Lee County commissioners on Nov. 4 voted to advance staff recommendations for Community Development Block Grant—Disaster Recovery (CDBG‑DR) projects but deferred adoption of automatic-rescission deadlines for affordable‑housing awards so applicants could pursue outside approvals.

County staff presented a timeline showing that an "urgent need" waiver that allows certain infrastructure projects to proceed without meeting a low‑ and moderate‑income (LMI) benefit requirement will expire in the first quarter of 2026, and that HUD and federal environmental clearances were needed before construction can begin. "We are quickly running up against some deadlines that put, in jeopardy our ability to provide the local match for the HMGP applications," county staff said during the presentation.

Why this matters: The timelines affect how the county can provide the nonfederal 25% match for Hazard Mitigation Grant Program (HMGP) projects and whether housing and infrastructure projects can proceed before the grant performance period ends. Without additional flexibility, staff said some projects could lose access to the CDBG‑DR money and the county might need to reallocate funds.

What the board did: Commissioners voted unanimously to move forward with the staff package but remove the specific automatic‑rescission language that would have rescinded awards that do not close by Feb. 6, 2026, and do not commence construction by March 6, 2026. The chair directed staff to return in January with an updated status of applicants and recommended deadlines. A motion on the floor also asked staff to explore other options to provide the local match for HMGP projects.

Applicant concerns: Multiple housing developers and the Housing Authority said their projects depend on outside approvals — notably Florida Housing bond allocations and HUD subsidy line reviews — that are outside county control and that closing schedules could slip because of federal staffing shortages or the government shutdown. Michael Allen of Bridal Development Group told the board his Cape Coral senior housing project expects Florida Housing action in December and a closing early next year; the Residence project with permanent supportive units expects a mid‑2026 closing.

Staff constraints: County staff outlined the steps required to obligate and spend CDBG‑DR funds: federal environmental clearance, HUD authorization to use funds, federal procurement for design and construction, then construction. An action plan amendment to reallocate funds requires a 30‑day public comment period and a HUD review of up to 45 days, which limits how far staff can push project start dates.

Next steps: The board asked staff to pursue parallel paths — begin required administrative steps for infrastructure projects while continuing to work with housing applicants — and to return in January with updated timelines and proposed final deadlines. Staff was also directed to explore requests from non‑profit applicants, including a potential East Lee County hub for the Salvation Army.