Clearwater proposes shifting HOME‑ARP funds from rental assistance to affordable rental development

Phil Mayhew, acting housing manager for the City of Clearwater, told the Neighborhood and Affordable Housing Advisory Board that staff is proposing a substantial amendment to the city’s HOME‑ARP strategy to shift a larger share of funds into development of affordable rental housing.

Mayhew said the city received a one‑time HOME‑ARP allocation of $1,637,005.67 and HUD requires a formal “substantial amendment” process if the city moves more than 25% of funding from one use category to another. “This change would shift funds away from the tenant‑based rental assistance and supportive services and instead fund the development of affordable, rental housing,” he said.

City staff said the intent is to increase long‑term housing stability by producing permanent affordable units that serve people experiencing homelessness or at risk of homelessness. The staff proposal would use HOME‑ARP funds as part of a larger financing stack; staff and board members discussed leveraging SHIP, CRA, county funds, the Pinellas County land trust and state tax‑credit financing for larger projects such as the Indigo development referenced by staff.

Dania Perez, the city’s HOME‑ARP specialist, told the board that HUD already defines eligible HOME‑ARP populations and income limits. “As of right now, there’s gonna be for people’s income as 30% or below AMI, and then there’s a category that they can do 50% of AMI, but they have to qualify under that specific definition,” Perez said. She confirmed rents would be set according to bedroom size and household income under HOME rules.

Board members asked how the shift would affect programs or applicants who expected rental assistance. Staff said funds that had been planned for service or rental assistance were not yet officially awarded and that recipients would be notified only after council action. “Once this is approved by council, we would send that out,” Mayhew said; until council approval, staff said they could not deny funds.

Mayhew said the city has until Sept. 30, 2030, to spend HOME‑ARP funds and that two public hearings will be held to solicit comment on the proposed amendment before it moves to city council for final action on June 5. The board voted to forward the proposed reallocation for public hearings and council review.

Less critical details: staff estimated the net HOME‑ARP balance after administration at roughly 85% available for programming, noted that about 15% of HOME‑ARP can be used for administration, and said staff would notify awardees and provide follow‑up meetings for applicants after council action.