HUD sued over Katrina fund diversion

[katty]

more: http://www.msnbc.msn.com/id/28143777/

By Mike Stuckey
Senior news editor
msnbc.com
updated 10:13 a.m. PT, Wed., Dec. 10, 2008


Mike Stuckey


A group of public interest lawyers sued the U.S. Department of Housing and Urban Development on Wednesday, seeking to stop the state of Mississippi from diverting $600 million in federal hurricane-relief funds intended for housing to a massive expansion of the state’s port facilities.

Separately, msnbc.com has obtained a memo from a HUD official that demonstrates concern within the agency over waivers granted by HUD officials and the fund diversions, and raises the specter that they could violate civil rights laws