MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representative Horne

AN ACT TO AMEND SECTION 43-33-702, MISSISSIPPI CODE OF 1972, TO MAKE THE MISSISSIPPI HOME CORPORATION SUBJECT TO CERTAIN STATE ADMINISTRATIVE CONTROLS; TO AMEND SECTIONS 43-33-711 AND 43-33-729, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO REPEAL SECTION 43-33-751, MISSISSIPPI CODE OF 1972, WHICH REQUIRES DIRECTORS, OFFICERS AND EMPLOYEES OF THE MISSISSIPPI HOME CORPORATION WHO HAVE AN INTEREST IN ANY FIRM WHICH HAS A CONTRACT WITH THE CORPORATION TO DISCLOSE THEIR INTEREST IN THE CORPORATION'S MINUTES, AND PROHIBITS SUCH DIRECTOR, OFFICER OR EMPLOYEE FROM PARTICIPATING ON BEHALF OF THE CORPORATION IN THE AUTHORIZATION OF ANY SUCH CONTRACT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 43-33-702, Mississippi Code of 1972, is amended as follows:

43-33-702. The Legislature hereby finds and declares:

(a) That there exists in the State of Mississippi a severe shortage of adequate, safe and sanitary residential and rental housing available at prices or rentals within the financial means of persons of low or moderate income; that this shortage has contributed to and will contribute to the creation and persistence of substandard living conditions and is damaging to the health, welfare and prosperity of the residents of this state.

(b) That private enterprise and investment have been unable, without assistance, to produce the needed construction or rehabilitation of adequate, safe and sanitary housing at prices or rentals which persons of low or moderate income can afford and to provide sufficient long-term mortgage financing for residential or rental housing for occupancy by such persons;

(c) That the shortage of adequate and affordable housing can best be addressed through a strong, unified organization which can develop creative approaches to housing production and assistance through active cooperation of public and private entities, including federal, state and local government, private nonprofit and for profit entities, community and citizens groups, charitable organizations, and private citizens; that this organization should stimulate private development, construction and rehabilitation, develop a wide range of state housing assistance programs, engage in comprehensive planning, study, research and statewide coordination with respect to low and moderate housing, provide technical, educational and consultative services, and promote governmental and community interest in the provision of housing for low and moderate income persons in the state; that this organization should receive appropriations of public funds, should be authorized to obtain funding for its programs by issuing its bonds and notes; and that this organization should be authorized to administer available federal, state or local programs and monies and to retain for its corporate purposes all such fees and income generated thereby;

(d) To aid in remedying these conditions and to accomplish these public purposes, effective September 1, 1989, there is created a public body corporate and politic, * * * constituting a governmental instrumentality, to be known as the Mississippi Home Corporation, for the performance of essential public functions. The corporation shall be constituted and shall have such powers as provided in this article.

(e) The Mississippi Home Corporation shall be subject to the operational and fiscal controls administered by the Office of the Attorney General, the State Department of Audit, the Secretary of State, the State Treasury Department, the State Bond Commission, the Legislative Budget office, the State Department of Finance and Administration, the State Personnel Board, and the State Department of Information Technology Services. By rule and regulation, the agencies may exempt the corporation from specific controls.

SECTION 2. Section 43-33-711, Mississippi Code of 1972, is amended as follows:

43-33-711. (1) The board of directors may create one or more committees of the board and appoint members of the board to serve on them. Each committee shall have two (2) or more directors who serve at the pleasure of the board.

(2) The creation of a committee and appointment of directors to it must be approved by a majority of all directors in office when the action is taken.

(3) Sections of this article which govern meetings, action without meetings, notice and waiver of notice, and quorum and voting requirements of the board, apply to committees of the board and their members as well.

SECTION 3. Section 43-33-729, Mississippi Code of 1972, is amended as follows:

43-33-729. (1) Subject to the provisions of subsection (6) of this section, the corporation may from time to time issue its negotiable bonds and notes in such principal amounts as, in the opinion of the corporation, shall be necessary to provide sufficient funds for achieving the corporate purposes thereof, including operating expenses and reserves, the payment of interest on bonds and notes of the corporation, establishment of reserves to secure such bonds and notes, and all other expenditures of the corporation incident to and necessary or convenient to carry out its corporate purposes and powers. Provided, except as otherwise authorized herein, bonds and notes shall not be issued under this article in an aggregate principal amount exceeding One Hundred Ninety Million Dollars ($190,000,000.00), excluding bonds and notes issued to refund outstanding bonds and notes.

(2) The provisions of Sections 75-71-1 through 75-71-57, Mississippi Code of 1972 (the "Mississippi Securities Act"), shall not apply to bonds and notes issued under the authority of this article, and no application for a formal exemption from the provisions of such act shall be required with respect to such bonds and notes.

(3) Except as may otherwise be expressly provided by the corporation, all bonds and notes issued by the corporation shall be general obligations of the corporation, secured by the full faith and credit of the corporation and payable out of any monies, assets or revenues of the corporation, subject only to any agreement with the bondholders or noteholders pledging any particular monies, assets or revenues.

The corporation may issue bonds or notes to which the principal and interest are payable:

(a) Exclusively from the revenues of the corporation resulting from the use of the proceeds of such bonds or notes; or

(b) Exclusively from any particular revenues of the corporation, whether or not resulting from the use of the proceeds of such bonds or notes.

(4) Any bonds or notes issued by the corporation may be additionally secured:

(a) By private insurance, by a direct pay or standby letter of credit, or by any other credit enhancement facility procured by the corporation for the payment of any such bonds;

(b) By a pledge of any grant, subsidy or contribution from the United States or any agency or instrumentality thereof, or from the state or any agency, instrumentality or political subdivision thereof, or from any person, firm or corporation; or

(c) By the pledge of any securities, funds or reserves (or earnings thereon) available to the corporation.

(5) Subject to the provisions of subsection (6) of this section, bonds and notes issued by the corporation shall be authorized by a resolution or resolutions of the corporation adopted as provided for by this article; provided, that any such resolution authorizing the issuance of bonds or notes may delegate to an officer or officers of the corporation the power to issue such bonds or notes from time to time and to fix the details of any such issues of bonds or notes by an appropriate certification of such authorized officer.

(6) The prior approval of the State Bond Commission shall be required as a prerequisite to the issuance, sale or delivery of any bonds or notes of the corporation pursuant to the provisions of this article. * * * All bonds or notes issued under this article may be validated, except as otherwise provided in this section, in accordance with the provisions of Sections 31-13-1 through 31-13-11, Mississippi Code of 1972, in the same manner as provided therein for bonds issued by a municipality. Any such validation proceedings shall be held in the First Judicial District of Hinds County, Mississippi. Notice thereof shall be given by publication in any newspaper published in the City of Jackson, Mississippi, and of general circulation throughout the state.

(7) It is hereby determined that the corporation is the sole entity in the state authorized to issue bonds or notes for the purposes of financing low and moderate income rental or residential housing as set forth in this article. In addition, the corporation shall have the power to issue mortgage credit certificates, as provided by Section 25 of the Internal Revenue Code of 1954, as amended, and to comply with all of the terms and conditions set forth in Section 25, as the same may be amended from time to time.

SECTION 4. Section 43-33-751, Mississippi Code of 1972, which requires directors, officers and employees of the Mississippi Home Corporation who have an interest in any firm or corporation interested, directly or indirectly, in any contract with the Mississippi Home Corporation to disclose their interest to the Mississippi Home Corporation, is hereby repealed.

SECTION 5. This act shall take effect and be in force from and after July 1, 1999.