Miami commissioners have approved the transfer of free land and up to $8 million in forgivable city loans to two developers for new affordable and workforce housing rental projects in Little Havana.
The decision, which passed as criticism grows over South Florida governments granting incentives—such as land at allegedly below-market prices—to developers, aims to address the region’s acute shortage of affordable rental housing. Local officials have argued these incentives are necessary to motivate the construction of much-needed housing for cost-burdened residents.
Under the new agreements, Miami will convey a site of just over half an acre at 1340 Southwest Eighth Street and 825 Southwest 13th Court to N.R. Investments. The developer plans to build an 11-story, mixed-income property with approximately 114 apartments utilizing provisions of the Live Local Act.
Additionally, a 0.6-acre parcel at 1251 Southwest Seventh Street will be transferred to Mabruk USA, which intends to develop a 12-story building with 105 residential units, according to documents attached to the city commission agenda. Each developer is eligible for up to $4 million in city loans.
The land transfers and loans were approved by city commissioners at Thursday’s meeting without public discussion.
Funding for N.R. Investments’ loan will be sourced from District 3’s capital reserve, the city’s affordable housing public benefits fund, and affordable housing or rental assistance program funds, including those generated through the MiamiCoin cryptocurrency, according to agenda documents. (District 3 encompasses the Little Havana area.)
Mabruk USA’s loan will be provided through the federally funded HOME Investment Partnership Funds.
For the N.R. Investments project, the city will purchase the development site for $5.9 million and transfer ownership to the developer, according to the South Florida Business Journal.
Property records indicate that the lot at 1340 Southwest Eighth Street, currently a retail plaza, is owned by Lopez Optical, while the site at 825 Southwest 13th Court—home to a two-story office building—is owned by Ray Optical.
Miami-based N.R. Investments, led by Ron Gottesmann and Nir Shoshani, has proposed a development featuring about 41 studios, 52 one-bedroom apartments, and 21 two-bedroom apartments. The plans include roughly 7,000 square feet of ground-floor retail and a three-level parking garage with 90 spaces, according to a letter the firm sent to the city in October.
Approximately 80 of the apartments will be offered at below-market rents, designated for households earning 60%, 100%, and 120% of the area median income (AMI).
Currently, Miami-Dade’s annual AMI is $87,200, as reported by the Florida Housing Finance Corporation, though this figure is expected to be updated in the spring.
The site being transferred to Mabruk USA is already owned by the city and is currently vacant. Mabruk USA, led by Nuri Dorra and Dr. Ingrid E. Dorra of North Miami Beach, is proposing a project with 30 one-bedroom and 75 two-bedroom apartments, ground-floor retail, and a four-story parking garage, according to the agenda documents.
All apartments in the Mabruk USA building will be priced below market rates, targeting households with incomes up to 80% of the AMI.
The approval from the city includes a stipulation: if the developers do not complete the projects, ownership of the properties will revert to the city.
While these items passed easily at Thursday’s meeting, a separate deal involving Watson Island drew criticism.
The city approved the sale of 3.2 acres on Watson Island to BH3 and Merrimac Ventures for $29 million. The transaction has sparked controversy after an appraisal valued the land between $257 million and $342 million, according to the Miami Herald.
Miami-Dade County has a history of designating land as surplus and transferring it to developers at below-market value through no-bid sales or leases. These arrangements are permitted under a county rule allowing a commissioner to support a developer’s proposal as long as the site is officially considered underutilized.
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