A developer has submitted a proposal for a 198-unit affordable housing project near the Seminole Hard Rock Hotel & Casino in Hollywood, Florida, marking another application under the state’s Live Local Act. This surge in applications reflects the increasing momentum for affordable housing initiatives in South Florida, spurred by the incentives provided through this state law.
The project, put forward by Eloy Garcia and Nick Mendizabal, founders of Car Factory Outlet, envisions a 14-story building on a nearly 1-acre site located at 5200 South State Road 7. In addition to the residential units, the proposed development includes 6,000 square feet of commercial space and 277 parking spaces. While the land currently houses a used car sales center, the proposal hints at a significant transformation for the area.
A Preliminary Step in the Process
The proposal, submitted to the City of Hollywood in August, is still in the early stages. On Tuesday, the Hollywood Technical Advisory Committee conducted a preliminary review, though a final review is expected to follow at a yet-unscheduled meeting. After this stage, the project will proceed to various other city boards before any construction begins. This process is typical for such large-scale developments, as multiple agencies and stakeholders review the proposal to ensure it meets local zoning, environmental, and infrastructure standards.
Garcia and Mendizabal are listed as the owners of the property, which they acquired in April for $2.4 million. However, it is still unclear whether they intend to act as the developers or if they will partner with another development company or sell the site. If they choose to develop the project themselves, it would represent a significant shift from their current business of running a car dealership to managing a sizable residential and commercial complex.
The Role of the Live Local Act
This proposed development is part of a broader trend in South Florida, where developers are increasingly taking advantage of the state’s Live Local Act. The legislation, passed by the Florida Legislature in 2022 and updated in 2023, was designed to address the state's growing housing affordability crisis by offering developers incentives to include affordable housing in their projects.
One of the key components of the Live Local Act is its provision of tax breaks for developers who designate a portion of their residential units for affordable or workforce housing. These incentives are crucial in making such projects financially viable in regions where land prices and construction costs are high, such as South Florida. Additionally, the law provides flexibility on zoning regulations, including relaxed restrictions on floor area ratios, which allows developers to build larger structures than would otherwise be permitted.
To qualify for these benefits, at least 40 percent of the units in a residential project must be reserved for households earning no more than 120 percent of the area median income (AMI). In Broward County, where this project is located, the AMI is $89,100. This means that, in Garcia and Mendizabal’s proposed development, at least 79 of the 198 units would need to be offered at below-market rates. Furthermore, the law mandates that these affordable units must remain so for at least 30 years, ensuring long-term housing stability for moderate-income families.
Growing Demand and Developer Interest
The housing affordability crisis in South Florida has been building for years, driven by a combination of rising property values, limited land for new construction, and increasing demand from both local residents and people moving to the area. In recent years, this demand has been further exacerbated by the influx of new residents during the COVID-19 pandemic, many of whom are attracted to Florida's climate, lower taxes, and relatively affordable cost of living compared to other states like New York and California. This influx has put additional pressure on the region's already tight housing market, leading to steep rent increases and making it harder for middle- and low-income families to find affordable housing.
Developers have been quick to respond to this need by seizing the opportunities offered by the Live Local Act. Across the tri-county region of Miami-Dade, Broward, and Palm Beach, applications for projects under the act have surged. The law’s incentives make it more feasible for developers to include affordable housing units in their projects, addressing the region's housing shortage while also benefiting from the tax breaks and zoning allowances.
The proposed 198-unit project near the Seminole Hard Rock Hotel & Casino is just one of many developments moving forward under the Live Local Act. Another significant project is being spearheaded by Spanish developer Pablo Castro and Laura Tauber of Bay Harbor Islands-based real estate firm Taubco. Their proposal is for a massive 3,233-unit complex in Miami-Dade County’s West Little River neighborhood. The development would feature six towers ranging from 26 to 37 stories, making it one of the largest affordable housing projects in the region.
In Miami’s Wynwood neighborhood, five Live Local Act proposals have been submitted, promising to reshape the traditionally mid-rise district with new high-rise towers. Among these proposals is a 48-story, 544-unit development by New York-based Bazbaz Development, located at North Miami Avenue and Northwest Miami Court. This tower, if built, would be one of the tallest buildings in Wynwood, contributing to the area’s rapid transformation into a dense, urban neighborhood.
Early Financing Success
While many of these projects are still in the application phase, some developers have already made significant strides in securing financing. Last month, Daniel Abreu obtained a $16.5 million construction loan for a six-story, 80-unit apartment building in North Miami, marking one of the first Live Local Act projects to receive funding. This early success demonstrates the growing confidence in the program and the willingness of financial institutions to back these projects.
Abreu’s project, like many others, will provide a mix of market-rate and affordable units, helping to address the region’s housing shortage while also meeting the requirements of the Live Local Act. As more developers secure financing and break ground on their projects, the hope is that these new developments will provide much-needed relief to South Florida’s housing market.
With developers across South Florida seizing on the opportunities provided by the Live Local Act, the region is on the verge of seeing a wave of new affordable housing projects. The proposal by Eloy Garcia and Nick Mendizabal near the Seminole Hard Rock Hotel & Casino is just one example of how the act is incentivizing developers to include affordable units in their projects. As these developments move forward, they will play a crucial role in addressing the region’s housing crisis, providing affordable options for middle- and low-income residents while also reshaping the landscape of South Florida’s cities.
Posted by Larry Mastropieri on
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