More Housing Woes in Mississippi As the poorest state in the country, Mississippi should have no trouble finding low- and moderate-income homeowners to share in the more than $5 billion in emergency federal aid funneled into the state after Hurricane Katrina.
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The aid was channeled through the Community Development Block Grant program, which was set up by Congress in the 1970s to improve housing for the poor and provide a better quality of life and more economic opportunities.
The law requires states and localities to spend 70 percent of the money they receive on projects that will clearly benefit low- and moderate-income people. {This was lowered to 50% after Katrina.}
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Low-income housing advocates were rightly uneasy about a second provision that allowed the Gulf Coast states to waive the income test altogether for some projects. They feared that the states would use waivers to reward cronies and boost pet projects. Indeed, Mississippi’s critics now claim that
only about 20 percent of the money spent so far has gone to help low- and moderate-income families.
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Congress must revisit the waiver process to make sure that states aren’t using it to evade the income restrictions clearly laid out in federal law. And HUD needs to take a hard look at all aspects of the Mississippi program, and make sure that the remainder of the emergency aid money gets to the low-income families who are legally entitled to it and desperately need the help.
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Congress relinquished oversight of how the CDBG funds were to be distributed in Mississippi, even though they still held oversight on how the funds are being distributed. You can see how well that's working for low-income Mississippians. :grr:
Related link:
RAND study: Affordable housing lags in Mississippi's post-Katrina recovery