Pensacola's largest shelter for homeless families is on the verge of losing its home too

Pensacola’s largest shelter for families experiencing homelessness is running low on money to pay its bills, including rent.

The Max-Well Respite Center is now on a month-to-month lease with the owner of the 17,040 square-foot facility, 2200 N. Palafox LLC, which just listed the property for sale for $2,460,000.

Max-Well Respite Center is a transitional housing program under the nonprofit organization Re-entry Alliance Pensacola (REAP), which offers people experiencing homelessness − including families, veterans and individuals − a place to stay while they get back on their feet and to receive food, lodging and services to help them become independent. The REAP shelter opened at 2200 N. Palafox in July 2022.

Vince Whibbs, executive director for Re-Entry Alliance Pensacola, said funds provided by the city of Pensacola from the American Rescue Plan Act for the program is gone. The money was provided for one year and Whibbs said it ran out several months ago, leaving them strapped for cash.

“The agreement that we had with the landlord was that if he could sell the property or find another tenant that could go back to paying what we had originally agreed on, then they would do so,” said Whibbs. “If they get the right offer or if we get continued funding from several different sources that are pending right now, that could change.”

Whibbs said it costs roughly about $40,000 a month to run the shelter and transitional housing program, including $7,500 a month in rent. That amount is almost half of the $15,000 a month REAP was originally paying monthly for the building, which has more than 40 beds, many in individual rooms, as well as a large commercial kitchen, dining and meeting areas, offices and laundry.

The rent was decreased after REAP began struggling with finances, but the rental agreement also included REAP paying taxes and insurance.

The building’s owners, construction business partners Scott Parks and Ron Long, say they picked up last year’s insurance and tax bills because REAP was unable to afford it. Taxes alone were just under $15,000 according to the Escambia County Tax Collector’s website.

The owners bought the building in 2021 for $275,000. Long said they put in another $850,000 to renovate it for REAP with the purpose of helping people experiencing homelessness, including children and families. They also renovated the building after the REAP shelter flooded last June and had it reopened within days of being water logged, but Long said REAP’s “inconsistent” financial situation makes it difficult for them to be long-term landlords.

“There was a need and we purposefully built it for that,” Long said. “We've shelled out about $175,000 to date (to cover additional expenses), and it's not smart business. It's not smart to continue to do that when we don't have a valued partner with the city or the county that's trying to help. I'm not in the business of running shelters.”

REAP’s ongoing struggles with shelter funding

In September, the area’s largest shelter for women and children, REAP Lodges Transitional Shelter in Pensacola, closed due to lack of funding.

At the time, REAP was renting a facility from the Salvation Army in Brownsville and nearly 40 women and children were staying there.

Whibbs asked local leaders, including Escambia County, for financial help to keep the facility afloat. Commissioners helped cover expenses for another month but were skeptical about funding it long-term due to concerns about high-costs and the program’s business plan.

When the shelter closed, many of the residents went to live at the Max-Well Respite Center on North Palafox.

During its first year of operation, administrators of the Max-Well Respite Center say they put close to 400 people in beds, provided 80,000 meals and other services including helping people obtain their birth certificates and get a state ID or driver’s license.

They reported more than 80 children were assisted in attending school and almost 70 childcare vouchers were given to parents so they could work. Administrators say they helped others obtain their GEDs, job training, as well as steady housing and work.

Everyone who comes into the program is expected to follow the rules, like no fighting, stealing or drinking alcohol, as well as be respectful of others.

They are also expected to work with case managers on a plan to improve their situation through life skills classes, pursuing an education, and/or working a job.

U.S. Navy veteran Chris Haynes is staying in the veteran’s section of Max-Well Respite Center while he works to get back on his feet. The 60-year-old man has struggled for years with drugs and alcohol addiction and said the program is helping him rebuild his life.

“Sleeping in the streets, homeless, it's no life,” Haynes said. “It's very hard. I'm trying to get sober, get my hernia operation, get my housing and this place is fantastic. I love it here, it has been a blessing.”

REAP also recently partnered with Ascension Sacred Heart and Community Health Northwest Florida to provide beds and respite care for homeless hospital patients who need a place to recover after surgery or other medical treatment.

Whibbs said Max-Well Respite Center receives funding from additional sources including resident fees and Opening Doors, Pensacola’s Continuum of Care for homelessness, but it’s not enough to cover all their costs.

Pensacola Mayor, D.C. Reeves said the city has about a million dollars in ARPA funding available and they want to spend it on addressing homelessness but spend it carefully. To that end, the city is hiring a homelessness consultant who pioneered a "housing first" approach in Alachua County to advise the city on setting up a low-barrier shelter in Pensacola.

“That's why we're bringing an expert in, is to answer two questions,” said Reeves. “One, what is the right size of a low barrier effort look like in the city of Pensacola? And two, what does a year of operations, three years operations look like from someone who's run it before? And where does that funding stack? I think that question being answered is as vital as finding a building or figuring out the number of beds. It's got to be sustainable. I think that should be the expectation of the remaining dollars we have.”

What’s next for Max-Well Respite Center?

The building’s owners say REAP can stay month-to-month until they have a new buyer and several potential buyers have already expressed interest.

Previously: Pensacola's largest women and children's shelter is on the brink of closing. Here's why.

Long is disappointed the arrangement is not working out financially because he supports addressing Pensacola’s growing problems with homelessness.

“It's a shame that whole group can't come together with the mayor and the city council and the county commissioners and all get behind one thing, because there's a problem,” Long said.

Whibbs said he’s continuing to pursue funding options and feels confident the 80 residents there now, including 35 children, will have a place to stay at through the end of June.

“I feel like there's no doubt that it will be open until the end of the current fiscal year (June 30),” Whibbs said. “Then hopefully thereafter, we will have either that facility or some other replacement to pick it up.”

This article originally appeared on Pensacola News Journal: Max-Well Respite Center for homeless families struggling financially