JACKSON, MS - The Mississippi Development Authority is adding $181 million to its Homeowner Assistance Program for those who have qualified for Hurricane Katrina grants to rebuild or repair their homes. "Our Hurricane Katrina Homeowners Assistance Program budget is driven by demand, and now that demand is driven by the number of applicants who are projected to be approved as we finish processing the remaining applications," said Jon Mabry, chief operations officer for MDA's Disaster Recovery Division.
The money will fund Katrina assistance extended to more homeowners through amendments to the federal grant program. Phase I of the program targeted homeowners who were not in flood zones but whose homes were subjected to Katrina's storm surge. The second phase was for low- to moderate-income homeowners.
MDA worked with the federal government to modify rules so some homeowners deemed ineligible for the second phase could qualify for Phase I. A second amendment extended assistance to homeowners who lived in flood zones but had elevated their homes above federal standards before Katrina hit.
The additional funding will cover grants already processed. The application deadline was March 15. MDA projects the program will pay homeowners a total of $2.1 billion. MDA will get $30 million more from the $600 million that had been designated for the Port of Gulfport. Housing advocates were critical of the state for spending federal dollars on the port rather than residents. The port is now slated to receive $570 million.
Most of the additional money will come from economic development, water and wastewater allocations. None has been shifted from programs that fund housing.
So far 22,000 homeowners have received $1.7 billion through the program, which is expected to wrap up on schedule by year's end.
Source: SunHerald.com