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KATRINA RECOVERY PACKAGE HELPS VT HALTER MARINE DOUBLE EMPLOYMENT SINCE KATRINA The expansion project for VT Halter Marine’s Pascagoula shipyard is moving along at a rapid pace, in part due to the assistance from the Mississippi Development Authority’s (MDA) Economic Development Program, sourced from the state’s $5.4 billion Hurricane Katrina Recovery Package. “The ability to create and sustain jobs throughout the Hurricane Katrina impact zone is the primary goal of the Economic Development Program,” said Gray Swoope, Executive Director of the Mississippi Development Authority. “VT Halter Marine’s commitment to ensuring that availability and productivity of jobs on the Gulf Coast through its shipyard expansion is one of the reasons why we’ve chosen to partner with them.” The state’s Katrina Recovery Fund has helped VT Halter Marine, a multi-faceted, Mississippi-based shipbuilding company, to double its employment since Hurricane Katrina. The yard serves both commercial and government customers and has partnered with the U.S. Navy Foreign Military Sales program. In addition to naval vessels, VT Halter Marine builds oceanographic survey ships and tug barges. Since Hurricane Katrina devastated the Gulf Coast, VT Halter Marine has invested over $28 million of its own funds with an additional $5 million from Katrina Community Development Block Grant funds into maintaining and creating more work for the Pascagoula shipyard. VT Halter Marine has created and sustained nearly 200 jobs in the Pascagoula area. The expansion project will provide additional capacity for the backlogged shipyard, which currently has projects that will keep the facility and its employees busy through 2013. “Through the efforts of MDA, the Jackson County Port Authority and Jackson County Economic Development Foundation, VT Halter Marine is adding jobs rapidly and seems to be virtually ‘recession proof,’” continued Swoope. “This is a great example of how our recovery package is helping not only sustain existing businesses, but actually incenting job creation.” 
Above is an example of the tug barges produced at VT Halter Marine's Pascagoula Shipyard. 
The Halter Marine Expansion Project is underway helping to double jobs at the plant since Katrina. SMALL RENTAL ASSISTANCE PROGRAM IS NEARING 2,000 COMPLETED UNITS The Mississippi Development Authority Disaster Recovery Division (MDA DRD) Small Rental Assistance Program (SRAP) has completed and received certificates of occupancy for nearly 2,000 rental units in less than two years. “The addition of 2,000 more options for low and moderate income residents to find housing opportunities is a welcoming sign to the Gulf Coast,” said Gerald Blessey, Gulf Coast Housing Director for Mississippi Development Authority Disaster Recovery Division. “This is particularly good because most of these properties accept tenants with housing vouchers. In fact, several hundred units are already occupied by voucher holders.” The SRAP provides forgivable loans which serve as gap financing for owners of small rental properties. The owners agree to repair, reconstruct, or construct rental housing and rent to low to moderate income families for a specified time. The loan is ‘forgiven’ for applicants who satisfy all program requirements for the compliance period ranging from five to 10 years. Rental units are available in locations throughout Hancock, Harrison, Jackson, and Pearl River counties, many of which are some of the most storm damaged neighborhoods. Over two thirds of these units have received their first disbursement of funds for repair and construction by submitting their building permits. Final payment is made when the certificate of occupancy is submitted to MDA. “Even more units beyond these 2,000 are still working through Small Rental pipeline,” said Nell Rogers, SRAP Program Manager. “We’re continuously processing these additional units and moving toward the closing and permitting stages.” Occupancy rates are strong for Small Rental units. Aside from affordability, the high occupancy rates are the results for bringing back homes in the occupants’ former neighborhoods. A large number of rental units are also in or near historic districts in the coastal counties, aiding the preservation of the beloved historic neighborhoods’ character. This is a result of efforts by MDA and the State Historic Preservation Office’s close working relationship to ensure the survival of these neighborhoods on the Coast. Currently, there are more than 200 Small Rental units available to low and moderate income Coastal renters. “Generally, we’ve been running about a 10 percent vacancy rate when compared to completed units,” Rogers continued. “Certainly this shows that there is a strong demand for Small Rental properties and we certainly anticipate this rate to continue as we approach our more than 3,800 unit goal.” ELEVATION GRANT PROGRAM FOCUSES ON PROCESSING REQUIREMENTS The Mississippi Development Authority's (MDA) Elevation Grant Program (EGP) is quickly processing all remaining outstanding applicants. “Over 1,000 EGP applicants have received elevation funds,” Michael Thames, EGP Program Manager said. “Most of those have received the full disbursement. Now we’re just waiting on the remaining applicant’s required documentation such as building permits, elevation certificates and certificates of occupancy.” EGP awards, which can go up to $30,000, are intended to help defray the cost of the elevating to the new Federal Emergency Management Agency federal elevation standard. EGP funds are available only to homeowners who’ve received assistance from MDA DRD’s separate Homeowners Assistance Program Phase 1 or Phase 2 grants, who did not have flood insurance, and who are now required to elevate their Katrina damaged homes because of more stringent federal flood maps. EGP grants can be awarded through a single $30,000 disbursement or in two $15,000 installments, based on what the applicant submits. The first $15,000 is awarded when the applicant submits the building permit and initial elevation certificate; the other half is disbursed upon satisfactory completion of the elevation project by submitting the required documentation. To comply with federal law, all EGP applicant properties are subject to environmental review to ensure the property is compliant with environmental regulations. Among other things, these reviews were designed to protect wetlands, detect valuable archeological items or historic structures, locate hazardous toxins and detect hazardous lead-based paint. The funds are drawn from a $5.4 billion federally-funded recovery package, appropriated for Mississippi shortly after Hurricane Katrina. The recovery package is administered federally by the U.S. Department of Housing and Urban Development and at the state level by MDA DRD. For more information, applicants are encouraged to go to the Disaster Recovery website at www.msdisasterrecovery.com or to contact the MDA Disaster Recovery Call Center at 1-866-369-6302 for more information. REPAIRS TO MAGNOLIA’S DOWNTOWN COMPLETES RENOVATION Downtown Magnolia repairs were completed in time to welcome in 2010. The nearly $800,000 renovation and repair involved the downtown area’s building facades and fountain. Additional work was done to repair and improve the electrical lines in the surrounding area to provide optimal lighting and mitigate any future wind damage. Part of the $40 million GO Zone project for the upper state counties affected by Hurricane Katrina, the renovations also included improvements to pedestrian access to the downtown area by way of street pavement repairs and replacing sidewalks. Magnolia is a small town of more than 2,000 residents located in Pike County, near the Mississippi-Louisiana state border. 
