By Leah Burdick
Tampa General Hospital is concerned that its workers can not afford housing in the area, resulting in a plan to create a $60 million apartment complex.
The complex will have one to three-bedroom options, possible childcare services and other amenities.
According to an article by Florida Politics, the new complex plans to house 300 individuals.
The apartment rent will be below market rate for the downtown area, by being located in Brandon, Florida.
The complex will be located at Delaney Creek Blvd., which is around a 13-minute commute to the hospital with tolls.
This makes it accessible for employers who don’t want to stray too far from the city.
Apartments.com states a one-bedroom apartment in Brandon is around $1,400 a month.
According to the Tampa Bay Times, the apartment building is classified as workforce housing. It will be offered to hospital employees and USF Health workers who make between 80% and 120% of the area’s median income.
Senator Jay Collins has been in support of the hospital’s plans and requested the state budget of $25 million back in 2023.
In an article by WUSF, Collins said “state funding is necessary to offset costs “to construct and operate a similar product with market rate debt and equity requirements” to meet the area’s medium income rental range.”
The hospital has already obtained $10 million from the state budget toward the complex.
They bought 5.2 acres of property for $2.5 million in 2021, according to documents handed to the Tampa Bay Times by the Hillsborough County commissioners.
With the housing crisis still in effect, the hospital officials told the Tampa Bay Times that this will attract and keep workers.
The area has been struggling with keeping residents who work for not only hospitals but also schools because pay can’t accommodate rent prices.
Anthony Cimino, an investment associate for Carter Funds, said the average one-bedroom apartment in the downtown Channelside area is around $2,200 a month. He said to live comfortably you should make around $105,000 annually before taxes.
Cimino also said that the cost of construction parts has increased and the lack of availability could be a reason they are building in Brandon.
“There is only so much land in South Tampa and downtown, newer building costs have increased and rent has increased. The Tampa General area is not what it was 10 years ago to now, it’s more desirable,” said Cimino.
He said that the population growth trends in the area have been going on for the past 15 years. COVID-19 has played a big part in the acceleration of population growth.
“People are moving to Tampa for better quality of life and job/business opportunities the area has to offer,” said Cimino.
He also said that if they were to find land and build an apartment complex by the hospital, it would be much more than what they plan to pay in Brandon.
According to Tampa.Gov, the annual household income needs to be more than $35,000 to afford the market rate of an average one-bedroom apartment. This is more than twice the income earned from minimum wage.
The minimum wage as of August 2024 is $12 and it will increase to $13 on Sept. 30th. According to WorkStream, this is not considered a livable wage for the area.
The Tampa.Gov graph shows that a cardiac technician makes around $42,700. This is just below the income for a two-bedroom apartment of $43,840. A nursing aid makes around $28,500.
This graph does not specify if these incomes are for specific areas located in Tampa.
The graph shows the average between Tampa, St. Pete and the Clearwater rental market.
Speros Margetis, professor of finance, said rent has made living costs expensive, especially in downtown Tampa.
This is due to Tampa being a fast-growing city. Meaning there is more demand for housing than supply. This drives prices and interest rates up.
With Tampa General’s downtown location, Margetis said working people can’t afford that.
“The fact they are providing housing is a sign that one real estate is expensive and then also Tampa General is the premier hospital in Tampa, they are trying to attract the best employees,” said Margetis.
As a top hospital in the area, this will be an added service for the workers.
The construction will begin in October and finish in the fall of 2026.
The City of Tampa has been developing new plans and budgets to help assist with the housing crisis and provide more affordable housing.
The minimum wage is expected to increase each year until it has hit $15. This will be the year the construction of the new complex is complete.
For more information on assistance visit Tampa.gov.