In a March 24 vote, Jacksonville City Council approved a $5 million loan for an affordable housing development that drew support from Republican Council members and from Mayor Donna Deegan, a Democrat.
With an 18-0 vote on Ordinance 2026-0150, The Vestcor Cos. is set to receive the loan for development of a 240-unit affordable housing community along Beach Boulevard near St. Johns Bluff Road. Construction of the eight-building project is set to take place on 11 acres of vacant land at 11000 Beach Blvd., less than one-half mile west of Interstate 295.
All units in the three-story buildings would be reserved for renters with up to 60% of the area median income.
Should the city approve the loan, Vestcor would contribute $5 million in direct investment and would pay about $7.35 million for the land, according to a staff memo accompanying the legislation.
“It’s a good, creative way, and fiscally responsible way to get it done,” said Council Vice President Nick Howland during a meeting of the Neighborhoods, Community Services, Health and Public Safety Committee. Howland co-introduced the legislation with Deegan’s administration.
Council member Jimmy Peluso voted for the bill but called for Council to approve more funding for affordable housing. Peluso noted that Council removed a $10 million allocation for an affordable housing trust fund from the 2024-25 city budget that could have received a 3-to-1 match in private funds for affordable housing.
“Very happy for this bill. Very grateful for this bill. Still just a drop in the bucket,” Peluso said.
Terms call for the loan to be paid back at a 1% simple interest rate over 20 years, according to the memo, with a payment of any outstanding principal balance paid back at the conclusion of the loan. The loan would be financed through the city’s general fund.
The total development cost is listed at $56.5 million. Construction is set to begin by Sept. 1, 2026, and be completed by May 1, 2028, according to an economic development agreement attached to the memo.
Plans for the community include 96 one-bedroom units, 96 two-bedroom units and 48 three-bedroom units, according to the memo. It will also feature a clubhouse, pool and dog park. Projected rents are $1,082 for a one-bedroom, one-bathroom unit, up to $1,504 for a three-bedroom, two-bathroom unit.
The property at the address comprises two parcels totaling 13.38 acres, according to the Duval County Property Appraiser’s Office. They are owned by Pamela Equities Corp., a real estate company based in New York City.
There are two 12,000-square-foot buildings at the front of the properties. Dollar Tree, Little Caesars Pizza and Happy Hound Dog Resorts are tenants. A strip mall behind those buildings was demolished.
East of the apartment site is the St. Johns Square shopping center owned by Sleiman Enterprises. To the west is the Countryside Village manufactured home community.
The memo said Vestcor would begin permitting for the property once the city approved the loan.
Permitting, which is projected to take six months, would be followed by 14 months of construction. The project will be funded with a mix of private money and the city’s tax credit financing.