The U.S. Department of Housing and Urban Development has upheld its ruling that the Mississippi did too little to recruit low-income people for Hurricane Katrina recovery work at the Port of Gulfport.
HUD also finds the Mississippi Development Authority failed to track employment of low-income people on work done at the port and rebuilding some homes.
HUD wants MDA to propose remedies to the problems federal officials found.
State officials are declining comment, saying they haven't received the letter yet.
The finding, issued Tuesday, comes in a separate but parallel inquiry to one where HUD has demanded the state prove it has retained enough jobs at the port.
Critics of port work note the latest HUD finding shows few new workers have been hired in construction efforts in Gulfport.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)