In an era of mass migration, some of the world’s most expensive homes are now getting a boost from the Federal Emergency Management Agency (FEMA).
On Thursday, the agency announced that it would begin accepting applications for FEMA-designated properties in Indiana, Louisiana, and New Jersey, along with other states.
As of this writing, the list includes six properties in Indianapolis, four in Nashville, Tennessee, and one in the South.
The FEMA-issued properties have an average value of $3.7 million, according to an email from FEMA spokesperson David Loeffler to property owners.
“It is important to note that these properties are not FEMA-approved for sale in any other states,” Loefler said in the email.
“Therefore, they will be subject to sale in those states.
Any property listed as a FEMA-eligible property will be exempt from any federal or state sales taxes.”
Loebner said that all properties will have an “affordability factor,” and that the properties will be eligible for a 10% down payment, which is generally a requirement for any sale.
In addition, FEMA is “considering the availability of additional tax credits,” which will “include an increase to the value of the property as determined by a qualified appraiser, as well as an increase in the cost of the loan,” Loesbner wrote.
According to the FEMA website, FEMA can waive all or part of its application fees.
FEMA is also currently accepting applications from property owners to move their homes to a different state, although Loehner said this will only be available in a limited number of cases.
If FEMA decides to waive the application fee, the properties that qualify will be sold in the states that the agency approves for FEMA designation, according a statement from FEMA spokeswoman Julie Dann.
“The Federal Emergency Response Program has a number of exemptions for properties that meet certain criteria,” Luefler wrote.
“FEMA is committed to making these exemptions available to as many properties as possible.”
Loeshner added that FEMA is considering offering additional tax incentives to encourage owners to apply.
“For example, properties that are designated for FEMA may be eligible to receive a federal tax credit for their tax liability, and the property may be subject at the end of the tax year to a federal excise tax on the purchase price of the home,” Leefler added.
“Other options may include a cash advance, the sale of the remaining balance of the mortgage, or a loan modification.”
The move comes at a time when property prices in the US are soaring.
According, the median home price in the U.S. in December was $207,600, according an analysis from realtor.com.
At the time, prices were higher than they have ever been in more than a decade.
The median sale price in December is now $207.8 million, up $6,400 from December 2015, according data from Zillow.
Property prices in Los Angeles, for example, are up $20,000, or 6%, over the same time period.
The number of properties in the FEMA-assigned states has risen from five in January 2018 to seven in February 2019.
The influx of FEMA-certified properties comes just days after President Donald Trump signed an executive order to allow FEMA to waive all sales taxes for property owners in some areas, including New Jersey and Kentucky.
The move will not apply to properties that were already designated for federal designation, however, which could include properties that have already been sold and that are currently listed for sale.
For example, the number of FEMA certified properties in New York City has risen by more than 100% in the last year, according Zillowing.
Property sales in the city have also increased significantly, thanks to the economic boom.
As property prices rise in New Jersey as well, there are more properties available for sale, including properties that previously could not be sold.
The amount of FEMA tax relief is up to $10,000 per property.
The increase in FEMA tax incentives will be available for properties in states that FEMA determines are eligible for the assistance, Loehnner added.