On April 3, the West Palm Beach City Council approved an agreement between the Department of Housing and Community Development and Affiliated Development, a company involved in property investment and construction and headquartered in Fort Lauderdale.
Under this agreement, the developer will build the eight-storey residential project The Spruce with 270 residences for people with various levels of income. The complex will be located in the Northwood Village neighbourhood of West Palm Beach, Florida. Affiliated Development will receive $2.5 millions’ worth of grants over three years and certain discounts. It will also be exempted from paying some fees.
The construction is due to begin in the fall 2023. The new residential complex The Spruce will feature car parking, retail outlets on the ground floor, a pool on the roof, a lounge for co-working, a pub decorated in a sports style, a fitness centre with a yoga studio and a stationary bike hall, a pickleball court, and a dog park where pets can be walked without a leash.
This is the second public-private partnership agreement between Affiliated Development and West Palm Beach. Within the first case of cooperation, construction of The Grand complex worth $85 million started in September 2021. This project with 309 residential units will be commissioned in May 2023.
Both complexes will have housing for low-income citizens. For instance, 204 apartments in The Grand will be designated for working-class people. A rent threshold equal to 100% of the Area Median Income is established for 80 residences, and an 80% threshold, for 10 more units in The Spruce. The cheapest property will be available for $1,380 per month.
Nick Rojo, President at Affiliated Development, noted that the crisis of workforce housing in South Florida requires immediate action. Almost 60% of households renting accommodation in Palm Beach County spend a significant portion of their income on that. The cost of rent in this county is among the highest in the USA. Mr. Rojo named the influx of new residents and commercial enterprises to West Palm Beach a factor that made the problem worse, additionally increasing the demand for housing.