Biloxi is suing FEMA over post-Katrina recovery project

Source: MGN
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BILOXI, Miss. (AP) - A Mississippi Gulf Coast city is suing a federal agency that rejected expenses for a Hurricane Katrina recovery project.

The Sun Herald reports Biloxi is seeking $15.5 million from the Federal Emergency Management Agency for drainage, water and sewer systems.

The lawsuit says FEMA rejected $8.8 million in project management expenses the agency had previously approved and had helped develop. FEMA also said it won't cover $6.7 million the city says it needs for project management.

FEMA is rejecting the costs because a 2015 audit concluded Biloxi awarded a $21 million project management contract without considering cost.

Biloxi said the project would take four years when design work started in 2008. The lawsuit says work won't be finished until December 2024 - more than 19 years after Katrina.