McDowell breaks ground on $38.9M affordable phase in Hudson

McDowell Housing Partners has closed construction financing and broken ground on Ekos at Bayonet Point II in Hudson, Fla., according to Connect CRE. It is the second phase of a three-phase plan to bring 360 affordable homes to Pasco County. The project's budget is $38.9 million. Its 120 units are age-restricted. The site at 7526 McDowell Way, one block from HCA Florida Bayonet Point Hospital, is scheduled for completion in spring 2028. Amenities include a clubhouse with a pool and covered patio, a fitness center, a computer lab, a game and crafts area, and a dog park.

The financing pairs public subsidy with private debt. Florida Housing Finance Corp. issued tax-exempt bonds and subordinate loans through its SAIL, ELI and HOME-ARP programs, with 4% housing tax credits supplying the equity. Wells Fargo Community Lending & Investment bought the credits and made the senior construction loan. Freddie Mac will take out the permanent mortgage, and Wells Fargo Multifamily Capital will service it. Rents and incomes are capped at three tiers of area median income. The FHFC subordinate awards sit behind the construction loan.

The structure fits a broader pattern. Multifamily lending rebounded 32% in the latest reading. Fannie and Freddie took 40% of 2025 originations. The total book came to $381.8 billion. That volume was spread across 2,530 lenders. Community banks are running off multifamily exposure, a retreat this publication has argued leaves room for private credit. Here the opening is filled by a bank's own two units: Wells Fargo is both the construction lender and the tax-credit buyer.

The Freddie Mac takeout is what makes the construction loan bankable. Developers who can pre-sell that permanent mortgage are the ones breaking ground, and the relationship is consolidating at Wells Fargo. Expect more of that concentration as community banks exit multifamily and the agencies keep their share of affordable volume.