Garnishment, Taxes, Mortgagees

The MDA wrote me recent, ''We do not believe that the grant is garnishable. However, we do require that grantees obtain subordination agreements with their lienholders. The lienholders legal rights are not dimished if they do not choose to sign a subordination.

We are still waiting for a ruling from the IRS regarding taxability and includibility. Please contact them or the state taxation board for further information.

Any disagreements between the mortgagor and mortgagee will be resolvable only between them.''


By Al Pettigrew

Assignment and Division

MDA Customer service indicates that there is no prohibition against assignment or division of a homeowner's grant rights.

By Al Pettigrew

Met Estimator

It does not appear that one estimator has responsibility for homes in St. Andrews. My estimator is an insurance claims adjuster from Texas. He said that homes in St. Andrews are valued at $100/sq ft and the top evaluation is $130/ sq ft for high end homes. He measured the perimeter of our house and asked how much we spent on repairs so far and a percentage about how much remains to be done. We didn't need to have actual costs calculated before the meeting. He also said that most houses that had to tear out to the 4 ft level are being estimated to have around 48% loss, not counting roof, windows, and other damage above the 4 ft level. However, I also understand that the percentage of loss up to the 4 ft level is also being estimated at 52%. I think it depends on the background and training of the estimator.

By Al Pettigrew

Possible Appeal Issues

There seems to be a significant risk that the MDA estimators overstated the living space of a home. This could significantly reduce the grant allowed a homeowner. Also, I think the MDA grant program is intended to be generous. So the terms should be construed in favor of the homeowner whenever possible. The rules do not define the term, ''structure,'' which is the key for determination of the grant amount. In calculation of loss I think it should include everything that is connected to the building. On the other hand, whenever insurance proceeds are used to reduce the grant, insurance payments for appliances, cabinets and other things attached to the walls should not be used. Internally inconsistent yes, but more in line with the purpose of being generous and all interpretations favoring the homeowner.

By Al Pettigrew