Ability Housing has established the Ability Housing Affordable Housing Fund to aid its mission to develop affordable rental properties, the nonprofit announced Sept. 19.
The fund provides low-interest and no-interest predevelopment loans, according to a news release.
The fund allows Ability Housing to make more loans and have more projects in the works, said Shannon Nazworth, Ability Housing president and CEO.
“What we’re creating is our own internal predevelopment loan program. Our biggest barrier to consistent production is that it costs a lot of money to get to the closing table. You know, anywhere from $800,000 to a million dollars,” Nazworth said in a recent interview.
“If you don’t have extra cash to do the next project, you have to stop and wait and get reimbursed at closing and then start the next project.”
The goal is to build the AHF to $10.2 million, she said.
Ability Housing was formed in 1992 to house six adults with developmental difficulties. In 2006 it expanded to develop multifamily rental housing.
The Capital Magnet Fund seeded the fund with a $3.75 million grant. The state contributed another $950,000. The U.S. Department of Treasury Community Development Financial Institutions Fund will administer the program, the release said.
Capital Magnet Fund money will be available for projects that will rent to those making 50% or less than the area median income. Developers will have to provide at least 10 times the amount of the CMF loan.
Ability Housing has eight properties with 461 rental units in the Jacksonville metro area. This, combined with HUD housing programs brings Ability Housing’s total units to just over 600.
The agency has projects underway:
• The Villages of New Augustine, 280 N. Volusia St., St. Augustine, is a 92-unit, $26.5 million project set to open in the first or second quarters of 2025. Bradley Construction of Jacksonville is the contractor.
• The Village at Cedar Hills, 5051 Harlow Blvd., Jacksonville is a 90-unit, $31.2 million project also being built by Bradley Construction. It is projected to open in spring 2025.
The Village at Lake Forest 901 Kennard St. in Jacksonville is in the planning stages. Ability Housing is working with the Duval County Public Schools to dedicate 25% of the units for rental to School Board employees. This includes all qualifying employees and is not limited to teachers and administrators.
The plan calls for the School Board to provide Ability Housing property where closed schools stand. The existing school buildings will be torn down and new affordable rental units will be constructed on that site.
“This is a great recruitment tool or retention tool,” Nazworth said.
“Now we’re looking at police and fire down the road. We want to see if they can come up with some kind of equally neat plan.”