St. Petersburg is set to receive over $160 million to bolster its resilience against future storms, aid local businesses, and assist residents still recovering from Hurricanes Helene and Milton. 

However, Amy Foster, the city’s housing and neighborhood services administrator, indicated during a city council committee meeting on Thursday that the disbursement of these funds could span several years.

On Tuesday, the presidential administration revealed that St. Petersburg would be allocated $159.9 million to address recovery needs not covered by insurance or other funding sources. This allocation is part of the U.S. Department of Housing and Urban Development’s (HUD) revamped Community Development Block Grant – Disaster Recovery (CDBG-DR) program, designed to aid communities hit by disasters including the 2023 Maui wildfires and the recent hurricanes.

Foster outlined that the funds could be used for economic revitalization, disaster mitigation, and housing development, particularly multi-family housing. 

“These are very new developments, so we’re still analyzing the details,” Foster noted.

The program, which totals nearly $12 billion, also includes $813.8 million for Pinellas County. 

Foster warned that despite the announcement, immediate financial relief isn’t on the horizon. She referenced Lee County, which received over $1 billion in early 2023 but hasn’t spent any of it yet due to pending HUD plan approval.

“To access these funds, a comprehensive plan must be submitted and approved by HUD before any money is released,” Foster explained.

The funds are intended for rebuilding affordable housing, enhancing infrastructure, and supporting small businesses. Marion McFadden, principal deputy assistant secretary for community planning and development at HUD, emphasized efforts to streamline the process and reduce administrative burdens.

St. Petersburg has also secured $432,000 from state housing assistance, adding to its disaster recovery efforts. 

“We’ll start planning immediately,” Foster said, tempering expectations by noting, “This isn’t going to solve all our discussions today, nor will the funds be available immediately.”

Current allocations for disaster assistance in St. Petersburg include $1.4 million, supplemented by additional State Housing Initiative Partnership (SHIP) funding. Eligibility for this assistance requires residents to apply for FEMA aid first and have incomes below 80% of the area median income (AMI).

If approved by the full city council, the program will offer up to $30,000 for storm repairs, including tree removal. Residents can choose their contractor or use one provided by the city. Dr. Avery Slyker, director of housing and community development, highlighted the flexibility of this approach compared to standard rehabilitation programs.

As of December 18, 104 homeowners were deemed eligible for disaster relief, though this number changes daily. The program also provides up to $5,000 for insurance deductibles and $10,000 for tenants needing help with rent and utilities.

The city council must decide whether to reallocate $500,000 from the Rebates for Rehabilitation Program to expand disaster assistance. 

Foster suggested beginning with the existing $1.4 million, addressing residents’ queries about the paused down payment assistance program. 

With $744,000 remaining from previous SHIP allocations for rehabilitation, down payment assistance, and accessibility services, Slyker confirmed no further SHIP funds would be available until July 1.

Councilmember Brandi Gabbard emphasized the need to resume traditional programs and process pending applications, a sentiment echoed by her colleagues.

Council Chair Copley Gerdes reminded everyone of the We Are St. Pete Fund, which has surpassed $1 million, suggesting a potential review if more funds are needed. “This seems like an easy starting point,” Gerdes concluded, indicating flexibility in future funding decisions.

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(Image credit: Mike Carlson/AP)