CLEARWATER, Fla. — A major step toward addressing Clearwater’s housing crisis is underway at a building with deep roots in the community.

What You Need To Know

  • The Indigo Apartments, located at the intersection of Myrtle Avenue and Chestnut Street, have been purchased by Sunrise Affordable Housing Group

  • The company plans to convert all 208 units into affordable housing for low-to-moderate-income families.

  • The building was once known as Prospect Towers and served low-income seniors for nearly 50 years. That changed in 2015, when it was sold and renamed The Indigo Apartments. The sale led to significant rent hikes and displacement.

  • To ensure it stays affordable, city leaders say a community land trust is being established.

The Indigo Apartments, located at the intersection of Myrtle Avenue and Chestnut Street, have been purchased by Sunrise Affordable Housing Group. The company plans to convert all 208 units into affordable housing for low-to-moderate-income families.

“Two hundred and eight units are going to be converted to affordable housing,” said Dylan Mayhew, interim housing manager for the City of Clearwater.

Mayhew says while the layout of the apartments will stay the same, their purpose is being restored.

“This is a one-bedroom here and living room,” he said, standing inside one of the units.

He and Jesús Niño, executive director of the Clearwater Community Redevelopment Agency, have been in talks with the developer for more than two years.

“Back in December 2023, the affordable housing developer approached the city, and we discussed converting this into an affordable housing project. It’s low-hanging fruit because it is an already existing building,” Mayhew explained.

The building was once known as Prospect Towers and served low-income seniors for nearly 50 years. That changed in 2015, when it was sold and renamed The Indigo Apartments. The sale led to significant rent hikes and displacement.

“That displaced a significant number of the seniors who had been living here for a considerable time,” said Mayhew. “And so, when this project came around, there were many people in the city, both residents and non-residents, who were excited to see it converted back to affordable housing.”

To ensure it stays that way, city leaders say a community land trust is being established.

“So community land trust means that the land is not really owned by the developer,” Niño explained. “It's going to be owned by the community and Pinellas County, and that'll ensure that it stays affordable. So that’ll stay affordable for forever — in perpetuity or 99 years — basically forever, for the life of this building.”

The units will be income-restricted at 30%, 50%, and 80% of the Area Median Income (AMI), meaning significant rent reductions for many tenants. For those who no longer qualify, the developer plans to offer relocation support.

“The individuals that do not qualify to live here, they will be compassionately helped to relocate to other affordable housing units in the area by the developer,” Niño added.

Mayhew says the plan will bring at least 200 affordable units back online within the next year.

“Affordable housing is a national challenge and we're no exception here,” he said. “To be able to provide affordable housing to our residents is incredibly important. It allows for economic diversity, economic growth. It allows for the people who have lived here and built the city to continue to live here as it grows.”

Construction and upgrades are expected to be completed within 12 months.