Miami

Tax-Funded Pahokee Apartments Sit Half Finished Amid Alleged Money Shuffle

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Published on April 18, 2026
Tax-Funded Pahokee Apartments Sit Half Finished Amid Alleged Money ShuffleSource: Google Street View

The Everglades Townhomes project in Pahokee, a 60-unit, taxpayer-supported affordable development on the former Everglades Memorial Hospital site, has hit the brakes, leaving residents furious and unit interiors unfinished months after the promised completion date. Newly reviewed records indicate developer Michael Snodgrass was juggling multiple projects at once, while subcontractors complained about unpaid bills. The stall has thrown a harsh spotlight on how public subsidies are being used in a city that is already under fiscal scrutiny.

Emails show funds moved between projects

Emails obtained by WPTV show developer Michael Snodgrass telling employees in August and October 2024 to shift fees and payments between projects to cover shortfalls. In an Aug. 22, 2024 message, he directed staff to "use some builders' fees from other projects we have enough to pay them today." According to the station's reporting, Snodgrass later warned the practice was "dangerous" yet still authorized payments from the Everglades account. Snodgrass has disputed that interpretation and told reporters he did not commingle funds, saying audits and cost certifications keep project costs separate.

Contractors and liens

Contractors say those financial shifts helped lead to nonpayment and legal claims. Reporting and lien records reviewed by WFLX show claims ranging from under $1,000 to roughly $45,000, and subcontractors told reporters they were still waiting on thousands of dollars months after performing work. One subcontractor said he accepted a steep discount to stay on the job but was still owed about $33,000.

Public money behind the build

Documents from Palm Beach County and project filings show the developer assembled a patchwork of public and federal financing for the roughly $19.6 million development: a USDA first mortgage listed at about $3.1 million, a second USDA mortgage around $6.5 million, and county ARPA and Housing Initiative loans that together account for more than $850,000. County materials also discuss Housing Finance Authority bonds that would back a portion of construction costs. Those public investments were intended to keep rents affordable, at or below 60 percent of area median income, for decades.

County response and oversight

A Palm Beach County spokesperson told WPTV the county tracks progress through monthly calls with the project owner, reimburses expenses only for work already completed and is working with the developer on a timeline to finish the complex. Officials previously approved amendments that extended deadlines to give the developer additional time to draw loan funds and rent units to eligible tenants. County staff say they will continue to monitor draws and expenditures while pushing for completion.

Legal questions

The controversy is playing out against a broader backdrop of fiscal scrutiny in Pahokee. A 2025 audit found nearly $2 million in questioned costs across city operations, and that audit was referred to the state attorney's office for possible criminal review, according to WPBF. Contractors' lien claims create potential civil exposure for the developer, and if auditors or prosecutors find evidence of misuse of public funds it could trigger further legal action. Residents say they want a full accounting of how taxpayer money was spent and a firm completion date for the units.

For now, neighbors say crews show up on site only intermittently, and community members plan to press county officials for clearer ledgers and a firm deadline to finish apartments that could house local families. Officials say oversight will continue, and the next steps will depend on audits, lien enforcement and whether the developer can produce a credible completion plan.

Miami-Real Estate & Development