Dozens of residents, housing contractors and local nonprofit representatives urged the Panama City Commission on Sept. 23 to continue the Neighborhood Stabilization Program (NSP) rental portfolio and to retain the Housing & Community Services director after recent scrutiny of the program.

The NSP rental program operates properties the city acquired through HUD programs after the Great Recession and uses program income to maintain and rent those homes to low-income and working families. Multiple speakers during public comment said NSP is self-sustaining, that it produces administrative revenue for the Housing and Community Services Department, and that the properties and related repairs have helped families move toward stable housing.

“NSP rentals remain a crucial resource for residents who might otherwise be priced out of our community,” said Amber Tubbs, a Housing & Community Services staff member, who described the program as generating administrative revenue and helping the department’s day-to-day operations. Several residents who identified themselves as program tenants also testified about stability the rentals provided.

Contractor testimony emphasized that the program supports local trades. “We build houses for people that they can't otherwise afford,” said Douglas Forhan, a developer who said his firm has built low-income houses under the program. Longtime vendors and contractors said they regularly perform repairs and renovations on NSP units.

Supporters also defended the department director, Sheila Ware, calling her “dedicated,” “honest,” and “transparent” and arguing that the NSP portfolio has led to permanent homeownership for several families.

Commission response and next steps

Commissioners acknowledged the testimony and said staff had been reviewing NSP’s operations after the March–August period of analysis. Commissioner Lucas said staff found that the program carries significant reserves—material the commission said merited a broader policy discussion rather than abrupt cuts to services or personnel.

The commission directed staff to schedule a workshop so commissioners, staff and the public can review program governance, funding sources, repair and maintenance practices, and alternatives for long-term affordability (for example, community land trusts or partnerships). Staff said Room 10 at City Hall would be sought for an in-person workshop in October; commissioners asked staff to return a scope for that workshop and to circulate materials in advance.

Why the issue matters

Speakers said the NSP program uses past federal HUD allocations and program income that are not drawn from the city general fund; supporters warned that divesting the homes or terminating the program would reduce both affordable housing stock and a revenue stream used by the department. Opponents have raised questions about whether municipal government should operate a property-management portfolio versus turning management to a dedicated housing authority, nonprofit or private property manager.

What commissioners said

Commissioners described the review as a fact-finding and process-improvement exercise rather than a personnel action. Mayor Branch and other commissioners said they wanted a transparent workshop with PFM or other advisors to outline options: continue city management, contract with an external manager, place properties in a community land trust, or sell under conditions. The commission did not take immediate action to divest properties during the meeting and noted that the NSP program maintained approximately $2.0 million in reserves according to staff materials.

What to watch next

Staff will return with a proposed workshop scope and scheduling options, including documentation of program revenues, repair expenses, and any regulatory constraints tied to HUD funding or program income. The commission indicated it intends to hold that workshop before making formal policy changes affecting the NSP rental portfolio.