Jacksonville Housing Authority Embarks on a Historic Bond Sale to Expand Affordable Housing
In a landmark move for Jacksonville's housing landscape, the Jacksonville Housing Authority (JHA) has successfully raised $41 million through its inaugural general revenue bond offering. This strategic financial maneuver is set to significantly bolster the city's affordable housing sector, addressing the urgent needs of low- and moderate-income residents.
A New Chapter for Affordable Housing
The bond proceeds are earmarked for the acquisition and refurbishment of the Westwood Apartments, a 256-unit complex located at 1171 Lane S. Ave. This initiative not only marks a momentous occasion for JHA but also introduces a novel approach to funding affordable housing projects in Jacksonville.
Heather Horovitz, JHA Vice Chair, emphasized the innovative nature of the bond sale, highlighting its role in advancing JHA's mission to enhance the city's affordable housing offerings. The acquisition of the Westwood Apartments for $35.9 million, with an additional $5 million allocated for renovations, represents a concrete step towards mitigating the housing affordability crisis.
Financing the Future of Housing
Investors in the bond offering have provided essential capital, allowing JHA to proceed with its plans for the Westwood Apartments. The investment strategy is structured so that the net operating income—derived from tenant rents—will service the bond repayment. This financial model underscores the sustainability and replicability of using bond sales to fund affordable housing initiatives.
Jacksonville joins a select group of Florida cities—Clearwater, Pinellas County, Tampa, Boca Raton, and Orlando—that have utilized bond sales to finance affordable housing projects. The success of this bond issue could pave the way for future offerings, though JHA has yet to outline specific plans or timelines for additional bonds.
Bond Details and Project Implications
The bonds, featuring a 5% coupon with a maturity date of February 1, 2034, have been rated A+ for long-term debt, reflecting a stable outlook. This positive rating is a testament to the financial viability and potential impact of the project.
The Westwood Apartments, comprising 17 buildings on 25.3 acres, will undergo extensive renovations, including updates to heating and air conditioning units, appliances, flooring, stairways, roofing, and the pool. Post-renovation, approximately 82% of the units will be allocated to individuals or families earning less than 80% of Jacksonville's average median income, significantly expanding access to affordable housing.
A Comprehensive Approach to Housing Solutions
This project is a critical component of JHA's broader strategy to increase Jacksonville's affordable housing inventory. By repairing and rehabilitating existing properties, JHA and its development partner, The Integral Group based in Atlanta, aim to expedite the expansion of affordable housing options.
Once renovations are complete, JHA will take on the management of the property, overseeing leasing, maintenance, and marketing. This holistic approach not only revitalizes existing housing stock but also ensures the long-term sustainability and accessibility of affordable housing in Jacksonville.
Conclusion
The Jacksonville Housing Authority's groundbreaking bond sale represents a significant milestone in the city's efforts to address housing affordability. By leveraging innovative financing mechanisms, JHA is setting a precedent for other municipalities grappling with similar challenges, demonstrating that strategic investment and community-focused development can drive meaningful progress in the affordable housing sector.
