Housing authorities in Galveston, Texas, on Wednesday presented state officials with a plan to replace 569 units of public housing destroyed in a 2008 hurricane. The proposal marks the first step toward resolving a dispute with HUD that threatened to jeopardize more than half a billion dollars in federal aid to the city. In 2008, flooding from Hurricane Ike destroyed 569 units of public housing in Galveston, an island city south of Houston on the Gulf of Mexico. In a meeting Wednesday, Mayor Lewis Rosen and a delegation from the Galveston Housing Authority presented the plan to the Texas General Land Office, a state agency that administers disaster-relief funds on behalf of the federal government. The proposalcalls for building 141 low-income housing units as part of a larger, mixed-income development, renovating 288 housing units throughout the city and preparing them for low-income renters, as well as building 100 housing sites near Galveston, on the mainland of Texas.