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Sarasota Housing Authority flips ceremonial dirt to mark construction of Lofts on Lemon II and Cypress Square II.

Sarasota Housing Authority President and CEO William Russell speaks at the groundbreaking ceremony for Cypress Square II and Lofts on Lemon II.

By Andrew Warfield via Business Observer <— Click here for other on the pulse stories from Andrew and the Business Observer.

Bottom line

Key takeaway: A pair of projects that recently broke ground will put a dent, albeit a small one, in the affordable housing crisis in Sarasota.

Core challenge: Financing was complicated. Also, even at 208 units, demand is outpacing supply. 

What’s next: At least one of the projects, Lofts on Lemon II, is expected to be ready for occupancy in the fourth quarter of 2026.

As heavy equipment and construction workers circled around an 18-inch-high dirt pile, the multiple parties involved in helping the Sarasota Housing Authority build two new low-income residential projects flipped ceremonial soil in dual groundbreaking ceremonies on Sept. 17.

The first photo op came amid the concrete block construction forming the shape of Cypress Square 2 (formerly Amaryllis Park Place III) before boarding trolleys bound for nearby Lofts on Lemon II for a second dig, that project in an earlier site clearing stage. Both projects are north of downtown Sarasota.

Before all that, though, in the Cypress Square community room, SHA President and CEO William Russell introduced the project’s development and funding partners, and described the arduous process of taking an affordable housing project from concept to completion.

When ready for occupancy, the combined 208 apartments will be 100% priced affordable. Of the 108 units in Cypress Square II, 33 will be open to Section 8 vouchers and the remainder will be priced to match one-third of the monthly household income, whatever that may be, up to 80% area median income. Of the 100 units at Lofts on Lemon II, 25 will be available to Section 8 voucher holders and, like Cypress Square II, the remainder subject to the 30% household income rent. 

“But the whole development cannot average more than 60% of the area median income,” Russell says. “It truly is an affordable community.” 

Breaking down the rent
Household Income	Monthly Rental
$30,000	$750
$40,000	$1,000
$50,000	$1,250
Residents also receive a utility credit calculated by bedroom count, income and other factors designed to maintain total rent and utility costs at 30% of household income.