Terra affordable housing to rise on Government Center parking

Written by Richard Battin on October 1, 2024

A resolution that county commissioners passed unanimously Tuesday would transform two underused parking areas near the South Dade Government Center into affordable housing projects, projected to generate almost $263 million in rental income within a century.

The sites are a 7.3-acre parcel in Cutler Bay and a 3.4-acre parcel of adjacent land on the property’s west side.

Situated alongside major transportation corridors, the project will turn underused parking lots into new affordable housing developments with amenities, including Wi-Fi, a pool, clubhouse, fitness room, flexible workspace, and surface parking spaces for the residents.

The county will make a lease and development agreement with Terra development subsidiary TAF SDGC for 352 units affordable to moderate-income families in the 7.3-acre Phase 1 stage. Moderate income consists of up to 120% of the area median income (AMI), which would be $95,280 on an AMI of $79,400.

The projected total ground rent revenue is $71.4 million, with an initial rental payment of $5.8 million.

Additionally, the agreement includes a five-year exclusive option to lease 3.4 acres of adjacent property, currently assigned to a county fleet operation facility.

If that land becomes available as surplus, TAF or its affiliate, in a Phase 2 plan, would build a minimum of 323 additional units of affordable housing with some surface parking.

In the two-parcel scenario, the minimum total of affordable housing units possible would be 675. The projected total ground rent revenue for Phase 2 would be around $192 million, with a Phase 1 combined total of around $263 million.

This cap on rents would remain for the entire 99-year lease term in line with Mayor Daniella Levine Cava’s “priorities to expand long-term affordable housing opportunities during an urgent affordability crisis.”

Currently, the Phase 1 property has an Animal Services Department trailer “in bad condition,” according to a report to the commission. The agreement calls for the tenant to contribute $100,000 to help fund replacing and relocating it.

Relocation costs currently are estimated at $500,000 if the relocation involves the purchase of a new trailer and connection to water and electricity, and up to $2 million if the relocation involves buying a building instead of a trailer for Animal Services.

The project would be monitored by a team of real estate and development professionals led by Raquel M. Matas, the Internal Services Division real estate and development special advisor.

Compliance with the affordable housing regulations regarding eligible tenants and rental caps is to be monitored by the Public Housing and Community Development Department.

Terra International Services is the parent company to TAF. A report to the board describes it as a “local award-winning real estate development company which has successfully completed over 8 million square feet of development throughout South Florida.”
Terra’s other projects with the county include Grove Central in Coconut Grove and Upland Park.