Related Group to Redevelop Miami Public Housing with 115-Unit Project in Little Havana

Key Points

• 115 new units to replace a 28-unit public housing building at 1275 SW 1st St.

• The project is backed by a 75-year ground lease between Related Urban and Miami-Dade County.

• Delivered under HUD’s Rental Assistance Demonstration (RAD) program aimed at preserving ~7,000 public housing units county-wide.

The Related Group, led by Jorge Pérez and his sons Jon Paul and Nick, is advancing a major redevelopment effort in Little Havana with the Gallery at Little Havana—a 115-unit affordable housing project replacing an aging 28-unit complex. This initiative extends their deepening partnership with Miami-Dade County to modernize the region’s public housing stock.

Project Overview

• The site at 1275 SW First Street currently houses a 28-unit public housing building constructed in 1985.

• The new development, Gallery at Little Havana, will significantly increase density with 115 affordable apartments.

Government Partnership & Financing

• Related Urban’s project is structured via a 75-year ground lease signed with Miami-Dade County in 2023, covering this and other public housing sites.

• The redevelopment leverages the Rental Assistance Demonstration (RAD) program, designed to preserve public housing by converting it to Section 8 funding while ensuring long-term affordability.

• There are discussions to extend the lease to 99 years, which could qualify the project for state tax rebates and other financial incentives.

Strategic Context & Track Record

• The initiative is part of a broader county effort to revitalize approximately 7,000 public housing units through public-private partnerships.

• Related Urban is already experienced in RAD redevelopments, having completed or working on projects such as:

  • Palm Court/Palm Towers (316 units)

  • Jose Marti Villas (146 units)

  • Multiple phases of the River Parc redevelopment.

• Related Group, founded by Jorge M. Pérez in 1979, has a long-standing reputation in affordable housing before its expansion into luxury developments.

Why It Matters for Investors & Brokers

• Capital Efficiency: RAD projects often utilize Low-Income Housing Tax Credits (LIHTC), HUD funding, and HOME funds, reducing the equity burden on developers.

• Risk Mitigation: Long-term ground leases with public entities help mitigate land acquisition and regulatory risks.

• Social Impact: These developments serve families earning as low as 30% of the Area Median Income (AMI), helping stabilize local communities.

• Scalability: Successful execution positions developers favorably for future Miami-Dade public housing Requests for Proposals (RFPs).

Outlook & Risks

• Construction Timing: Progress depends on coordinated public funding and permitting processes.

• Execution Challenges: Previous RAD projects have faced construction delays and tenant relations issues, as seen in Miami’s Liberty Square redevelopment.

• Lease Extensions: Securing a 99-year lease would provide financial upside through enhanced tax benefits and long-term security.

The Gallery at Little Havana underscores Related Urban's pivot back to affordable housing development under the leadership of the Pérez family. With strong government backing and a scalable financing model, this project not only meets urgent housing needs but also signals lucrative opportunities for developers skilled in navigating public-private partnerships.