February 11, 2009 3:32 PM

Katrina Housing Funds Go To Port Instead

(AP)  The federal government on Friday approved Mississippi's plan to divert $600 million in hurricane housing funds to a port improvement project, angering critics who say tens of thousands of people made homeless by Hurricane Katrina still need help.

In his letter to Gov. Haley Barbour, Housing and Urban Development Secretary Alphonso Jackson said that although he's concerned about using the housing money for the port project, congressional language associated with the use of block grant funds "allows me little discretion."

"I'm sure that you share my concern that there may still be significant unmet needs for affordable housing, and I strongly encourage you to prioritize Gulf Coast housing as you move forward," Jackson wrote.

Mississippi plans to restore public infrastructure and publicly owned facilities at the State Port at Gulfport that were destroyed during Katrina, and to improve the port's operating capacity.

The plan has drawn harsh criticism from several groups working on recovery efforts in the region who say housing is too scarce not to devote all possible resources to it.

Kimberly Miller, a policy analyst for Oxfam America, said the state's long-term recovery committees that work with displaced families have 15,000 cases on their waiting lists, and a similar number of people are in temporary housing.

The state's plan "doesn't make any financial sense when you look at the number of people who haven't gotten back into homes," Miller said.

Katrina left the Gulf Coast in tatters in 2005 and many who fled the region have yet to return. Property, rental and insurance prices have soared since the storm. Barbour announced on Tuesday that the state would devote another $100 million toward affordable housing.

Mississippi received $5.4 billion in federal hurricane recovery funding. The $600 million now going to the port originally was allocated for the state's housing assistance program, which provided money to families who lost property to Katrina's storm surge.

In a statement issued after HUD's approval, Barbour said restoration of the port was a key part of the hurricane recovery plan from the beginning.

Barbour said Mississippi has a comprehensive program of recovery "designed to get families back in homes, restore and create new jobs, and rebuild the coast as quickly as possible."

Jackson said Congress eliminated many of the restrictions that would normally accompany federal grants in the name of speeding recovery on the coast. Two members of Congress, however, had urged him to reject Mississippi's plan.

Reps. Barney Frank, D-Mass., and Maxine Waters, D-Calif., told Jackson in a letter that they were prepared to hold oversight hearings about the use of the Community Development and Block Grant funds that HUD had awarded Mississippi in the storm's aftermath.

Frank and Waters said that a recent FEMA report estimated that 40,897 Mississippians remained displaced after the storm as of November 2007. They said only a fraction of the federal assistance has been used to benefit low and moderate-income residents.

Waters said in a telephone interview that she doesn't understand why Jackson doesn't think he had the authority to reject the plan.

"I am suspicious that Barbour receives favored treatment with this administration. He kind of gets his way," Waters said.

State officials said the State Port at Gulfport is the nation's 17th-busiest container port, and the third-busiest on the Gulf of Mexico.

According to the plan submitted to HUD, the port's infrastructure, equipment and facilities were crippled by the storm. The gross maritime revenue dropped from $9.4 million in June 2004 to $4.1 million in June 2007.

© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 48 Comments
by runningralph January 26, 2008 9:32 PM EST
The Gulf coast is being rebuilt at a fast pace. Lots of construction going on. Roads full of traffic. Restaurants busy, stores busy, casinos jammed packed. Dynamic, happening, busy. All they need now is to get the seaport up to grade.
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by xlib January 26, 2008 7:43 PM EST
Geesh, we went a whole month whithout a katrina story. Notice the article does not say who in "the federal government approved...". But, it got the reaction the msm wanted from the lefty leemings. So, why no outcry about all the corruption and graft that is the democratic run city of NO?? Where has all the money gone??
Oh mcvet, still off your meds?? As for facists and nazi''s and red china, yada, yada, yada. Look to your socialist party and see who gets the big bucks from china. Your own madamd chang ki clinton and her hubby, that''s who. Do us all a favor and get your levels checked. You need serious help.
Reply to this comment
by crater7 January 26, 2008 7:21 PM EST
BARBOUR; LOWEST OF LOW. BUSH''S BUDDY, FAT GOOD OLE BOY, REPUBLICAN LOBBYIST. STEEL FROM THE POOR, GIVE TO THE RICH. WHAT ELSE DID YOU EXPECT?????????






