The City of St. Petersburg has unveiled the second phase of its $160 million disaster recovery initiative, which includes voluntary property buyouts, homebuyer assistance, and affordable housing development for areas affected by recent hurricanes.

The Sunrise St. Pete program will allocate $5 million to purchase up to 14 high-risk, flood-prone properties damaged by hurricanes Idalia or Helene, offering homeowners up to $400,000 based on post-storm fair market value. Participants will also receive up to $50,000 in cash relocation incentives to purchase or rent elsewhere in Florida with reduced flood risk.

Another $5 million will provide down payment assistance of up to $80,000 for 70 low-income households, while $48 million is designated for creating 582 affordable multifamily housing units. Developers can receive up to $125,000 per unit if more than half serve households earning at or below 80% of the area median income.

The program’s first phase offers storm-affected homeowners up to $375,000 for reconstruction and elevation, $100,000 for rehabilitation, and $50,000 for completed repairs. Eligible residents can also receive $15,000 for six months of rent, mortgage, and utility payments.

City officials will prioritize purchasing contiguous properties in designated disaster risk reduction areas where low- to moderate-income households comprise over 50% of the population. Federal requirements mandate that acquired parcels be converted to open space or dedicated to recreational or flood mitigation uses.

City Council member Brandi Gabbard expressed concern about residents being displaced from coastal areas, noting that 46% of St. Petersburg faces high flood risk. The city has received 14 funding applications totaling nearly $90 million for affordable housing projects.

The program requires City Council approval and is expected to launch in spring 2026 following acceptance of an amended HUD grant agreement.

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