cdbg report card
DESCRIPTION
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?TRANSCRIPT
MS Coast Recovery FundReport Card
Prepared by the Steps Coalition
updated December 21,2007
1Monday, December 24, 2007
“[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.
2Monday, December 24, 2007
LMIOther
Federal law required half of MS’s recovery funds to be spent on LMI residents
Source: HR 2863, Public Law 109-234, 42 USC 5304(b)(3)(A) and 24 CFR 570.484, 71 FR 7666, 7671.
3Monday, December 24, 2007
LMIOther
So far, Mississippi has devoted only 23% of $5.4 bnto programs that meet the 50% LMI benefit requirement
4Monday, December 24, 2007
Source: MDA Partial Action Plans
Phase II - Home Grants $750 million
Small Rental $250 million
Public Housing $100 million
Work Force Housing $150 million
total targeted $1.25 billion
Programs that use 50% of funds to benefit LMI persons
5Monday, December 24, 2007
Programs that do not use 50% of funds to benefit LMI persons
Source: MDA Partial Action Plans
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
6Monday, December 24, 2007
Programs (in millions)
phase I
elevation grants
public housing
utilities/wind pool
sewage & water
economic development
community revitalization
port expansion
phase II
small rental
work force housing
$600
$300
$340
$586
$440
$250
$1,715
$150
$250
$750
$100
50% LMI BenefitNo 50% LMI Benefit
7Monday, December 24, 2007
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?”
8Monday, December 24, 2007
Phase I
elevation grants
public housing
utilities/wind pool
infrastructure
economic development
community revitalization
port expansion
phase II
small rental
workforce housing $74
$123
$255
$540
$189
$214
$369
$277
$157
$1,460
$76
$127
$495
$60
$111
$126
$216
$162
$100
$92
$255
LMI BenefitNo LMI Benefit
Click here to see basis for calculations
Programs adjusted to estimate benefit to LMI persons (in millions)
9Monday, December 24, 2007
Pro-rata calculation of programs. Click to return to bar chart.
** 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
* Phase I total, lower-income figure source: MDA Q3 2007 report, pp. 27-28Notes:
total % LMI $ < LMI $ > LMI
phase I *
elevation grant
public housing
utilities/insurance ∞
infrastructure ∞
economic development ∞
community revitalization ∞
port expansion †
phase II **
small rental ††
work force housing ††
subtotal
$1,715 15% $255 $1,460
$250 37% $92 $157
$100 100% $100 $0
$439 37% $162 $277
$585 37% $216 $369
$340 37% $126 $214
$300 37% $111 $189
$600 10% $60 $540
$750 66% $495 $255
$250 51% $127 $123
$150 51% $77 $74
$5,479 $1,821 $3,658
∞ 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.
10Monday, December 24, 2007
LMIother
Adjusted LMI benefit is 32% of total fund
18% below federal overall benefit requirement
11Monday, December 24, 2007
How to meet overall benefit requirement
LMIotheradd to LMI
using Steps’ view of benefits to LMI persons
Direct $1.4 billion to LMI needs
12Monday, December 24, 2007
How to meet overall benefit requirement
LMIotheradd to LMI
using MDA’s view of benefits to LMI persons
Direct $1 Billion to LMI needs
13Monday, December 24, 2007
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
14Monday, December 24, 2007
This report was prepared by
the Steps Coalitionwith support from
Mississippi Center for Justice
Back Bay Mission
Oxfam America
15Monday, December 24, 2007
37% percent of MS Coast population is below HUD’s CDBG low-moderate income.
HUD’s CDBG regulations set moderate income at 80% of area median income.
Click on population for data source. Click here for percentages and turn to page 16.
population low-mod % low-mod #
Hancock 42,967 43% 18,476Harrison 189,601 37% 70,152Jackson 131,420 33% 43,369
Pearl River 48,621 41% 19,935Stone 13,622 43% 5,857Total 426,231 37% 157,789
42 USC 5304(b)(3)(A) and 24 CFR 570.484.
16Monday, December 24, 2007