County, St. Pete prepare for nearly $1 billion in aid

Pinellas County and the City of St. Petersburg will receive a combined $973.7 million in federal storm recovery funding – provided officials meet strict criteria and a tight deadline.

St. Petersburg issued a proposal request (RFP) Jan. 27 to companies with the “experience and capability to develop and write a Community Development Block Grant Disaster Recovery Action Plan.” Applicants had just two days to submit questions; extensive paperwork is due by 5 p.m. Friday, despite a typically month-long process.

At their Jan. 28 meeting, county commissioners approved previously submitted and ranked proposals for comprehensive disaster recovery consulting services from 11 companies. Administrator Barry Burton noted local governments have 90 days to create the program’s “general framework.”

“Then we’re going to have to come back after that initial large, very high-scale plan with more specific programs,” Burton said. “We’re not going to create a detailed plan in 90 days.”

Burton said staff would conduct outreach with area communities. County documents state they drafted the consultancy contracts to include requirements from all area municipalities.

The previous presidential administration awarded the county $813.8 million Jan. 7 to fuel long-term recovery efforts following Hurricanes Helene and Milton. The money stems from a U.S. Department of Housing and Urban Development (HUD) initiative.

Local governments can use the windfall to rebuild homes, develop affordable housing, assist impacted small businesses and repair critical infrastructure. Burton noted officials must dedicate 70% to low-to-moderate-income residents.

“There are a whole host of requirements tied up with these federal funds,” he added.

Burton said Pinellas officials have already discussed the process with counties decimated by Hurricane Ian in September 2022. He said those communities are “just now getting their programs up and running two years later. We want to learn from that.”

HUD awarded St. Petersburg $159.9 million. Amy Foster, housing and neighborhood services administrator, has repeatedly warned city council members not to expect an immediate influx of funding.

At a Jan. 9 meeting, she noted Lee County received over $1 billion in early 2023 and has not disbursed a cent. “Their plan has not been approved by HUD yet,” Foster said.

Burton said Tuesday that local officials hope to avoid those pitfalls. While the city has not replied to a request for comment, that would explain the tight RFP window.

According to the municipal procurement portal, St. Petersburg will award one vendor “whose proposal is determined in writing to be the most advantageous to the city, taking into consideration the price and the evaluation criteria … in this solicitation.” However, administrators reserve the right to evaluate and select additional vendors.

The city could negotiate with short-listed companies or award applicants without discussion. “Therefore, each initial proposal should contain the Vendor’s best terms …,” states the portal.

Commissioner Vince Nowicki said two of the county’s 11 selected consultants have diversity, equity and inclusion (DEI) principles “all over their website.” He questioned if that could present an issue for the new presidential administration.

“We got a notification of $813 million; we’ve got 90 days to turn around and plan,” Burton replied. “So, we looked at the qualifications of the firms, not what they have on their websites.”

He said staff scored the companies accordingly through a competitive process. St. Petersburg’s three listed evaluation criteria include the firm’s qualifications and experience, project approach and estimated cost.

Commissioner Chris Latvala questioned the program’s income thresholds and asked if the county could request a waiver. Burton said they could after addressing immediate needs.

Bruce Bussey, community development director, said 70% of the grant must serve households earning up to 80% of the area median income (AMI), $76,400 for a family of four. “There’s different ways to do that,” he added.

Bussey said officials could complete infrastructure improvement projects in neighborhoods where 51% of households meet the low-to-moderate-income criteria. Commissioner Brian Scott, elaborating on Latvala’s comments, said the earning thresholds would probably prevent the county from assisting beachfront property owners.

“I wouldn’t say that – I think that’s the process we’ve got to work through,” Burton replied. “It (HUD) says 70% has to be targeted. Well, 30% of $800 million is still a lot of money.”

According to HUD’s stipulations, the county could dedicate over $244 million to all residents and communities, regardless of income. That number is nearly $48 million in St. Petersburg.

Latvala asked if officials could assist renters. Commissioner Renee Flowers wants to ensure landlords and property management companies that were “not very kind” to storm-displaced residents do not receive the funding.

“I’d like to get money into people’s hands tomorrow,” Burton said. “There’s a lot of opportunities, but we’ve got to create the plans and … follow HUD guidelines. That’s what I’ve directed our staff to focus on, and we’re going to work with our consultants to see what they can deliver.”