A new form (PDF File) has been developed by the Federal National Mortgage Association and the Secretary of State’s Office that allows leaseholders in residential subdivisions in Madison County the opportunity to exercise their “option to renew” as specified in their original 16th Section Long Term Lease. This document will effectively extend the expiration date of the lease from the initial 40-year, or primary term, to the end of the additional 25-year renewal term and assist current leaseholders who are refinancing or selling their homes. Please note that lease fees remain locked in for the primary term only and a new lease based on a current appraisal will have to be performed in order to establish rentals at the end of the initial 40-years. There is a $200.00 fee, payable to Madison County Schools, associated with preparation of the document, and the recording fee to the Chancery Clerk.
For additional information, please contact the Letitia Reeves, MCSD 16th Section Property Manager.
Latest Update — Response From Attorney General Jim Hood's Office(PDF Format)
Letter to Attorney General Jim Hood Regarding Sixteenth Section Land Leases
Letter to Lease Holders Regarding Lease Appraisal Changes