2001 Regular Session
By: Representative Davis, Flaggs
House Bill 1058
AN ACT TO CREATE A NEW CODE SECTION THAT AUTHORIZES GOVERNING AUTHORITIES OF MUNICIPALITIES TO ESTABLISH AN EMPLOYER-ASSISTED HOUSING PROGRAM TO ASSIST EMPLOYEES WHEN PURCHASING A HOME WITHIN THE BOUNDARIES OF THE MUNICIPALITY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) There is established the Mississippi Employer-Assisted Housing Program for Municipal Employees, which shall be a special home loan program for eligible full-time employees. The home loan program shall be administered by the governing authorities of municipalities in conjunction with the Federal National Mortgage Association (Fannie Mae). The governing authorities may contract with one or more public or private entities to provide assistance in implementing and administering the program and shall adopt rules and regulations regarding the implementation and administration of the program.
(2) Participation in the loan program shall be available to any eligible municipal employee as determined by the governing authorities of the municipality. Any person who receives a loan under the program shall be required to purchase a house and reside within the geographic boundaries as determined by the governing authorities of the municipality. The maximum amount of a loan that may be made under the program to any person shall be Six Thousand Dollars ($6,000.00).
(3) Any loan made under the program to a municipal employee shall be converted to an interest-free grant on the basis of one (1) year's employment for one-third (1/3) of the amount of the loan. Any person who does not render three (3) years' service as a municipal employee shall be liable to the municipality for one-third (1/3) of the amount of the loan for each year that he is not employed, plus interest accruing at the current interest rate at the time the person discontinues his employment. If a claim for repayment under this subsection is placed in the hands of an attorney for collection, the obligor shall be liable for an additional amount equal to a reasonable attorney's fee.
(4) All funds received by the governing authorities of the municipality as repayment of loans by program participants shall be deposited in the Mississippi Employer-Assisted Housing Program for Municipal Employees Fund.
SECTION 2. Section 1 of this act shall be codified in Title 21, Chapter 17, of the Mississippi Code of 1972.
SECTION 3. This act shall take effect and be in force from and after July 1, 2001.