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?

1. MS Coast Recovery Fund
Report Card
Prepared by the Steps Coalition
updated December 21,2007
Monday, December 24, 2007 1

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. 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.
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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. 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
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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
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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
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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?”
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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
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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
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11. Adjusted LMI benefit is 32% of total fund
LMI
other
18% below federal overall benefit requirement
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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
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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
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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
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15. This report was prepared by
the Steps Coalition
with support from
Mississippi Center for Justice
Back Bay Mission
Oxfam America
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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.
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