Gainesville could receive more than $3 million in state housing funds over the next three years, with the official number coming in May. The funds would go toward expanding down payment assistance, home rehabilitation and foreclosure prevention programs for low‑income residents.
The funding comes from the State Housing Initiatives Partnership, or SHIP, program. It serves “very‑low” to “moderate” income residents, ranging from about $36,000 to $165,000 for a one-person household. As city commissioners look to finalize the plan in the coming months, experts acknowledge the program’s limits in addressing housing assistance.
Corey Harris, the city’s housing and community development director, said about 160 people are waiting for assistance. To serve everyone on the waitlist, he said, the city would need a little more than $9.5 million — over three times its current funding.
“The amount of funding that comes to the city could never resolve or fully eradicate our affordable housing issue,” Harris said.
Harris said 65% to 75% of approved applicants who complete the process ultimately receive assistance. However, the department still struggles with limited funding, staff capacity and contractor participation.
The city estimates about $1 million a year in SHIP funds for the next three-year cycle. Although staff have submitted a draft for the Local Housing Assistance Plan based on that estimate, it still must be approved by city commissioners and allocated by the state before taking effect.
About SHIP
The SHIP program is administered by the Florida Housing Finance Corporation, the state’s affordable housing finance agency. It provides funds to local governments across the state, including all 67 counties and 55 cities, according to its website.
Since 2015, Gainesville has received over $8.5 million in SHIP funding, with annual allocations ranging from about $227,000 to $1.7 million, according to SHIP Collections and Disbursement records. The most recent 2025-26 award was just over $1 million.
Those funds have gone to help residents like Jim Notestein, an 83-year-old former Alachua County commissioner and current garden designer and horticultural adviser. Notestein waited three years for SHIP dollars to finance a replacement home valued at about $170,000 on the property where he and his wife, Emily, had lived for 60 years.
After investigators toured the old house about three years ago, they determined there was lead-based paint on the wood. That made house demolition a bigger challenge, as it has to be treated as hazardous waste, making the process much more expensive.
The Notesteins continued to live in the old house for three years, waiting for the city to analyze their qualifications and for contractors to make proposals to build a new house.
Without help from the city, Notestein said, he would’ve been forced to stay in the more than 100-year-old house.
“We would’ve lived at the old house until we died, probably,” he said.
The old two-story house still stands at the end of the driveway, with a metal roof and ornate architectural details. It once featured double-hung windows, French doors and French windows. But now, the Notesteins’ replacement house, completed in 2025, stands nearby.
Notestein’s house replacement was the most expensive project the city funded through its affordable housing programs during the 2022-23 fiscal year, according to the SHIP annual report.
What’s the status of the funding?
City commissioners must approve the 2026-2029 Local Housing Assistance Plan before Gainesville can access the funding.
The department held four community engagement sessions across Gainesville in February to present and review the plan.
Real estate documentary stamp taxes, or taxes on legal documents like deeds and mortgages, fund the SHIP program. The state distributes those funds to local governments, which then decide how to address local housing needs.
Gainesville Housing and Community Development Manager Phimetto Lewis said rising housing costs and inflation continue to stretch the city’s resources. When funds run out, some people have to wait months or years for help.
In order to stretch the funds further, the city also plans to partner with developers to build affordable housing and use SHIP funds to offset part of construction costs.
One focus of Gainesville’s plan is preserving homeownership to stabilize neighborhoods and help longtime residents stay in their homes. The city can provide up to $7,500 per household to resolve mortgage delinquencies and prevent foreclosure.
Still, Lewis said the department continues working through a growing waitlist.
“The waitlist doesn’t stop,” she said.
Eligibility depends on household income and family size. The program prioritizes first-time homebuyers, low- and very-low-income families, seniors, people with disabilities and homeowners in need of repairs.
Remaining funds may assist moderate-income households earning slightly above low-income limits. A small portion of the funding covers administrative costs.
Residents must apply through the city’s website and submit documentation verifying income and eligibility. The city awards assistance on a first-qualified, first-served basis once applicants meet eligibility requirements, according to the draft plan.
In each cycle, the department has two years to identify projects and recipients and one year to spend the money. Last year, about 47 homes were rehabilitated and four foreclosures were prevented, according to Lewis.
SHIP funding announcements typically arrive around April or May. Local officials plan their programs assuming about $1 million in funding per year, though the final amount can vary. Once the official award letter is received and funding is approved, they can begin distributing assistance to help residents.
The City Commission must approve the plan before it takes effect for fiscal year 2026. The next commission regular meeting is scheduled April 2 at 10 a.m.
Contact Sara Dhorasoo at sdhorasoo@alligator.org.
