Lee County prioritizes housing as commissioners approve CDBG‑DR reallocations and reserve funds for island projects

Lee County commissioners on Jan. 20 approved staff recommendations to reallocate Community Development Block Grant‑Disaster Recovery (CDBG‑DR) dollars from Hurricane Ian toward a mix of housing and infrastructure projects, prioritizing several shovel‑ready housing developments and asking staff to explore extensions with HUD.

The board’s action reserves financing for three housing projects and approves staff‑recommended awards including a $3,000,000 booster‑pump relocation for Moss Marina, $3,000,000 over three years to expand behavioral‑health services through Centerstone, a $1,000,000 Community Rating System watershed planning study, and a proposed $1,450,000 acquisition for a Salvation Army East Lee Hope Hub. “Depending on the board’s action, you have potentially up to just under a $108,000,000 for reallocation,” said Nicole Turner, who presented the CDBG‑DR overview to the board.

Why it matters: County staff said the full slate of projects under discussion — if completed as proposed — would produce thousands of housing units and significant infrastructure improvements: staff listed 2,782 potential new rental units, 54 new single‑family homes and preservation of 836 multifamily units if all 25 awarded projects advance. Commissioners emphasized housing as the program’s core purpose, warned that HUD timing constraints create urgency and directed staff to return with a reworked financial chart at the February meeting.

Commissioners debated whether to prioritize low‑ and moderate‑income housing projects (the original Congressional intent for the CDBG‑DR award) or to fund additional infrastructure priorities. After amendments to include the Tolles Garden single‑family project and reservations for two other island‑area projects, the board approved the motion with no recorded objection.

Public testimony focused heavily on Sanibel Island’s CHR Riverview 2 proposal. Erica Steiner, president of Community Housing and Resources, said the nonprofit is ready to move and urged commissioners to fund the Sanibel project: “We are shovel ready. We are in the process of purchasing the land. We close on our land by in 3 weeks from today,” Steiner said. Project manager Rachel Beelert told commissioners her team has a Gantt chart showing a path to occupancy by July 2028 and said, “I can do this project.” Several Sanibel officials and residents, as well as representatives from Goodwill and the Lee County Housing Authority, urged the board to protect island workforce housing.

Staff cautioned about program timing: county staff noted uncertainty over FEMA’s Hazard Mitigation Grant Program (HMGP) awards and said HUD has warned the county about urgency tied to an “urgent‑need” waiver that expires in May; staff recommended possible extension requests to preserve options.

What the board decided next: The board approved the package and directed staff to (a) rescind awards where alternate funding has been identified (to free up funds for reallocation), (b) reserve amounts for the three prioritized housing projects (Tolles Garden, CHR Riverview 2 and Barrett Park), (c) pursue HUD extension authority where feasible, and (d) return in February with an updated allocation graphic showing reserved amounts versus remaining funds.

The vote: The motion passed with no objection from the dais (chair called for objections and none were raised). The board’s direction does not itself finalize individual project awards; staff will return with proposed award documents and any necessary action plan amendments for HUD.

What to watch: Staff said that, depending on project closings and the application pipeline, the county could have as much as just under $108 million to reprogram but that a March timetable is important to preserve waiver flexibility and to get projects entered into HUD’s systems.

Provenance: subject introduced SEG 731; discussion and final motion concluded SEG 2540–SEG 2570.