About Sanibel Community Housing and Resources: Funding

Funding the Below Market Rate Housing Program (BMRH)
Since the mid 1980’s, CHR obtained land, existing housing units, and funding for the new BMRH projects through a variety of creative means. For instance, the Woodhaven project involves six sources of total funding, one source from the city of Sanibel covering 53% of the total cost and five sources from CHR covering the remaining 47% of the total cost.

In the past, CHR obtained the majority of the acquisition and construction funds for the first 39 units in the BMRH program. In recent years, City Councils decided to provide a portion of the construction funding for both Casa Mariposa and Woodhaven, with CHR to provide the remainder through a combination of grants, CHR’s own funds, donations, and other CHR sources. The Sanibel City Council’s decision to provide a portion of the construction funds were made as a result of their desire to support additional units being added to the City’s Below Market Rate Housing program and to take advantage of the City’s opportunity to borrow funds at very low interest rates. In exchange for the City’s contributions towards Casa Mariposa and Woodhaven’s construction costs, CHR is required to repay the City $50,000 annually.

Grant revenue obtained by CHR continues to be a significant source of funds for the BMRH program – over $1.63 million to date. The major grant sources specify that funds must be used to assist very low and low income households as defined by the HUD income limits, which are lower than the BMRH income limits.

Although the Federal Community Development Block Grant (CDBG) program was a sizeable BMRH funding source in the past, the availability of CDBG funds has been adversely impacted nationally by the Federal cuts in HUD funding as well as revision in the allocation formula in the City/County interlocal agreement.

The Stat SHIP grant program remains the best potential source of sizeable grants for nonprofits including CHR for BMRH. Most recently SHIP provided $690,000 for Casa Mariposa and Woodhaven. SHIP is funded by a portion of the documentary stamp tax fees on the transfer of property and Sanibel property sales contribute substantial money to this State account. In addition to construction purposes, CHR has used SHIP grant monies for apartment storage units; washer/dryer closets; roof repairs; insulation of older units; and other remodeling needs.

Local grant sources such as organizations, religious groups, and individuals continue to provide critical BMRH funding, often by donations to CHR’s Tenant Assistance Fund. The list includes Kiwanis, ZONTA, Optimists, FISH, the Sanibel Congregational United Church of Christ, St. Michael’s Episcopal Church Women, Bat Yam, and more. Kiwanis, Optimists and ZONTA help with back-to-school gift certificates and expenses, preschool tuition, summer recreation program fees, and many other children’s needs. Tenant Assistance contributions are often earmarked by the contributors for specific purposes, such as a portion of adult and children’s medical, prescription, dental or vision needs; emergency groceries; children’s music lessons or sports registration fees; college texts, etc. View more of our past and present supporters.

Under Sanibel Code regulations, tenants are charged up to 40% of income for rent and utilities with rent ranges approved by City Council, unless grant restrictions cap the rent and utility charges at 30% for a set period of years. Only Woodhaven is subject to these restrictions at the present time. Woodhaven grant regulations also required seven very low and five low income households to be selected as tenants.

In spring 2004, during its annual review, Sanibel City Council approved the maximum income limits by household size and the rent ranges as recommended by CHR. BMRH rents continue to be approximately one-third to one-half of market rate rentals.

The annual administrative budget for the operation of the CHR office remains less than 1% of the total City budget as it has for many years, and is supplemented by CHR’s own funds. The BMRH program benefits from specific economies, such as the extensive volunteer services provided by the 12 CHR Board members; discounted accounting and legal services to the CHR (Karen Mosteller, John Stroemer, and staff from Markham Norton Mosteller Wright, and Stroemer Tuscan; and Robert Pritt from Roetzel and Andress); and no increases for most individual CHR administrative budget line items for several years. CHR staff members continue to do monthly bookkeeping, accounting, and IRS reporting in house.

CHR is also funded by private donations from individuals, familes and businesses. If you would like to help, please contact CHR directly or use our online form.

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