St. Petersburg Approves $40.85M in Disaster Recovery Funds for Six Housing Projects

The St. Petersburg City Council has unanimously approved $40.85 million in federal disaster recovery funding for six affordable housing projects that together will build or preserve 645 apartments. The vote took place at the council's Thursday meeting, St. Pete Catalyst reported on October 2, 2026. The money comes from the U.S. Department of Housing and Urban Development's Community Development Block Grant-Disaster Recovery program, tied to Hurricanes Idalia in 2023 and Helene in 2024 St. Pete Catalyst.

The awards turn a staff recommendation made over the summer into committed funding. They also set a firm delivery clock: funded projects are expected to reach a certificate of occupancy within 36 months St. Pete Catalyst. With combined development costs of roughly $290 million across the six projects, based on the budgets reported by St. Pete Rising, the package is one of the larger near-term multifamily pipelines in Pinellas County.

What Happened

St. Petersburg received $159.884 million in CDBG-DR funding after the two storms, and HUD designated the city a Most Impacted and Distressed area St. Pete Rising. Within that allocation, the city set up an Affordable Rental Housing Program under its Sunrise St. Pete recovery initiative St. Pete Rising.

The city ran a competitive request for applications. It received 34 applications seeking $246.7 million. Seven were eliminated at the threshold stage, leaving 27 that sought $198.5 million St. Pete Catalyst. Six were selected.

The two outlets describe the size of the pot differently. St. Pete Rising reported that $48 million was designated for affordable rental housing. St. Pete Catalyst reported that $42 million was available in this round, leaving $1.15 million unawarded after the six grants.

Staff recommended the six projects in July, and council action had been expected on September 17 St. Pete Rising. The approval came at the council's most recent Thursday meeting St. Pete Catalyst.

The Six Projects

JR Tower, $15 million. Blue Sky Communities plans a 12-story, 150-unit building at 1850 Central Avenue in the Grand Central District St. Pete Catalyst. The total project cost is about $72.6 million. Place Architecture is the architect and DeAngelis Diamond is the general contractor. The unit mix is 97 one-bedroom and 53 two-bedroom apartments, with about 2,700 square feet of retail on Central Avenue. Construction is scheduled to begin in August 2027 and finish in April 2029 St. Pete Rising.

Hartford and Saratoga Apartments, $7.4 million. Blue Sky Communities and the St. Petersburg Housing Authority plan 109 units near Hartford Street and 32nd Avenue North, combining 75 new apartments with the renovation of 34 existing ones St. Pete Rising. Eighty-one of the units are reserved for households at or below 30 percent of area median income St. Pete Catalyst. The project cost is $37.5 million. Place Architecture is the architect and Park & Eleazer Construction is the general contractor. Construction is scheduled for January 2027 through January 2028 St. Pete Rising. It received the highest review committee score of the six, at 90 percent St. Pete Catalyst.

Trailside Estates II, $7.05 million. Magellan Housing plans 94 apartments for residents 55 and older near the Pinellas Trail and 40th Street South St. Pete Catalyst. The project cost is about $38.6 million, the architect is Halflants + Pichette, and a general contractor has not yet been selected. Plans include direct pedestrian connections to the trail. Construction is scheduled for January 2028 through March 2029 St. Pete Rising.

Residences at 1663, $4.8 million. BendinRoad Development plans a 13-story mixed-use building at 1663 First Avenue South with 60 apartments and 60 short-term rental or hotel units St. Pete Catalyst. Forty-eight of the apartments will be income-restricted St. Pete Catalyst. The project cost is $39.4 million. Bold Line Design is the architect and Nicholas & Associates is the general contractor. The federal money is limited to the residential component because the hotel portion is not eligible St. Pete Rising. St. Pete Rising listed a January 2027 construction start with completion in August 2028, and St. Pete Catalyst reported that groundbreaking is planned for early 2027.

Southline Apartments, $4.1 million. Elmington Capital plans 176 units near 38th Avenue South and 34th Street South St. Pete Catalyst. St. Pete Rising identified the same project as Skyway Flats, a six-story building with a total cost of about $77.2 million, designed by Southeast Venture and built by Elmington Construction. It includes 43 one-bedroom, 95 two-bedroom and 38 three-bedroom apartments, and 18 units are designated for young people aging out of foster care. Construction is scheduled for February 2027 through January 2029 St. Pete Rising.

