West Palm Beach CRA plans negotiations with Habitat for Humanity on four affordable-housing lots

At a July 7 meeting, the West Palm Beach Community Redevelopment Agency (CRA) reviewed six proposals received in response to a notice of disposition issued April 20 for four vacant lots the agency is targeting for affordable housing development. CRA Deputy Director Jade Green told the board the agency received six proposals and, based on the evaluation criteria, ‘‘the proposer that met the criteria is Habitat for Humanity,’’ and staff would return at the August meeting with resolutions to authorize negotiations.

The four parcels under consideration are 401 Division Avenue; 639 Fourth Street; 631 Sixth Street; and 519 L.A. Kirksey (in Pleasant City). Jade Green said the CRA received proposals from Habitat for Humanity; Elite Design Construction LLC; Atlantic Construction Engineers; Action Construction Group; Roche Equities; and a Simmons and Reed family letter of intent. She described the evaluation criteria as the area median income (AMI) targeted, proposed purchase price, developer experience and financial capacity, unit types, buyer-selection process, construction timeline and local presence.

Staff summary and recommended next step. Green said CRA staff opened an opportunity to clarify proposals on June 13 and received responses through June 16. She told the board that, ‘‘based on the criteria, the proposer that met the criteria is Habitat for Humanity. So we would bring back 4 resolutions, or 4 resolutions for each lot, that would authorize staff to begin negotiations with Habitat for Humanity,’’ and the resolutions would be presented at the August meeting.

Proposals in brief. Habitat for Humanity proposed two-, three- and four-bedroom houses with a mix of one- and two-bath configurations, a buyer-selection process that includes sweat-equity participation, and an 18-month construction timeline. Green summarized Habitat’s pricing as roughly $343,000 for three homes in the Historic Northwest and $280,000 for a single home in Pleasant City at 519 L.A. Kirksey; Habitat’s materials referenced a line of credit described in their proposal.

Other proposers varied in scale and price. Elite Design Construction proposed single-family houses (some with dens or accessory dwelling units) at price points the proposal listed at roughly $435,000–$475,000 and a one-year development timeline. Atlantic Construction proposed single-family homes in the Historic Northwest and a four-unit option at 519 L.A. Kirksey, with a two-year construction timeline and price ranges the proposal listed in the $650,000–$750,000 range for single-family and approximately $350,000–$450,000 for duplex units. Action Construction proposed four- to five-bedroom single-family homes with a 22-month timeline and a price point around $460,000. Roche Equities submitted only for 639 Fourth Street proposing a two-unit duplex and indicated a goal to rent at $2,785 monthly targeting 100% AMI along with a construction pre-approval of about $1.6 million. The Simmons and Reed family submitted a letter of intent to rebuild what they described as a former family home on the 401 Division lot but provided no construction timeline, pricing or financing details.

Board feedback and next steps. Commissioners praised the number and variety of responses and expressed general support for advancing negotiations with Habitat while not precluding consideration of community interests. Commissioner Warren said she was ‘‘leaning towards Habitat for Humanity’’ and noted Habitat’s local track record and programs supporting seniors. Commissioner Ward said it was ‘‘great to look at a bunch of different applications’’ and suggested exploring whether the Simmons and Reed family could be connected with Habitat if appropriate. Several commissioners asked staff to confirm policy definitions of affordable housing and the AMI targets used in evaluations; Green said the CRA provided proposers county-defined AMI guidance and had given them an opportunity to clarify responses.

Formal action taken. The CRA did not vote to dispose of any of the four properties at the July 7 meeting. The board did approve the meeting consent calendar (items 7.1 and 7.2) by motion, second and unanimous vote. Green said staff would return to the board in August with resolutions to authorize negotiations with Habitat for Humanity for each lot; any actual conveyance or negotiated terms would require subsequent board action.

Why this matters. The four parcels are vacant lots in historically significant neighborhoods — Historic Northwest and Pleasant City — where local leaders have prioritized affordable housing and neighborhood stabilization. The board’s decision to pursue negotiated terms with a nonprofit developer signals a next step in converting long-vacant CRA-owned land to housing, but final outcomes, pricing, AMI commitments and contract terms will depend on the August resolutions and later negotiations.

What to watch next. The CRA will return to the board in August with resolutions to begin negotiations; those resolutions should include the proposed terms of disposition (price or conveyance conditions), any proposed affordability covenants or AMI restrictions, financing plans and construction timelines. Commissioners asked staff to explore connections and mentoring between smaller nonprofit builders and experienced multifamily developers as part of the follow-up work.