The Mississippi Development Authority approved amendments to covenants for properties that received assistance through the Homeowner Assistance Program after Hurricane Katrina, the agency said. The changes are now in effect and are intended to make real estate transactions easier for affected property owners.
“The Homeowner Assistance Program played an important role in helping Mississippi families recover after Hurricane Katrina,” MDA Executive Director Bill Cork said. “More than two decades later, it’s important that these covenants reflect today’s federal requirements rather than those that existed in 2005. Working with HUD, we’ve updated the language to remove outdated barriers for property owners while maintaining the program’s original purpose.”
MDA said the assistance provided grants to homeowners in Hancock, Harrison, Jackson and Pearl River counties after Hurricane Katrina struck in Aug. 2005. Restrictive covenants initially required recipients to carry flood insurance, MDA said.
Federal flood insurance requirements have changed since 2005, and MDA said some of the old covenants have created problems for owners trying to sell properties. MDA and the U.S. Department of Housing and Urban Development drafted updated, blanket covenant language to preserve the program’s original intent while aligning the documents with current federal specifications, the agency said.
MDA said the updated covenants have been recorded in the land records of the affected counties, removing the need for individual property owners to seek their own modifications.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
