Almost 4 years after the 2005 Gulf Coast hurricanes, the region continues to face daunting rebuilding challenges. To date, $19.7 billion in Community Development Block Grant (CDBG) funds have been appropriated for Gulf Coast rebuilding assistance -- the largest amount in the history of the program. GAO was asked to report on (1) how Louisiana and Mississippi allocated their shares of CDBG funds, (2) what difficulties Louisiana faced in administering its housing recovery program, and (3) what human capital challenges Louisiana and Mississippi encountered and the efforts taken to address those challenges. GAO interviewed federal and state officials and reviewed budget data, federal regulations, and state policies and planning documents. GAO recommends that the Secretary of Housing and Urban Development (HUD): (1) issue written CDBG disaster assistance program guidance that articulates an acceptable rehabilitation versus compensation program, including, among other things, explanation of program elements that trigger federal environmental reviews and (2) coordinate with the Federal Emergency Management Agency (FEMA) to clarify options and limits of using CDBG funds with other disaster-related federal funds.