City reports progress on $2M affordable-housing CDBG grant: home repairs and down-payment assistance underway

City staff and contractors told the Palatka City Commission on Dec. 11 that the city's $2 million affordable housing grant (reported as CDBG funds) has been used across four tasks, with two tasks — home repairs and a down-payment assistance program — in active delivery.

San John's Housing Partnership (presenter Carlos) summarized the home-repair component. The contractor said 12 homes were completed under a roughly $40,000 per-house cap focused on health-and-safety mechanical improvements: six roofs replaced (metal where practical), HVAC replacements and sizing corrections, electrical-panel upgrades, walk-in-shower conversions for accessibility, selective kitchen and bathroom renovations, and replacement of hazardous flooring. "So most of the work went on the inside just because the homes needed it," the presenter said, noting seniors comprised a majority of beneficiaries.

City staff reported the program prioritizes major mechanical systems and safety improvements rather than cosmetic work; San John's noted that replacements and roofing choices were made with long-term maintenance and Florida insurance realities in mind.

Crystal with Escoffier Consulting described administration of the down-payment assistance program. Launched March 1, the program requires participants to meet eligibility thresholds (minimum 620 credit score, two years' employment, first-time homebuyer course completion and property purchase inside the city of Palatka). Crystal said 13 households have closed with city assistance (one declined the picture), and several more applications are in process. She described one buyer who closed on April 7 and others who moved in during May and September. "We have 13," she said, noting one more was processing and additional applicants were being reviewed.

Commissioners praised the partnership approach and emphasized outreach to ensure funds reach Palatka residents; staff said procurement for later tasks (lots acquisition and construction) awarded Synergy Construction and that permits are in process. The city noted progress on tasks 3 and 4 (lot acquisition and construction) and said two lots have been acquired.

Next steps: staff will continue administration of both tasks; the housing team urged monitoring of pending state rural-housing proposals that could add funds. The city expects to complete at least 16 homes with the current funding, with four additional repairs scheduled before June 30, 2026.