HTG Breaks Ground on Affordable Veteran Project in Jacksonville
A $78 million financing package supports this development.
Housing Trust Group has broken ground on Normandy Cove, a 144-unit affordable housing project catering to veterans in Jacksonville, Fla. Another 99 units could be added during a second phase of development, bringing the property total to 243 apartments.
Half of the units in Phase One will cater to active-duty service members and veterans, with 5 percent set aside for veterans experiencing homelessness. Apartments will be reserved to residents earning up to 30, 60 and 70 percent of the area median income.
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This will be HTG’s first affordable development in The River City. Project partners also include designer FK Architects, general contractor BDI Construction and civil engineer NV5.
In addition, HTG will partner with local organizations to reach potential veteran tenants and provide supportive services, including employment aid, financial management classes, homeownership opportunities and veteran-oriented assistance.
Normandy Cove’s first phase will bring online one- to three-bedroom units alongside common-area amenities such as a swimming pool, gym, business center, clubhouse and amenity deck, as well as an office space designed for veteran service providers.
Located at 7375 Sheldon Drive, the site is inside Jacksonville’s Hyde Park neighborhood, adjacent to a local high school, which provided a 14-acre site to Normandy Cove through an easement.
Capital stack of a veteran affordable project
The financing package for Normandy Cove’s first phase includes:
- $20.8 million in 4 percent LIHTC equity allocated by the Florida Housing Finance Corp. and syndicated by Raymond James
- Construction financing amounting to $27.5 million, issued by TD Bank
- $16.4 million in Freddie Mac financing provided by Berkadia
- $11 million State Apartment Incentive Loan
- Gap funding of $1.5 million from the City of Jacksonville Housing and Community Development Department Revolving Loan Fund, as well as $500,000 from the Jacksonville Housing Finance Authority, an entity that also provided tax-exempt bond financing.
“Supporting those who have served isn’t just important, it’s our responsibility. We’re proud to support Normandy Cove and our partner at Housing Trust Group as we help bring affordable housing to Jacksonville’s veterans and active-duty service members together,” Andrew Warren, head of community development lending at TD Bank, told Multi-Housing News.
“This development will serve the community’s needs and give formerly homeless veterans back the stability and promise they’ve earned,” he continued.
The disproportionate impact of affordable incentives
SAIL serves as a tool to bridge the gap between a developer’s primary financing and the total cost of the project, offering low-cost capital to qualifying entities. The interest rate varies depending on the income of the tenants that the project will cater to, going as low as zero in some cases.
Last year, Florida Housing Finance Corp. funded 49 developments totaling 7,048 units with more than $1.1 billion, including nearly $228 million in SAIL financing. The agency also awarded preliminary funding to another batch of 51 projects.
The state’s efforts to bolster affordable housing development prevailed in markets such as Tampa, Fla.—where fully affordable properties made up nearly 20 percent of the multifamily construction pipeline in May—and Orlando (14 percent of pipeline). However, income-restricted construction has room to grow in Jacksonville, where such projects currently make up only 6 percent of the pipeline, according to Yardi Matrix data.
