- The changes are expected to make real estate transactions less cumbersome for affected property owners.
Amendments to covenants associated with properties that received help through the Homeowner Assistance Program after Hurricane Katrina have been approved by the Mississippi Development Authority to bring them in line with modern standards.
The amendments are now in effect for those homeowners who received the assistance.
“The Homeowner Assistance Program played an important role in helping Mississippi families recover after Hurricane Katrina,” said MDA Executive Director Bill Cork. “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 Working with HUD, we’ve updated the language to remove outdated barriers for property owners while maintaining the program’s original purpose.”
The aftermath of Hurricane Katrina in August 2005 saw millions in damage across South Mississippi. In response, grants were provided to Mississippi homeowners in Hancock, Harrison, Jackson and Pearl River Counties through the Homeowner Assistance Program as part of the rebuilding process.
Restrictive covenants requiring flood insurance were introduced for those receiving the assistance. However, in the 21 years since Katrina, federal flood insurance requirements have changed. Today, that means unnecessary covenants are creating issues for some owners when they try to sell properties that were rebuilt with the program’s assistance.
To address those issues, MDA and the U.S. Department of Housing and Urban Development drafted more modern, blanket covenant wording for the applicable properties that preserves the original intent of the program while also bringing them in line with current federal specifications.
These updated covenants can be seen in the land records in each affected county, negating the need for individual landowners of affected properties to seek their own modifications.
