In the News

HUD steps up in Texas

June 14, 2010

“The settlement HUD approved between Texas housing advocates and the state of Texas strengthens our resolve about the issues raised in the case over diversion of housing funds to the State Port at Gulfport,” said Reilly Morse, senior attorney for the Mississippi Center for Justice.

The Texas settlement modifies the plan to distribute Hurricane Ike recovery monies; puts into place greater accountability for state spending of federal housing and community development dollars, and ensures that restoration of affordable housing to that state’s most vulnerable populations will top the list of recovery priorities.

So far, Mississippi still has spent less, later, and more slowly on housing programs for low and moderate income households than for wealthier, insured homeowners. As the fifth anniversary of Hurricane Katrina approaches, thousands of households remain stalled in their housing recovery due to Mississippi’s diversion of almost $800 million toward economic development activities, including the State Port at Gulfport.

“Mississippi will be judged by how it completed the housing recovery—and particularly how far it fell from its goal of building back better then ever for those least able to finance their own recovery. We believe the Texas settlement signals a renewed commitment at HUD to accountability in use of disaster housing funds, and we hope it will now turn its attention to and correct an inherited case of injustice,” Morse concluded.