Senior housing hits snag with Maitland City Council

An affordable housing project for seniors is set to be the next piece of the puzzle to fall into place in the planning of Maitland’s proposed downtown district, but concerns over codes have Maitland City Council members questioning its profitability to the city.

City officials are working to determine if the 93-unit, $22 million Atlantic Housing Partners project, dubbed Uptown Maitland, will pay property taxes.

The project is working its way through design approval through the city’s Development Review Committee. Pending approval, the project is set to begin construction by the end of the year on the northeast corner of U.S. Highway 17-92 and Sybelia Parkway.

“The train keeps rolling, and you know I keep waving and saying I’m not happy about this, but nothing stops and nothing happens,” Councilman Phil Bonus said at the July 23 meeting about the questionable tax status.

To learn about Atlantic Housing Partners and other communities it has developed in Central Florida, visit atlantichousing.com

Developer Atlantic Housing Partners is following the standards of a development agreement signed in 2003 – two projects at the same site having fallen through previously. The project will be funded partially by tax credits provided by the Florida Housing Financing Corporation to allow the housing to be offered at an affordable rate to households led by folks ages 55 and older.

Design plans currently include a two-floor parking garage built with ground-level street-facing retail space, a second floor of 4,000 square feet of commercial office space and three floors of affordable senior apartments above that.

After researching the project, Bonus said he wanted to shine light on the project for curious nearby residents and also determine whether its affordable housing status could qualify the property for ad valorem tax exemptions, costing the city considerable tax revenue.

“If they’re going to build the project they need to support the city because we support them,” Mayor Howard Schieferdecker said. “That’s where the concern lies in them having the ability to become tax exempt.”

Atlantic Housing Principal Scott Culp said the tax exemption that Bonus is referencing applies to affordable housing projects run entirely by nonprofit organizations with no tax credit funding. While AHP does partner with a nonprofit to run services in its senior housing facilities, he says other statutes deem it ineligible for tax exemptions due to the 15 years of tax credit funding.

Scott Clark, attorney for AHP, cited a court case in Miami – TED/Shell City Inc. v. Robbins – in 1997 as evidence that development projects using tax credits, as AHP is, have been denied tax exemption status in court.

To keep up to date on future news, meetings and workshops regarding the Uptown Maitland project, visit itsmymaitland.com. As of now, the project is scheduled to present again in front of the Development Review Committee on Sept. 20.

Assistant City Attorney Virginia Cassady said that after that minimum of 15 years of tax credit funding, AHP can continue to hold the property or sell it. If sold to a nonprofit, she said, it could potentially qualify as exempt from ad valorem taxation.

“I can’t predict the future… but that’s not what we’re developing,” Culp said.

At their July 23 meeting, City Council members decided to further research options in making sure redevelopment properties meet tax revenue expectations. They plan to meet with Cassady to assess their options for the Atlantic Housing Project and future developments. Culp said AHP is also working with the city to arrange an informational meeting to introduce the project to residents.

“That project is likely to be one of the first to come out the ground soon,” Bonus said, “and it’s important that all citizens have the idea of what to expect when they see it.”