Miami city commissioners have approved the transfer of two parcels of land and up to $8 million in forgivable loans to developers for affordable and workforce housing projects in Little Havana. The decision comes as local governments face criticism for offering incentives such as free land to developers, often at prices some argue are below market value.
Officials say these measures are intended to encourage the construction of affordable housing, which is in high demand in South Florida due to many residents being burdened by high living costs.
Under the approved deals, N.R. Investments will receive a half-acre-plus site at 1340 Southwest Eighth Street and 825 Southwest 13th Court. The developer plans an 11-story mixed-income building with about 114 apartments under the Live Local Act. The city will also transfer a 0.6-acre site at 1251 Southwest Seventh Street to Mabruk USA, which aims to build a 12-story building with 105 units.
Each developer is eligible for up to $4 million in forgivable loans from different funding sources. N.R. Investments’ loan will be financed through the city’s District 3 capital reserve, affordable housing public benefits fund, and funds from MiamiCoin cryptocurrency. Mabruk USA’s loan will come from federal HOME Investment Partnership Funds.
According to documents, the city will purchase the development site for N.R. Investments for $5.9 million before transferring it to the developer. The properties currently house a retail plaza owned by Lopez Optical and an office building owned by Ray Optical.
N.R. Investments, led by Ron Gottesmann and Nir Shoshani, proposes a mix of studios, one-bedroom, and two-bedroom apartments along with ground-floor retail space and a three-story parking garage. Approximately 80 apartments will be rented below market rates for households earning between 60% and 120% of the area median income (AMI). Miami-Dade’s annual AMI is $87,200 according to recent data from the Florida Housing Finance Corporation.
Mabruk USA’s project, led by Nuri Dorra and Dr. Ingrid E. Dorra, will include one- and two-bedroom apartments as well as ground-floor retail and a four-story garage. All units are planned for households earning up to 80% of AMI.
The agreements stipulate that if either developer fails to complete their project, ownership of the property reverts back to the city.
While these items passed without discussion at Thursday’s commission meeting, another deal involving Watson Island drew scrutiny after land valued between $257 million and $342 million was sold for $29 million—a practice permitted under county rules allowing surplus or underutilized land transfers backed by commissioners.
Miami-Dade County has previously transferred publicly owned “surplus” land through no-bid sales or leases at below-market value if supported by a commissioner for development on designated underutilized sites.
