Galveston moves toward compliance with HUD ultimatum

A divisive political struggle that toppled a mayor and threatened this island city with the loss of hundreds of millions of dollars could be nearing a conclusion, as officials reluctantly lay the groundwork for satisfying federal and state demands to rebuild public housing damaged by Hurricane Ike. The chairman of the Galveston Housing Authority resigned Thursday during a City Council workshop because of his opposition to a rebuilding plan demanded by federal and state officials, but he said the agency would have a plan ready by Tuesday to rebuild the 569 flooded housing units. He has since rescinded his resignation. HUD and the Texas General Land Office set a Sept. 1 deadline for the city to submit a rebuilding plan or face the loss of $592 million in disaster aid and federal grants and be forced to repay $56 million already allocated.

Houston Chronicle

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