- April 18, 2024
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Palm Coast has spent $571,535 on home rehabilitation this year in through the Community Development Block Grant program.
The CDBG program is a U.S. Department of Housing and Urban Development program that provides money each year to assist low- to moderate-income households and areas. The Palm Coast City Council heard and approved the program’s annual report at their Dec. 13 workshop and business meeting, in a 4-0 vote; Councilman Nick Klufas was absent.
The Consolidated Annual Performance and Evaluation Report listed $676,460 used from the last fiscal year, Oct. 1, 2021 to Sept. 30, 2022. HUD allocated $500,000 to the fiscal year's budget and the remaining money came from home-lien reimbursements, Senior Planner Jose Papa said during his presentation of the report.
Of that, $571,535 were used in completed single-family home rehabilitations, 20 in total. However, they were only able to use $10,000 from the program to assist one household with a down-payment for a home.
Councilwoman Cathy Heighter expressed concerns that only one first-time homebuyer was assisted.
“I have people constantly asking me, is there a first-time homebuyers program,” Heighter said, “and with the market being in the way that it is right now, there are so many people in this community that have a difficulty purchasing homes so they are looking for these programs.”
The problem, Papa said, is that HUD views first-time homebuyer programs as a public service instead of a housing activity. HUD limits the amount of funding to public service programs to a 15% cap.
In the city’s case, they were allotted $500,000 for the 2021-2022 fiscal year from HUD for the CDBG program, and they must cap the public service program funding at $75,000. That money funds multiple projects.
On top of that, the program’s money is meant to act as a gap-filler. The buyer is still required to find a mortgage and have a certain amount of the down-payment themselves — this program just helps the buyers fill in the extra amount needed to complete a down payment.
The Palm Coast Citizens Advisory Task Force, at its Dec. 7 public hearing, recommended the Palm Coast City Council approve the CAPER. The task force consists of the seven members of the city’s planning and development board as well as members of the county’s Affordable Housing Advisory Committee who live in Palm Coast, Papa said.
Aside from the planning board members, Papa said the task force’s memberships float. Palm Coast Mayor David Alfin said he hopes more qualified people will volunteer to sit on the committee.
“The allocation of the funding is really decided by the groups that volunteer for these committees,” Alfin said.
The CAPER also funded $13,845 worth of recreational scholarships for 62 low- to moderate- income students to attend summer camps.
“I think that this program is vital. I think that we should take the best advantage of the funds considering it is HUD funding.”” — Councilwoman Theresa Carli Pontieri
Program administration received $81,079, which Councilwoman Theresa Carli Pontieri asked to see a further breakdown of those funds. She said given the importance of the funding, it’s
“I think that this program is vital,” she said. “I think that we should take the best advantage of the funds considering it is HUD funding.”
The annual CAPER only considers completed projects, but the CDBG has begun the new round of housing rehabilitation projects, as well as two more first-time homebuyers for that program that are pending funding agreements.
Also among the 2021-2022 fiscal year funds that are pending completion are the two grants given to Flagler Cares and Family Life Center in September. Those grants were applied for from the CDBG COVID funds and are still being dispersed.
With the council’s approval the report will be sent to HUD ahead of the Dec. 29 deadline.
