Miami city commissioners have approved the transfer of two public land parcels and up to $8 million in forgivable loans to developers for affordable and workforce housing projects in Little Havana. The decision comes as officials face ongoing criticism for offering incentives such as free land to developers, sometimes at prices alleged to be below market value.
Officials defend these measures as necessary to encourage the construction of affordable rental units, a type of housing that is in high demand across South Florida due to widespread cost burdens among residents.
The commission’s recent vote will see N.R. Investments 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 approximately 114 apartments under the Live Local Act. Mabruk USA will be given a 0.6-acre site at 1251 Southwest Seventh Street for a proposed 12-story building with 105 units.
Each developer is eligible for up to $4 million in city loans. N.R. Investments’ loan will be sourced from District 3 capital reserves, the affordable housing public benefits fund, and funds derived from MiamiCoin cryptocurrency, according to city documents. Mabruk USA’s financing will come from federal HOME Investment Partnership Funds.
According to the South Florida Business Journal, the city will purchase N.R. Investments’ development site for $5.9 million before transferring it to the company. Current records show that Lopez Optical owns one lot while Ray Optical owns another on the designated site.
N.R. Investments, led by Ron Gottesmann and Nir Shoshani, proposes a mix of studios, one-bedroom, and two-bedroom apartments—41 studios, 52 one-bedrooms, and 21 two-bedrooms—as well as about 7,000 square feet of ground-floor retail space and a three-story parking garage with 90 spaces. Approximately 80 units are planned at below-market rents for households earning between 60% and 120% of area median income (AMI). As per data from the Florida Housing Finance Corporation, Miami-Dade’s annual AMI is currently $87,200 but may change in spring.
The city-owned property earmarked for Mabruk USA’s project would host all units at below-market rents targeting those earning up to 80% of AMI. Led by Nuri Dorra and Dr. Ingrid E. Dorra of North Miami Beach, Mabruk USA plans a mix of one- and two-bedroom apartments along with ground-floor retail space and a four-story garage.
If either developer fails to build as agreed, ownership of their respective properties will revert back to the city.
While these items passed without discussion during Thursday’s meeting, another deal involving Watson Island drew criticism after commissioners approved selling three acres there for $29 million despite an appraisal suggesting its value could be significantly higher—between $257 million and $342 million—according to reporting by the Miami Herald.
There is precedent for local governments transferring “surplus” land at below-market rates or through no-bid sales under county rules allowing such deals if backed by a commissioner when sites are considered underutilized.
