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Electrical Union Looks To Rezone Its Allapattah HQ For New Mixed-Use Development

A union representing electrical workers could rezone its headquarters in Miami’s Allapattah neighborhood to set up a mixed-use development.

The city’s Planning, Zoning and Appeals Board was scheduled to consider the application from the Brotherhood of Electrical Workers, part of International Brotherhood of Electrical Workers Local No. 349, on April 19. It concerns the 1.83-acre site at 1544, 1649 and 1650 N.W. 16th Terrace; 1657, 1601 and 1667 N.W. 17th Ave.; and 1700 N.W. 15th Street Road.

The IBEW has owned the property since 1948. The main structure there is a 27,144-square-foot building that houses its union hall and apprenticeship school.

The union wants to change the zoning from “T6-8-O” and “high-density residential” to “T6-12-O” and “restricted commercial.” The density would be 150 units per acre, which would equate to 275 units on a site of this size.

In the application, the IBEW stated it wants to redevelop the property with a newly designed union hall and apprenticeships schools, plus professional offices, convention spaces, affordable/senior living and workforce residential units.

This would follow the trend of nonprofit organizations and religious groups in Miami capitalizing on long-held property with redevelopment as property values in the city soar.

 

Source:  SFBJ

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Multifamily Series: How Affordable Housing Is Changing

The shortage of affordable multifamily housing continues nationwide. The good news is that developers and architects are bringing solutions to the multifamily market.

It’s no secret that affordable housing is in short supply. Both the single-family and multifamily market struggle to meet the need. According to the National Low Income Housing Coalition, not a single one of the 50 states has an adequate supply of rental housing that’s affordable and available to extremely low-income households—those who earn 20% to 60% of their area medium income. The Coalition pegs the shortage at 7 million homes.

When buildings become available for lease or sale, they fill quickly, and long waitlists result.

Still, multifamily developers and champions face myriad issues: construction, labor, and land costs; lengthy planning and building review processes; restrictive zoning codes that favor single-family residences; and less available funding through tax credits, subsidies and grants, says architect Steven Lee, senior associate with Page & Turnbull(link is external), an architecture, design, planning and preservation firm. Neighborhood resistance to development also remains a deterrent as well.

Yet, for multiple reasons, many real estate experts express cautious optimism.

Developer Jeff Klotz, whose firm, The Klotz Group of Companies, operates in the South and Southeast, is one of them.

“We’re getting people into new housing that’s more energy-efficient and constructed with more durable materials to meet tougher building codes,” he says.

When it comes to design, more widespread efficiencies in layouts pare wasted space and permit more units, while better choices about which common spaces are needed benefit residents—and often the community.

Architect Matt Duggan, with TA , an architecture, master planning, and interior design firm, sees more reason to err on the positive.

“The affordable market is embracing more cutting-edge, sustainable, aggressive goals than the market-rate is, in part because local authorities that offer low-income tax credits and other funding mandate or incentivize doing so, often through competitive requests for proposals,” he says.

Additionally, partnerships between developers, government agencies and nonprofits are on the rise, and more municipalities require new market-rate buildings to include a percentage of affordable units.

In short, dire need in the marketplace means increased calls for creativity and collaboration, and developers are using their industry knowledge, influence, innovations in the spaces and partnerships to make them happen.

Garnering Community Support

Progress on a multifamily project takes community buy-in. Experts agree that involving the larger community—through meetings or calls, for example—makes a difference. When community members have a change to offer feedback and then feel heard, they’re more likely to have an open mind about the project.

Good design that actively reflects the concerns and needs of the community leads to exceptional projects a community can be proud of, Duggan says. Architect Eugene Flotteron, principal and director of architecture at CetraRuddy, an architecture, planning and interior design firm, says another plus is to incorporate common spaces within the building.

Faster, Simpler Approval Processes

Project approval has long been arduous and time-consuming. Experts recommend simplifying the process to gain inventory. Florida’s State Housing Incentive Program requires local governments to establish an expedited permitting process for affordable housing. In St. Petersburg, certified projects qualify for a program that ensures a 10-day response time for initial plan review.

Carol Stricklin, director of Pinellas County Housing & Community Development, encourages developers to ensure they understand local policy priorities for affordable housing and have entitlements in place for a project before applying for funding.

Results are promising when this work is done up-front. In Pinellas County, six affordable developments opened last year, providing 227 new homes. An additional six projects, which will add 970 units, have been approved or are currently under construction. Once buildings are completed, inventory is listed online at Florida Housing Search.

