Senate Bill 2359

AN ACT TO CREATE A MISSISSIPPI MAIN STREET REVITALIZATION GRANT PROGRAM TO BE USED TO MATCH LOCAL FUNDS TO MAKE GRANTS FOR THE PURPOSE OF MISSISSIPPI DOWNTOWN REVITALIZATION PROJECTS; TO PROVIDE THAT SUCH FUND SHALL BE ADMINISTERED BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO PRESCRIBE CERTAIN CONDITIONS ON THE ALLOCATIONS FROM THE FUND; TO PRESCRIBE ELIGIBLE COSTS FOR WHICH MONIES FROM THE FUND MAY BE ALLOCATED; TO AUTHORIZE COOPERATIVE AGREEMENTS FOR THE IMPLEMENTATION OF SUCH GRANTS; TO AMEND SECTION 7-1-255, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known and may be cited as the "Mississippi Main Street Revitalization Grant Program." The Mississippi Main Street Revitalization Grant Program will authorize the Department of Finance and Administration through appropriations by the Legislature to make grants available to designated Main Street programs for projects leading to the revitalization of Mississippi's downtowns.

SECTION 2. (1) For the purposes of this section:

(a) "Main Street Designated Community" means a local Main Street program that has achieved and maintained Designated Community status by the Mississippi Main Street Association.

(b) "Eligible recipients" shall mean a Main Street Community that is a good-standing member of the Mississippi Main Street Association (MMSA), has obtained Section 501(c)(3) tax-exempt status from the Internal Revenue Service and possess match funds to match twenty percent (20%) of the total project cost. A recipient will be found to be ineligible for a grant, if their community was a recipient of a grant from the program in previous years.

(c) "Matching funds" shall include both cash and the value of any contribution made towards the proposed revitalization project. No state funds may be included in determining the amount of the match.

(2) The Mississippi Main Street Association shall accept applications from eligible recipients, prioritize their applications and submit suggested recipients to the Legislature no later than December 1. Beginning July 1, 2024, and each year thereafter, the Legislature shall review the submitted list and choose to award grants to the eligible recipients through the Department of Finance and Administration. The MMSA will consider projects in relation to the following criteria:

(a) The demonstration of local financial need;

(b) The project demonstrates high local impact;

(d) The project demonstrates best practices in preservation;

(e) The project will possess local administration and implementation capacity;

(f) The distribution of geographic size and location of the project;

(g) The project will be completed on time; and

(h) The community for which the project is located has not received funding the previous year.

(3) The Department of Finance and Administration shall provide grant funds to the Main Street Communities approved by the Legislature on a reimbursement basis, not to exceed the Five Hundred Thousand Dollars ($500,000.00) per community each year, nor shall grantees receive compensation for their required twenty percent (20%) local cash match.

(4) Eligible costs of grant funds include the acquisition of land and any improvements thereon, preservation of historic downtown structures and sites, and initiatives that will produce a revitalization to the economy of the historic downtown areas.

(5) Grants may be awarded for prospective purchases or for acquisitions of which the applicant has closed. In the latter case, the applicant shall demonstrate:

(a) The closing occurred no more than twelve (12) months prior to the date of application for the grant; and

(b) The subject purchase was made to help preserve and revitalize the location and economy of a historic downtown community.

(6) Any eligible organization making an acquisition of downtown property or interest therein pursuant to this section shall grant to the Department of Finance and Administration or other holder a perpetual easement placing reasonable restrictions on the use or development of the land. In cases where the easement is granted to a holder other than the Department of Finance and Administration, all terms and conditions of the easement shall be reviewed by and found by the Department of Finance and Administration to accomplish the perpetual preservation of the historic downtown property. Such other holder shall demonstrate to the department that it has the capacity and expertise to manage and enforce the terms of the easement.

(7) Grantees must adhere to Mississippi state procedures and guidelines as it relates to the implementation and financing of the approved project. Grantees must also submit any and all audit financial statements as required by the State of Mississippi.

