Developer secures financing for $39M Pasco affordable housing project

McDowell Housing Partners, an affordable housing developer and investment company, has closed on the financing for and has started construction on the second phase of a $38.9 million development in Pasco County.

The project is Ekos at Bayonet Point II, part of a three-phase master-planned community that will bring 360 affordable units to a property in Hudson about a block from HCA Florida Bayonet Point Hospital.

The project, according to a statement from McDowell, is being financed with tax-exempt bonds issued by the Florida Housing Finance Corp., 4% housing tax credits and subordinate financing awarded by FHFC through its State Apartment Incentive Loan, Extremely Low Income and HOME-American Rescue Plan programs.

Wells Fargo Community Lending & Investment provided equity through the purchase of the housing tax credits and placed the senior construction financing. Permanent financing will be provided by Freddie Mac and serviced by Wells Fargo Multifamily Capital.

The new construction is of a single five-story, elevator-served building with 120 one-bedroom, one-bath apartments averaging 660 square feet. Rents and incomes will be restricted across three tiers of Area Median Income: 105 apartments at 60% AMI; 12 apartments at 40% AMI; and three apartments at 22% AMI.

Six apartments will be set aside for residents with special needs.

Christopher Shear, McDowell Housing Partners’ president, says the company assembled 29 acres in 2023 and rezoned the property in 2024.

It will deliver Phase 1 with 114 units for seniors later this year.

The new phase phase is expected to be completed in spring 2028.