Miami city commissioners have approved the transfer of free land and up to $8 million in forgivable loans to two developers for affordable and workforce housing projects in Little Havana. The decision comes as local governments face criticism for offering incentives such as land transfers at allegedly below-market prices.
Officials argue that these incentives are necessary to encourage the construction of affordable rental units, which remain in high demand in South Florida due to many residents being cost burdened.
The approved deals will see the city give a half-acre-plus site at 1340 Southwest Eighth Street and 825 Southwest 13th Court to N.R. Investments. The company plans an 11-story mixed-income building with approximately 114 apartments under the Live Local Act. The city will also transfer a 0.6-acre property at 1251 Southwest Seventh Street to Mabruk USA, which aims to build a 12-story building with 105 units.
Each developer is eligible for up to $4 million in loans from the city. For N.R. Investments, funds will come from District 3’s capital reserve, affordable housing public benefits fund, and resources related to MiamiCoin cryptocurrency. Mabruk USA’s loan will be funded by federal HOME Investment Partnership Funds.
According to documents provided before the commission meeting, if either developer fails to complete their project, ownership of the properties will revert back to the city.
N.R. Investments’ planned development includes about 41 studios, 52 one-bedroom apartments, and 21 two-bedroom apartments, along with ground-floor retail space and a three-story garage with parking for about 90 vehicles. Approximately 80 of these apartments are intended for households earning between 60 percent and 120 percent of area median income (AMI). As per Florida Housing Finance Corporation data, Miami-Dade’s AMI stands at $87,200 but may be updated next spring.
Mabruk USA proposes a mix of one- and two-bedroom units—30 one-bedrooms and 75 two-bedrooms—all offered at below-market rents for households earning up to 80 percent of AMI. Their plan also includes ground-floor retail space and a four-story parking garage.
During Thursday’s meeting where these items were approved without discussion, another deal involving Watson Island drew scrutiny after reports indicated that land appraised between $257 million and $342 million was sold for only $29 million.
The county has previously transferred surplus or underutilized land directly to developers through no-bid processes under existing rules that permit such actions when backed by a commissioner.