The Portland, $2.5 million. Sunrise Affordable Housing, in partnership with the Pinellas County Housing Authority, will rehabilitate and preserve 68 apartments in a 12-story building at 300 Eighth Street North St. Pete Catalyst St. Pete Rising. The project cost is about $24.9 million. Gallo Herbert Architects is the architect and ICON National is the general contractor. Construction is scheduled for February 2027 through February 2028 St. Pete Rising.

How the City Chose

A review committee with representatives from the city's Housing and Community Development, Strategic Initiatives and Grants, Finance, Transportation and Real Estate departments scored the applications St. Pete Catalyst. The criteria included developer experience, financial feasibility and the ability to reach a certificate of occupancy within 36 months. They also covered services for seniors, people experiencing homelessness and people with disabilities, along with access to transit, utilities and community services St. Pete Catalyst.

At a minimum, 51 percent of a project's units had to be reserved for households earning 80 percent of area median income or less St. Pete Catalyst. All six approved projects carry affordability periods of at least 99 years St. Pete Catalyst.

Demand far exceeded supply. One project that was not funded, Skyway Palms by Archway Partners, had requested $13.75 million and scored 72 percent, but the available resources ran out St. Pete Catalyst.

Where Things Stand

The council's approval is tied to performance deadlines and loan agreements that still have to be completed for each project St. Pete Catalyst. The sources differ on some unit-level income targeting. For JR Tower, for example, St. Pete Catalyst lists 28 units at or below 30 percent of area median income, 88 at 51 to 60 percent and 34 at 61 to 80 percent, while St. Pete Rising breaks the deepest tier into 5 units at 22 percent and 23 at 30 percent. Final terms will be set in the loan documents.

This round follows other publicly supported housing starts in the city, including the first phase of Azalea Cay, which we covered on October 5.

Implications for Owners, Developers, Contractors and Subs

General contractors are already attached to five of the six projects: DeAngelis Diamond, Park & Eleazer Construction, Nicholas & Associates, Elmington Construction and ICON National St. Pete Rising. Trailside Estates II is the one project where the general contractor role is still open St. Pete Rising.

Subcontractors and suppliers should look at the calendar. Four projects are scheduled to start between January and February 2027, with JR Tower following in August 2027 and Trailside Estates II in January 2028 St. Pete Rising. That puts buyout for most of the work in the next several months. The mix includes two towers of 12 and 13 stories, a six-story building, a high-rise rehabilitation and a combined new-build and renovation St. Pete Rising, so the trade scopes vary widely.

Everyone on these jobs should plan for federal compliance. CDBG-DR is HUD money St. Pete Catalyst, and projects that use it carry federal funding conditions and reporting that flow down through the general contractor to the trades. Bidders that have not worked on federally assisted housing should ask about those requirements before pricing.

Developers can read the scoring for what the city values: deep affordability, long affordability periods, secured financing and a credible path to occupancy within three years St. Pete Catalyst St. Pete Rising. The grant sizes also show the leverage involved. The $15 million award to JR Tower sits inside a $72.6 million budget, and the $4.1 million award to the Elmington project sits inside a $77.2 million budget St. Pete Rising.

Owners of mixed-use projects should note the Residences at 1663 structure. Federal funds were confined to the apartments, and the hotel component has to be financed separately St. Pete Rising. Cost allocation between eligible and ineligible space will need to be documented from the start.

What to Watch

• Execution of loan agreements and the performance deadlines attached to each award St. Pete Catalyst.
• Selection of a general contractor for Trailside Estates II St. Pete Rising.
• The first groundbreakings, expected in early 2027 St. Pete Catalyst.
• What the city does with the $1.15 million left unawarded and whether unfunded applicants get another round St. Pete Catalyst.

Bottom Line

St. Petersburg has committed $40.85 million of its hurricane recovery allocation to 645 affordable apartments across six projects St. Pete Catalyst. The awards support about $290 million in total development, going by the project budgets reported by St. Pete Rising, most of it scheduled to break ground in early 2027. For contractors in Tampa Bay, the practical step now is to get in front of the named general contractors and to understand the federal requirements that come with the funding.

Image credit: Rendering provided by the project developer, via St. Pete Catalyst. Image from the source article.

Sources

• St. Pete Catalyst, $40.85M approved for affordable housing projects: https://stpetecatalyst.com/40-85m-approved-for-affordable-housing-projects/
• St. Pete Rising, St. Pete recommends $40.85 million in disaster-recovery funding for six affordable housing projects: https://stpeterising.com/home/st-pete-recommends-4085-million-for-six-affordable-housing-projects