House Bill 1386

AN ACT TO DIRECT THE MISSISSIPPI DEVELOPMENT AUTHORITY TO EXPEND LOW-INCOME HOUSING TAX CREDITS (LIHTC) FUNDS APPROPRIATED FOR THE HURRICANE KATRINA DISASTER FOR CERTAIN PURPOSES; TO DIRECT THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO DEPOSIT SUCH FUNDS RECEIVED FROM THE FEDERAL GOVERNMENT INTO A SPECIAL FUND TO BE EXPENDED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY ONLY FOR SUCH PURPOSES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) The Mississippi Development Authority shall be authorized to expend the federal Low-Income Housing Tax Credits (LIHTC) funds appropriated as part of the Gulf Opportunity Zone Act for the following programs and purposes:

(a) Prioritize allocation of tax credits to projects where at least twenty-five percent (25%) of the units in each development are affordable to and occupied by people with poverty-level incomes.

(b) Prioritize allocation of tax credits to projects with longer-than-required affordability restrictions, extending affordability terms from thirty (30) to as long as fifty (50) years.

(2) The Department of Finance and Administration is directed to deposit such LIHTC funds received from the federal government into a special fund hereby created in the State Treasury to be expended by the Mississippi Development Authority only for the programs and purposes enumerated in subsection (1).

SECTION 2. This act shall take effect and be in force from and after July 1, 2006.