JACKSONVILLE, Fla. – The News4JAX I-TEAM has been digging deeper into who got free land from the city in 2019 and what they did with it.
A report from the Office of the Inspector General (OIG) revealed that the city of Jacksonville had been giving away free land to people and organizations in an effort to build more affordable housing but failed to oversee the projects.
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Out of 62 people or organizations who got free property from the city, the report said 59 of them violated the agreement. In some cases, the properties were sold for profit.
The city gave away a total of 174 parcels of land in 2019 to the 62 grantees. Those who signed up had two years to build affordable housing units and get them on the market at below-market rates.
So, who got the land and what have they done with it? News4JAX has compiled a comprehensive list using publicly available data from the property appraiser’s website.
READ: 2023 COJ Affordable Housing Donation List | 2020 Surplus Property Program Donations to Date | 2019 COJ Affordable Housing Donation List
Most Notable
The city said it stopped giving free land to individuals after 2019. All properties since 2020 have been donated to nonprofit organizations. But, before that rule was created, 26 of the 62 grantees in 2019 were individuals.
One individual, who also had a registered nonprofit, received 10 properties either as an individual or through the nonprofit.
During the 2019 Surplus Property Donation Program, one individual or business could get up to five parcels of land each. The city has since revised that rule, only allowing an entity to get three free parcels of land at a time.
How much money was made from land sales?
According to the OIG report, 23 grantees sold 66 properties for a profit, totaling $557,000.
Here is a look at how much some grantees made from selling their property:
- $45,000 for a single property that is still vacant
- $15,000 for a single property that is still vacant
- $13,500 for three parcels that are still vacant
- $78,000 for four parcels of land, two of which are still vacant
- $74,000 for five properties, three of which were later turned into affordable housing
- $18,000 for four properties, two of which are still vacant
- $9,000 for two properties, one that is still vacant and another that has just started construction
- $20,000 for a single property
- $13,500 for three parcels
Who did the right thing?
The city said 15 of the 62 grantees from 2019 have successfully completed affordable housing projects, even if they didn’t meet the two-year deadline.
The city said many of the grantees were delayed during the COVID-19 pandemic. Over the past year, the Housing Division has made progress with some property owners to encourage faster development.
New4JAX has compiled this list of some of the properties given away in 2019 that have since been turned into affordable housing:
- PS Never Give Up sold a home in 2021 for $140,000 at 1156 Claudia Spencer St.
- Grace and Truth CDC sold a home in 2022 for $300,000 at 1140 Iona St.
- Blueprint Management of Jacksonville transferred a deed to Moss Investments LLC who then sold a home in 2023 for $235,000 at 2209 Placeda St.
- Areh Enterprise sold a home at 3044 New Ct St in 2021 for $179,000.
- Entities connected to JWB Real Estate purchased eight different properties, either sold as affordable housing in 2021 and 2022 or offered as affordable housing rentals.
- Habitat for Humanity has built property on all three vacant properties donated to them in 2019.
Response from the city of Jacksonville
In July, city leaders were called to appear before the City Council Finance Committee to answer questions about the corrective actions the city has taken.
At that meeting, it was shared that seven properties were voluntarily donated back to the city and two more are in the process of being returned. Five other properties are undergoing pending lawsuits.
In total, 64 property owners were contacted by mail about returning their property to the city. Of those, 15 have paid the city back for the assessed value of the properties, recuperating $270,000 in revenue that will be dedicated to future affordable housing projects.
In a statement to News4JAX on Tuesday, a spokesperson for the city said: “These issues stem from legislation that passed in 2019. The Housing and Community Development Division and Office of General Counsel have already implemented measures that address all the recommendations in the 2023 Inspector General’s report.”
Here are those actions:
- New donation agreements with enforcement actions that allow the city to take back property
- A staff member dedicated to the administration of this program
- More robust vetting of applicants on financial information and affordable housing development experience
- City approval is required before parcels can be sold or transferred
- A limit on the number of parcels a grantee can receive
- Legislation was passed in 2023 to update the ordinance code so it’s easier to return properties
- The Office of General Counsel has pursued litigation to take back properties, a number have also been voluntarily returned