On October 9, 2020 the Mississippi Rental Assistance Grant Program (MRAP) was established to award grants to owners and landlords of Mississippi rental property. When the CARES Act passed in March of this year, it included a moratorium on evictions for non-payment of rent for 120 days. This protection was broadened and further extended to September 30. This tenant protection resulted in lost rental income for many owners of rental property.
The Mississippi Legislature allocated $20 million to be distributed to Mississippi’s rental businesses through the Rental Assistance Grant Program. To be eligible, the rental business must:
- Own rental property in the state of Mississippi (commercial or residential)
- Have filed Mississippi income tax returns for 2018 or 2019, or intends to file for 2020 if the business was formed after January 1, 2020
- Have a rental agreement with a tenant for a minimum of 30 days
- Have suffered lost rental income between March 1 and December 30 due to a business disruption related to that rental agreement
Additionally, a business is ineligible if it has evicted its tenant or filed for bankruptcy protection. Rental agreements between affiliated parties do not qualify.
The maximum grant amount is $30,000. If a business has multiple rental properties or units, it may apply separately for each eligible rental agreement. Finally, businesses may apply even if additional Covid-related relief has been received, provided that funding was not for the same lost rental revenue.
The program is administered through the Mississippi Development Authority. Applications will be taken online only, and the deadline to apply is November 15, 2020. Additional information and the application are found at www.mississippi.org/mrap.
Stephanie B. Smith, CPA, CFF
Stephanie B. Smith is a member of GranthamPoole PLLC and a recognized leader in the fields of business valuation and litigation support. She has also written, taught, and spoken on many topics in the area over the years and has served as a technical advisor and testifying expert in numerous cases. Please contact Stephanie at ssmith@granthampoole.com or 601-499-2400. CPA License # 3657
***The above does not represent tax advice. Each situation is fact-dependent, and you should seek the advice of a competent advisor. GranthamPoole PLLC is a provider of tax, accounting, advisory and strategic services, partnering with clients across a broad spectrum of industries and sizes.