November 20, 2009
he National Low Income Housing Coalition joins housing advocates from Texas in applauding the decision by the U.S. Department of Housing and Urban Development to reject the plan submitted by the state of Texas on how the state would use Hurricane Ike disaster recovery funds.
Housing advocates in Texas objected to the state plan primarily because it failed to assure that low and moderate income Texans who lost their homes or whose homes were damaged in Hurricane Ike would be assisted. After conducting their review of what the state proposed, HUD officials agreed with the advocates that the plan did not meet federal CDBG requirements.
In a letter to Texas Governor Rick Perry, HUD Assistant Secretary for Community Planning and Development Mercedes Marquez notified him that these requirements had not been met and more than $1.7 billion in Community Development Block Grants would be withheld until they were. The state now has 45 days to resubmit its plan.
HUD based its denial on Texas's failure to provide an adequate method of distribution of the funds that would allow the public to exercise its right to comment on where the funds would be spent and who would benefit. Federal law requires that states who receive CDBG funding for disaster recovery detail how the funds will be allocated to local units of government and that the state notify the public of the state action plan and give the public an opportunity to comment.
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