Panama City housing staff outlines program funding, county shifts and spending deadlines

Sheila Ware, Housing and Community Services, told the Panama City Commission at a July virtual workshop that the department manages a mix of federal and state housing funding and multiple programs intended to increase and preserve affordable housing.

Ware said the department had reduced direct housing staff from seven full‑time employees to "4 and a half" working directly in housing and that the office administers programs funded through Neighborhood Stabilization Program grants (NSP 1 and NSP 3), the State Housing Initiatives Partnership (SHIP), Community Development Block Grant (CDBG) money and Hurricane Housing Recovery Program (HHRP) disaster grants.

The city received NSP 3 funds; the county had awarded NSP 1 and asked the city to administer the county’s award, Ware said. She reported 31 county‑conveyed NSP properties were purchased and 18 of those were resold to eligible applicants while 13 remain affordable rentals managed by the city. Ware said the properties carry affordability periods (she said 15 years from date of purchase for NSP purchases) and that the city estimates about $70,000 in annual rental income from the portfolio. Ware said two rental units are currently eligible for resale and were expected to be sold by the end of the year.

On SHIP — Florida’s State Housing Initiatives Partnership program created under the William S. Sadowski Affordable Housing Act — Ware said allocations are set by population and documentary stamp collections. She said Bay County receives the larger share and the city receives about 20 percent of the county allocation; Ware gave the county’s 2024 allocation as $1,104,884 and the city share as $264,750. Ware reminded commissioners that SHIP requires a Local Housing Assistance Plan (LHAP) every three years and that the most recent LHAP was approved by the commission on 07/23/2024.

Ware summarized HHRP disaster funding awarded after Hurricane Michael. She said the city received $8.4 million under HHRP 1 and $2.6 million under HHRP 2, assisting 186 and 56 households respectively; she said the combined economic impact based on property values that returned to the tax rolls exceeded $30 million.

Commissioners pressed staff on two recurring operational issues: (1) why Bay County chose to take administration of its HHRP funds back in‑house, and (2) whether the city had requested and received deadline extensions. Ware and Jared Jones, city management staff in the meeting, said the county’s decision reflected a different philosophy of getting funds “out the door” more quickly and that the city had sought and received limited extensions for HHRP in coordination with COVID and other disaster funds. Ware said the county and city filed required HHRP reports, with the county and city reports due and submitted by 06/30/2025.

The presentation stressed constraints: many grant sources carry set income targeting, set eligible activities and required set‑aside percentages or administrative caps, so funds cannot be freely reallocated across unrelated uses. Ware told commissioners that state templates and Florida Housing requirements limit how the LHAP can describe local strategies and that adding strategies later requires an amendment to Florida Housing before funds are spent.

Ware and commissioners also clarified that properties purchased with NSP and other set‑aside funds carry deed restrictions that follow the property; when a restricted property is sold during the affordability period, the buyer must meet the income eligibility that applied to the initial purchase. Ware said the city and county were fully reimbursed for NSP purchase and repair expenses.

Ending: Ware said the department continues to track deadlines and performance reviews for HUD counseling and state reports and will provide additional documentation requested by the commission. Commissioners asked staff to circulate the LHAP and other supporting documents for follow up.