Press Releases

New report highlights recovery shortcomings

August 28, 2009 -

Four years after Hurricane Katrina devastated South Mississippi, the State’s misplaced priorities continue to hamper the housing recovery effort, according to a new report released by the Steps Coalition. The report encourages officials to keep the promise to make affordable housing the state’s first priority in disaster recovery. Reilly Morse, Mississippi Center for Justice senior attorney, prepared the report for the Steps Coalition.

The report, “Hurricane Katrina – Has Mississippi Fallen Further Behind?” concludes that the Steps Coalition’s 2008 prediction that disaster housing programs would fail to meet the needs of storm-damaged Mississippians has come true. Small rental and workforce housing progress has fallen dramatically short of State predictions, and so Mississippi has asked HUD for additional funds to temporarily subsidize lower-income residents in market rate rentals. The Steps Coalition urges the State to permanently solve this nagging problem, and use some of the unspent billions in CDBG funds to finance additional permanent affordable rental housing.

The report also exposes lags in Mississippi’s disaster spending when compared to Louisiana and looks at current challenges to rescue residents who have fallen outside of the State’s disaster recovery system.

Among the key findings:
• Mississippi has allocated just over half its funds on housing, and has lowered its
commitment to housing by over $800 million in the past 2 years. Louisiana has allocated over 85 percent to housing programs and increased its commitment over the same period.
• Mississippi has spent just under half its funds, while Louisiana has spent almost 68
percent of its funds, widening its lead over Mississippi.
• Mississippi diverted $600 million from its housing program to a port expansion, while
Louisiana intends to reinvest $600 million in unused Road Home funds for housing
assistance for low-income residents.
• Mississippi took longer to spend less later for low-income residents than for wealthier
residents.

View the Katrina 4th Anniversary Report here.