Realtor Relief Fund
The National and Mississippi Realtors Association contributed $938,000 to establish the Realtors Relief Fund Program. It is designed to re-habilitate affordable residential rental properties damaged by Hurricane Katrina. The properties should be appropriate and made available for those living at or below the median income level for the Mississippi Gulf Coast.
The Mississippi REALTOR funds constitute no more than 50 percent of the total amount needed for building supplies for any one property. The remainder is provided by other non-profit agencies and, hopefully, the owner of the property.
Once a rental house has been rehabbed, rent is set at the pre-Katrina rate for twelve months. This also applies to the second year following repairs; if increases are made to the rent in the second year, the increase would be based on the Federal cost of living increase. This assists the property owner in re-establishing rental income, and, most importantly, addresses affordable housing on the Coast.
Another option for the property owner is to agree to accept a Housing and Urban Development (HUD) voucher for five years. This allows the property owner to rent at or below HUD’s Fair Market Rents for Existing Housing based on the county in which the rental property exists. This option allows for lower income persons eligible for a HUD voucher to find affordable housing.
Either option has proven to be a win-win situation for everyone concerned.
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