News Release

JACKSON APPROVES ALABAMA’S $21.2 MILLION DISASTER RECOVERY PLAN
CDBG emergency funds to support State’s long-term recovery following Hurricane Katrina

WASHINGTON - Housing and Urban Development Secretary Alphonso Jackson today announced HUD's approval of a $21.2 million plan to support the State of Alabama's long-term recovery in the wake of Hurricane Katrina. Specifically, Alabama's plan will use Community Development Block Grant (CDBG) disaster funding to stimulate the production of affordable rental housing and restore vital infrastructure in the most distressed areas of the State.

To date, HUD has allocated more than $95 million to Alabama to support long-term recovery activities in the State. Last May, Jackson approved a $74 million plan to restore housing, infrastructure and jobs in some of the hardest hit areas of the state.

"Alabama is moving ahead with ambitious plans to help the most distressed areas in the State," said Jackson. "We know this is a long road to recovery and HUD stands ready to support Governor Riley and his staff as they continue working to help Alabama recover from the devastation Katrina left behind."

In the wake of Hurricane Katrina, President Bush declared 22 counties in Alabama major disaster areas. More than 3,000 homes sustained major or severe damage in Mobile County alone. In addition, Hurricane Katrina devastated Alabama's coastal employment base, including the state's signature shrimp industry.

Alabama's approved action plan will commit the following resources to encourage long-term recovery in the State's most distressed areas:

To read the full text of Alabama's Disaster Recovery Plan, visit HUD's website.

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