Mississippi creates model housing programs after Katrina, but thousands still need homes

A shortage of real estate for low- to moderate-income residents existed prior to Hurricane Katrina and will continue to challenge the Coast, but the hurricane resulted in innovative applications and collaborations that ought to assist in the future, housing advocates say.

“I think there’s been a sea change in attitudes,” said Gerald Blessey, housing-recovery director for the Mississippi Development Authority, which administers federal Community Development Block Grant money for Katrina housing applications. “Realistically, to have a healthy economy, your work force has to have inexpensive real estate.”

Under one post-Katrina housing plan, The Renaissance Corp. was formed to partner with companies, offering house buyers down-payment support and low-interest loans. The program involved private banks, government funding and nonprofit counseling. Local governments such as the Gulfport implemented similar programs.

Blessey, a Biloxi native and former mayor, said the Coast had an affordable-housing issue prior to Hurricane Katrina and continues to struggle with the issue. He mentioned 3,500 to 4,000 Katrina survivors still have unmet housing needs.

Blessey mentioned data about the remaining cases is being gathered and analyzed to develop plans for addressing the needs.

“I believe if we keep our hands on the wheel, all the remaining Katrina housing issues will be resolved prior to the sixth anniversary,” he said.

The Mississippi Center for Justice, which has advocated housing solutions for low- to moderate-income residents, believes the state ought to spend much more of its remaining federal Katrina funding to meet the needs. MCJ concludes in a report released for the five-year Katrina anniversary: “Right now, well over 5,000 Mississippi households lack permanent affordable housing, because of unjust decisions by Mississippi policy makers, irrational interpretation of federal audit, elevation and environmental rules, and discriminatory zoning decisions by local governments.”

From 2006 to 2008, a federal report found, Mississippi reduced federal Katrina spending on direct housing requirements from 63 to 52 percent of money received. Throughout that same time Louisiana increased federal Katrina money for real estate, from 77 to 86 percent.

In Mississippi, CDBG money has helped rebuild public-housing units, provided rental support and been awarded for developments that provide work-force housing. Also, 28,000 homeowners received about $2 billion in direct support to repair damaged properties or relocate.

Source: Sun Herald News