A South Florida developer is at odds with a Miami-area municipality over plans to provide something almost unheard of: beachfront affordable housing.
Condra Property Group said it followed the letter of a new state law to promote workforce housing by proposing an $80 million, mixed-use project along North Ocean Drive in Hollywood, Florida, about seven blocks north of the Margaritaville Hollywood Beach Resort. Margaritaville opened in 2015 on city-owned land and helped spur a revitalization of the Hollywood beach.
New York-based Condra's 17-story oceanfront project would contain 282 apartments, including 114 units for people who make 120% of the area's median income.
But the city of Hollywood rejected the proposal, citing height concerns. The developer responded by filing a suit last month in Broward County Circuit Court, arguing that Hollywood is misinterpreting the state law, called the Live Local Act.
The Live Local Act, passed in 2023, provides tax incentives, density bonuses and expedited approvals for developers that dedicate 40% of a project to workforce housing.
The case could provide a precedent for how cities balance local zoning regulations with the new law designed to increase affordable housing options statewide.
In limiting the height of oceanfront buildings, the city is preventing people who couldn't otherwise afford to live on the beach, Keith Poliakoff, Condra's attorney, said in an interview.
"To have inclusive communities, you have to allow developers to build affordable housing in all parts of a county or a city, not just out west in less desirable communities," he said.
Workforce housing boost
The city is reviewing the lawsuit, according to spokesperson Joann Hussey. Hollywood is the third-largest city in Broward and about 20 miles north of Miami.
Without the Live Local Act, no developer would propose affordable housing on the ocean because it wouldn't make financial sense, according to Poliakoff. He said the number of people applying to live in Condra's project "would be insane."
The only other housing units considered affordable on or near the ocean in South Florida are condo buildings built decades ago, said Jack McCabe, a U.S. housing analyst.
But developers are buying out some of the condo associations and owners and tearing down the buildings in favor of glitzy new high-rises. That trend is even more prevalent since a statewide condo building safety law went into effect following the 2021 collapse of the Champlain Towers South in Surfside, Florida, killing 99 people.
McCabe said he agreed that cities can't limit affordable housing to certain areas. He also doesn't think Condra's project would be well-received by nearby residents.
Lower property values?
"The neighbors would be up in arms because they will assume it will hurt property values," McCabe said in an interview. "Everybody always thinks affordable housing is great, but 'not in my backyard.'"
Poliakoff countered by saying Live Local Act developments are restricted to affordable housing for only 30 years. Condra's project would be built as a luxury development, and nearby residents would "have no idea" which tenants qualified for the affordable housing units, he said.
The Live Local Act states that a city can't restrict a proposed development below the highest currently allowed height for a commercial or residential project within 1 mile. Condra's project would be 8 inches shorter than Margaritaville, according to the lawsuit.
The lawsuit accuses the city of working behind the scenes to remove barrier islands from the scope of the Live Local Act. When that failed, the suit alleges, city officials last year rejected Condra's proposal, saying the Margaritaville resort was not an acceptable height benchmark under the law because that project is located within a specialized zone for property owned or leased by a government entity.
Using Margaritaville as the height benchmark "does not meet the intent" of the city's zoning and land development regulations and the Live Local Act, Andria Wingett, the city's director of development services, said in a denial letter.
But the city is improperly using the specialized zone as a way to restrict height on the beach, according to Poliakoff. Condra said it has spent about $1 million in planning and design and is seeking declaratory relief to force the city to allow the development.
