Residents demand forensic audit, question $12M in HUD CDBG/HOME funds during Gulfport council meeting

GULFPORT, Miss. — Public comment at the March 3 Gulfport City Council meeting centered on calls for transparency and a forensic audit of U.S. Department of Housing and Urban Development (HUD) funds, after residents and council members questioned how Community Development Block Grant (CDBG) and HOME dollars from 2017–2024 have been allocated.

Several speakers, including Kelvin Barnett and Richard Marsh, said city advocates and attorneys from the Southern Poverty Law Center prepared demands asking the council to publish a plain‑language accounting of past and current CDBG and HOME funds, to open application opportunities to low‑ and moderate‑income residents, and to create community oversight. Barnett said the group’s list of demands includes conducting a forensic audit and making application assistance more accessible through churches, local radio and workshops.

"Publish a letter clearly explaining in detail, not just buckets, how the city intends to use all past and current CDBG funds," Barnett told the council during the public‑comment period. He also asserted a figure for HUD obligations across years.

Richard Marsh, a Gulfport resident, asked bluntly, "Where is the money at?" and urged the council to explain which bank or account holds federal funds. Several residents said only small sums had been used for housing and said reallocated CDBG funds in recent amendments did not account for all obligated dollars. Commenters asked why some community requests had not been funded and demanded public workshops and an oversight committee.

Council deliberations: Councilmember Hines pressed staff to postpone some purchases until HUD had formally approved the city’s substantial amendment, citing five years of delay on projects she associated with earlier allocations. City staff member Nicole told the council that some 2019 funds remain in a programmatic 'bucket' earmarked for public facilities and improvements and said HUD has encouraged the city to show progress on past funds rather than hold funds idle. Nicole said HUD wants to see work progress and that some reimbursement has been received to bring prior expenditures current.

"HUD wants us to move forward. HUD wants us to spend money," Nicole said during the meeting. Hines said she wanted that guidance in writing before the council proceeded on certain purchases; the clerk recorded her vote on a particular item as an abstention so her concerns would be noted.

What residents requested: The public asked that the council publish a detailed accounting of HUD funds (CDBG, HOME and related allocations) from 2017–2024, disclose where unobligated or reallocated dollars are being held, and create public workshops and an oversight body to improve application assistance and outreach.

Next steps: Councilmembers said they would follow up with written documentation and added that staff would re‑share the substantial amendment details by category. Councilmember Hines asked staff to provide written confirmation of HUD guidance before moving forward on items she considered at risk of noncompliance.