$115M in state budget to address housing after Hurricane Michael

May 07-- May 7--PANAMA CITY -- A $115 million appropriation of housing funding from the state should help people rebuild their homes and kick-start developments in the area, according to Rep. Jay Trumbull.

As part of $240.2 million in the state budget for Hurricane Michael relief, the state put aside $65 million from the Local Government Housing Trust Fund, where people can seek help with such expenses as insurance deductibles, repairs, and housing re-entry, as well as $50 million from the State Housing Trust Fund to assist developers in acquiring gap funding to construct affordable housing.

"It should put a big dent in the problem," Trumbull said.

Since the Category 5 hurricane destroyed many homes and apartment complexes as if they were made of cards, housing has emerged as the top issue in the community. The lack of inventory has driven up prices for rentals, and many complain about the workforce not being able to find places to live, in turn stalling the economy. The shortage of workers, particularly in the construction industry, also is prolonging the wait time for homeowners to have repair work done.

The grant money, which will be routed through the Florida Housing Finance Corporation, will be distributed to the impacted areas based on FEMA data and likely concentrated in Bay County where the devastation was the most catastrophic.

In a traditional year with the traditional housing programs, the legislature allocates $200 million for the entire state based on population, Trumbull said, with the funds going primarily to Orlando, Tampa, Miami and Jacksonville. Through the disaster program, the impacted area will absorb more than half of that, Trumbull said.

Even not yet knowing the specifics of how much money will be channeled to Panama City, Community Development Director Michael Johnson, who has worked with this program for years, said the boost in funding will be "extremely" helpful.

"We are in need of permanent supportive, senior and affordable housing throughout the county," Johnson said. "These funds will help us offer incentives to developers to make this happen."

In addition to sparking bigger developments, Johnson said he already is fielding requests from residents for the existing dollars available to residents. Those funds, he said, will go to help people with "utilities, relocation, purchase, rehab assistance and foreclosure prevention."

The budget is not yet final as Gov. Ron DeSantis has time to review it for possible vetoes. This program is unlikely to be cut, Trumbull said.

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