The MDA Small Rental Assistance Program Pushes Through 1st Round
July 4, 2008
Finally! The first round of the Mississippi Small Rental Assistance Program (SRAP) apps were due in last November, and after 7 months of back and forth from all the government entities involved, the first checks have started to get disbursed.
Approximately $6.5 million has been approved and closings have started. This money is going to help build close to 200 new construction homes (being bought by GO Zone investors). Please keep in mind that this area of the Mississippi GO Zone lost the majority of it’s housing stock in the hurricane and if you consider all the new jobs coming the area it’s going to still be short of the necessary housing.
Gary Swoope of the MDA has been quoted as saying that he thinks the program will proceed rapidly now which is obviously great news for GO Zone Gateway clients that have put their selves in position for the next round. (If you haven’t it’s not too late)
The Small Rental Assistance Program (SRAP) was established to provide forgivable loans for property that was renovated due to storm damage and the construction of new construction homes in a few select counties in the ravaged part of the Mississippi GO Zone. A total of $262 million has been alloted to the MDA to fund this program. The goal is to build approximately 7,000 GO Zone qualified rental properties in the Mississippi lower coastal counties.
The SRAP is essentially a 5 year program in the form a forgivable loan. In addition to the incredible tax incentives being offered the the federal government, the GO Zone Gateway investor can also apply for the SRAP program and receive up to $40k per unit ($80k per duplex) if they sign an agreement with the MDA agreeing to follow the program’s guidelines.
We have helped many investors get qualified for the 1st round and we are working very closely with the MDA. If you have questions on this program feel free to call us.
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