JACKSON (AP) — The U.S. Department of Housing and Urban Development has approved a program aimed at spurring development of work force rental housing on the Mississippi coast, Gov. Haley Barbour said Wednesday.

The $260 million program provides forgivable loans to owners of small rental properties who offer affordable rental housing for low income families, the governor said in a news release.

“It’s vitally important that we not only continue to secure financial assistance for individual homeowners but also find ways to rebuild the stock of rental housing, much of which was destroyed by Hurricane Katrina,” Barbour said Wednesday. “Housing remains a critical issue on the Gulf Coast and today’s announcement is another very positive step in our efforts to provide more and better housing units in the work force rental market.”

An online application is available. The application period begins September 10.