Reply to this comment
by ubrew12 January 26, 2008 6:55 PM EST
curse914 said: "I think you have me mixed up with someone I was responding too. I did not say what you have me quoted as saying."

Sorry, I meant flreason
Reply to this comment
by ubrew12 January 26, 2008 6:47 PM EST
GOPACK443 said: "sooner or latter the people down there are going to get off there a$$''''$ ...GET A JOB!"
With any luck, your neck of the woods will be treated to a natural disaster. Then we can all laugh at YOUR misfortune and call you a lazy so-n-so.
Reply to this comment
by ubrew12 January 26, 2008 6:44 PM EST
curse914 said: "Do you think we should just let all of the financial institutions fail and throw the U.S. into a 1930s-style depression? "
Wow. You fail at your business and go under. What possible reason do banks and other lenders HAVE to keep fraudulent lending under wraps if YOU (with your apparently infinite generosity) will BAIL THEM OUT of their bad decisions !!! I guess there IS a free lunch... after all...

It took a Republican to find one...
Reply to this comment
by savdavid January 26, 2008 5:05 PM EST
What did you expect in Bush''s Amurica? Only the rich and corporations reap government aid. The poor get little and the middle class pays for all of it.
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by mcvet January 26, 2008 4:27 PM EST
If this keeps up sooner or latter the people down there are going to get off there a$$''''$ and start doing for themselves like the rest of the world.
Let''''s all hope they find a way to milk the rest of the county before they do something crazy, LIKE GET A JOB! And if that''''s not possible to get a job there move to where there are jobs!


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Posted by GOPACK443 at 12:22 PM : Jan 26, 2008
+ report abuse

You Nazi''s never stop amazing me! It''s hard to imagine an American being this bad but then you freaks have never been American''s now have you? In fact in recent years you have proven beyond any doubt that you will salute any flag, even Red China, for a profit. A big SIEG HEIL to you swastika hugger!!
Reply to this comment
by flreason January 26, 2008 4:17 PM EST
Ralph&Ernie: You guys are full of s**t. I have family in Bay St. Louis that had every kind of insurance available and they''re still living in modular housing because of slow or contested payments, bureaucratic red tape, infrastructure damage, etc. These weren''t low income people--they were educated professional people.

Following your logic, all public health programs that research possible pandemic viruses should be eliminated because individuals should be responsible for their own health care. National disasters require national planning and response. These communities and jobs were in a region of the country that has been expanding. There aren''t enough jobs in "safe" places to absorb all of the workers displaced by Katrina.

A disaster of this magnitude reverberates in the whole economy. The difference between Katrina and the sub-prime lending industry collapse''s effect on the economy is that the hurricane couldn''t be avoided. Do you think we should just let all of the financial institutions fail and throw the U.S. into a 1930s-style depression? That would be as logical as your suggestions.

Any fraud by individuals after Katrina is dwarfed by the criminal acts of insurance companies who have rejected legitimate claims, and no-bid contractors who have stolen taxpayers'' money and delivered shoddy work and materials--when they delivered anything at all. Let Washington and Gov Barbour go after that money instead of diverting HUD funds meant for housing.
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by blondmadison January 26, 2008 4:02 PM EST
Waters said in a telephone interview that she doesn''t understand why Jackson doesn''t think he had the authority to reject the plan.

"I am suspicious that Barbour receives favored treatment with this administration. He kind of gets his way," Waters said.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

If the powers that be cannot see the corruption, then get them out of their positions. Get this pig out of his job so that the problems regarding the homeless can be addressed.

He can''t see past his own fat gut to be able to help the problem. Apparently education didn''t help him and neither did kickbacks. He isn''t curable. Send him on his way and be done all ready.
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