Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
Commissioners press for construction schedule, lien protections before approving Phoenix Crossing extension
Summary
Staff asked commissioners to direct terms for an extension of SHIP and ARPA‑funded work at the Phoenix Crossing affordable housing project; commissioners asked for a detailed construction schedule, confirmation of financing and legal protections before final approval.
Flagler County staff on April 6 briefed commissioners about a request from Abundant Life Ministries to extend deadlines tied to Phoenix Crossing, an affordable‑housing development that has drawn county ARPA and SHIP funds. Staff sought direction to prepare a revised SHIP agreement and an extended occupancy deadline to June 30, 2027.
Joe Hegatus, Health and Human Services director, said the nonprofit had encountered development delays and requested more time to execute the county development and ARPA subrecipient agreements. "They submitted an extension request on March 20, seeking a little bit more time to execute the development agreement and the ARPA subrecipient agreement," Hegatus said.
Legal and funding issues: Assistant county attorney Sarah Spector told the board the project's financing has been complex and that the SHIP mortgage recorded by the county currently clouds title. Spector said the nonprofit planned to close on its primary financing soon and requested the county satisfy or terminate its recorded SHIP mortgage so the nonprofit can close. She warned that ARPA funds already spent are unsecured and the ARPA agreement currently does not include a recorded lien.
Housing staff said SHIP funds typically have a multiyear encumbrance window and that the county can shift unspent SHIP allocations to other projects if not used. "We do have about 3 years to spend SHIP funds," Housing Services Manager Debra Paradowski said, but added the 2023–24 SHIP allocation was unusually large and that staff are lining up other projects if Phoenix Crossing cannot spend the funds.
Commissioners’ concerns and direction: Several commissioners pressed for a signed construction timetable, a general contractor commitment and clarity on how the county would recoup ARPA funds if the project fails. One asked whether an ARPA expenditure could be secured by a lien or subordinate position to protect county funds if the nonprofit defaults. Staff said they would research securitization and subordination mechanics and return with the required documentation.
Next steps: County staff will return to the board at the upcoming special meeting with a proposed SHIP amendment, details of the financing and a construction schedule so commissioners can weigh whether to extend the occupancy deadline to 06/30/2027 and how to structure any lien/subordination or repayment protections.
