The funding is coming from the $5.4-billion CommunityDevelopment Block Grant assistance that HUD allocated toMississippi following Hurricane Katrina in 2005. The money isgeared toward building affordable housing to replace what wasdamaged or destroyed during Hurricane Katrina. Because the majorityof destroyed homes belonged to residents earning less than 120% ofthe area media income, the grant is dedicated to rebuilding andrepairing units in mixed-income neighborhoods.

|

The state intends to create mixed-income communities throughmarket-rate rental units and affordable rates, aimed at a range ofincome levels for multifamily and single-family dwellings.

|

A HUD spokesman tells GlobeSt.com that Mississippi's overallplan is to get people moving back, which means development and/orrenovation of owned and rental units. "They're going to get to worksoliciting bids from non-profits, private developers and others togo out and build housing from scratch, renovate housing that needsit, or provide closing costs to struggling families," he adds.

|

The report says that the money could fund purchase ofdeteriorating, undeveloped or underdeveloped properties andacquisition for rehabilitation of properties that can be used orsold for residential purposes or conserved. The funding also can beused to directly assist expansion of home ownership among low- andmoderate-income families. Another mission is evaluation andremediation of lead-based paint hazards and repairs in unitsacquired through tax foreclosures as a way to combat abandonmentand further deterioration.

|

The plan also sets up a revolving loan fund to provideshort-term, low-interest financing to develop workforce housing.Another use is providing technical assistance to private and publicdevelopers to aid neighborhood revitalization and economicdevelopment.

|

"It's been nearly three years since Hurricane Katrina wiped outmuch of the housing stock in South Mississippi and working familiescontinue to struggle to find a decent home," HUD secretary StevePreston says in yesterday's press release. "This plan will injectcritically needed capital into the Mississippi housing market,offering hope and a home to thousands of these families."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.