Volusia ECHO staff recommend enforcing covenants after Hotchkiss and Lillian show repeated compliance gaps

ECHO staff told the Volusia County ECHO Advisory Committee on Jan. 6 that two historic properties awarded in 2009 and 2012 are out of compliance and that county legal is preparing enforcement steps that could include recording liens and pursuing repayment.

According to Daniel Marsh, ECHO manager, the Hotchkiss Historic Home (2012 grant) and Lillian Place (2009 emergency acquisition grant) have both failed to provide consistent public access and meet maintenance obligations required under their restrictive covenants. Marsh said the county issued monitoring letters after inspections in 2020, 2023 and 2025 and that legal has determined enforcement action is warranted to protect taxpayer funds.

Legal counsel Sabrina Slack explained to the committee that the county’s interest is secured by recorded restrictive covenants and statutory liens, which are picked up by title companies at closing. Slack said enforcement of a statutory lien requires a court action and public sale only as a last resort but that recording a lien preserves the county’s priority interest. "The county records a restrictive covenant which is a lien for the full amount on it," Slack said, noting lien priority follows statutory rules and time of recording.

Members pressed staff on the timeline for follow-up after the first 2020 findings. Marsh and others acknowledged COVID-era limits on site visits and said staff had attempted to work with the Heritage Preservation Trust to bring properties back into compliance, including requests for action plans. "We worked with them to try to get some of their tea parties back open with their public access," Marsh said. He added that after repeated shortfalls and an incomplete action plan, the county issued a notice of intent to enforce the restrictive covenant for Hotchkiss and is asking for repayment of roughly $485,005.

Representatives of Heritage Preservation Trust, including president John Dillard, told the committee the organizations have invested more than $2 million over the years maintaining Lillian and Hotchkiss and blamed much of recent financial strain on COVID-19. Dillard said volunteers dwindled and fundraising revenue fell; he described the properties as "money pits" that require substantial ongoing investment. The Trust said it has a pending sale for Hotchkiss and intends to use proceeds to support Lillian. Fran Dillard, a Trust board member, said the sale has an extension to March 6 and that due diligence is in progress.

Committee members raised concern that the county’s remedies—recording a lien and, if necessary, pursuing enforcement through the courts—could leave Lillian at risk of sale or transfer that would limit public access. Several members urged the Trust to present a firm, itemized work plan and schedule to county council; staff said the enforcement action will be presented to County Council on Jan. 20. "If they come with the knowledge of how long and what they can stick to, they may have a chance with council," one staff member advised.

The committee treated the presentations as procedural review; no final county-council-level enforcement vote was taken at the advisory meeting. The items will be forwarded to County Council for consideration, with staff recommending enforcement of the restrictive covenants for both grants and repayment per the recorded liens.

Sources: ECHO staff presentation and public discussion at Volusia ECHO Advisory Committee meeting Jan. 6, 2026.