Buildings That Meet Code and Look Good

More buildings are wrapped in layers of insulation and have highly efficient systems to meet stricter codes that save energy costs and improve lives, says architect Carmi Bee, president of RKTB Architects, which designed the 100% affordable development 683 Thwaites Place in New York’s Bronx borough. The project includes insulation for energy efficiency and sound mitigation due to proximity to a subway line. Windows were minimized on the side facing the train and made prominent on the building’s other sides. Their arrangement can enhance a building’s aesthetics. That was the case at builder Structured Development‘s mixed-income Schiller Place Apartments. “Each of the 48 units has an attractive bank of windows,” says Principal Michael Drew.

Maximizing energy efficiency has been a driver for many buildings. Duggan’s firm was hired to design a 59-unit, income-restricted net-zero building in Tiverton, R.I., with the state and a utility partnering to see if the building might generate as much energy on site as it uses. The building, called Bourne Mill Phase 3, is all electric, with solar roof panels and thicker wall insulation.

Affordability shouldn’t come at the sacrifice of style, though. “Challenges such as affordability can make architecture better, something Frank Lloyd Wright expressed,” says architect Victor Body-Lawson of Body Lawson Associates.

Located in a historic mill complex, Bourne Mill Phase 3 has exterior cement fiber panels with lap siding that mimic the mill’s granite palette. TAT’s design for Station 25, an affordable 51-unit building under construction on a downtown Albany site, relates to an adjacent historic brick building in its choice of some materials and detailing. Both buildings incorporate brick stacked vertically rather than horizontally.

The new building also pays homage to horizontal stone bands in the historic building with a playful projecting ribbon that wraps its way around the new building and transforms from a canopy at the main entry to a cornice at the roofline, says Duggan. A courtyard lies between the two structures to create an outdoor “room” that connects the two, Duggan adds.

The Benefits of Combining Affordable and Market Rate

In Chicago, a 2022 change in the tax law provided a tax freeze on a building’s assessed valuation if a percentage of affordable units was included, says Drew. In Fremont, Calif., architecture firm KTGY designed two affordable-housing buildings within a larger master plan led by market-rate clients. The number of affordable units satisfied the city’s requirement for projects to be approved, says architect Jessica Musick, principal. “The buildings anchor the corner of the Metro Crossing master plan community and are designed so they look and feel market-rate,” she says.

The Marcus Garvey Village building in New York’s West Harlem neighborhood represents a similar approach. “It’s the second phase of a development from Carthage Advisors where a 161-unit, market-rate building was completed first,” says Body-Lawson. “The goal was not to have a ‘rich door, poor door’ look, so we made the affordable building as nice and gave it its own character and place,” he says. “Colors are different, but some similar materials such as stucco were used. Cities have to be sustainable to survive, and that includes having a diverse mix of people.”

Straightforward Design

A common mantra today encourages simpler design that translates to lowered expenses. Musick, for example, advocates limiting design decisions to help focus project costs. “Maybe, instead of choosing from 10 window sizes, there are three to consider,” she says. Other options are to limit the number of unit plan configurations for each plan type. This simplifies the list of both construction techniques and materials and should lead to better execution, she says.

In south St. Petersburg, The Shores, a 50-unit affordable complex funded by the city of St. Petersburg and Pinellas County, used quality but affordable touches such as wood vinyl plank flooring, ceiling fans and grab bars in apartments and common spaces.

Smart Locations

Affordability is about more than the building itself. Location is key to help residents get to jobs and services. Transit-oriented developments in particular eliminate or reduce the need for cars and parking. Station 25 in Albany, on an infill site with a bus stop, is within walking distance of an employment center and near Albany Medical Center.

Both the Schiller Apartments and another Structured Development building, The Seng, an affordable-condominium project, are near mass transit. Schiller Apartments is also adjacent to a public park. Klotz’s company likes locations near mixed-use options, so residents feel amenities are almost on their property. His company also scouts for sites where governments have determined a need for affordable housing. That way, he can approach those governments to help sponsor the development in those areas.

Function Over Trend

Affordable buildings might have fewer amenities than market-rate buildings due to their available square footage and budget. Therefore, functionality is prioritized.

“A café, mailroom and lounge may be combined, which encourages socializing,” Duggan says.

An apartment building at 535 W. 43rd Street in New York City developed by Flotteron’s CetraRuddy includes seating in the mailroom.

