Phase I - Grant Applicants Who Have Sold Their Home
The Mississippi Development Authority’s (MDA) policy for Homeowner Assistance Program (HAP) grants requires all homeowners to agree to a set of Covenants. These Covenants are a requirement of the federally approved program designed to reduce the chances of severe flooding in the event of another major hurricane. The Covenants require in part:

  1. Building any new structures on the property to new FEMA-mandated elevations.
  2. Maintaining flood insurance in the amount of the lesser of 100% of the full insurable value of all dwellings on the property as determined by a property insurer or the maximum amount available under the National Flood Insurance Program.
  3. Agreement to abide by stricter building codes for any repairs or new construction.

Qualified applicants are still the eligible recipient of the HAP grant, however they can not attach the covenants to the property, because they no longer own the home damaged by Hurricane Katrina. Only the Current Owner of the home may sign and accept the agreement. The grant applicant must take the necessary steps to complete the closing process. The applicant must contact the person, who purchased the home, to obtain the signed and notarized documents. There may be multiple mortgages or home equity loans. If there are, a signed and notarized Subordination document from the lender of each mortgage or loan must be obtained.

The following checklist is provided to help the grant applicant complete this process:

STEP 1: CLOSING READINESS

  • Review the Sold Home Letter
  • Contact the Current Homeowner and Ask Them To Sign the Covenants and Get Them Notarized
  • Ask the Current Homeowner to Obtain Signed Subordination Agreements From All Lien Holders
  • Contact All Persons Who Were On The Deed As Of August 29, 2005
  • Agree On A Time For the Closing
  • Review The Grant Calculation In Detail
  • Review the Grant Agreement and Subrogation Agreement

STEP 2: CLOSING APPOINTMENT

  • Schedule An Appointment With Your Closing Agent
  • Bring A Government-Issued Photo ID
  • Bring the Grant Application ID
  • Bring The Covenants Signed By Current Homeowner
  • Bring The Subordinations That Have Been Signed And Notarized
  • Bring the Blank Grant Agreement and Subrogation Agreement To Be Signed at Closing

STEP 3: REQUIRED TO ATTEND CLOSING

  • All Persons Who Were on the Deed as of August 29, 2005
  • The Spouse as Required by State Law (Even if they are not on the Deed)
  • Don’t Forget Your Marriage Certificate(s) or Other Legal Evidence of Name Change
  • Don’t Forget the Death Certificate(s)