(8) Nothing in this section shall preclude the subsequent transfer or assignment by a state agency or other owner or holder of any property interest acquired pursuant to this section to the State of Mississippi, the county, city, town or municipality for which the land is located, for the purpose of further preserving, improving, or maintaining the downtown property. The Department of Finance and Administration shall facilitate transfers and assignments of any such interests held by the department.

(9) There is created in the State Treasury a special fund to be known as the "Mississippi Main Street Revitalization Grant Program Fund," from which awards authorized under the Mississippi Main Street Revitalization Grant Program shall be disbursed by the Department of Finance and Administration. The fund shall consist of monies appropriated by the Legislature and funds received as grants, endowments or gifts from the federal government, its agencies and instrumentalities and funds from any other available sources, public or private. Any unexpected monies remaining in the fund, including interest thereon, at the end of each fiscal year shall not lapse into the State General Fund but shall remain in the fund.

(10) The Director of the Department of Finance and Administration shall establish, administer, manage, and make expenditures and allocations from the grant funds and shall establish guidelines for applications, evaluation and award of grant funds. The department shall utilize no more than two percent (2%) of funds awarded to the program for administrative expenses.

(11) To carry out this act, the Department of Finance and Administration may enter into cooperative agreements with entities in the public and private sectors, including:

(a) Colleges and universities;

(b) Historical societies;

(d) Nonprofit organizations.

(12) To develop cooperative land-use strategies and conduct activities that facilitate the conservation of the historic, cultural, natural and scenic resources, the Department of Finance and Administration may require that recipients seek and secure technical assistance from MMSA, to the extent that a recipient of technical assistance is engaged in the protection, interpretation or commemoration of historically significant property in the area in and around the historic downtown site. MMSA will provide administrative support to local Main Street grantees to ensure proper grant administration and project implementation.

SECTION 3. Section 7-1-255, Mississippi Code of 1972, is amended as follows:

7-1-255. The Department of Finance and Administration shall have the following powers and duties with regard to federal-state programs:

(a) Provide assistance to state departments, agencies and institutions in the development of federal programs and, whenever possible, to local agencies, so that the people of Mississippi can be assured of a fair, efficient and coordinated planning and administration of these programs. The department shall inform the Governor of the fiscal requirements of the state departments, agencies and institutions for these programs so that a comprehensive plan can be developed which will be responsive to state needs and priorities. The Department of Finance and Administration is hereby authorized to receive and expend funds that have been appropriated by the Legislature in accordance with law for coordinating federal programs and for providing technical assistance to state and local agencies administering those programs. All state departments, agencies and institutions shall cooperate with the department by providing information and assistance when requested.

(b) The Department of Finance and Administration is hereby authorized to cooperate with or, with approval of the Governor, enter into any agreements with any agency, department, official, educational institution or political subdivision of this state, any agency or official of the government of the United States of America, or any private person for and on behalf of any delivery agency, in order to carry out the provisions of Section 7-1-251 et seq. The delivery of services for the programs known as "federal-state programs" shall be carried out by the state delivery agencies as assigned by the Executive Director of the Department of Finance and Administration, or as specified by law.

(c) The department is hereby authorized, with the approval of the Governor, to charge reasonable application fees in the administration of the Federal Low-Income Housing Tax Credit Program established by Title II of the Tax Reform Act of 1986, P.L. 99-514. The department is further authorized and empowered to escalate its budget authority based on any such fees generated. In the event that the government of the state is reorganized so as to provide that an agency other than the department shall administer the Federal Low-Income Housing Tax Credit Program, the authority granted by this paragraph shall be transferred to such successor agency.

(d) The Department of Finance and Administration is authorized to promulgate such reasonable rules and regulations as may be necessary to implement the provisions of Section 7-1-251 et seq., complying with the provisions of Section 25-43-1 et seq.

(e) The Department of Finance and Administration will establish, administer, manage, and make expenditures and allocations from the Mississippi Main Street Revitalization Grant Program under the provisions of Section 1 of this act.

SECTION 4. This act shall take effect and be in force from and after July 1, 2023.