Dianna, has your Associate Dean read anything other than the recent news articles about HyFlex? Like anything from the Hybrid-Flexible Course design book, this website, and most of the research from the past 15 years? (Likely no) Sorry to ask, since you focused your questions elsewhere.
I don’t know of support from outside institutions for developing any kind of course – online or HyFlex. Grants that include HyFlex implementation as part of a larger project would have funds, but not for individual course development.
Is your school part of a larger system of schools? Sometimes systems have funds if there is an aspect of innovation involved.
Sorry I can’t offer more suggestions.
Brian