Sale of Graham Park and Rogall Congregate
The Graham/Rogall development is a high rise complex with a total of 486 units, located in downtown St. Petersburg, which formerly served elderly, handicapped and disabled residents through SPHA’s public housing and project-based Section 8 programs. Graham Park was constructed in 1971, and Rogall Congregate was constructed in 1978. The buildings are adjacent to each other and share one common hallway.
In recent years, new U.S. Department of Housing and Urban Development (HUD) guidelines have been issued for housing authorities, requiring that each public housing development be independently sustainable. In the case of Graham/Rogall, the housing authority was faced with numerous problems due to the sustainability of the structures, including the need for extensive and expensive renovations to bring the apartments, common areas, and building systems up to contemporary federal standards and operational efficiencies. In addition, HUD also has put federal policies in place to deconcentrate areas of poverty.
SPHA held a public sale for the Graham and Rogall properties in 2004, and Vector Realty was selected as the highest bidder. However, the sale then faced a prolonged lawsuit brought on by Village Partners, an unsuccessful bidder to purchase the properties. Although the lawsuit was dismissed with prejudice in favor of the housing authority, the two-year lag time caused by the litigation saw marked changes occur in the real estate market and a significant change in the ownership structure of the Vector Realty team with the sale of their financial interest to KEGB. As a result, Vector Realty’s original plan for the buildings’ use also changed from subsidized housing to affordable workforce housing. In October 2007, the housing authority requested that HUD terminate the existing use restriction on the properties, and HUD complied.
Beginning in 2008 with the sale still pending, SPHA began to relocate Graham/Rogall residents. SPHA’s dedicated relocation team, with the assistance of Boley Centers and Bay Area Legal Services, worked one-on-one with residents to ensure that they have quality, affordable and sustainable housing that meets their individual needs. Housing Choice Vouchers (also known as Section 8 vouchers) for replacement housing were offered to all residents - these were special issue vouchers from HUD and did not impact SPHA's existing Section 8 wait list. SPHA paid for all relocation-related expenses for residents. The relocation process took place over the course of 15 months with all residents successfully moved. As of September 30, 2009, the Graham/Rogall buildings were vacated.
While the relocation of residents was taking place, KEGB announced that they could not move forward with the deal. In July 2009, SPHA publicly advertised for proposals from developers for their ideas for the future of the properties. Five proposals were received.
In July 2009, SPHA also announced its two-phase redevelopment plan for the Graham Park and Rogall Congregate properties. The housing authority planned to demolish the Graham building and to
build 50 brand-new one and two bedroom units in its place. SPHA
also planned to renovate the Rogall building to 105 larger apartments. SPHA
applied for more than $17 million in grant funding for this redevelopment plan, including $14.5 million from the Neighborhood Stabilization Program (NSP-2) for the renovations at Rogall and construction of new units and $2.6 million under Category I of HUD's Capital Fund Recovery Competitive (CFRC) grant for the demolition of Graham.
SPHA learned in early 2010 that it was not awarded the funding.
On February 25, 2010, the SPHA Board of Commissioners held a public workshop to review and discuss alternative plans, including the five developer proposals, and financing options for the properties. The board directed staff to readvertise the properties in the local real estate market, while simultaneously researching national real estate firms that might assist in finding a suitable buyer.
In late February and March 2010, SPHA again advertised its intention to sell Graham/Rogall and publicly invited offers for the purchase of the properties through newspaper advertisements and notices posted on the housing authority website. Two written offers were received.
On April 5, 2010, the SPHA Property Acquisition Committee met publicly to discuss the offers received on the Graham/Rogall building from the local advertisement and to determine the committee's recommendation for the full board. In a special call board meeting on the same day, the SPHA Board of Commissioners directed the housing authority's chief executive officer to pursue one of the offers to full contract.
The housing authority requested final and best offers from the two bidders to be received by 12 noon on Friday, April 9, 2010. After careful consideration of the terms of both offers, the SPHA Board of Commissioners at their April 22 regular board meeting approved a resolution to authorize the chief executive officer to negotiate and execute a $6.8 million purchase and sale agreement for the Graham Park and Rogall Congregate properties with local developer Phil Farley.
On May 14, 2010, the St. Petersburg Housing Authority (SPHA) and local developer Phil Farley, doing business as Urban Style Flats, LLC, entered into a purchase and sale agreement for the Graham Park and Rogall Congregate properties for $6.8 million.
Upon the signing of the agreement, Farley provided the housing authority with an $800,000.00 non-refundable deposit. He leased the Rogall portion of the properties from SPHA for $6,400.00 per month for a six-month period. The sale of the buildings closed on November 1, 2010, and the remainder of the sales price was transferred to SPHA..
The refurbished units now serve first responders (firefighters, police, nurses, etc.), educators and student populations with affordable, all-inclusive monthly rents. More information on the renovated units can be found at www.urbanstyleflats.com.
SPHA's Plans for the Sales Proceeds
SPHA plans to reinvest the proceeds of the sale in the development or acquisition of more public and affordable housing properties throughout its jurisdictional area, which encompasses the city of St. Petersburg and a 10-mile radius outside of the city. Our staff, including a licensed real estate agent, currently is working to identify potential properties. SPHA's goal is to reduce the concentration of poverty in some areas of the city per U.S. Department of Housing and Urban Development (HUD) regulations, to encourage residents’ access to jobs, and to provide a wider variety of housing options for low-income families. None of the sales proceeds will be used in the purchase of a new central office for SPHA.
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