St. Pete prepares for $160 million storm recovery windfall

City Council members recently met with a team of consultants who will help ensure St. Petersburg receives $160 million in disaster recovery funding by meeting federal requirements.

The city must allocate $139 million to unmet storm recovery needs and $20.85 million to mitigation efforts. At least 70% of the funding must benefit low to moderate-income (LMI) households.

Officials selected the professional services firm Horne through a competitive process to help develop the required action plan. Council members heard a breakdown of allowable fund uses, program timelines and potential presidential changes at a March 13 Committee of the Whole meeting.

“I want people to be left with a message of hope,” said Councilmember Brandi Gabbard. “We’re doing everything we can to look at how we can build better – how we’re more resilient into the future. This is just one of many opportunities to do that.”

The funding stems from the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant-Disaster Recovery program. City officials will disburse the money through the recently announced Sunrise St. Pete initiative.

Congress appropriates CDBG-DR funding to help rebuild disaster-impacted areas and support long-term recovery. While the assistance can fund a broad range of related efforts, local governments must submit an action plan that aligns with several federal stipulations.

Ryan Flanery, a program expert with Horne, said the rules frequently change “to some extent.” The focus on LMI households and allowable activities typically remains constant.

However, Flanery noted the new presidential administration has rescinded the universal notice issued in January. “They’re going to be removing much of the language associated with the president’s executive orders and some other policies,” he said.

Flanery said Horne is now gathering public feedback to discern the “highest and best use” of the funding. That – and conducting an unmet needs assessment – are the first steps to creating a federally-approved action plan.

Efficiency is a local priority. Flanery said $160 million “is a lot of money, but it’s not nearly close to touching all the unmet needs we have as a city.”

Officials will post the plan for public comment. Once submitted, HUD will have 45 days to offer its approval and mandate additional terms and conditions.

“We have good eyes and ears in the administration and good friends back at HUD that will give us a heads up,” Flanery said. “But we don’t foresee anything crazy coming in the grant agreement.”

Federal officials rejected Asheville, North Carolina’s action plan because it mentioned supporting minority-owned businesses. Photo: Blue Ridge Radio.

The city must allocate 70% of the funding, about $112 million, to households earning 80% or less of the area median income (AMI). That is roughly $74,000 for a family of four.

Officials can dedicate $8 million to administrative costs. The remainder must support 25 eligible activities encompassing housing, infrastructure, economic development, hazard mitigation and public services.

Unmet needs include storm-recovery efforts not covered through the Federal Emergency Management Agency (FEMA), Small Business Administration (SBA) and National Flood Insurance Program (NFIP). The city expects to submit its action plan to HUD in July and receive a grant agreement in the fall.

“That is very fast for HUD – extremely fast,” Flanery said. “We are fortunate enough to have this very quickly, and it does present unique opportunities because we’re still in recovery with FEMA funding.”

He said the city could use the funding to help elevate homes. Flanery also noted that many residents completing that work earn more than 80% of the AMI.

While disbursement timing remains an issue, the city could also use the funding for workforce development training related to elevating homes. Officials will have six years to spend the money, and Gabbard believes educating and attracting those contractors will “be good for us in the long run.”

Councilmember Gina Driscoll expressed concern over discussing program details while awaiting guidance from the presidential administration. She noted the City of Tampa recently lost a $1.6 million grant to plant trees in a low-income area.

Flanery said Horne received an advanced draft of HUD’s revised universal notice. “We do see a lot of removal of language related to vulnerable populations, prioritization of serving certain protected classes.”

“One I did not see change, though, was the 70% (LMI) requirement, which I found to be kind of surprising and interesting,” Flanery added. “That said, they may be more amenable to a (income) waiver if that is something we wanted to consider.”

Amy Foster, housing and neighborhood services director, said Driscoll was “on the right track.” HUD recently rejected Asheville, North Carolina’s action plan due to “some of its focus on small and minority-owned businesses.”

Foster agreed that the city should prioritize citywide housing and infrastructure initiatives. Driscoll said stakeholders should manage their expectations. “There’s a lot we can do, yet there are limits.”

A community survey will launch with the Sunshine St. Pete website March 24. Driscoll said officials should phrase questions “in a way that really makes people think about and remember what their needs were before, during and after the storms.”

For example, she said many people may advocate for affordable housing, an ongoing concern. However, Driscoll noted, others would appreciate flushable toilets during the next hurricane.

Residents can also offer Sunrise St. Pete feedback March 26 at Mayor Ken Welch’s first City Hall on Tour stop of 2025. The Coliseum will host the event from 5:30 until 7:30 p.m.