Miss Diverts Katrina Housing Funds to Expand Port

While thousands of Mississippians who lost their homes to Hurricane Katrina remain in FEMA trailers, the federal government on Friday approved a state plan to spend $600 million in grants earmarked for housing on a major expansion of the state-owned port — a project that could eventually include casino and resort facilities....

“It’s just insanity, true insanity,” Sister Martha Milner, a Catholic nun and longtime housing advocate, said...

The money in question is part of $5.5 billion in HUD Community Development Block Grants (CDBG) that Congress authorized for Mississippi after Hurricane Katrina struck on Aug. 29, 2005. Administered by the Mississippi Development Authority, about $3.4 billion was allocated to replace and repair some of the nearly 170,000 owner-occupied homes destroyed or damaged by the storm. Another $600 million was set aside for programs to replace public housing, help small landlords fix their units and foster construction of new low- and moderate-income housing....

In its “Mississippi CDBG Recovery Fund Report Card,” the Steps Coalition reported that as of mid-January more than 13,000 Mississippi families — or a total of 35,129 people — remained in FEMA housing, nearly 90 percent of them in small travel trailers and most of them ineligible for the CDBG-funded grants....