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Daytona Beach approves use of HUD and SHIP funds for home rehabilitation; manager must notify commission after awards
Summary
The City Commission authorized the city manager to use HUD and Florida SHIP funds for rehabilitation and reconstruction of single-family homes owned by low- and moderate-income households, adding a requirement that the manager notify and be prepared to present to the commission after each project award. The resolution passed 7-0.
The Daytona Beach City Commission on March 5 voted 7-0 to authorize the city manager to use U.S. Department of Housing and Urban Development (HUD) and Florida State Housing Initiative Partnership (SHIP) grant funds for the rehabilitation and reconstruction of single-family homes owned by low- and moderate-income households.
The resolution gives the city manager authority to approve construction-service contracts and to encumber funds in accordance with HUD and SHIP guidelines. Mayor Derek Henry said the commission would add a condition requiring the manager to notify the commission and be prepared to present after each project award. "So what I'll do is I'll add as a condition of the resolution that after each project award, the manager will provide notice to the commission and be prepared to make a presentation to the commission," Mayor Derek Henry said.
Housing administrator Yolanda Presley told commissioners the change is intended to avoid delays caused by tight federal and state reporting deadlines. "When we get these projects ... we're under a very tight time constraint," Presley said, explaining that SHIP requires annual reports and projects must be encumbered and expended to keep the city eligible for future rounds. Presley said the city has not had a SHIP project move forward in about three years because prior funding rounds were consumed by COVID and disaster-related work.
Commission discussion focused on balancing transparency with the program's time-sensitive procurement needs. One commissioner asked that projects be presented to the public and the commission so residents know how grant dollars are being spent; another warned against adding bureaucratic steps that could delay construction. Commission agreement produced the manager-notification condition as section 2(d) of the resolution.
The record indicates the current purchasing authority for similar projects had been $125,000; the change allows the manager to approve projects up to HUD limits, letting the manager serve as purchasing authority to approve competitive bids and speed delivery of housing work. Presley said the two projects currently in the pipeline total about $500,000 in grant funds. She also explained that the city's down payment assistance (DPA) program has limited effect right now because elevated housing prices have priced many buyers out of the very-low and low-income categories, increasing reliance on rehabilitation to meet SHIP set-aside requirements.
The commission approved the resolution by voice vote, 7-0.
The action authorizes use of HUD and SHIP grant funds and adds a reporting/presentation requirement by the manager following each project award. It does not specify individual contract awards or contractors; those will be brought forward or reported under the manager's authority described in the resolution.