Another goal is to provide health and wellness benefits for residents and neighbors, he says. Features such as outdoor space are critical and must be protected and secure in an urban environment, Musick adds. At Marcus Garvey Village, residents and the community will have access to green space, a community facility, retail outlets, an LGBTQ center, below-grade parking, and bicycle storage.

Creating Units for Long-Term Use

Unit sizes depend on the project and site, the number of units that make a project work financially, and the municipal requirements for securing financing. But a common goal is to make them look larger and wear better, since that helps to retain residents, Musick says. Design tricks help.

For more space in units, hallways might be eliminated in favor of open layouts or, instead of in-unit laundries, there may be common laundry rooms, Duggan says. For durability, luxury vinyl tile is easier to clean than carpet in units and public hallways. Good lighting expands space visually. Integrated lighting such as recessed cans help residents avoid having the expense of buying lamps, Flotteron says.

 

Source:  Realtor Magazine

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The Dorsey Mixed-Use Project Gets $165M Refi

Berkadia has arranged a $165 million loan to refinance the construction loan for The Dorsey, a recently completed, mixed-use development located in Miami’s Wynwood neighborhood.

The 306-unit property was co-developed by Related Group, LNDMRK, and Tricera Capital. Berkadia Managing Directors Scott Wadler, Brad Williamson, and Matt Robbins, Senior Managing Director Mitch Sinberg, and Vice President Michael Basinski of Berkadia South Florida arranged the loan on behalf of the Miami-based sponsors.

The lender, MF1 Capital, delivered a quick and certain closing despite recent market volatility and provided the 30-month, interest-only loan to take out the existing construction financing.

“Despite the macro headwinds, lender confidence remains high for those projects of the highest quality,” said Jon Paul Perez, President of Related Group. “In the case of The Dorsey, we had several factors working in our favor: namely an unmatched location in the world’s most desirable neighborhood, gorgeous designs and a development team that’s second to none.”

Located on the corner of NW 29 Street and NW 3rd Avenue, The Dorsey is at the epicenter of the Wynwood neighborhood. The property features 73,000 square feet of office space, and 36,000 square feet of ground floor retail. The office portion is fully leased to Schonfeld Strategic Advisors, a New York-based hedge fund making The Dorsey their second headquarters, and Industrious, a leading coworking provider with over 160 locations globally.

The Dorsey also includes 306 luxury apartments, with floor plans ranging from 450 to 1,600 square feet. Residents will enjoy a highly curated set of on-site amenities, like a fitness center with a spin and yoga room, a first-class pet spa, a resort-style rooftop pool, an outdoor courtyard, and more. The development also boasts a collection of world-class art displayed across all common areas.

“The Dorsey is the premier mixed-use development in one of the most desirable 24-hour submarkets in the nation,” said Wadler. “The Property’s strong lease-up velocity and best-in-class features and finishes led to significant lender interest in the refinance.”

The Dorsey’s modern mixed-use design blends with Wynwood’s walkable, urban neighborhood. The project’s impactful integration into the neighborhood has already brought accolades as it was named the Multifamily Development of the Year for South Florida at the 2023 CoStar Impact Awards.

 

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Foreclosed Wynwood Site Fetches $26M

Gamma Real Estate sold a foreclosed development site in Miami’s Wynwood district for $26 million, property records show.

The New York-based seller gained control of the 1-acre assemblage that encompasses 2825 Northwest Second Avenue, 169 and 179 Northwest 28th Street, and 166 and 172 Northwest 29th Street last year through a foreclosure auction, after the U.K.-based owner The Collective went bankrupt.

The site consists mainly of vacant lots, except for a one-story, 10,500-square-foot retail building at 2825 Northwest Second Avenue built in 1936; and a one-story, 2,000-square-foot commercial building at 166 Northwest 29th Street built in 1953, property records show.

In 2019, Gamma had lent the now-defunct co-living company $23 million for a mixed-use project and, in 2021, Miami’s Urban Development Review Board approved a 12-story development for the site. But it never broke ground. The approved plans included 180 residential units, 70 hotel rooms and 9,508 square feet of ground-floor retail.

Jonathan Kalikow, president of Gamma Real Estate, declined to reveal the buyer, known in records only as 2825 Wynwood Holding LLC, but did divulge that it’s a “sophisticated institutional investor” already active in Florida. 2825 Wynwood Holding LLC ties to Investment Property Exchange Services, or IPX1031, a company based in Phoenix, AZ with locations nationwide that handles 1031 exchanges on behalf of clients.

