by James Coulter
The City of Lake Wales could receive a grant of up to $1 million to help with a revitalization project that will help provide affordable housing to residents.
At their workshop on Wed. Dec. 11, 2024, Lake Wales city commissioners reviewed an agenda item concerning the approval of a grant agreement for the Lake Wales Housing Authority.
If approved, the grant could provide up to $1 million to be used for the development of Grove Manor Phase II. When completed, that project is expected to provide affordable housing to “qualifying households.”
Grove Manor is located along W. Sessoms Ave., northeast of the intersection of. W. Sessoms Ave. and Dr. MLK Jr. Boulevard. The project is expected to develop approximately 90 units, according to documentation provided in the agenda item. The city had given preliminary approval to the project on Dec. 1, 2022.
“So, this is ratifying something you have already approved,” said City Manager James Slaton.
Phase II will include the demolition of 40 units. Of those units, 10 tenants currently remain. Ten vouchers will be provided through the U.S. Department of Housing and Urban Development (HUD) to allow the remaining residents to seek housing and relocate elsewhere, explained Albert Kirkland Jr. Executive Director of the Housing Authority. These relocations are expected to happen by March.
“We will not be able to close financially [on the project] until all tenants have been relocated,” said Richard Crogan, Vice President of Development for Smith and Henzy, the developer responsible for Grove Manor Phase II. “That is the safeguard the lender has put into place. They want to make sure everyone goes to comparable housing.”
Commissioner Carol Gillespie inquired whether the tenants being relocated would a given a higher priority in receiving housing from the new development. Crogan replied that the tenants will be allowed to apply but will not be given greater priority for housing.
Deputy Mayor Robin Gibson mentioned how President-Elect Donald Trump’s administration has proposed to cut billions in federal spending. Though he heard federal housing “was off the table”, Gibson inquired whether the development would be affected, asking if its funding was at risk of “being placed on the chopping block.”
Crogan answered that the development would be funded through tax credits in the tax code and not the HUD. As such, the grant money should not be affected by any proposed cuts.
“To revamp the tax code to eliminate the low-income housing tax credit program would be a major undertaking in this country,” Crogan stated. “They tried doing that in the past, but they were unsuccessful, and you can’t arbitrarily cut it because it’s the tax code, it’s the law.”
Commissioner Gibson inquired if completing this phase wouldpermit the other phases in the overall development to be completed. Crogan explained that once a phase is underway, the other phases will subsequently happen, though he admitted that he “can’t guarantee it.”
