Pinnacle Housing Group Advances 196-Unit Affordable Housing Project in Fort Lauderdale
Pinnacle Housing Group, a Miami-based developer renowned for its commitment to affordable housing, is making significant strides in Fort Lauderdale's Cypress Creek area. The firm plans to construct a 196-unit affordable housing complex, Pinnacle at Cypress, comprising separate buildings tailored for seniors and workforce tenants. This initiative aligns with Florida's Live Local Act, aiming to increase accessible housing options for low-to-moderate-income residents.
Project Overview
The Fort Lauderdale City Commission has approved a $640,000 loan commitment to support the construction of 96 rent-controlled workforce housing units in the second phase of Pinnacle at Cypress. This funding is contingent upon Pinnacle securing a 9% Low-Income Housing Tax Credit allocation from the Florida Housing Finance Corporation (FHFC), which would be offered to institutional investors to finance this phase.
The first phase of the project focuses on developing 100 affordable apartments designated for seniors. Although Pinnacle did not obtain the 9% tax credits for this phase in 2024, the developer secured alternative financing, including a State Apartment Incentive Loan (SAIL) and a bond inducement from the Broward County Housing Finance Authority.
Development Timeline and Financials
Pinnacle aims to commence construction of the senior housing units in the first quarter of 2026, with the entire two-phase development projected for completion by June 2028. The total estimated cost for Pinnacle at Cypress is approximately $90 million.
Income Eligibility and Community Impact
Eligibility for residency in Pinnacle at Cypress is determined based on area median income (AMI). On average, tenants for both senior and workforce housing units will earn around 60% of the AMI, which stands at $81,900 according to the Broward Housing Council.
Live Local Act: Streamlining Affordable Housing Development
The Live Local Act, enacted in Florida, is designed to increase affordable housing availability by providing incentives such as tax credits and property tax exemptions. It also streamlines zoning and approval processes for affordable housing developments in commercial, industrial, and mixed-use areas, allowing multifamily or mixed-use residential projects without requiring zoning changes.
Pinnacle at Cypress is set to benefit from the streamlined approval process under the Live Local Act, enabling faster development without the need for extensive board approvals. This approach facilitates the efficient conversion of commercial properties into residential units, addressing the pressing need for affordable housing in Fort Lauderdale.
Developer Profile: Pinnacle Housing Group
Pinnacle Housing Group is a premier full-service real estate development and construction company dedicated to creating affordable, workforce, and market-rate housing. With over a century of collective experience, Pinnacle has developed numerous multifamily communities across Florida and beyond, demonstrating a steadfast commitment to enhancing housing accessibility.
Insights
What is the significance of the Live Local Act for affordable housing in Florida?
The Live Local Act represents a comprehensive strategy to increase affordable housing across Florida by providing historic recurring funding and streamlining development processes. It encourages the private sector to participate in affordable housing projects by offering various incentives, thereby facilitating the creation of housing opportunities for low-to-moderate-income residents.
How does Pinnacle at Cypress address the needs of both seniors and workforce tenants?
Pinnacle at Cypress is designed with separate buildings to cater specifically to seniors and workforce tenants, ensuring that the unique needs of both groups are met. By providing affordable housing options tailored to these demographics, the development contributes to a more inclusive and supportive community environment.
What are the anticipated economic impacts of Pinnacle at Cypress on the local community?
The development of Pinnacle at Cypress is expected to stimulate the local economy by creating construction jobs during the building phases and providing affordable housing options that enable local workers to live within the community they serve. This can lead to increased spending in the area and contribute to the overall economic vitality of Fort Lauderdale.
How does the partnership between Pinnacle Housing Group and the City of Fort Lauderdale facilitate affordable housing development?
The collaboration involves financial commitments from the city, such as the $640,000 loan contingent on securing tax credits, which demonstrates a shared dedication to addressing housing affordability. This partnership exemplifies how public-private collaborations can effectively tackle community housing challenges.
What measures are in place to ensure the long-term affordability of units at Pinnacle at Cypress?
The units are designated as rent-controlled and are intended to remain affordable for tenants earning around 60% of the area median income. Additionally, financing mechanisms like Low-Income Housing Tax Credits and SAIL loans typically require long-term affordability commitments, ensuring that the housing remains accessible to low-to-moderate-income residents for years to come.
Conclusion
Pinnacle Housing Group's development of Pinnacle at Cypress marks a significant advancement in Fort Lauderdale's efforts to provide affordable housing. By leveraging the provisions of the Live Local Act and collaborating with local authorities, this project stands as a model for future developments aimed at addressing the critical need for accessible housing in Florida communities.
