Katrina PHASE II GRANTS - Public Comment needed by December 8th.

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CALL FOR PUBLIC COMMENT
Mississippi’s Phase II Grant Program Guidelines

Who qualifies for the grant?
A homeowner who
• suffered hurricane flood surge damage
• to their primary home (not second homes or rentals)
• located inside or outside the federal 100 year flood zone
• with or without insurance on the home
• a 2006 household income at or below 120% of Area Median Income (about $63,300 for a family of 4).

What conditions must the homeowner accept in exchange for the grant?
• a covenant on their property that establishes building code,
• homeowner insurance,
• elevation requirements for them or any future owner of the land, and
• remain at that site for 3 years or relocate in the lower 6 counties
• use grant to repay SBA loan intended for use.

How much is the grant?
• up to $50,000 to pay 70% of the cost to repair or rebuild the structure
• plus up to $30,000 to help rebuild to elevation requirements
• plus up to $25,000 for a “special needs” homeowner who
• is 65 years old or more
• has a physical or mental disability
• has 2006 household income below 60% of Area Median Income (about $28,000 for a family of 4).
• The MDA is also developing a loan program to help people finance the gap between the grant and the cost to rebuild.

What are the problems?

The plan has some really good parts, like that it targets our most vulnerable neighbors – the poorest families, our elderly and our disabled - but there are also some serious problems, including:

• No grants for homeowners with wind damage.
  
• The $50,000 cap is low – only a third of what was available for people in Phase 1. On top of that, there is a 30% penalty subtracted from the needed amount to rebuild. People may not be able to afford to rebuild if the leftover costs mean they have to take out a big mortgage and then pay for high insur-ance costs.

Submit Your Phase II Comments to:

MDA, Post Office Box 849, Jackson, MS 39205 or send via facsimile to [phone], or online to [e-mail].

Comments must be received no later than December 8, 2006.

Please include your name and full address.

Please note if you want Phase II to include wind damaged homeowners and/or an increased cap to $100,000, and any of your own comments or recommendations.