Sarasota Revives Downtown Affordable Housing Plan

City Commission votes to negotiate purchase of credit union property for new attainable units.

Apr. 19, 2026 at 9:05am

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A cinematic painting of a downtown Sarasota street corner bathed in warm light and deep shadows, with a solitary building in the foreground representing the city's efforts to develop affordable housing in the urban core.Sarasota's renewed push to build attainable housing in the heart of downtown aims to create more affordable living options near jobs, amenities, and community spaces.Sarasota Today

The city of Sarasota's plan to build attainable housing on First Street across from City Hall near many of Main Street's most popular restaurants and bars received a new spark of life this month, as the Sarasota City Commission voted to revisit negotiations to buy the First Street Credit Union at 1558 First St.

Why it matters

Sarasota has struggled with a lack of affordable housing options, especially in the downtown area near jobs and amenities. This plan aims to create new attainable units in a prime location, generating revenue for the city's affordable housing trust fund.

The details

The city plans to purchase the First Street Credit Union property and redevelop it into an affordable housing complex, providing much-needed attainable units in the heart of downtown Sarasota near restaurants, shops, and City Hall.

  • The Sarasota City Commission voted to revisit negotiations to buy the First Street Credit Union property in April 2026.

The players

Sarasota City Commission

The governing body of the city of Sarasota, Florida that voted to move forward with the affordable housing plan.

First Street Credit Union

The current owner of the 1558 First St. property that the city plans to purchase and redevelop into affordable housing.

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What’s next

The city will now enter into negotiations with the First Street Credit Union to purchase the property and finalize plans for the affordable housing redevelopment.

The takeaway

This affordable housing plan represents a significant step forward for Sarasota in addressing the lack of attainable units downtown, generating revenue for the city's housing trust fund in the process. If successful, it could serve as a model for other Florida cities struggling with similar challenges.