Senate Bill 2762

AN ACT TO DIRECT THE MISSISSIPPI DEVELOPMENT AUTHORITY TO EXPEND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS APPROPRIATED FOR THE HURRICANE KATRINA DISASTER FOR CERTAIN PURPOSES; TO DIRECT THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO DEPOSIT CDBG GRANT 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 Community Development Block (CDBG) funds appropriated by the United States Congress as part of the fiscal year 2006 Department of Defense Appropriations Act (H.R. 2863) for the following programs and purposes:

(a) Take advantage of the Low-Income Housing Tax Credits funds through gap financing by allocating One Hundred Fifty Million Dollars ($150,000,000.00) in CDBG funds that support rental housing affordable to households with incomes below sixty percent (60%) of the area median income with allocation preferences for projects where the units are available to households at lower income levels.

(b) Be allocated to assist small rental property owners, as well as homeowners, outside the flood plain.

(c) Be allocated to help low-income households bridge the gap between the funds they will receive as assistance for living outside the federally designated flood plain and the cost of rebuilding their homes to the new building standards required by the Governor's proposed plan.

(d) Be allocated to rehabilitate public housing with minimal damage to quickly make these units available to evacuees in hotels or other unsuitable or unsustainable arrangements.

(e) Be allocated to allow renters to become homeowners.

(f) Be allocated to support educational facilities and community centers such as libraries.

(g) Be allocated to other affordable housing programs identified in the report by the Governor's Commission for Recovery, Rebuilding and Renewal.

(2) The Department of Finance and Administration is directed to deposit such CDBG grant 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.