Orange County Allocates $58.5M for Affordable Housing NOW

UPDATE: In a decisive move to combat the housing crisis, Orange County Commissioners have just approved the allocation of $58.5 million for the Affordable Housing Trust Fund over the next three years. This funding is set to significantly boost the construction and preservation of 3,570 affordable housing units from 2026 to 2028, according to reports from GrowthSpotter.

This urgent funding initiative is critical as Orange County grapples with an escalating housing affordability crisis. The county anticipates that, combined with federal and state resources, an estimated 5,000 affordable units will be created or preserved, providing vital support to residents earning between 30% and 80% of the area median income (AMI).

To put this into perspective, an individual earning $59,050 or a family of four making $84,300 annually qualifies at the 80% AMI threshold. The 30% mark, critical for the most vulnerable, is set at $22,150 for individuals and $31,600 for families of four.

Commissioners unanimously backed this funding during a board meeting last week, marking a pivotal step in a 10-year action plan initiated in 2019 aimed at producing or preserving 11,000 affordable units by 2030. In the preceding years, the trust fund has already financed 2,367 units and aided an additional 2,590 units through other funding sources.

The upcoming funding will largely focus on “gap financing,” a strategy enabling the county to provide crucial funds to make affordable housing projects feasible. This method ensures that developers can fill financial gaps, making it possible to bring projects to fruition quickly.

“This closes the funding gap on projects to secure the production and acquisition of affordable housing units,” said Alyssa Henriquez, Assistant Project Manager for Orange County’s Housing and Community Development Division. “We use this funding to provide extra leverage for projects that may be funded by state or federal resources.”

Among the projects benefiting from previous funding is the Mariposa Grove tower, a planned 138-unit development in downtown Orlando by Banyan Development Group. This project highlights the county’s commitment, as voters recently approved making the affordable housing trust fund permanent, starting with an initial $10 million investment in 2020.

Going forward, the county is set to increase its annual investment by 10%, with projections estimating approximately $17.7 million in 2026, $19.5 million in 2027, and roughly $21.3 million in 2028. Orange County Mayor Jerry Demings emphasized the importance of collaborative efforts: “We have been able to close the affordability gap in this community, and we will continue to do that.”

In addition to the funding increases, a code amendment in 2021 exempted developers building certified affordable housing from county impact fees, facilitating quicker project approvals. For instance, a $2.2 million exemption was granted to Banyan Development Group for the Barnett Villas, a 156-unit community nearing completion in Pine Hills.

As the groundbreaking for new developments approaches, the community watches closely. The Osprey Sound community, a 100-unit project set to rise off Orange Blossom Trail, is set for its groundbreaking later this month, signaling continued momentum in affordable housing initiatives across Orange County.

The urgency surrounding affordable housing solutions in Orange County could not be clearer, and as funding rolls out, residents and stakeholders are keenly aware of the positive impact these initiatives will have on the community.

For ongoing updates on development projects in Central Florida, please contact me at (407) 607-8160 or [email protected]. Follow GrowthSpotter on Facebook and LinkedIn for the latest news.