Cushman & Wakefield‘s Robert Given and Troy Ballard negotiated the sale.

The site, which sits at the corner of NW 29th Street by the northern end of the neighborhood, houses a single-story apartment building, two retail properties and four vacant lots.

 

Source:  Commercial Observer

 

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After Years-Long Saga, County Will Take Over Hundreds Of Miami Beach Affordable Units

In Miami Beach, where housing costs have skyrocketed since the COVID-19 pandemic and affordable units are scarce, a struggling nonprofit that controls more than a dozen low-income and elderly housing properties will turn over its entire portfolio to Miami-Dade County in hopes of keeping the buildings affordable.

Under a deal approved by the Miami-Dade Board of County Commissioners last week, the Miami Beach Community Development Corporation will transfer ownership of its 16 buildings, totaling 357 income-restricted units, to the county, which manages thousands of affordable units countywide.

The county will take on the nonprofit’s debt and set aside nearly $13 million for improvements to the buildings, which have faced sanitation and maintenance complaints in the past but seen only limited upgrades as the nonprofit has dealt with financial woes. The group’s portfolio includes 14 buildings in Miami Beach and two in the city of Miami, all of which will be legally transferred to the county by the end of this year.

As part of the arrangement, the county has agreed to maintain the buildings at their current levels of affordability. More than half of the tenants make less than $10,000 per year, according to the nonprofit, and more than 80% are elderly or disabled.

“It is a huge relief to know that the hundreds of residents living in these affordable buildings no longer need to worry about losing their homes in the midst of an affordable housing crisis,” County Commissioner Eileen Higgins, whose district includes part of Miami Beach, said in a statement. “When I met with the residents to tell them the news last week, they too were relieved.”

It’s a change years in the making.

In 2013, Miami Beach reviewed the organization’s finances and found serious irregularities, including evidence funds had been spent on unauthorized or ineligible activities. The executive director resigned, two city officials quit and a third was fired. Miami Beach was left on the hook for the misspent funds and negotiated a more than $1 million settlement with the U.S. Department of Housing and Urban Development.

After the scandal, the nonprofit stopped receiving government subsidies. It began offloading some assets to make ends meet — subtracting from, instead of adding to, the city’s affordable housing stock. Miami Beach took over five of its properties, and the group also sold some of its units at market rate. In 2018, the nonprofit transferred ownership of Madison Apartments, an affordable housing building in South Beach, to the county.

The group tried to maintain control of its remaining properties, despite pressure from county officials. But ultimately, its leaders conceded the buildings and their residents would be better off under county control.

“We had exhausted all other options,” said Cristian Arango, the Community Development Corporation’s chief of operations and lone remaining staffer.

“What really matters is the tenants and fighting off gentrification in Miami Beach.” Miami Beach has repeatedly fallen short of its affordable housing goals. The city has about 2,000 units of income-restricted, subsidized housing, records show, shy of a 6,800-unit benchmark it set in 2017.

Arango said the loss of government funding, along with a failure to anticipate rising utilities and property insurance costs, contributed to the nonprofit’s limited ability to make a dent in the problem in recent years.

“You’re already running a building with very thin margins because your rents are so low,” Arango said. “Someone has to absorb additional costs, especially for rehabilitation projects.”

The Community Development Corporation will no longer own or manage affordable housing, though it’s not clear if it will cease to exist. The group will receive $350,000 plus closing costs from the county for the sale of two of its buildings, money Arango said will be put toward the community in a way that has yet to be decided.

 

Source:  Miami Herald

 

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Wynwood-Edgewater Mixed-Use Midrise Wins Backing

A developer plans to build a midrise mixed-use residential building with ground floor retail on land near where Edgewater meets Wynwood in the City of Miami.

Owner-developer Wynwood 21 Apartments LP proposes property at 100 NE 21st St. for the 11-story building. The project, named Wynwood 21, is to be home to 97 dwellings, about 3,550 square feet of restaurant and 2,538 square feet of retail. It was referred to as Omni 21 in earlier paperwork, and in one rendering.

The city’s Urban Development Review Board unanimously recommended approval.

The property has a principal frontage on Northeast 21st Street to the north and a secondary frontage on Northeast First Avenue to the west. An existing structure is to be demolished. The property, two-thirds of an acre, has a commercial parking garage to the south and single-family residential building to the east.

