St. Pete receives $160 million for storm recovery

St. Petersburg will receive over $160 million to storm-harden facilities, support businesses and assist residents still reeling from Hurricanes Helene and Milton.

However, it could take years before officials disburse most of the funding. Amy Foster, housing and neighborhood services administrator, shared the “very good news” Thursday morning at a city council committee meeting.

The presidential administration announced Tuesday that St. Petersburg will receive $159.9 million to fill disaster recovery funding gaps not covered by insurance or other sources. The windfall stems from the recently revamped U.S. Department of Housing and Urban Development’s (HUD) Community Block Grant – Disaster Recovery program.

“Some of the primary ways that these dollars can be used is economic redevelopment, mitigation and housing,” Foster said. “We do believe some of those dollars could be utilized for multi-family housing.

“We are just finding out this information, so we’re digging into it more.”

The nearly $12 billion program supports communities affected by the Maui wildfires in 2023 and Hurricanes Helene and Milton. Pinellas County will receive $813.8 million.

Foster cautioned council members not to expect an immediate influx of funding. 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 explained. “In order to receive the dollars, you have to submit a plan, HUD has to approve the plan, and then those dollars start flowing.”

According to the announcement, local governments can use the money to replace and rebuild damaged affordable housing, strengthen infrastructure and support small businesses. HUD stated that it has worked to reduce administrative burdens on awardees and streamline procedures.

In a prepared statement, Marion McFadden, principal deputy assistant secretary for community planning and development, said the agency “did everything we could – absent permanent authorization by Congress – to strengthen the program, reduce red tape and support survivors as they rebuild.”

Foster said St. Petersburg also received $432,000 in state housing assistance. The announcements come as officials work to maintain traditional programs while providing residents with disaster relief.

“We’ll get to work right away on a plan,” Foster added. “But I don’t want you to think this solves all the conversations we’re having today and that those dollars will be flowing tomorrow.”

The city has $1.4 million for disaster assistance programming, including its additional State Housing Initiative Partnership (SHIP) funding. Residents must first apply for Federal Emergency Management Agency (FEMA) assistance and earn less than 80% of the area median income (AMI) to qualify for assistance.

The program, if approved by the full council, will offer up to $30,000 for home storm repairs. Dr. Avery Slyker, housing and community development director, said that could include removing large trees from yards.

A graphic highlighting St. Petersburg’s disaster assistance parameters. Screengrab.

Approved residents can identify a contractor or use a city-sponsored company to complete the work. “This is very different from how our program operates now with rehabilitation because some folks may have already started the process … and have their own contractor,” Slyker said

She said that as of Dec. 18, 104 homeowners qualified for disaster relief. Slyker also noted the number fluctuates daily.

The program would provide up to $5,000 in insurance deductible assistance, and $10,000 for tenants who are behind on rent and utility payments. The city council must decide if it wants to reallocate $500,000 from the Rebates for Rehabilitation Program to increase funding for disaster assistance.

Foster recommended launching the initiative with the current $1.4 million allotment. She said several residents have asked when officials would resume offering the now-paused down payment assistance program, “and we want to be able to give them an answer.”

The city currently has $744,000 in previous SHIP funding for rehabilitation ($60,000), down payment assistance ($75,000) and accessibility services ($18,000) applications. Slyker said the city would not replenish those coffers until July 1.

“So, once this is done, we’re done with SHIP,” she continued. “And this year, we did $8.4 million in single-family homes – $3.7 million of that was with SHIP. We helped a lot of people this past year.”

Councilmember Brandi Gabbard said administrators should reopen traditional programs and approve pending applications. Her colleagues on the committee agreed.

Council Chair Copley Gerdes noted the city also has its We Are St. Pete Fund, which recently topped $1 million. “If we get to a point where we need to take another look at this, then we take another look,” he said.

“And then, maybe we make some more difficult decisions about where funding comes from,” Gerdes added. “But this seems like a really easy start.”