PORT ARTHUR — State officials have reached an agreement with fair housing advocacy groups, resulting in the U.S. Department of Housing and Urban Development’s approval of $1.7 billion in Round II Hurricane Ike funding.

The revised Round II Plan allocates $317,492, 059 — $12 million more than the original Round II model — to the Southeast Texas region for non-housing and housing projects.

Local officials say the method of distribution under the revised model will be geared more to low and moderate income housing. Municipalities were required to wait an additional six months until a new model could be penned after advocacy groups filed complaints against the state claiming too much money was being appropriated to rural areas — taking away from Southeast Texas, Houston and Galveston — areas hardest hit by Hurricane Ike.

Another sticking point had to do with the writing of a new weather model — intended to be the Round II model — which takes into account impacts of wind, storm surges and precipitation. Opponents see that as too much of a departure from the Federal Emergency Management Agency model and would like to see more of the lion’s share go to nonrural areas.

Storm funding is issued as community development block grants through Federal Housing and Urban Development, then state, then Southeast Texas Regional Planning Commission, then to municipalities and communities.

Shaun Davis, executive director of Southeast Texas Regional Planning Commission, anticipates original awards for the second round will vary given the tighter criteria.

“Now we are developing the method of distribution,” Davis said before a conference call with area municipalities Monday. “They’ve gone to straight FEMA and Small Business Administration numbers because of significant public housing damage in Orange County.”

A municipality’s principle criteria to initially become eligible for Round II funding are: 1) Prove you’re a community serving low to moderate income of 51%; 2) Prove damage is storm-related or because of failure of infrastructure due to a storm; 3) Prove funds are affirmatively furthering fair housing.

“What we’ve learned is the feds like to issue two separate rounds,” Davis said. “The first-round thresholds were a little less stringent. On Round II, the rigors of proving up will be much more strenuous.”

Once funds are appropriated to individual municipalities, homeowners still needing storm repair funds for their home may apply for assistance.

“Applications are being received and a person can pick up an application at the Southeast Texas Regional Planning Commission office,” Beverly Freeman, housing programs administrator for Port Arthur, said. That address is 2210 Eastex Freeway, Beaumont, Texas, 77703. The web site is www.setrpc.org.

“This is income eligible, 80 percent or below of the area median income,” Freeman said. The area median income is $55,500.

Port Arthur City Manager Steve Fittzgibbons said it seems like there will be enough funding for every eligible applicant to help with home replacement. In terms of homes in Port Arthur, very few that have suffered storm damage are able to be rehabilitated. The city received an estimated $2 million in Round I and, before the revised Round II model, anticipated around $10 million toward infrastructure and more for housing.

 An estimated 40 percent of grant funds will be used for people under the national objective — urgent need — marker and applicants may be insured or uninsured.

Mid County cities Port Neches and Nederland have also applied for Round II funds.

City Manager André Wimer said Port Neches received $57,000 in Round I and several million dollars were anticipated for Round II. Nederland is one of many municipalities awaiting funds for projects originally totaling about $12 million. According to News archives, Nederland officials plan to use funds toward  placement of generators at the sewer plant and four lift stations and updates of traffic signal lights from spanned wires to the mast arm design.

Bridge City City Manager Jerry Jones said his city is just now ready to award bids for a major project utilizing the first round of Ike funding — an estimated $9.69 million. Officials hope to implement a Supervisory Control and Data Acquisition System, or SCADA, which helps in the central control of water breaks and floodwater flow. They are also continuing in smoke testing toward repairs on sewage systems.

“We had a good reserve, plus we were eligible to get the loans that were forgivable,” Jones said. Jones’ city was awarded an additional $3 million for Round II, however, as other cities have experienced, those funds were put on hold because the funding model had to be revised.

“We are still trying to recover from the storm. We had a lot of infrastructure damage,” Jones said.

The newest allocation brings the state total to $3 billion. An estimated $190 million of the $1.3 billion from Round 1 came to Southeast Texas and was split in half between non housing infrastructure projects and housing.

“We are grateful to get the funding, but it will be limited on the types of projects that you will do. It’s draconian at first,” Davis said. Funds can be used to replace a bridge, for example, however it would have to be proven that low and moderate income people travel that bridge.

smartinez@panews.com