Panama City Tackles Affordable Housing, Funding Challenges, And Youth Programs In Virtual Workshop

Neighborhood Stabilization Program (NSP)
NSP-1 (2011–2014): Administered by the city on behalf of Bay County, with $2.5 million allocated. The program purchased 31 foreclosed or abandoned properties, with 18 resold to eligible applicants and 13 maintained as affordable rentals, generating approximately $70,000 annually in rental income. Properties must remain affordable for 15 years from purchase.

NSP-3 (2014–2017): The city received $1 million, purchasing 12 properties for affordable rentals, also generating about $70,000 annually. Two tenants are currently in the process of purchasing their properties.

State Housing Initiatives Partnership (SHIP)
Established in 1992 under Florida’s William Sadowski Affordable Housing Act, SHIP funds are allocated based on population and documentary stamp tax revenue. Panama City receives 20% of Bay County’s allocation, amounting to $264,750 for 2025–2026.

Hurricane Housing Recovery Program (HHRP)
Post-Hurricane Michael, the city received $11 million, and Bay County received $36 million. The city administered funds for both, assisting 186 households with $8.4 million (HHRP-1) and 56 households with $2.6 million (HHRP-2). The total economic impact, based on home values returning to tax rolls, was over $30 million.

The county took its program in-house in 2021 due to philosophical differences, prioritizing rapid fund distribution over the city’s focus on long-term homeowner success through counseling.

Community Development Block Grant (CDBG)
Authorized under the Housing and Community Development Act of 1974, CDBG provides direct entitlement funds based on a HUD formula. The 2025 allocation is $360,009, with $72,000 for administration, $54,000 for the After School Assistance Program (ASAP), and $234,585 for public facilities and infrastructure.

Past projects include the Glenwood Community Center and ASAP Center. Current projects include Daven Park repairs ($200,000) and paving projects on streets like Florida Avenue and 19th Street.

Other Funding
COVID Funds (2020): The city received $495,000, assisting 158 households with rental and mortgage assistance. The county received $1.195 million, aiding 319 households.
Disaster Funds (2019): The city received $1.6 million, assisting 203 households, while the county received $892,000, aiding 94 households.

Key Housing Programs
Owner-Occupied Rehabilitation
Targets low- to moderate-income households (up to 80% AMI) for home repairs. In the 2024–2025 fiscal year, 373 applications were received, with 10 owner-occupied rehab projects completed, costing $868,000 from 2021 to June 2025. Funds are secured by a 15-year, 0% interest second mortgage.
Example: A disabled veteran’s home was rehabilitated, addressing code violations and enabling insurance coverage.

Demolition and Reconstruction
For homes where repairs exceed 50% of the property value or are unsafe, demolition and rebuilding are offered. From 2021 to June 2025, $2.19 million was spent across various wards.

Rental Assistance
Provides rental and utility deposit assistance for households up to 80% AMI, with payments made directly to landlords or utility companies. From 2021 to June 2025, $835,000 was spent. The program ensures clients can sustain rent through budget counseling and verifies hardships for eviction prevention.

Purchase Assistance
Offers up to $50,000 for down payment and $10,000 for closing costs for first-time homebuyers, secured by a 15-year, 0% interest second mortgage. Properties must be within city limits, pass inspection, and cost no more than $300,000. Applicants undergo HUD-certified counseling and budget reviews. The average sales price is $243,413.

Infill Housing
Started in 2021, this program builds homes on city-owned lots for low-income buyers who select a qualified builder. The city conveys the lot to the builder, who secures financing. Since 2021, 23 homes have been completed, with 7 in progress and 20 lots remaining. Average infill home sales price is $199,650.

Foreclosure Prevention
Provides up to $10,000 for households at least three months behind on mortgage payments. The program works with lenders to explore modifications or forbearance, with a 1% foreclosure rate on SHIP mortgages due to rigorous counseling.

After School Assistance Program (ASAP)
Established in 1993, ASAP serves children aged 5–16 at Glenwood and Pannaville locations, focusing on academic support, homework assistance, and enrichment activities. In 2024–2025, Glenwood enrolled 31 students (26 daily average), and Pannaville enrolled 23 (21 daily average).

Funding Constraints: The reduction in SHIP funding and the county’s withdrawal of its allocation in 2021 have strained the department’s budget. Administrative costs are partially covered by SHIP (10%), NSP, and CDBG (20%), but gaps are filled by the general fund, prompting calls for sustainable funding strategies.

Program Complexity: Commissioners expressed concerns about the complexity of managing multiple programs with limited funds ($264,750 annually). Suggestions included simplifying strategies, reducing assistance amounts (e.g., lowering down payment aid to $20,000), or partnering with organizations like the Panama City Housing Authority to streamline property management.

Collaboration Opportunities: Discussions highlighted the need for collaboration with nonprofits like Boys and Girls Club and Girls Inc. to reduce administrative duplication and enhance after-school program impact. The city aims to explore partnerships to maximize resources and serve more children.

Property Management: The city owns 25 rental properties under NSP, with two eligible for sale by year-end. Commissioners emphasized exiting the property management business, proposing sales with deed restrictions to maintain affordability.

Administrative Efficiency: The loss of county administrative revenue and past mismanagement (e.g., issues with the Friends of ASAP Inc.) have increased reliance on general funds. The city is exploring new grant opportunities and partnerships to reduce costs.

Future Considerations
Commissioners requested a sustainable funding strategy to reduce general fund dependency, potentially through grants or partnerships.