Affordable Housing Development Incentives and Funding Programs

Live Local Project

The city of Clearwater offers the following incentives to developers in the form of variances, exemptions, and benefits related to land use, permitting, and development fees to encourage affordable housing development.

Download the Affordable Housing Development Incentives Summary for a complete guide to available incentives and city processes. Contact us at 727-562-4030 to discuss your specific development needs. 

Land Use and Development Incentives

Expedited Permit Processing for Affordable Housing Activity

Reviews of single-family permit applications are expedited and moved to the front of the queue. They are to be completed within four days of the initial submittal and three days of all subsequent submittals.

Affordable Housing Density Bonus

Mixed-income affordable housing developments may receive bonus units based on the percentage of affordable housing units provided for households making up to 120% AMI. The percentage of affordable housing units includes the bonus units in that calculation.

Affordable Housing Parking Reduction

Parking requirements are reduced for those dwelling units that are affordable and located within a specified distance from a transit stop as outlined within Section 3-920. – Affordable housing incentives of the City of Clearwater Community Development Code.

Affordable Housing Fee Reduction and Subsidy

Building permit fees and multimodal impact fees can be reduced for certified affordable housing projects. Specifically, plan review and permit fees for one- or two-family residential affordable housing projects, as defined in Article 8 and certified by the Economic Development and Housing Department, are reduced by 75%.

Impact fees may be reimbursed for affordable single family home development, subject to funding availability. Parks and Recreation Impact Fees for single-family homes are waived for projects qualifying as affordable housing. The multi-modal impact fee contains a fee reduction for affordable housing projects.

Nonconforming Structures Exemption for Affordable Housing

Any nonconforming structure that is used for affordable housing may be repaired, maintained, or improved at any time without regard to increases in assessed value, as outlined in Nonconforming structures Section 6-102, subsection B, which could have otherwise required the property to be brought up to current code compliance. They are also not constrained by a six-month permit application deadline if damage or destruction occurs to the property, as described in subsection D. Criteria include requirements such as the property may not be in a special flood hazard area, and the exemption shall not be contrary to the public interest or contrary to the Florida Building Code.

Public Amenities Incentives Pool

The Public Amenities Incentives Pool allows for density and/or intensity increases in excess of the allowable maximum development potential established for a parcel for projects that meet the goals, objectives, and policies of the Clearwater Downtown Redevelopment Plan and that are consistent with the vision established for the character district in which the projects are located. Specifically, the City of Clearwater’s Planning and Development Department may offer additional du/ac or FAR in exchange for Public Benefits identified in the Community Development Code, including:

  1. Rental residential units
  2. Overnight accommodations
  3. Class A office space
  4. Leadership in Energy and Environmental Design (LEED) gold certification
  5. Public parking
  6. Public art
  7. Streetscaping
  8. Electric vehicle parking spaces

Alternatively, projects may offer payment-in-lieu of a public amenity to receive bonus density.

Comprehensive Infill Redevelopment Projects (CIRP)

The provision of affordable housing is a beneficial use outlined in the development code and thus may qualify as a Comprehensive Infill Redevelopment Projects. CIRPs (or Comp Infill Projects) are development or redevelopment projects that have an innovative use of land, which do not conform to typical land use categories or development forms, or which are otherwise impractical without deviations from the use and/or development standards set forth in the underlying zoning district. Comp Infill Projects are designed and located in a special or innovative form with special functions or character which are beneficial to a particular part of the city of Clearwater and the citizens of the city of Clearwater as a whole, consistent with the Comprehensive Plan. Comp Infill Projects are allowed in certain districts and may request certain flexibilities.

HB 1339 and Live Local Act

The Live Local Act provides several land use incentives, including density, height, and parking flexibilities, and tax exemptions which can be utilized to offset the cost of affordable housing development. 

Direct Benefits Programs

The following programs offered by the City of Clearwater provide direct benefits to developers such as grants, below-market-rate financing, and land donations.

Brownfields Assessment and Cleanup Grant Program

The city has approximately $168,000 for environmental assessment through EPA’s Multipurpose, Assessment, and Cleanup (MAC) grant, and $698,000 for either assessment or cleanup through the EPA’s Brownfields Revolving Loan Fund (RLF) grant, available to eligible tax-exempt entities. Some eligible for-profit entities may apply for procurement of Phase I and II Environmental Site Assessments as well.

Funding for Multi-Family Homes

Funding sources that can be utilized for various types of multi-family development needs, including acquisition, rehabilitation, construction, infrastructure support, and more, is available through (non-exhaustive list):

  • U.S. Housing and Urban Development’s various funding programs
  • Florida’s State Housing Initiatives Partnership (SHIP) funds
  • Low-Income Housing Tax Credits (LIHTC) and other state and federal tax policies and programs
  • Penny for Pinellas funds
  • City of Clearwater American Rescue Plan Act (ARPA) funds
  • General revenue

These and other funding sources which may become available from time to time are subject to availability and qualifying criteria.

Single-Family Lot Disposition Program

The City of Clearwater may donate or sell at below market-value city-owned lots for the development of affordable single-family homes. These lots are typically acquired by the city after tax foreclosure and are competitively awarded to qualifying buyers.

*Note: The city recently transferred its last available lot under this program and is working to make updates to the program.

Funding for Single-Family Homes

The city offers a deferred payment, zero-interest acquisition loan, a construction loan, and a combination acquisition and construction loan to qualified single-family home developers who agree to sell the home to an income-restricted homebuyer. 

Other Sources of Benefits

Other local, state, and federal resources are available to affordable housing developers. The following potential or existing sources provide, either through formula, allocation, or competitive process, benefits such as grants, tax credits or exemptions, below-market-rate loans, or other resource or monetary benefit for land or property acquisition, actual construction costs, or related infrastructure construction for single- or multi-family affordable housing development. Varying rules and restrictions apply to each program and can be found on the online resource pages for that program. For local sources, rules and restrictions may be up to the discretion of the local elected body.

City of Clearwater 

  • Clearwater general revenue funds
  • Local American Rescue Plan Act (ARPA) funds/State and Local Fiscal Recovery Funds (SLFRF)
  • Community Redevelopment Area (CRA) funds:
    1. Downtown Clearwater CRA
    2. North Greenwood CRA

Pinellas County 

  • Pinellas County Economic Development’s Brownfield Redevelopment Program
  • Penny for Pinellas funds and Community Land Trust land

State

  • Florida Housing Finance Corporation (FHFC) funds:
    1. Predevelopment Loan Program
    2. State Housing Initiatives Partnership (SHIP) Program
    3. State Apartment Incentive Loan (SAIL) Financing
    4. Low Income Housing Tax Credits (LIHTC)
    5. Elderly Housing Community Loan
    6. Grants for Persons with Developmental Disabilities
    7. Multifamily Mortgage Revenue Bonds (MMRB)/Noncompetitive 4% HC
    8. Other grants and financing offered through Request for Applications (RFA)

Federal

  • U.S. Housing and Urban Development (HUD) program funds:
    1. Community Development Block Grant (CDBG)
    2. HOME Investment Partnerships Program
    3. Other grants and financing offered through Notice of Funding Opportunity (NOFO)
  • Opportunity Zone