Lawsuit claimed initial monies were diverted
BILOXI – Residents of Mississippi’s coast will receive more than $100 million in Hurricane Katrina housing recovery funding if they drop a lawsuit claiming that initial monies for that purpose was spent improperly by the state.
HUD Secretary Shaun Donovan said $132 million in federal money is coming to South Mississippi to help those that qualify rebuild homes, valued up to $75,000, that were damaged by Hurricane Katrina in 2005.
The program will be open to residents living in the six coastal counties as well as those in Lamar, Forrest and Jones counties.
It will also help people get into Mississippi cottages and rental housing as part of long-term recovery disaster efforts.
The state will direct the money towards housing recovery, and as part of the agreement, a lawsuit claiming Mississippi improperly diverted $570 million in housing recovery money specifically to the Port of Gulfport will be dismissed.
That lawsuit was filed about two years ago on behalf of the Mississippi Conference NAACP, Gulf Coast Fair Housing Center and numerous individual plaintiffs.
HUD said this program is part of an effort called the New Neighborhood program, and the money will come down through Community Development Block Grant funding.
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