Jetta Investment Company (JIC) is asking residents to sign the letter below in support of JIC's plan to upgrade and minimally expand the Multi-Tenant Housing Units (MTHUs) at 105 NW 5th Avenue, Delray Beach, FL 33444, also known as the “Kemp Building.” Below please find a copy of the letter to Delray Beach City Officials and Commissioners that JIC plans to send before January 4th, 2024.
Please sign in support at the bottom.
January 4, 2024
Delray Beach City Manager Terrence Moore
Delray Beach Mayor Shelly Petrolia and City Commissioners
City of Delray Beach100 NW First AvenueDelray Beach, FL 33444
Dear City Manager, Mayor Petrolia, and Commissioners:
I am pleased to offer this letter in support of the Multi-Tenant Housing Units (MTHUs) at 105 NW 5th Avenue, Delray Beach, FL 33444, and the proposal by Jetta Investment Company (JlC) to minimally expand this housing option, significantly upgrade the building, preserve the history of a prominent Delray Beach African-American entrepreneur, and return a minority-owned small business to Delray Beach’s historic 5th Avenue.
South Florida is among the most expensive housing markets in the United States. In Delray Beach, a studio apartment rent of $1,430 is considered “Fair” by the U.S. Department of Housing and Urban Development (HUD). As a result, 83% (5-of-6) renters in Delray making less than $35,000 per year are spending more than half of their income on rent.
While you and other officials across Palm Beach County are working to alleviate the housing affordability crisis, we are asking you to support JIC’s plans as laid out below. MTHUs are a proven, affordable housing option that has a positive social impact on the community and helps stabilize lives. Here’s why:
It Works: Jetta Investment Company purchased the property at 105 NW 5th Avenue, aka the Kemp Building, in Delray Beach, FL in 2021. The building at this property has operated under this same, legal, non-conforming use for over 60 years. Delray Housing Group (DHG) has served as the property management company for the last five (5) years at 105 NW 5th Avenue. DHG screens applicants using HUD background checks before placing tenants into MTHUs. The units are always full, and there has been no crime nor nuisance complaints about this property under the current leadership and self-regulatory structure.
Huge Underserved Population: According to the 2021 U.S. Census, roughly twenty-two percent of Delray Beach residents live by themselves and earn $35,000 or less in annual income (50% of the County Median Income). That's roughly 6,700 people in our city. Current discussions at the county level for affordable housing are for people making $60,000 per year or more. Very little is being done to help people who make less than $35,000 a year.
Upgraded Standard of Living: The proposed upgrades to the 105 NW 5th Ave. property will significantly improve the lifestyle of the residents and enhance the surrounding community. The addition of an elevator will greatly assist the elderly and disabled residents. An additional, modern bathroom will compliment the expanded units, and the addition of a new dual-use kitchen will dramatically reduce the out-of-pocket food expense for tenants. Other proposed upgrades, such as central air conditioning, modernized and enhanced interior and exterior security, and good material upgrades will greatly impact the quality of life for MTHU residents at 105 NW 5th Ave.
Revitalization of Historic 5th Avenue: JIC’s proposal seeks to retain the ground floor commercial space facing 5th Avenue. This contributes to the revitalization efforts currently underway on this historic avenue by the City of Delray Beach Community Redevelopment Agency (CRA) and City Commission more broadly. JIC’s goal is to have a minority-owned small business in the space with services that appeal to the local community and adds value to this historic avenue.
Historical Preservation: JIC is committed to preserving the history of the building and plans to honor the memory of its famous owner, Thomas Kemp, by naming the building after him. JIC will install a prominent memorial on the premises dedicated to Mr. Kemp, thereby preserving Mr. Kemp’s legacy in perpetuity.
Zero Tax Burden: MTHUs require zero government subsidies or tax breaks, which are typically covered by taxpayers. MTHUs are an attractive opportunity for local investors that provide a taxpayer-burden-free housing solution for the community.
Reduces Homelessness: Currently, five of the seven MTHU residents were homeless prior to taking residence at this property. With rents around $500-600 per month, people making as little as $15,000 per year can afford to live in these units and still have money to enjoy other aspects of life.
JIC is prepared to invest at least $500,000 in the property at 105 NW 5th Avenue to achieve these goals. They are also proposing a regulatory structure that requires strict tenant pre-screening as well as City oversight to ensure a successful outcome for the community.
Opportunities like this don’t come around often. Preserving the history and honoring the legacy of prominent Delray Beach African-American entrepreneur Thomas Kemp, returning a minority-owned small business to the historic 5th Avenue, and upgrading the lifestyle of MTHU residents while minimally expanding this affordable housing option for low-income people in Delray Beach is a win-win-win for everyone.
For all these reasons, I enthusiastically support JIC’s plans and likewise urge you to support them in this effort.
Sincerely,