Biloxi council opens workshops on housing rehabilitation; HUD flood-insurance rules cloud eligibility

The Biloxi City Council met in a special workshop to begin designing a housing rehabilitation program aimed at low- and moderate-income homeowners, and staff warned that HUD rules about flood insurance could limit who ultimately qualifies.

Rick Weaver, introduced by the chair to open the session, said the meeting was the first of several workshops to build a program framework and that the city aims to have the program in place around October. "This is our first meeting of our workshops as we work towards the proposal for the housing rehabilitation program throughout the city," Weaver said.

Paula Snyder, the staff member handling federal programming and grants, outlined the program’s likely features and the administrative steps required to use Community Development Block Grant (CDBG) funds. "The city of Biloxi, we have not done a housing rehabilitation program, unfortunately, since Hurricane Katrina," Snyder said, adding that eligible work would require inspections, appraisals, lead/asbestos checks, and applicant financial documentation. Snyder described the assistance as structured "as a forgivable loan" with restrictions on selling or renting for a predetermined period.

A central point of debate was how HUD’s flood-insurance requirements would affect eligibility. Snyder and other staff said HUD generally requires flood insurance for properties receiving federal dollars and that there may be some flexibility for small repairs under roughly $10,000, but they are awaiting official HUD guidance. "We have requested HUD to already respond on this, but we're still waiting for that currently," Weaver said. Staff cautioned that if the city used federal funds on uninsured properties and later a damage event occurred, the city could be required to repay HUD.

Council members debated whether to target aid by HUD-designated low/mod census tracts (which would concentrate funds in hard-hit neighborhoods such as parts of East Biloxi) or to apply income-based, citywide eligibility so qualified residents in other wards could apply. One council member argued for citywide access on equity grounds: "If you qualify, you should be eligible," the chair said, arguing that qualifying residents should not be excluded by where they live.

Others warned that opening the program citywide could dilute limited funds. Council members and staff noted the city’s HUD allocation is roughly $400,000 per year; participants discussed that using a $40,000 income threshold for a family of four would sharply limit how many households could be served if individual awards were large. A council member detailed program design trade-offs: smaller awards could help more households, while larger awards would provide deeper repairs for fewer families.

Council members also highlighted concentrated flood-related structural damage in East Biloxi and proposed prioritization or set-asides for neighborhoods with severe foundation and floodplain-related issues. Staff repeatedly emphasized that several details—whether prior HUD-funded fixes disqualify properties, whether CDBG dollars can pay insurance premiums, and precise flood-insurance thresholds—remain subject to HUD guidance.

The administration committed to returning with clarified information, validated maps and options for council decisions. Weaver and Snyder said they would follow up with HUD and present more detailed proposals at subsequent workshops. The chair closed the meeting after motions to adjourn were made and seconded.

What’s next: staff will seek written HUD guidance, prepare maps and funding scenarios, and return to council with a refined program design for future council consideration ahead of an anticipated October program start.