Recession another blow to Miss. Katrina survivors

OCEAN SPRINGS, Miss._In the four years since Hurricane Katrina swallowed Barbara Lambert's Gulf Coast house, her family has slowly rebuilt its life _ moving out of a FEMA mobile home and to another city, finding a job for her husband and enrolling the kids in new schools.

Then, the recession hit.

The Lamberts and others in the hurricane-stricken region are struggling through renewed hard times as federal recovery dollars dry up and the recession chokes off jobs and charitable help. For the Lamberts, paying next month's rent is the latest worry as a federal hurricane assistance program ends.

"It's hard as hell to find a house to accommodate five kids," said Barbara Lambert. "Katrina took all the cheap houses."

The recession's toll on a region still emerging from one of the worst natural disasters in the nation's history can be seen in unemployment rates ranging from 8.6 percent to 11.1 percent in south Mississippi counties.

About 15 miles west along U.S. 90, the Gulfport-Biloxi area has been hardest hit by the recession because of a downturn in tourism and a casino revenue slide of 10 percent, said Nathan Topper, an assistant economist with Moody's.com., who added he doesn't expect a turnaround until at least 2010. Employment at casino properties is down 17 percent compared with last year.

"We're definitely feeling the recession. The casinos, up until these last few months, were bouncing back pretty well," said Beverly Martin, executive director of the Mississippi Casino Operators Association, a trade group.

Area leaders say the economy's most significant impact has been on the housing sector.

Thousands of new apartment and home units have been constructed, but higher rent and insurance costs keep them out of reach for residents.

After Katrina, many insurance companies dropped policies, and those that remained raised premiums to offset damage risks. Ocean Springs Mayor Connie Moran said when counties reappraised property last year, some residents' taxes tripled.

"That combined with insurance premiums has some people simply selling their homes and moving north of I-10 where premiums are less expensive. But that robs us of our tax base and makes it even more difficult to recover," Moran said.

Moran said her yearly insurance payments increased from $1,500 pre-Katrina to $9,000.

Brian Sanderson, president of the Gulf Coast Business Council, said the state's wind pool insurance, which was created to be the insurer of last resort, is the best indicator on insurance instability. Before Katrina, the wind pool had 16,000 policies. Now, it has almost 43,000, he said.

Gov. Haley Barbour, meanwhile, downplays the recession's impact, saying unemployment rates on three coastal counties _ Jackson, Harrison and Hancock _ are still lower than other parts of the state.

"The national recession has affected the entire state, certain industries worst that others," Barbour said.

Barbour's administration is still awaiting word from HUD on when the state will receive some 7,000 vouchers to assist coast residents with rent.

Biloxi resident Renee Winn has been looking for work for months. Her last permanent job as a health clinic lab technician ended in 2007. Winn said she's now selling Avon cosmetics, "but that's not going too well." Winn moved to New York after Katrina left her homeless. She returned to take care of her sick mother.

"I just don't know at this point what to do. I pray a lot. I'm very frustrated. I'm very angry," Winn said in a telephone interview.

Barbara Rainey, 58, of Gulfport has gone from full-time to part-time as a ticket agent with Atlantic Southeast Airlines at the airport in Harrison County.

"I also went to less money," said Rainey. She said is in the process of buying her 600-square-foot Katrina cottage, the state's version of temporary housing after the storm.

"I have to, I can't afford anything else," she said.

Out-of-work families are turning to charities for help with utilities, mortgages, rent and food. The Salvation Army has seen its number of new assistance cases increase as much as 110 percent in some cities, said Mark Jones, a regional spokesman for the religious relief organization. The increased demand comes as the Salvation Army still copes with the loss of its donor base from Katrina, Jones said.

"No one is being turned away," Jones said. "Our shelters in Pascagoula for the homeless and battered women and children are full every night."

The influx of cases has put a strain on Back Bay Mission, a Biloxi ministry that's been in existence for nearly a century. The usual 13-person staff now stands at 11 because executive director Sharon Prestemon said she can't afford to fill vacant positions. Prestemon said the ministry has helped "hundreds more" this year compared with years past with utilities, rent and food.

"People are desperate for us because they look at us as they're last hope. We can't give them all hope," Prestemon said.

The Lamberts haven't sought charitable assistance _ yet.

But they don't know how the $1,026 rent on the one-story brick home will be paid next month. The Lamberts' share this month was only $600. HUD's transitional program for victims of hurricanes Katrina and Rita paid the rest.

The temporary Disaster Housing Assistance Program ends Aug. 31.

In Mississippi, 1,332 families are still on the DHAP. Under the program, families contribute a portion of the rent, but in many cases the majority was paid by HUD. Agency spokeswoman Donna White said another 466 families have switched to Housing Choice Vouchers, which is permanent assistance.

The federal government has been urging recipients to try to qualify for the permanent voucher program.

Barbara and Allan Lambert applied, but were told his $31,000 a year salary makes the family of seven ineligible. Allan Lambert, 57, is a security guard. Barbara Lambert couldn't find work immediately after the storm. Now, she said her high blood pressure prevents her from working.

Barbara Lambert said the family already juggles bills to make ends meet, but the rent expense might leave them homeless.

"You rob Peter to pay Paul, swap up bills, ask for extensions. DHAP has really been a blessing for all of us, but when it runs out ...," Barbara Lambert said, her voice trailing off.