Alachua County finalized on Tuesday its plan to purchase the Sunrise Residence Inn and its 35 units for $1.95 million, but the property could cost another $4 million in repairs and upgrades over the next decade.  

The Board of County Commissioners (BOCC) said the cost is worth the property and especially the 30 federal vouchers assigned to the units. St. Francis House has run the property, located a few blocks south of UF Health Shands off US 441, for years, but recent financial struggles have prompted the sale.  

The nonprofit has also struggled to maintain the property, according to the county’s due diligence. Commissioners called the conditions subpar and questioned how the units passed the annual inspections conducted by the Alachua County Housing Authority.  

Commissioner Chuck Chestnut said county codes and city codes failed to keep the units in acceptable condition. As part of the motion to buy the property, the BOCC also directed Chair Mary Alford to send a letter to the Alachua County Housing Authority and Gainesville Housing Authority to learn about the inspection process.  

The other parts of the motion directed county staff to finalize the sale with St. Francis House, to ask the U.S. Department of Housing and Urban Development about additional funds and housing options during the remodeling process, and to contact the congressional delegation for Alachua County to assist with the federal discussions.   

The motion passed unanimously.   

“Those sound like a lot of code violations that were never reported,” Chestnut said. “People were afraid to report what was happening in those units.” 

The county’s due diligence report shows that more than 20 of the units had water stains or water damage with a handful having mold growth concerns as well. An estimate for Alachua County to repair the mold, lead paint and asbestos concerns came in at $350,000. 

A list of immediate needs would also include replacing HVAC units, repairing air conditioners, installing gutters and downspouts, repairing walkways and railings, redoing a roof, installing a fire sprinkler system and replacing the fire alarm system, making units and parking ADA compliant, renovating the laundry room and replacing electrical panels.  

The total cost, combined with the $350,000 estimate, would be $1.55 million.  

Listed projects that need to happen within five and 10 years would cost another estimated $2 million. These projects include kitchen remodels, new flooring, parking lot renovations and window replacement. 

Commissioner Anna Prizzia said she knows staff has a tough job balancing the budget with providing quality projects. She said she wants high-quality units that model what affordable housing should be.   

“I don’t want us to be slum lords,” Prizzia said. “I don’t want us to just be painting over water damage.” 

Lauri Schiffbauer, executive director of St. Francis House, apologized at the meeting for the condition of the units. She said she hadn’t realized the condition since the units passed their annual inspections.  

Schiffbauer also said the nonprofit had no plans to close in response to a commissioner question. 

Commissioners discussed completely gutting and remodeling the two buildings to meet current county standards or potentially tearing down and constructing new buildings that could hold more units for affordable housing.  

Claudia Tuck, director of community support services, said the land use and zoning for the property would allow a five-story building by right along with commercial opportunity. She added that the county has risk concerns with the purchase. 

The funding is currently coming from reserves with an option to reimburse the cost from infrastructure surtax money.  

Prizzia asked if at least the land portion could be paid for by the surtax funds that continue to pile up without a spending mechanism.  

“I just want us to get to the point where we’re starting to use that money,” Prizzia said. “I mean we’ve been sitting on that money. It’s now going on two years that we’ve had this infrastructure surtax. We’ve done zero projects with it.”   

Limitations on the surtax mean the BOCC can only use the funds to pay for land that will be affordable housing but not the actual construction of units.  

Tommy Crosby, assistant county manager, said he’s not comfortable with using the surtax to buy a building. However, he said the county has the funding to proceed with the BOCC’s policy decisions. He said the BOCC needs to simply decide on the policy and whether the cost of the 35 units will be worth it.  

“I don’t think we need to try to manipulate solutions of money if we’re talking about a couple million dollars,” Crosby said.  

Commissioner Ken Cornell said letting a private developer buy and build student housing on the land would place Alachua County further behind in its affordable housing goals.  

“Our need right now is saving these vouchers, permanent supportive housing and getting this facility up to snuff because obviously it hasn’t been maintained and it couldn’t be maintained,” Cornell said. “They just don’t have the resources.” 

While more expensive than planned, he said that’s always the case with projects. Those costs differences don’t impact the need and reason the BOCC is doing the project, he said.  

Alachua County has also bought two motels further south on US 441 that it plans to turn into affordable housing.