Lee County commissioners direct staff to refine CDBG-DR reallocations, authorize work with Goodwill and LARC

Lee County commissioners on Jan. 7 voted to move forward with staff recommendations for reallocating remaining CDBG‑DR (Community Development Block Grant – Disaster Recovery) funds and to direct county staff to work with nonprofit applicants — including Goodwill and LARC — to refine proposals for future awards.

The action followed a staff presentation that summarized the county’s CDBG‑DR portfolio and identified about $148,000,000 currently available for reallocation from completed or undersubscribed projects. Jeanne Sutton, a county staff presenter, said the county has allocated roughly 82% of its award and has asked HUD for waivers that would reduce the program’s low‑ and moderate‑income (LMI) benefit set‑aside from 70% to 50% and allow broader use of funds for general government buildings.

The vote authorizing staff to work with Goodwill to craft a CDBG‑DR proposal passed after commissioners who had conflicts recused themselves; county staff recorded the vote as 3–0 to direct staff to work with Goodwill on a future award. Commissioners also approved a separate direction to work with LARC on a revised scope for a special‑needs shelter project. In a final, broader motion the board approved the staff recommendations on several projects and asked staff to return with detailed proposals and updated financial balances for additional awards.

Why it matters: Lee County’s $1.1 billion CDBG‑DR allocation is intended to fund recovery and mitigation following Hurricane Ian. How the county uses the remaining uncommitted funds — for additional affordable housing, infrastructure, mitigation, or nonprofit service centers — will shape the recovery footprint and where future construction and services will be concentrated.

Most important facts

- Staff summary: Jeanne Sutton said the county has roughly 82% of its CDBG‑DR award committed or awarded, counting projects with pending Hazard Mitigation Grant Program (HMGP) matches, and estimated about $148,000,000 is available for reallocation across multiple silos (multi‑family housing, voluntary acquisition, critical infrastructure/public facilities).

- Waivers pending: Sutton said staff has requested HUD waivers to reduce the LMI set‑aside from 70% to 50% and to permit use of CDBG‑DR for general government buildings; HUD had not yet responded and staff expected a response in February.

- Specific recommendations moved forward: staff asked the board to (a) swap Habitat for Humanity’s Red Hibiscus single‑family project for a Cape Coral single‑family Habitat project, (b) authorize two generator installations (to match HMGP funds) at Tortuga Elementary School and Lee How Sports Complex, (c) replace two small bridges (Constitution Circle and Hagie Drive) damaged in Hurricane Ian, and (d) consider a budget increase request for the LCEC Cherry Estates project. The board approved those directions and asked staff to return with details on implementation and exact award amounts.

- Nonprofit project development: The board directed staff to work with Goodwill to craft a funding proposal that could be brought back for consideration (vote recorded as 3–0 directing staff to work with Goodwill). Commissioners also directed staff to work with LARC on a revised proposal for a special‑needs shelter and to return with a funding recommendation.

- Public comment theme: More than a dozen speakers — including housing developers, nonprofit leaders and neighborhood representatives — urged the board to prioritize affordable housing (both multi‑family and homeownership), preserve the original 70% LMI benefit where possible, and fund projects in Cape Coral and other parts of the county that were under‑represented in earlier awards.

What staff told the board

Sutton reviewed the county’s CDBG‑DR action plan history and current balances. Key numbers she provided: approximately $56,000,000 available from a voluntary residential acquisition program (no viable applications), about $85,400,000 available in multi‑family housing programs, and roughly $6,600,000 in critical infrastructure and public facilities — together roughly $148,000,000 for reallocation. She noted an HMGP commitment of about $131,000,000 that counts toward mitigation set‑aside work, leaving only about $12,000,000 remaining in the mitigation‑only pool, and stressed HUD deadlines for awards (May 2026 for certain urgent need awards; final grant expenditure deadline November 2029).

Public commenters urged prioritizing projects that produce more units per subsidy dollar. Andrew Cribbs, speaking for a housing group, called the WAVE at Colonial multifamily project “one of the top ranked and most impactful projects in Lee County,” noting it would deliver 358 units and requested commissioners consider awarding it from available funds. Several speakers representing Cape Coral projects — including Amy Yearseley for the City of Cape Coral and developers who had permit‑ready proposals — asked the board to allocate additional funding for Cape Coral developments.

Board direction and votes

- Direction to staff to work with Goodwill to craft a CDBG‑DR funding proposal for future consideration (mover/second not specified). Vote recorded by staff: yes 3, no 0; outcome: approved. Staff estimated any future Goodwill award could be in the $15 million–$18 million range but said a specific ask would be returned for formal action.

- Direction to staff to work with LARC (special‑needs shelter) to craft a revised proposal that would meet program requirements (mover/second not specified). Motion seconded; outcome: carried.

- Final consolidated motion: the board approved staff’s recommended actions including the Habitat replacement (swap Red Hibiscus for the Cape Coral single‑family Habitat project), two HMGP‑matched generator installations, the two bridge replacements in Harlem Heights and St. Carlos Park (Constitution Circle and Hagie Drive), authorization to finalize a small LCEC Cherry Estates budget increase (not to exceed a modest administrative amount unless returned to the board), and to direct staff to pursue further work on a small set of additional projects (Avis Square/Avis 720, Wave at Colonial, 53100 Summerlin and others flagged in public comment) and to report back with allocation balances and proposal details. The motion carried; staff reported the vote as unanimous among board members present.

Distinguishing discussion from action

Throughout the meeting the board heard a wide array of public testimony and developer presentations (discussion). Commissioners repeatedly asked staff to return with refined proposals and budget details rather than approving large new awards on the spot (direction). Formal board outcomes were limited to directing staff to work with specific nonprofit applicants (Goodwill, LARC) and to approve staff’s near‑term recommendations and the swap of a Habitat single‑family project; no final contract awards were made that evening (decision pending future return of staff proposals).

Clarifying details provided to the record

- Total federal award: $1.1 billion (CDBG‑DR) was referenced across documents and public testimony. - Current committed/awarded: staff said approximately 82% of funds are allocated or committed (including HMGP matches that await state award action). - Available reallocation pool: staff cited approximately $148,000,000 available, composed of roughly $56,000,000 (voluntary acquisition), $85,400,000 (multifamily), and $6,600,000 (critical infrastructure/public facilities). - HMGP match: staff said $131,000,000 of HMGP commitments are in the pipeline and count toward mitigation set‑aside. - Waiver request: staff requested HUD reduce the LMI benefit set‑aside from 70% to 50%; if approved, the LMI requirement would fall from the larger figure staff cited to a smaller one (staff provided example dollar figures during the presentation).

What’s next

Staff will work with Goodwill and LARC to develop award‑ready proposals and will return to the board with exact dollar amounts, implementation details, timelines and updated allocation balances. Commissioners also asked staff to prioritize showing how remaining funds could be used for infrastructure projects and to return with options that identify impacts and timing.

Quotes

“HUD has also provided us flexibility to request waivers for certain program requirements,” Jeanne Sutton, county staff presenter, told the board as she reviewed the county’s allocation status and pending waiver requests.

“If not awarded today, this crucial community will be lost to luxury rentals,” Andrew Cribbs said of the WAVE at Colonial project, urging commissioners to consider additional multifamily awards.

Ending

The board ended the special meeting with direction for staff to bring refined proposals and impact analyses back at future meetings so the board can consider final awards with complete budgets and timelines. The board adjourned after the staff confirmed the actions taken and described the next steps.