Franklin Arms, a long troubled downtown apartment complex that the city later labeled a public nuisance, is finally headed for demolition. This summer, Jacksonville City Council approved a $1 million loan to the Jacksonville Housing Authority to clear the site and deal with environmental cleanup, setting the stage for a roughly $50 million senior housing rebuild.
The housing authority’s plan is to wipe out the aging 98 unit complex and replace it with 130 affordable apartments for residents 55 and older, a project pitched as both a fresh start for the property and a badly needed boost to the city’s affordable housing stock.
What the Council Approved
The council signed off on an ordinance authorizing up to a $1,000,000, three year loan at 2.0% interest to fund demolition and onsite remediation, according to City of Jacksonville Legistar. Filed as No. 2026‑0457‑E and approved June 23, 2026, the deal is strictly for teardown and cleanup.
The bigger, roughly $50 million redevelopment will need a broader cast of financial backers. City officials and housing authority leaders have made clear that the loan is just the opening move, not the full financing package.
Why the Authority Opted for Demolition
After years of problems at the site, the housing authority decided a renovation was not worth the money. CEO Cheron Corbett said an architectural assessment concluded the project “no longer made financial sense,” and that the agency is aiming to begin demolition “early fall of 2026,” as reported by News4JAX.
Corbett said the rebuild is designed to let seniors “age in place” while also chipping away at the authority’s long waiting list for affordable units. In other words, the agency wants residents to be able to move in and stay put as their needs change, instead of bouncing between properties.
The Redevelopment Plan and Financing
Agency planning documents put the total redevelopment price tag at about $50 million and show a vision for 130 units reserved for people 55 and older, according to the Jacksonville Housing Authority. That would be a sizable jump from the current 98 units on the site.
To pay for it, the housing authority says it expects to piece together a familiar but complicated funding stack. The plan includes applying for 4% low income housing tax credits, pursuing tax credit bonds, working with institutional lenders and securing local gap financing to fill whatever funding hole remains as the project moves from concept to construction.
Backstory: A Long Troubled Site
The building, long known as Franklin Arms and more recently as Downtown East, has been on the city’s radar for years. In 2022, it was declared a public nuisance after inspectors and law enforcement documented persistent code and safety problems, according to the city’s Public Nuisance Abatement Board minutes.
The Jacksonville Housing Authority stepped in and acquired the property in November 2023 for about $8 million, the Jax Daily Record reported. That purchase set up the agency to control the fate of the troubled complex and set the stage for the current demolition and rebuild plan.
What Comes Next
Before any new building can rise, the project still has to clear a series of approvals, including rezoning. Public hearings on the plan are scheduled for late July and early August, according to News4JAX.
Corbett said community response so far has been largely positive, and city and housing authority officials are openly hoping that what happens at Franklin Arms can become a template for rescuing and rebuilding other problem properties across Jacksonville.