Above is an example of the sidewalk renovations to downtown Magnolia. NEW DISASTER RECOVERY DIVISION WEBSITE On February 15, the Mississippi Development Authority Disaster Recovery Division (MDA DRD) will launch a newly developed website, designed to be more user friendly for applicants of DRD programs, as well as elected officials and citizens who’re interested in the progress of Mississippi’s federally-funded $5.4 billion Katrina Recovery Package. “No matter who the audience may be, often we get asked the same basic questions about the Katrina recovery,” Lee Youngblood, Communications Director for the Disaster Recovery Division said. “People want to know: ‘How much money has been spent? How is the money allocated? What are the various programs?’ And, of course, ‘where our programs stand.’ This website is designed so that anyone who goes to it can find those answers.” The site will feature easy links to critical components of Mississippi’s recovery plan, which is focused on three overall areas: housing recovery, rebuilding public facilities and job retention/creation. The sections will include quick access of the Mississippi Housing Data Project, the independent housing study by which the state’s Katrina disaster housing recovery programs are gauged. Also easily accessible will be the weekly, quarterly and annual reports regarding all 17 of Mississippi’s Katrina recovery programs funded from the $5.4 billion federal recovery allocation. “Governor Barbour has charged us with finishing our recovery programs with timeliness and efficiency, ensuring that Mississippi not just recover, but that our state is restored stronger than before Katrina,” Jon Mabry, Chief Operations Officer of the Disaster Recovery Division said. “To accomplish this, we’ve relied on local leaders and citizens for input into these programs and, in turn, we’re always looking for ways to show the great progress Mississippians are making together. This website, which will also include our regular newsletter and the status of more than 200 Katrina Recovery construction projects, is a major part of our commitment to transparency and community involvement.” To date, more than $3 billion of the $5.4 billion has been spent on various recovery initiatives, including almost $2 billion to 28,000 Gulf Coast homeowners who’ve received assistance from MDA DRD’s Homeowner Assistance Program as well as another $1 billion for other recovery initiatives, including those to provide affordable housing and rebuild vital public infrastructure. Though some remains to be spent on ongoing projects, all of the $5.4 billion is allocated toward specific recovery projects. “Particularly at a time when the state budget is so challenged, we need to reemphasize the fact that this $5.4 billion is federal money that Governor Barbour and our Congressional delegation secured with Congress’ blessing back in 2005,” Youngblood continued. “Despite the current state budget challenges, Mississippi’s Katrina recovery remains well funded, on schedule, and with administrative costs hovering at only 2.5 percent, efficiently managed, even by the most stringent private sector standards.” As recovery programs mature or finish, MDA DRD has worked aggressively to cut administrative costs even further and to make sure we are right-sized for the task,” Mabry continued. “In recent weeks, as contractors completed their assigned recovery tasks, we’ve reduced administrative expenditures by some $30 million and we anticipate this trend will continue throughout 2010 as most of our remaining projects are construction activities that are primarily in the hands of local counties and municipalities.” The MDA DRD website is www.msdisasterrecovery.com. 
PORT OF GULFPORT PROGRESS REPORT As of January 27, 2010, 610,629 cubic yards of sand have been used for the Port’s 60-acre West Pier fill project. 
Click on pie chart to view all of Mississippi's Katrina CDBG programs and status. According to the Council of State Community Agencies, historically Community Development Block Grants (CDBG) have been utilized by states in the following manner: In accepting CDBG funds states must make certain certifications to the U.S. Department of Housing and Urban Development. States also have four major responsibilities for utilizing these funds: This newsletter is produced by the Mississippi Development Authority Disaster Recovery Division. Lee Youngblood, Disaster Recovery Division |
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