PAHOKEE, Fla. — A developer allegedly diverted money earmarked for a taxpayer-supported affordable housing complex in Pahokee to other projects, according to records WPTV reviewed.
The Everglades Townhomes, which were still not completely built by April, were scheduled to be finished about four months ago. They received incentives from multiple government agencies to build 60 housing units with rents tied to 60% of the area's median income and a daycare center. This includes a $3 Million loan from the United States Department of Agriculture, a five-acre piece of property from the City of Pahokee for about $60,000 less than its assessed value, and around $1.2 Million from Palm Beach County.
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Loletha Kimes, who lives in Pahokee and follows the project’s progress by driving past the property, said her city needs additional housing options because people can’t find affordable places to live. She said many people originally celebrated the project, but it has become a source of shame for people in Pahokee because it has not progressed as planned.
“It’s terrible,” Kimes said. “It’s past a mess…We are so angry because we thought we had someone that would come in and help build affordable housing for us for people to stay and live.”
FINANCIAL PROBLEMS LEAD TO MOVING MONEY
New records WPTV reviewed show Michael Snodgrass, who is the developer for the Everglades Townhomes, was dealing with financial difficulties while trying to build the apartment complex in Pahokee, along with other projects across the country, for years. Emails we obtained show Snodgrass’ companies, Oikos Development Corporation (ODC) and OCM Builders, were struggling to get multiple contractors paid as employees asked for permission to partially pay off subcontractors.
“Do we have enough cash to cut a check for 1/2 of this cost and deliver it to [Bright Plumbing] in the morning?” wrote Kevin Enyeart to OCM Builders about paying the plumbing firm for a project in Kansas in June 2024. “This is for the street light boring guy. We have to get this done ASAP.”
Sue Schnewis responded that they could make the payment, but they “we’re getting down there in funds.” Then Michael asked who needs to be paid “TODAY,” adding he had other funds coming from HAC that were intended to be ODC Development fees, but that will have to go into the project to cover the “huge hole” from the project. By August 2024, Enyeart tells Michael that several contractors are getting frustrated because they aren’t getting paid by a company called Trimco.
“They’re [Trimco] one of several that are on the brink of filing liens or taking legal action,” Enyeart wrote. “He’s been understanding and ok to deal with until my call to him last week when I told him about the delay due to the other lien filed.”
Michael Snodgrass, according to the email, then told an OCM employee to “use some builders' fees from other projects we have enough to pay them today” in an email dated August 22, 2024.
WPTV received other emails showing the developer discussing moving money earmarked for one project to another project, often in a different location. For example, in October 2024, Michael Snodgrass told an employee to put taxes for a project in Carson City, Nevada, on his personal credit card, then asked to use funds for the Everglades project on another charge related to the project.
“It’s hard telling when the Sierra Flats I will fund again, so we’ll need to use some of the Everglades to get this paid,” Snodgrass warned in October 2024. Emails WPTV obtained show Snodgrass also asked his employees at OCM Builders to use funds from the Pahokee housing project for a different project.
“Ashley/Sue, take a look at the attached, especially lines 388-395, where I show how I think we can get close to paying off most of the invoices/retainage except for RedBrick,” he wrote in August 2024. “But, we have to take funds from other projects, such as Everglades and SF2, plus some funds that are currently in the PB account at Sterling.”
Previously, Snodgrass said a decision to use funds for other projects would put the company at risk.
“Just a word of warning…,” he wrote in July 2024. “If we continue to be in the habit of using Everglades funds intended for one purpose for another purpose entirely, we risk getting severely burned. We need to find a solution to smooth out these payments and draws for the Everglades.”
The following day, Snodgrass authorized payments from the Everglades fund, calling it “dangerous” in an email WPTV obtained. Ultimately, WPTV learned in August that multiple contractors filed liens against Snodgrass’ companies for not getting paid for work on the Everglades Townhomes.
Snodgrass said he doubted our documents were completely accurate or in context in a text message. He also said he didn’t commingle funds on projects.
“In the audits and cost certifications, it’s clear,” Snodgrass wrote. “Project costs are separated throughout…This sounds like part of the ongoing dispute with the ‘new’ ownership structure.
A spokesperson with Palm Beach County said it’s working with the developer on a timeline for completing the project and all expenditures by Palm Beach County were made on a reimbursement basis for work completed.
“The County has, at a minimum, monthly calls and progress updates with the project owner,” the spokesperson wrote. “Housing and Economic Development is working with the developer on a timeline for completing the project. All expenditures by Palm Beach County were made on a reimbursement basis for work completed.”
Kari Vieau, who said she is the new co-owner of OCM Builders, said she bought the company with her husband after noticing “something didn’t smell right” while looking at the company’s finances. She said she then saw a problem that somebody needs to take a look at after seeing money move from a project account to a different project account.
“You hear about it, but to see it with your own eyes, you’re just never expecting to do that,” Vieau said. “There are no words for it. So the biggest thing is you question, ‘Am I seeing what I’m seeing?’ It’s kind of that scenario where you’re like I can’t believe I’m seeing it.”
We showed some of these emails to Loletha Kimes in Pahokee, who said she felt “cheated” after reading those emails.
“How could they do that,” she said, “…We just can’t win in Pahokee. We just can’t win. No win for us for anything.”
