona Beach.
Atlantic Housing executive vice president Scott Culp told GrowthSpotter the apartments will provide sorely needed affordable housing for workers in Volusia’s booming tourism and service sector.
“In our mind this is a really fantastic location for job growth,” he said. “We like to focus on putting apartments where the jobs are.”
Culp said the 304 affordable units are being financed by the Housing Finance Authority of Volusia County. The authority issues tax-exempt bonds that are sold to investors or lenders. The money from the bonds is loaned to the property owner/operator at a lower rate because the lender is not having to pay taxes on the interest income.
“Under that program, a minimum of 61 units will be affordable,” Culp said. “We are intending that 304 of 392 units will be affordable. That takes some additional assistance from the city and the county. We’re in the process of discussions now so we can get those implemented.”
Atlantic Housing Partners will also be eligible for 4 percent federal tax credits. Investors buy the credits to reduce their annual tax bills over 10 years. Money from the sale of the credits creates equity to help finance the affordable housing project.
The bonds and tax credits reduce development costs so the owner of the apartments can rent a number of units at below-market rates.
A lack of affordable housing is a problem across Florida, especially in high-growth counties. A 2019 rental market study by the Shimberg Center for Housing Studies at the University of Florida showed a shortage of 17,592 affordable housing units in the Deltona-Daytona-Ormond Beach MSA and the Palm Coast MSA. The study considered housing affordable if families making 60 percent or less of the area median income paid no more than 30 percent of their income on rent.
Clyde Morris Landings will offer 247 affordable three-bedroom units aimed at families with young children. The rest of the units will consist of 76 one-bedrooms, 64 two-bedrooms and five four-bedrooms.
“We do develop a lot of apartments for families primarily,” Culp said. “A lot of the families that need workforce housing are young families with young children.”
The apartments will have the same features as market-rate units, Culp said, including granite countertops, stainless steel appliances and ceramic tile floors.
Other Atlantic Housing Partners properties in the Volusia area include Taylor Place Apartments in DeLand and Cape Morris Cove Apartments in Daytona Beach. The company recently completed Amelia Court in downtown Orlando’s Creative Village, and Vineland Landings in Kissimmee.