Katrina Networking

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Wednesday, December 10, 2008

HUD Being Sued

Money Steered To Port Project over Housing

POSTED: 11:11 am CST December 10, 2008
UPDATED: 11:37 am CST December 10, 2008

JACKSON, Miss. -- A federal lawsuit accuses the U.S. Department of Housing and Urban Development of failing to properly review Mississippi's plan to divert half a billion dollars from a hurricane housing fund to a port expansion project.

HUD drew criticism from advocacy groups and congressional leaders when it approved the state's proposal to steer the money to the port despite a lingering housing crisis caused by Hurricane Katrina. At the time, then-HUD Secretary Alphonso Jackson said he was legally obligated to OK the project because of congressional language associated with the use of block grant funds.

The suit, filed Wednesday in federal court in Washington, names HUD as the only defendant. It is being brought by the Mississippi State Conference NAACP, Gulf Coast Fair Housing Center and individual residents.

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