MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Ways and Means

By: Representative Horne

AN ACT TO TRANSFER CERTAIN POWERS AND DUTIES OF THE MISSISSIPPI HOME CORPORATION TO THE MISSISSIPPI DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT; TO REQUIRE THE DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT TO ENSURE THE PAYMENT OF OBLIGATIONS OF THE MISSISSIPPI HOME CORPORATION OUTSTANDING ON THE EFFECTIVE DATE OF THIS ACT; TO PROVIDE THAT EXCESS MONIES OF THE MISSISSIPPI HOME CORPORATION SHALL BE DEPOSITED INTO THE STATE GENERAL FUND AND THAT ALL PROPERTY OF THE CORPORATION SHALL BE VESTED IN THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO AMEND SECTION 43-33-759, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MONEY IN THE MISSISSIPPI AFFORDABLE HOUSING DEVELOPMENT FUND SHALL BE USED TO PAY DEBT SERVICE ON BONDS ISSUED BY THE MISSISSIPPI HOME CORPORATION AND OTHER MONETARY OBLIGATIONS OF THE CORPORATION; TO PROVIDE THAT ALL OTHER EXCESS MONIES IN THE FUND SHALL BE DEPOSITED INTO THE STATE GENERAL FUND; TO PROVIDE FOR THE REPEAL OF SUCH SECTION UPON THE PAYMENT OF OUTSTANDING OBLIGATIONS OF THE MISSISSIPPI HOME CORPORATION; TO AMEND SECTION 57-61-36, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; TO REPEAL SECTIONS 43-33-701 THROUGH 43-33-757 AND 43-33-761 THROUGH 43-33-797, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR THE CREATION OF THE MISSISSIPPI HOME CORPORATION AND PROVIDE THE POWERS AND DUTIES OF THE CORPORATION; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) From and after the effective date of House Bill No. ____, 2000 Regular Session, all powers, duties and authority of the Mississippi Home Corporation ("corporation"), except as otherwise provided in this section, shall be transferred to the Mississippi Department of Economic and Community Development ("department"). The authority of the corporation to make loans and provide other forms of assistance for housing purposes and the authority to issue bonds shall not be transferred to the department. The department shall take all actions necessary to ensure the payment of all bonds, notes or other obligations of the corporation outstanding on the effective date of House Bill No. ____, 2000 Regular Session.

(2) The department shall receive all loan repayments, penalties and other fees and charges from borrowers on loans made by the corporation and shall deposit such repayments into the Mississippi Affordable Housing Development Fund created in Section 43-33-759.

(3) Any monies of the corporation not utilized under Section 43-33-759, shall be deposited into the State General Fund. All property of the corporation shall be vested in the Department of Finance and Administration.

SECTION 2. Section 43-33-759, Mississippi Code of 1972, is amended as follows:

43-33-759. There is hereby created in the State Treasury a special fund to be known as the Mississippi Affordable Housing Development Fund to be administered as a revolving fund for the provision of affordable housing to very low income, low income, and moderate income persons. Subject to the provisions of this section and Section 1 of House Bill No. , 2000 Regular Session, the fund shall be used exclusively to support programs created or administered by the Mississippi Home Corporation under the powers granted to it by law. To this fund shall be deposited all loan repayments, penalties, and other fees and charges accruing to the fund, and any appropriations, donations, gifts, grants or loans which may be made thereto; however, no bond funds shall be deposited into the special fund unless authorized by the Legislature. * * *

Subject to the provisions of this section and Section 1 of House Bill No. , 2000 Regular Session, the State Fiscal Management Board is authorized and directed to draw warrants upon such funds from time to time upon requisition of the Home Corporation executed by its executive director, and the State Treasurer is hereby authorized and directed to pay such warrants. Subject to the provisions of this section and Section 1 of House Bill No. , 2000 Regular Session, the Home Corporation shall have continuing authority to expend funds up to the maximum amount received into the special fund.

From and after the effective date of House Bill No. , 2000 Regular Session, monies in the fund shall not be used for the purpose of making loans or providing any form of assistance.

This section shall be repealed upon the full repayment of all bonds, notes or other obligations of the corporation outstanding on the effective date of House Bill No. , 2000 Regular Session.

SECTION 3. Section 57-61-36, Mississippi Code of 1972, is amended as follows:

57-61-36. (1) Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than Nine Million Dollars ($9,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter for the purpose of making grants to municipalities through a development infrastructure grant fund to complete infrastructure related to new or expanded industry.

(2) Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development may utilize not more than Seven Million Dollars ($7,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter for the purpose of making interest-bearing loans to any agency, department, institution, instrumentality or political subdivision of the state; or any agency, department, institution or instrumentality of any political subdivision of the state; or any business, organization, corporation, association or other legal entity meeting criteria established by the department, through a housing development revolving loan fund, to construct or repair housing for low or moderate income earners; provided, however, that the department may not utilize any bond proceeds authorized under this chapter for the purpose of making any loans to the Mississippi Home Corporation for any purpose whatsoever. No more than forty percent (40%) of the additional bonds authorized by this section in House Bill No. 1694, 1998 Regular Session [Laws, 1998, Chapter 559], may be used for multiple family housing activities. * * * This subsection (2) shall be repealed from and after July 1, 2001.

(3) Notwithstanding any provision of this chapter to the contrary, the Department of Economic and Community Development shall utilize not more than Five Million Dollars ($5,000,000.00) out of the proceeds of bonds authorized to be issued in this chapter for the purpose of making grants to municipalities through an equipment and public facilities grant fund to aid in

infrastructure-related improvements as determined by the Department of Economic and Community Development, the purchase of equipment and in the purchase, construction or repair and renovation of public facilities. Any bonds previously issued for the Development Infrastructure Revolving Loan Program which have not been loaned or applied for are eligible to be administered as grants.

The requirements of Section 57-61-9 shall not apply to any grant made under this subsection. The Department of Economic and Community Development may establish criteria and guidelines to govern grants made pursuant to this subsection.

SECTION 4. Sections 43-33-701, 43-33-702, 43-33-703, 43-33-704, 43-33-705, 43-33-707, 43-33-709, 43-33-711, 43-33-713, 43-33-715, 43-33-717, 43-33-719, 43-33-721, 43-33-723, 43-33-725, 43-33-727, 43-33-729, 43-33-731, 43-33-733, 43-33-735, 43-33-737, 43-33-739, 43-33-741, 43-33-743, 43-33-745, 43-33-747, 43-33-749, 43-33-751, 43-33-753, 43-33-755, 43-33-757, 43-33-761, 43-33-763, 43-33-765, 43-33-767, 43-33-769, 43-33-771, 43-33-773, 43-33-775, 43-33-777, 43-33-779, 43-33-781, 43-33-783, 43-33-785, 43-33-787, 43-33-789, 43-33-791, 43-33-793, 43-33-795 and 43-33-797, Mississippi Code of 1972, which provide for the creation of the Mississippi Home Corporation and provide the powers and duties of the corporation, are repealed.

SECTION 5. This act shall take effect and be in force from and after its passage.