HUD Approves Grants for Hurricane Victims

Posted in General, August 31st, 2006 |

Gov. Haley Barbour announced Tuesday that the U.S. Department of Housing and Urban Development has given final approval to the state’s plan for grants to Hurricane Katrina flood victims.
In a Tuesday meeting with reporters, Barbour also praised lawmakers for passing a balanced budget before ending its 2006 session last week and said he has no plans to call a special session.

Qualified homeowners can receive up to $150,000 to offset losses caused by hurricane damage.

This is good news for many residents still living in FEMA trailers.
The governor welcomed the news, but warned the process was not going to be easy.

“This will not go smoothly,” Barbour said. “We’ve never done anything like this before.”
Barbour said he expects nearly 50,000 people to apply for the assistance, and estimates that about 30,000 of those will qualify.

Scott Hamilton, a spokesman for the Mississippi Development Authority, said approvals of the grants may take months.

“The truth is, we don’t know,” Hamilton said. “If more people apply than we’re expecting, it could take longer. We’re trying to make sure the only people applying are people who are likely to qualify.”

To speed the process, Hamilton suggested reading the application guidebook on the program Web site, , or calling to set up an appointment at a service center.

The plan will cost about $3.4 billion in federal community development block grant money. HUD had approved about $5 billion.

Barbour and Hamilton said the remaining money will be used to create programs for people who don’t qualify for these grants: namely uninsured, low-income residents and renters.

“Those programs will be helpful in creating additional, affordable housing on the Gulf Coast,” Hamilton said.

-John Grady