The developer is requesting waivers allowing for:

  • A 30% parking reduction within a transit corridor.
  • Substitution of one commercial loading berth for two residential loading berths.
  • A 10% reduction in required side setback above level eight from 30 feet to 27 feet.
  • A 10% reduction in required drive aisle width minimum from 23 feet to 22 feet.
  • A 10% increase in required lot coverage maximum from 80% to 88%.
  • Parking to encroach into the second layer, along the principal and secondary frontage, with an art or glass treatment approved by the planning director upon recommendation by the review board.

The board was told the parking garage façade along that frontage will be fully screened with an art treatment. The building will have a full pool deck. Amenities also include a dog walk area, barbecue area, fitness center and more.

 

Source:  Miami Today

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Developers Looking To Buy Commercial Sites Due To New Legislation

Developers are analyzing how to take advantage of Florida’s new legislation, which will set aside over $700 million in funding, create tax breaks, and provide zoning-related incentives for affordable and workforce housing developments.

The law could contribute to a new boom in housing development, from entirely affordable buildings to mixed-income towers on commercial sites that developers are now looking to purchase, experts say.

The Live Local Act, which Gov. Ron DeSantis signed aims to help fill financing gaps, making more developments economically feasible. What is still crucial, attorneys and developers said, is combining that with incentives on the local level.

“These incentive programs, in conjunction with working cities and municipalities — that’s the way you’re going to fill a void and a gap and a huge need,” said Brian Sidman, of Miami Beach-based Redwood Dev Co. “The problem isn’t going to be solved by developers buying private land. That ship has sailed due to the cost of private land.” 

Still, Sidman called the legislation “a great start,” and applauded DeSantis and the Florida Legislature.

“If we don’t fix our housing crisis, we’ll have other material programs that will trickle down,” he said.

Redwood is analyzing the SAIL (State Apartment Incentive Loan) program to see which of its projects could secure low-interest loans for workforce housing. Redwood, which has more than 1,500 units in the pipeline in South Florida, aims to build more than 5,000 affordable and/or workforce units over the next five to seven years. It recently broke ground on Mosaic, a 98-unit development in Opa-locka.

The new legislation sets aside $259 million in SAIL funds. It also promises $252 million in SHIP (State Housing Initiatives Program) funding to incentivize local governments to partner with developers preserving or building new housing.

The law goes into effect July 1. Developers are expected to apply for incentives this summer, and receive funds next year.

 

 

Source:  The Real Deal

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Commercial Real Estate Miami Beach Apartment Building Auctioned In Bankruptcy

A bankruptcy court auction for a Miami Beach apartment complex concluded with a $7.79 million winning bid.

The auction concerned the 29-unit apartment hotel that’s been set up for short-term rentals at 942 Pennsylvania Ave. The winning bidder was 942 Pennsylvania Owner LLC, managed by Salem Mounayyer.

In May 2022, property owner 942 Penn RR LLC filed for Chapter 11 reorganization in Miami. That followed a 2017 foreclosure lawsuit filed against the property by 1250916 Ontario Limited.

According to the motion to sell the property, 942 Penn RR LLC is equally co-owned by Raziel Ofer and Roberto Mendez.

 

Source:  SFBJ

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Developer Exploring Second Co-Living Project On Miami Beach

Rishi Kapoor is looking to develop a second Urbin-branded, co-living project on Washington Avenue in Miami Beach.

The Miami Beach City Commission on Monday granted preliminary approval to allow co-living units on Washington Avenue north of 12th Street, and to extend a deadline for Kapoor to obtain building permits until 2027.

Kapoor, CEO of Coconut Grove-based Location Ventures, is under contract to buy a retail building at 1509 Washington Avenue and a mixed-use apartment building at 1515 Washington Avenue, said Michael Larkin, a lawyer representing the developer.

Kapoor has submitted an application to redevelop the properties that will have to go before the Miami Beach planning and zoning and historic preservation boards, Larkin added.

The city has already approved Kapoor’s six-story co-living project at 1260 Washington Avenue (rendering pictured above), which he is developing under Location Ventures’ Urbin brand.

Under the proposed new legislation, the city would allow developers to build projects with co-living units north of 12th Street and Washington Avenue, but any proposed building cannot have hotel rooms or short-term rentals. In addition, only 50 percent of the project can be set aside for co-living units, and the apartments or condos must be a minimum of 275 square feet.

