BY MARK J. CRAWFORD
Telegraph Editor
STARKE — Sandcastle Pines is still on the drawing board for the foundation set on building affordable housing at the end of North Westmoreland Street in Starke.
The nonprofit Sandcastles Foundation has previously been denied a zoning change to allow for greater housing density. Three lots were subtracted so a zoning change wouldn’t be needed, but the site plan for the now 22-lot development was rejected for featuring a community center and a misplaced sidewalk.
These issues have been corrected in a new site plan currently under review, according to Marty Flynn, who on May 16 presented the city commission the best look yet at what the foundation intends.
Flynn said the principals of the foundation have built more than 120 affordable housing developments in 15 states over the past 20 years. This includes cities, tourist destinations and underserved rural areas.
The rental houses in Starke would form a workforce community, Flynn said. Those who live there would enjoy four-bedroom, two-bathroom houses constructed of concrete and stucco with wood cabinets, granite countertops, luxury vinyl plank or tile flooring, energy efficient appliances (including washers and dryers), and enclosed garages. The plans include homes for the disabled or sensory impaired.
Federal funding administered through the Florida Housing Finance Corporation would pay for the construction of the neighborhood, allowing the foundation to charge below market prices for rent. The deed would restrict it as an affordable housing community for 50 years. The cost of rent is based on Starke’s median household income, which in 2022 was around $56,000, Flynn said. Those earning 50% of median income would pay $1,188 a month. Those earning 60% would pay $1,426.
Royal American, which Flynn said manages more than 30,000 affordable housing units, would serve as the management company. In addition to monthly management inspections, Florida Housing conducts annual compliance inspections to assure developments remain up to standard. Landscape work would be contracted to a local company to help maintain the quality of the neighborhood, Flynn said.
He offered examples of other projects, including one in Key West where the tenants include fast food and restaurant workers, discount retail and grocery store employees, and construction trade workers. Some are even self-employed.
“In short, all of the tenants are people that work in the places you shop at. They’re part of the community,” he said.
What people in this income bracket lack is affordable housing, and the homes Sandcastles intends to build are a step up from a multifamily apartment complex, Flynn said, because they tend to attract more families and long-term tenants.
Flynn said when they opened a development in Marathon, Florida, called 73 Ocean, 51 families moved in who had never lived in new housing.
“This stuff is desperately needed. Tenants are people that work in the community. They appreciate what they have, they take care of it, and they’re great neighbors,” he said.
Flynn addressed one of the city’s concerns before commissioners had a chance to ask, and that was about Sandcastle Foundation’s nonprofit status. He said the foundation was committed to paying property taxes on the houses despite the nonprofit status. That was always a part of their financial plans, and they have spoken with the city’s attorney about putting that commitment in writing.
(Taxation is a legitimate concern. Whispering Oaks was acquired by a new owner in 2021 and went from paying more than $29,000 in property taxes to the city, county and school board to $0. Property Appraiser Kenny Clark pointed to a Florida Statute exempting nonprofits that provide housing to low- and moderate-income tenants.)
There were further questions about the maintenance of the housing, with Commissioner Danny Nugent saying he didn’t want to see a rundown development in that neighborhood. He said he would hold them to their word. Flynn told him to rely as well on the annual inspections of the Florida Housing Finance Corporation, which has high standards. Sandcastle’s attorney, Robert Williams, said it is also in the foundation’s best interests to maintain the development for rental purposes. Rent prices may be capped, but the ability to charge the higher end of that scale would depend on the quality of the housing.
Commissioner Janice Mortimer asked about onsite management since the office and community center were removed from the plan. Someone will be hired who qualifies for the housing to live in one of the homes and carry out day-to-day management responsibilities.
Commissioner Andy Redding asked about the frequency of maintenance, and Flynn assured him there is a reserve to cover any issues that come up during an inspection. Florida Housing periodically provides funds for rehabilitation projects as well.
Mayor Scott Roberts talked about some details he felt were red flags, including having a single owner of a residential neighborhood.
Roberts also referred to the Sandcastle Pines project as subsidized housing, prompting Flynn to clarify the difference between the federal subsidized program and the state’s affordable housing program.
Subsidized housing is when HUD issues a voucher that recipients can use to help cover rent payments to approved landlords. The affordable housing program Sandcastles is participating in is not that. It is public-private partnership between the state and developer that helps keep rent affordable for qualified tenants. It is not a new program, having started in the 80’s. Flynn said a major difference from subsidized housing is that with a lot of different landlords there is a lot of difference in both cost and what tenants receive for that money. Florida Housing programs are different.
“Where, as you say, who’s the parent company? In a lot of ways, Florida Housing is like the parent company. They’re setting the standards. They’re checking to make sure that the developers and the owners are keeping up with those standards through the years,” he said.
Williams pointed out that it is a growing trend to have single family homes, including entire neighborhoods,
The mayor said it sounds nice, but he wanted more information about the program and the standards the foundation must operate under.
Roberts said he appreciated the discussion and further explanation of the developer’s intentions and housing program. Additional information was promised, and commissioners expressed interest in seeing similar developments up close.
