Cdbg Report Card

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How has MS spent its disaster recovery CDBG funds? What percentage has gone towards lower-income storm victims? What would need to happen to meet Congressional goal?

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Cdbg Report Card

  1. 1. MS Coast Recovery Fund Report Card Prepared by the Steps Coalition updated December 21,2007 Monday, December 24, 2007 1
  2. 2. “[T]he aggregate use of CDBG Disaster Recovery funds shall principally benefit low and moderate income [LMI] families in a manner that insures that at least 50% of the amount is expended for activities that benefit such persons.” U. S. Department of Housing and Urban Development, February 13, 2006, 71 FR at 7671. “The Governor’s Commission recommends that all housing initiatives related to Hurricane Katrina place a priority on addressing the needs of low-income low-wealth residents.” Governor’s Commission Report, December 31, 2005 Alone among the hurricane-damaged states, Mississippi, the poorest state in the nation, requested waivers of the federal 50% requirement. Monday, December 24, 2007 2
  3. 3. Federal law required half of MS’s recovery funds to be spent on LMI residents LMI Other Source: HR 2863, Public Law 109-234, 42 USC 5304(b)(3)(A) and 24 CFR 570.484, 71 FR 7666, 7671. Monday, December 24, 2007 3
  4. 4. So far, Mississippi has devoted only 23% of $5.4 bn to programs that meet the 50% LMI benefit requirement LMI Other Monday, December 24, 2007 4
  5. 5. Programs that use 50% of funds to benefit LMI persons Phase II - Home Grants $750 million Small Rental $250 million Public Housing $100 million Work Force Housing $150 million total targeted $1.25 billion Source: MDA Partial Action Plans Monday, December 24, 2007 5
  6. 6. Programs that do not use 50% of funds to benefit LMI persons Phase I Home Grants $1,715,000,000 Elevation Grants $250,000,000 Utilities/Wind Pool $420,000,000 Infrastructure $586,000,000 Economic Development $340,000,000 Community Revitalization $300,000,000 Expansion State Port $600,000,000 Total $4,211,000,000 Source: MDA Partial Action Plans Monday, December 24, 2007 6
  7. 7. Programs (in millions) phase I $1,715 elevation grants $250 public housing $100 utilities/wind pool $440 sewage & water $586 50% LMI Benefit economic development $340 No 50% LMI Benefit community revitalization $300 port expansion $600 phase II $750 small rental $250 work force housing $150 Monday, December 24, 2007 7
  8. 8. MDA: “Wait, the general programs benefit all Katrina victims across the board.” Steps Coalition: “Do they? What share of the benefit goes to lower income storm victims?” MDA: “We don’t have complete reports to show that.” Steps Coalition: “What would it show if you did?” Monday, December 24, 2007 8
  9. 9. Programs adjusted to estimate benefit to LMI persons (in millions) Click here to see basis for calculations Phase I $255 $1,460 elevation grants $92 $157 public housing $100 utilities/wind pool $162 $277 infrastructure $216 $369 LMI Benefit No LMI Benefit economic development $126 $214 community revitalization $111 $189 port expansion $60 $540 phase II $495 $255 small rental $127 $123 workforce housing $76 $74 Monday, December 24, 2007 9
  10. 10. Pro-rata calculation of programs. Click to return to bar chart. total % LMI $ < LMI $ > LMI phase I * $1,715 15% $255 $1,460 elevation grant $250 37% $92 $157 public housing $100 100% $100 $0 utilities/insurance ∞ $439 37% $162 $277 infrastructure ∞ $585 37% $216 $369 economic development ∞ $340 37% $126 $214 community revitalization ∞ $300 37% $111 $189 port expansion † $600 10% $60 $540 phase II ** $750 66% $495 $255 small rental †† $250 51% $127 $123 work force housing †† $150 51% $77 $74 subtotal $5,479 $1,821 $3,658 Notes: * Phase I total, lower-income figure source: MDA Q3 2007 report, pp. 27-28 ∞ Programs with waivers of 50% LMI benefit use estimated 37% benefit † Port Expansion LMI benefit is estimated to be 10%, the pre-storm ratio of LMI jobs. ** Phase II divided 2/3 < 80% AMI, 1/3 above 80% AMI †† Small rental and work force housing are divided 51% < 80% AMI, 49% >80% AMI Monday, December 24, 2007 10
  11. 11. Adjusted LMI benefit is 32% of total fund LMI other 18% below federal overall benefit requirement Monday, December 24, 2007 11
  12. 12. How to meet overall benefit requirement using Steps’ view of benefits to LMI persons LMI other add to LMI Direct $1.4 billion to LMI needs Monday, December 24, 2007 12
  13. 13. How to meet overall benefit requirement using MDA’s view of benefits to LMI persons LMI other add to LMI Direct $1 Billion to LMI needs Monday, December 24, 2007 13
  14. 14. How to Use the Balance- Proposals • grants to wind-damaged homeowners • increase size of small rental programs •increase funding for affordable apartments • increase non-profit housing support For more information go to www.stepscoalition.org Monday, December 24, 2007 14
  15. 15. This report was prepared by the Steps Coalition with support from Mississippi Center for Justice Back Bay Mission Oxfam America Monday, December 24, 2007 15
  16. 16. 37% percent of MS Coast population is below HUD’s CDBG low-moderate income. population low-mod % low-mod # Hancock 42,967 43% 18,476 Harrison 189,601 37% 70,152 Jackson 131,420 33% 43,369 Pearl River 48,621 41% 19,935 Stone 13,622 43% 5,857 Total 426,231 37% 157,789 HUD’s CDBG regulations set moderate income at 80% of area median income. 42 USC 5304(b)(3)(A) and 24 CFR 570.484. Click on population for data source. Click here for percentages and turn to page 16. Monday, December 24, 2007 16

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