Hurricane Katrina: 10 Years Later Hurricane Katrina slammed into the Gulf Coast on August 29, 2005, as the costliest and one of the deadliest hurricanes to strike the United States. It was the sixth-strongest Atlantic hurricane ever recorded, and the third-strongest landfalling U.S. hurricane. Tropical storm force winds, powerful enough to rip shingles from roofs and topple trees, extended more than 100 miles from the center. Katrina left in her wake billions of dollars in damage, nearly a million people displaced and more than 1,800 dead.
With nearly 300,000 homes destroyed throughout the region, temporary housing arrangements were an initial priority. As our state's affordable housing resource, AHFA was granted permission by the Internal Revenue Service to allow owners of multifamily housing developments financed with HOME funds and/or Housing Credits to provide temporary housing in vacant units to displaced individuals. Nearly 150 families were able to find sanctuary in an AHFA-financed development.
Unfortunately, nearly 50 AHFA developments in the disaster region sustained damage from the hurricane and the four accompanying tornadoes, including three with major damage.
 Recognizing that safe, decent and affordable housing remains key to any rebuilding efforts, AHFA continued to do what it does best - provide affordable housing opportunities for the residents of Alabama.
Following the passage of the Gulf Opportunity Zone Act of 2006, AHFA used its HOME and Housing Credits programs to encourage creation of multifamily rental housing in the 11 Alabama counties declared disaster areas in the wake of Hurricane Katrina - Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa and Washington.
In addition, AHFA requested and received allocations of Gulf Opportunity Zone Housing Bonds from the State of Alabama to be issued through its First Step homeownership financing program.
Ultimately, AHFA issued $110 million in GO Zone single-family housing bonds and $47 million in multifamily Housing Credits to the counties hit hardest by Hurricane Katrina. |