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Mississippi sues landlords over Katrina loans gone bad

Mississippi is going after landlords and would-be landlords who promised to fix up property after Hurricane Katrina for low- to moderate-income tenants but failed to abide by the terms of their forgivable loan agreements.

The Sun Herald reports the Mississippi Development Authority has filed 65 lawsuits and so far recovered $630,000 in funds the U.S. Department of Housing and Urban Development provided the state after the devastating 2005 hurricane. Loans were available to qualified applicants in Harrison, Jackson, Hancock and Pearl River counties.

MDA spokesman Jeff Rent said 3,509 rental houses were completed under the program, which HUD cites as a disaster-recovery model for other communities.

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