Mississippi lawmakers hold hearing on post-Katrina housing crisis

March 15 is the deadline for Mississippi residents displaced by Hurricane Katrina to apply for assistance for a home rebuilding and replacement program. But at a legislative hearing today in Jackson, some testified that the program denies aid to homeowners who need help the most.

Held by the state Senate Housing Committee, the hearing included testimony from advocacy groups including the NAACP, Oxfam American and the Mississippi Interfaith Disaster Task Force. The Associated Press reports:

John Joplin of the Mississippi Center for Justice Katrina Recovery Office said estimates show 18,000 storm-damaged homes aren't eligible for any of the federally funded programs being administered by the Mississippi Development Authority.

"It is very apparent the goal of affordable housing remains a distant mirage," Joplin said.

The program's first phase provided up to $150,000 each to homeowners who lived outside the federal flood plain. The second phase offers up to $100,000 for low-income homeowners who had storm surge damage, regardless of whether they were insured or whether the property was in a flood zone.

But homeowners who had wind damage don't qualify for either phase -- one of the concerns raised at the hearing. The advocacy groups asked the state to develop an assistance program to help homeowners with wind damage. However, Gov. Haley Barbour's administration is reluctant to do that since Congress didn't provide funds for wind damage, and since such damage extended far beyond the state's hardest-hit coastal communities.