Notice of proposed multifamily housing development in a designated floodplain and wetlands area.

Final Notice and Public Explanation of a Proposed Activity in a Federal Flood Risk Management Standard Designated Floodplain and Wetlands
To: All interested Agencies, Groups, and Individuals
This is to give notice that HUD under 24 CFR Part 50 has conducted an evaluation as required by Executive Order 11988 and Executive Order 11990, in accordance with HUD regulations at 24 CFR 55.20 in Subpart C Procedures for Making Determinations on Floodplain Management and Wetlands Protection.
The proposed activity would be financed by a Federal Housing Authority (063-35426) mortgage for new construction of multifamily housing. The proposed project location is located at the Southwest Corner of Highway 79 and Bay Parkway in Panama City, Bay County, Florida on a property with both Federal Flood Risk Management Standard (FFRMS) floodplain and wetlands.
The 38.353-acre parent property is currently vacant and wooded land with a paved access road passing through the northern section of the subject property. The subject property is proposed for development with the Gateway Crossing Apartments in two phases. The first phase of the proposed project, which consists of the proposed 27.763-acre HUD collateral, is proposed to include ten three-story residential buildings housing a total of 240 units, a clubhouse with outdoor pool, a maintenance garage and pet spa, a playground and dog park, paved walkways and parking, three detention ponds, and several free-standing garages. An extension from Bay Parkway to allow access to the subject property and an additional offsite retention pond would also be required to service the development.
Based on a review of FEMA Flood Insurance Rate Map (FIRM) Community Panel Number 12005C0282J, dated October 24, 2024, the central area of the subject property is located in Zone X (unshaded), areas of minimal flood hazard outside of the 100- and 500-year floodplains. The remaining area of the subject property, primarily on the west and east sides of the site, is located within the following Special Flood Hazard Area (SFHA): Zone A consists of areas within the 100-year floodplain where Base Flood Elevations (BFEs) are not established. The extent of the FFRMS floodplain was determined using a 0.2 percent flood approach. A flood study was completed to determine the BFE for the 1 percent and 0.2 percent annual chance flood event elevations at the subject property, providing the best available elevation data for the area of floodplain within the subject property. The highest BFE on the property is 29.4 feet NAVD88 and the highest 500-year flood elevation is 29.8 feet NAVD88 according to the flood study; therefore, the FFRMS flood elevation is 29.8 feet NAVD88.
A total of 14.98 acres of 500-year/FFRMS floodplain, inclusive of 14.07 acres of 100-year floodplain, occurs within the area of HUD collateral and a total of 24.6 acres of 500-year/FFRMS floodplain, inclusive of 23.69 acres of 100-year floodplain, occurs on the parent parcel based on best available data.  The area of development includes 4.48 acres of altered (coniferous plantation hydric) wetlands and ditches, 1.04 acres of high-quality (mixed forested) wetlands, and 0.84 acres of isolated (coniferous plantation hydric) wetlands. The areas of floodplain and wetlands on the property function to provide floodwater storage and conveyance, water quality maintenance, control sedimentation and erosion, recharge groundwater, and support wildlife and aquatic habitat as well as biological diversity.
HUD has considered the following alternatives and mitigation measures to minimize adverse impacts and to restore and preserve natural and beneficial functions and intrinsic values of the existing floodplain/wetland: (1) No Action: In the absence of the project, the subject property would likely remain vacant or be developed with residential or commercial uses at a later date. This alternative would not accomplish the project purpose or need. HUD would not insure the proposed development under the Section 221(d)4 program. (2) The original project design planned for one additional building and two recreational pool court areas in the Phase I HUD collateral. This alternative was rejected in order to accommodate a sufficiently sized central stormwater pond to manage stormwater volume and water quality as well as to reduce impervious surface area in the floodplain. (3) As proposed, areas of floodplain on the 27.63-acre property (HUD collateral) would be reconfigured during construction to contain the FFRMS floodplain onsite in three stormwater ponds; a total of 5.33 acres of 500-year floodplain, inclusive of 5.31 acres of 100-year floodplain, would remain onsite in the post-developed condition. A total of 6.72 acres of 500-year/FFRMS floodplain, inclusive of 6.71 acres of 100-year floodplain, would remain within the parent parcel in the post-developed condition. Additionally, 2.89 acres of 500-year floodplain, inclusive of 2.89 acres of 100-year floodplain, would be disturbed offsite to construct an access road, walking paths, and a fourth wet detention pond. The area of floodplain in the offsite area of proposed development would be contained post-development in the offsite wet detention pond. The development as proposed would directly impact 0.09 acres of high-quality wetlands, 2.10 acres of low quality/altered wetlands, and 0.84 acres of isolated wetlands with 9,300 cubic yards of fill.
A total of 2.38 acres of altered wetlands and 0.95 acres of high-quality wetlands would be preserved onsite. The project also involves preservation of 6.02 acres of wetlands within the Intercoastal Waterway Sub-Basin and preservation of 5.11 acres of wetlands within the SW West Bay Conservation Unit. Silt fencing would be installed at the perimeter of the site during construction and erosion control measures would be utilized throughout the construction phase of the project to restrict turbid runoff from leaving the side.  Control of sediment-laden runoff would be provided with hay bales and/or GEOTech style fabrics. Site stabilization would be provided as soon as grading is completed to stop erosion and turbid runoff.  Seeding, sodding, or hydroseeding would be used when final grades are established. Bioswales would be used to direct stormwater towards stormwater inlets. Catch basins would be interspersed throughout the area of development to assist in collection of stormwater. All work would be completed in compliance with state and local floodplain/wetland protection procedures.
HUD has reevaluated alternatives to building in the floodplain and wetlands and has determined that it has no practicable alternative to floodplain/wetland development. Environmental files documenting compliance with Executive Order 11988 and Executive Order 11990, are available for public inspection, review and copying upon request at the times and location delineated in the last paragraph of this notice for receipt of comments.
There are three primary purposes for this notice. First, people who may be affected by activities in floodplains and wetlands and those who have an interest in the protection of the natural environment should be given an opportunity to express their concerns and provide information about these areas. Commenters are encouraged to offer alternative sites outside of the floodplain and wetlands, alternative methods to serve the same project purpose, and methods to minimize and mitigate project impacts on the floodplain and wetlands. Second, an adequate public notice program can be an important public educational tool. The dissemination of information and request for public comments about floodplain and wetlands can facilitate and enhance Federal efforts to reduce the risks and impacts associated with the occupancy and modification of these special areas. Third, as a matter of fairness, when the Federal government determines it will participate in actions taking place in floodplain and wetlands, it must inform those who may be put at greater or continued risk.
Written comments must be received by the HUD at the following address on or before April 20, 2026: HUD, 400 W Bay Street, Suite 1015, Jacksonville, Florida 32202, Attention: Mark Malec, Branch Chief, Technical Team. Mark Malec's direct phone number is (904) 208-6054 and email is Mark.E.Malec@hud.gov. A full description of the project may also be reviewed from 8am to 5pm at the same address as above. Comments may also be submitted via email at FL_Webmanager@hud.gov. Jonathan Mosley, acting in his capacity as Production Division Director of the HUD Multifamily Southeast Regional Center, is the HUD Approving Official.
Date: April 12, 2026
April 12 2026
LSAR0496199