Disaster Relief Funding Used for Affordable Housing

The housing and economic crises have created difficult circumstances for America. Foreclosure rates have risen sharply, as has unemployment. For states that are just beginning to recover, or never started to recover at all, a natural disaster can completely halt any chances of recovering or rebuilding. With that in mind, the US Housing and Urban…

The housing and economic crises have created difficult circumstances for America. Foreclosure rates have risen sharply, as has unemployment. For states that are just beginning to recover, or never started to recover at all, a natural disaster can completely halt any chances of recovering or rebuilding. With that in mind, the US Housing and Urban Development Department (HUD) makes disaster relief funding available to help states dig out from under potentially crushing economic and development needs.

In a joint statement from HUD Secretary Shaun Donovan and Mississippi Governor Haley Barbour, the two announced that the state of Mississippi is receiving additional disaster relief funds to aid in its continued recovery from Hurricane Katrina.

A total of $ 132 million will be made available through Community Development Block Grants specifically designed for disaster relief. Included in the plan is a Neighborhood Home program designed to, among other things, assist in the repair of low- and moderate-income homes that were damaged by the hurricane. Through the Neighborhood Home program, up to $ 75,000 can be spent on rehabilitation and / or repairs.

Now that funding for the neighborhood Home program has been approved, Mississippi state officials will begin an outreach campaign aimed at educating residents in Forest, Hancock, Harrison, George, Jackson, Jones, Lamar, Pearl River, and Stone counties.

Mississippi is just one of several states that has received disaster relief funding, and all of the states intended to use at least a portion of the money for low-income housing repair and development. It's another potential funding option for developers looking to build in areas affected by natural disasters, but who are hindered by a lack of adequate financing.