Council scrutinizes, approves $160 million disaster recovery plan

The St. Petersburg City Council has unanimously approved an action plan that will infuse $159.8 million in federal funding into a community still recovering from the 2024 hurricane season.

Council members voted on the momentous Sunrise St. Pete initiative June 12 after several questions and critiques. The funding will help address $1.68 billion in unmet storm recovery needs.

The extensive public hearing also provided residents with a final opportunity to provide in-person feedback before officials submit their action plan to the U.S. Department of Housing and Urban Development (HUD). St. Petersburg will receive the money through reimbursements.

“Where are we going to find the $159 million to front this money?” asked Councilmember Brandi Gabbard.

Assistant City Administrator Tom Greene said the city would incrementally spend the award over six years. He said cash flow management could present a challenge.

“When we incur an expense, we will submit that to HUD for reimbursement,” Greene explained. “The float will be three days.”

A graphic highlighting allocations for Sunrise St. Pete programs. Image: City documents.

Administrators will provide quarterly spending updates to a council committee. A city website will also offer public reporting.

The handful of residents who spoke at the meeting advocated for easily accessible applications and mental health services. One storm victim noted the city waived permitting fees for storm repairs but not for building new homes.

Gabbard and Councilmember Gina Driscoll believe the city should also suspend those payments until June 30. Driscoll said that is “the least we can do right now” and that Sunrise St. Pete should include permitting reimbursements.

“I think what you’re asking for makes logical sense,” said Amy Foster, housing and neighborhood services administrator. “But we are not the federal government, and we don’t make their rules.”

Foster said officials have asked HUD if those expenditures are reimbursable and await an answer. “If we can do it, we absolutely will waive those fees.”

The city has established a “no wrong door approach” to streamline the application process. Storm victims can visit an office, and an independent case manager will direct them to programs that best fit their needs.

Foster said officials will likely partner with community-based organizations and faith leaders to bolster outreach efforts. “I think that is phenomenal, creative and, hopefully, cuts down on some of the bureaucracy and red tape that the government is really good at putting against all these programs,” Gabbard said.

The city included $20 million for hazard mitigation in its infrastructure programming. While administrators pledged that the money would go to residential rather than municipal projects, Gabbard, term-limited in 2026, said she would monitor that allocation “even when I’m not sitting here anymore.”

HUD mandates that 70% of funds must directly benefit low-to-moderate-income households or those that earn up to 80% of the area median income (AMI). However, many programs extend to residents who earn up to 120% of the AMI.

A breakdown of program funding. Image: City documents.

The city will dedicate $105 million to housing, with $5 million supporting voluntary buyouts and acquisitions. Officials believe they could purchase 14 storm-damaged homes with the allocation.

Councilmember Lisset Hanewicz said the city should purchase properties outside of flood zones. City Administrator Rob Gerdes noted officials must maintain the land acquired with HUD funding as green space.

Driscoll questioned why Sunrise St. Pete does not include help for small businesses. Foster said the internal We Are St. Pete recovery fund provided financial assistance, and the city continues to “look for other ways to support” those owners.

“There’s difficult decisions that need to be made here,” Gerdes said. “We felt that our highest priorities were on the housing side, the infrastructure side and then on the reimbursement side.”

Officials will prioritize eligible applicants according to income levels, starting with households that earn up to 50% of the Area Median Income (AMI) and include age-dependent, disabled, or essential service personnel members. Awardees can receive up to $100,000 for home rehabilitation, $375,000 for reconstruction or replacement and $50,000 for related money spent before Sunrise St. Pete’s launch.

The city set $7.9 million aside for administrative costs, the maximum amount allowable through HUD’s Community Development Block Grant-Disaster Recovery program. Foster said the funding would pay for city and external staff, including finance, outreach and compliance teams.

Driscoll asked if the allowable amount is also “the necessary amount.” Foster said officials could make adjustments after submitting the action plan.

Council Chair Copley Gerdes credited the administration, city staff and consultancy firm Horne for their continued work “because this is just the beginning.” Officials plan to reach a grant agreement with HUD in the fall and receive funding within the next two years.

“I’m very much looking forward to getting this money out in the streets, and that’s where I’ll end it,” Gerdes said. “I know all of you are, too.”

For more information on the Sunrise St. Pete plan, visit the website here. Residents can submit written comments until June 23.