Hurricane Katrina Forest Recovery

As we work together to tackle the historic challenge that Hurricane Katrina has presented to the forestry communities of Mississippi, Louisiana, and Alabama, we hope that this blog will be a valuable resource and tool.

Tuesday, May 9

Bond Issue to Assist Storm Victims

Mississippi Home Corporation (MHC) has announced a $40-million mortgage revenue bond (MRB) issue, which will provide low-cost mortgage financing to families affected by the hurricanes of 2005. This bond issue incorporates the incentives contained in the Gulf Opportunity Zone Act, also known as the GO Zone Act.

Out of the $40 million, $36 million will be available for potential home buyers in the Go Zone areas of the state, whereas $4 million will be available for potential home buyers in North Mississippi. MHC began taking reservations for these MRB funds May 3, 2006.

The MRB loans authorized under the GO Zone will carry an interest rate of 5.59% and will provide Mississippi working families with a 3% cash advance to assist with loan down payment and closing costs. MRB loans made in other areas of the state will carry an interest rate of 5.79% and will also provide Mississippi working families with a 3% cash advance.

"This bond issue is the second under the Go Zone Act that MHC has issued," said Dianne Bolen, MHC's executive director. "It is our goal to energizing Mississippi's housing market, more so now than ever."

Since September 2005, the MRB loan volume has increased 87% in the six months ended February 2006. The MRB program is a federal program utilizing tax-exempt private activity bonds, which are limited obligations of MHC, payable solely from the revenues generated by the mortgages. Bonds are not a debt of the state.

0 Comments:

Post a Comment

<< Home