New state anti-diversity law kills grant for LGBTQ community center repairs
Lake Worth Beach commissioners pledge to find nearly $400,000 in city budget for 'life safety' improvements to city-owned building leased to Compass
LAKE WORTH BEACH is scrambling to find nearly $400,000 for repairs to a city-owned building after Palm Beach County officials rejected a grant application because of concerns that the spending violates new state anti-diversity legislation.
The city’s $384,000 Community Development Block Grant request, submitted to the county on Feb. 25, would have paid for upgrades to the air conditioning system and elevator in an 11,000-square-foot building at 201 N. Dixie Highway that the city leases to Compass, an LGBTQ+ community center.
But last week, Palm Beach County’s Department of Housing and Economic Development, which administers the county’s share of the federal grant money to local recipients, rejected the Compass allocation.
The county’s decision came days after Gov. Ron DeSantis signed Senate Bill 1134 on April 22. The legislation, which takes effect Jan.1, prohibits local governments from financing or promoting diversity, equity and inclusion (DEI) and allows DeSantis to remove local elected officials from office if they promote activities tied to DEI.
Although the city’s original CDBG application to the county does not mention Compass’ role as an LGBTQ+ community center, county officials asked the city to find another project.
“This legislation was signed on 4/22 which is why we came to you about it last week. Technically, it takes effect on 1/2027 but, to avoid any legal issues we thought it would be best to identify an alternate project,” Alessandra Tasca, a HED division director, said in an email Monday, April 27, to Mina Tawadros, the city’s deputy Public Works director.
An email to Tawadros three days earlier from HED Deputy Director Carlos R. Serrano included copies of the text and an analysis of Senate Bill 1134.
City commissioners, who approved Compass’ allocation in February based on community support, were not happy with the county’s decision. But commissioners agreed to submit a new application to spend the CDBG money on lighting at the Memorial Park ballfields.
At the request of Vice Mayor Mimi May, whose district includes Compass, commissioners pledged to find money in the city budget for the repairs.
“First I want to say how appalled I am. It shouldn’t matter who our tenant is in a building. It’s a city-owned building. The fact that this deep dive was done into the fact of who was in the building, I’m a little appalled but not shocked unfortunately,” Commissioner Sarah Malega said April 28 when commissioners were told about the county’s rejection of the Compass grant.
“If we approved this last year for this year, it wouldn’t be a conversation,’’ she said. “But because of this new law with DEI and it taking effect in the same fiscal year of the funding, I think it’s sad and I think it’s really unfortunate.’’
Although Compass is the main tenant, the building also serves as a community hub, hosting neighborhood association meetings, training sessions for the Palm Beach County Sheriff’s Office and Red Cross seminars.
“As much as I appreciate the city for finding other funds and that another community project will be able to go forward without preventing the city from receiving any funds, this is setting a dangerous precedent in that this is not just about an elevator or air-conditioner repair — this is about access, safety and whether or not public resources can be withheld based on who is being served,’’ said Julie Seaver, Compass’ executive director.
Compass, which has leased the city building since 2009, pays the city $1,640 a month. The nonprofit’s lease expires in May 2028.
“This opens the door to other nonprofit organizations that service marginalized communities,’’ Seaver said. “because if they can do it to us they’re gonna start doing it to others.’’
Malega shares those concerns.
The repairs are “life safety issues. We’re not talking about a remodel,’’ she said.
“Now I am fearful of schools that are in some of our buildings and the fact that they hit a certain demographic and that demographic may fall under DEI,’’ she said. “Does that mean we are no longer going to be able to help and rely on some of the funds to take care of our great nonprofits in our city?’’
The Palm Beach County Commission is scheduled to vote on the county’s overall $6.6 million CDBG allocation on July 7.
“I feel like at some levels we are in a period of a very small minded approach to things that I object to strongly,’’ City Commissioner Chris McVoy said April 28. “It’s not consistent with our values as a city. It’s unfortunate that we can’t do anything about it.’’
HED Director Jonathan Brown defended the county’s position in an email to the Lake Worth Beach Independent.
“The County’s Department of Housing and Economic Development (HED) is responsible for ensuring that all recommended projects meet the eligibility requirements for the United States Department of Housing & Urban Developments (HUDs) CDBG Program,’’ he wrote.
“Upon HED’s review of the Compass Community Center project, it was determined that the project may not be eligible for CDBG funding. HED evaluated the project, the end users of the project, beneficiaries, and all the federal and state requirements. After a review of this project, it raised questions about the eligibility.’’
In March, Compass expressed concerns that the anti-diversity law could sever the city’s partnership with PrideFest 2027. The nonprofit already has seen a decline in donations in the wake of other state legislation.
On Wednesday, reacting to the CDBG grant, Seaver said she found it troubling that the new law is already impacting the community before it takes effect.
“We’re already seeing the early effects of policy decisions,’‘ she said. “Any time there is precompliance to an executive order or a law or a state bill that has not passed or one that has not gone into effect yet, it’s always a gut punch.’’
Watch the City Commission’s April 28 discussion of the CDBG issue in the video below starting at the 1:23:24 mark: