A $93.6 million affordable housing development is moving ahead on Summerlin Road, backed by $20 million in Hurricane Ian recovery funds.
Lee County commissioners voted Tuesday, Feb. 17, to allocate $20 million in federal disaster recovery funds to a 230-unit affordable housing development off Summerlin Road in Fort Myers. This is one of the largest housing investments the commission has approved since Hurricane Ian.
The project, planned for 5300-5360 Summerlin Road near Boy Scout Drive, carries a total estimated price tag of $93.6 million. County money will come from its Community Development Block Grant Disaster Recovery (CDBG-DR) allocation, part of the $1.1 billion awarded after Ian to address housing and infrastructure needs.
Commissioners authorized staff to execute loan documents with Horizons Owner LLC, the entity formed for the development. The affordability period will last 30 years.
Why is Lee County using disaster funds for this?
Hurricane Ian tore through a housing market that was already stretched thin.
According to the county’s CDBG-DR Action Plan, “The County experienced significant loss in the already strained housing stock because of the storm. More than 9,900 residential units were destroyed and at least 13,173 units suffered major damage.” It continues, “The storm left more than 130,000 persons in need of housing assistance.”
After the storm, rents climbed as displaced residents competed for fewer available units. The Lee County Homeless Coalition attributed what it called a drastic increase in homelessness to both the storm’s destruction and soaring rents that followed.
This Summerlin Road development and others like it are the county’s attempt to chip away at the shortage.
What exactly did commissioners approve?
The $20 million will function as a loan, repaid over time through project revenues.
Nicole Turner, who oversees countywide grant coordination, laid out the request during the meeting.
Commissioner Brian Hamman asked during the meeting, “Nicole, is this the same setup as the other ones that we’ve done, where they’ll repay the loan through the rents and everything like that?”
Turner responded, “Correct.”
The county subsidy works out to roughly $86,957 per unit.
The broader financing stack includes a $44.9 million construction loan from JP Morgan Chase and $18.7 million in permanent financing through Fannie Mae. The site will operate under a 99-year ground lease with the Housing Authority of the City of Fort Myers.
Who will live there, and at what income levels?
The 230 units are reserved for households earning between 30% and 80% of the area median income.
Fifty-seven units are designated for families earning 30% or less of AMI, supported by project-based vouchers through the housing authority. Another 103 units will serve households at 60% AMI, and 70 units will be priced for those at 80% AMI.
The plan calls for one-, two- and three-bedroom apartments, as well as a clubhouse, community kitchen, fitness room and business center.
Were there concerns from the public?
One resident addressed commissioners during public comment.
Naples resident Julie Trzeciak told commissioners, “I know someone who was moved from the Horizons project last year, and they’re struggling to pay their rent because their prices have gone up. It’s also happened to a lot of our neighbors. I was just wondering if they’re going to be getting any help and what the process is with that. I guess I just don’t understand how people can get kicked out of public housing without assistance or some sort of help.”
Commissioner Cecil Pendergrass reminded her the agenda item dealt strictly with funding approval.
“We take public comment at this time. We don’t take answers. And this item 26 is related about funding for a certain project. So, it’s not a placement. We can have staff get with you after the meeting and get with you and provide information for you.”
The vote proceeded.
What happens next?
Federal disaster recovery funds come with strict timelines.
Under the agreement approved Tuesday, Horizons Owner LLC must begin on-site construction by Feb. 28. The project is expected to reach 50% completion by March 2027. A certificate of occupancy is required by Feb. 28, 2028, and full lease-up of the affordable units must be complete by December 2028.
Missing those deadlines could put the funding at risk.
If completed on schedule, the Summerlin project will add 230 income-restricted rental units to the Fort Myers market, locked in at affordable rates for three decades.
Mickenzie Hannon is a watchdog reporter for The News-Press and Naples Daily News, covering Collier and Lee counties. Contact her at 239-435-3423 or mhannon@gannett.com.
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This article originally appeared on Fort Myers News-Press: Lee County OKs $20M for affordable housing project. What to know
Reporting by Mickenzie Hannon, Fort Myers News-Press & Naples Daily News / Fort Myers News-Press
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