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Paul,
Yes the program is "real" but be very careful. I put real in quotes because as far as I know very few people (if any) have actually received funds from this program yet. At minimum I would put your tenants in on a month to month lease so that should you be declined for any reason you can bump the rents to market rates.
As to taxes please note that the SRAP is a LOAN and stays that way until forgiven (beginning in year 3). Until that time you should not receive a 1099 on the dollar amount received.
Also you should be aware that while the funds are sourced from federal funds this program is administered and paid by the State of Mississippi. Not sure why this would make any difference but thought I should bring it up.
Lastly, if the tone has not come across yet, you should be very careful with this. I know of people who have bought into this and basically they have gotten screwed over. Not the fault of the program but from the developer. We will be placing investors into this program but not until I can verify a few things, including that the State of Mississippi finally has their act together on this.
Sincerely,
Irv Wilson
Scottsdale, AZ