 

Source:  The Real Deal

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To Ease Rent Crisis, Miami City Commission May Change Zoning Code To Allow For Communal Living Developments In Wynwood

After gaining notoriety as the center of the housing crisis in the US, Miami is looking to co-living developments to calm soaring rent prices.

Today (3/23), the Miami City Commission is considering changes to the zoning code to establish regulations regarding co-living. If adopted, the amendment will allow for communal living developments to rise in Miami’s bustling central business district, health district and Wynwood.

Last year, Miami surpassed New York City and Los Angeles as the most expensive housing market in the nation. In June 2022, the Biden administration called Miami the ‘epicenter of the housing crisis.’

Government agencies like the Department of Housing and Urban Development (HUD) see co-living as a solution to provide working-class individuals with affordable shelter.

Communal living has roots dating back to the 19th century, when tenements and boarding houses became popular. Modern co-living spaces feature private bedrooms designed around a shared living room and kitchen.

21st-century co-living communities have emerged as an amenity-laden, roommate-sharing concept to facilitate an environment where working professionals can thrive at a fair price.

The proposed legislation limits co-living developments to the civic center and health district, central business district downtown and neighborhood revitalization districts in Wynwood. These are Miami’s busiest urban areas and have rapidly grown in the post-pandemic era as people from across the nation flocked to South Florida.

Background information states the city “recognizes the growing demand for accessible housing options, including co-living concepts, incorporated in urban center and urban core areas where there is significantly less reliance on automobiles and enhanced utilization of bicycle and transit facilities that connect to places of employment and other services.”

The ordinance defines a co-living unit as communal living quarters consisting of private bedrooms and bathrooms with a shared space that includes a full kitchen with direct access to the outside or a common hall.

Each unit would be allowed a maximum of six co-living rooms. A co-living room is defined as a single bedroom within the unit. Under the proposed requirements, a co-living room must be at least 180 square feet and could not exceed 400 square feet.

The operational plan required under the new ordinance stipulates all co-living units within a building must be managed by one centralized operator and at least one dedicated employee must be available 24 hours a day to respond to residents’ needs.

On Feb. 15, the Planning, Zoning and Appeals Board recommended approval of the zoning text change in a vote of 8-1.

What attracts most residents to co-living communities is a home in a well-run building in a good area at a reasonable price. The developments offer fully-furnished units, including everything from sheets to silverware and weekly cleaning services. All utilities and various tech services like WiFi and Netflix are included in the monthly rent.

Another positive of co-living is that it eliminates the financial liability of roommates by offering individual room leases rather than group leases.

Co-living is popular in major urban areas like New York City. Zoning ordinances, however, restrict communal housing in many areas. Changes on the regulatory front, like the amendment before the Miami City Commission, are needed to address barriers to opening co-living communities.

In 2022, Florida topped the Census Bureau’s list of fastest-growing states as the population grew by nearly 2%. Attractive lifestyle and job opportunities put Miami on the map of most popular US migration destinations.

During that time, the cost of rent in Miami increased over 30% from 2021 to 2022 and the county was ranked the most competitive rental market in a year-end survey by RentCafe.

In April 2022, Miami-Dade Mayor Daniella Levine Cava declared an affordable housing crisis and allocated an additional $13 million in rental assistance through the Emergency Rental Assistance Program.

Two months later, HUD Secretary Marcia Fudge met with local leaders to tour affordable housing projects in Miami.

“I decided today to come down to the epicenter of the housing crisis in this country,” said Ms. Fudge. “It is a shame that people who work hard every day cannot afford to live in the communities in which they work.”

After her visit, Ms. Fudge said more affordable housing projects must be created to lower housing costs and called for support from federal, state and local governments to make it happen.

A study from Florida International University regarding affordable housing revealed Miami has the highest proportion of cost-burdened renters in the nation, with 53% of renters spending 35% or more of their household income on rent.

HUD defines cost-burdened people as those who pay more than 30% of their income for housing and may have difficulty affording necessities such as food, clothing, transportation and medical care.

Creating co-living developments will provide renters with more affordable housing options and relief from record-breaking rent prices.

Market reports forecast co-living developments to increase in coming years as the communities could be a solution to the affordable housing crisis.

In January, the largest co-living operators in US and Europe and Asia, Common and Habyt, merged to form Habyt Group. The move created the largest co-living brand in the world with locations in more than 40 cities and 14 countries and over 30,000 communal units.

While the co-living sector represents a small corner of the housing market, the desire for communal living, like rental prices, is rising.

 

Source:  Miami Today

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