South St. Petersburg homeowner Mahalia “Blue” Feliu has lived in her house for 40 years, but her windows and doors still need repair work she can't easily afford. As new construction rises around her neighborhood, she's asking a pointed question: who can actually afford these new homes going up next door?
Feliu's concerns surfaced as the St. Petersburg City Council passed the fiscal year 2027 Community Redevelopment Area (CRA) budget, according to WFLA. The budget allocates $15.1 million toward housing and neighborhood revitalization, including $11.6 million for the Affordable Housing Redevelopment Loan Program and $180,000 for the Housing Rehabilitation Assistance Program. The station reports that single-family housing programs, facade improvements, and down payment assistance all received funding increases this cycle.
The South St. Petersburg CRA is the largest redevelopment district in the city and one of the largest in Florida, spanning 4,777 acres, or 7.4 square miles, according to the City of St. Petersburg. Established in May 2015 as a 30-year tax increment financing district, it was designed to combat blighted conditions and fund housing, commercial corridors, and workforce development across the district.
Property Values Nearly Double, Straining Old Assumptions
Taxable property values inside the CRA surged from $1.1 billion in 2020 to $2.5 billion in 2025, according to St. Pete Rising. That growth is generating far more tax increment financing revenue than the district's original 10-year projections anticipated; those 2015 estimates called for the CRA to generate just $6.8 million total through fiscal year 2025, per St. Pete Catalyst.
That windfall cuts both ways. Rising property values have also pushed up the cost of living for longtime residents even as they've swelled the CRA's coffers, per the same outlet's reporting on the district. Meanwhile, per WFLA, George Smith, the city's chief community impact officer, said pending affordable-unit requests already represent affordable units under review that exceed $35 million, and he expects even more affordable-housing applications in the coming fiscal year.
Repair Backlog Tops 250 Applications
WFLA reports that rehabilitation applications now number more than 250. That backlog has become a flashpoint on the council: some members, per the station, said CRA funds could do more for residents needing repairs. Council member Gina Driscoll said some CRA money should be returned as assistance to existing residents, the station reports.
Feliu, for her part, said many homes across the city need repair work, according to the same WFLA report, and she hopes the application process for assistance ends up senior-friendly. She also hopes the budget's approval raises awareness that funding is available at all.
Why Upfront Costs Matter So Much
The stakes behind that hope are real. Low-income homeowners facing uncorrected code violations may face legal action if repairs are delayed, according to City of St. Petersburg records, which is why fast, user-friendly application processes carry such urgency for fixed-income residents who often lack the liquid capital to cover contractor costs upfront under reimbursable loan programs.
Under the city's Housing Rehabilitation Assistance Program, qualified low-income homeowners can receive zero-interest loans up to $100,000 for code compliance, safety, and accessibility repairs, fully forgiven after 10 years of continued owner occupancy. In South St. Petersburg, CRA housing rehabilitation income eligibility extends up to 120% of Area Median Income.
Storm Damage Pushed New Emergency Tools
The Rapid Roof Replacement Program is a subprogram offering zero-interest, five-year forgivable loans to homeowners facing active roof code violations or storm damage.
To help homeowners who lack upfront capital or traditional credit, the city partnered with the Foundation for a Healthy St. Petersburg in 2024, securing $200,000 in philanthropic grant funding to match CRA tax increment financing dollars for roof repairs. The funding addressed an upfront-capital barrier for eligible residents.
A Broader Plan, Still Unfinished
St. Petersburg's 10-year “Housing Opportunities for All” master plan sets a target to produce or preserve 3,200 multi-family affordable units, according to the city.
Similar tensions have played out elsewhere in South St. Petersburg's redevelopment pipeline. Hoodline has covered a Coquina Key infill project delivering 53 workforce units and 54 affordable units. The project underscores how much new development is moving through the district even as repair backlogs for existing homeowners persist.
