Senate Bill 2910

AN ACT TO CREATE THE MISSISSIPPI AFFORDABLE HOUSING TRUST FUND; TO PROVIDE THAT THE TRUST FUND SHALL BE ADMINISTERED BY THE MISSISSIPPI HOME CORPORATION; TO PROVIDE THAT MONEY IN THE TRUST FUND SHALL BE MADE AVAILABLE TO ASSIST THE DEVELOPMENT, REHABILITATION AND PRESERVATION OF AFFORDABLE HOUSING AND FOR OTHER PURPOSES CONSISTENT WITH THIS ACT; TO PROVIDE THE INCOME LEVELS OF PERSON FOR WHOM THE TRUST FUND SHALL BE UTILIZED TO BENEFIT; TO PROVIDE THAT AT LEAST 50% OF THE FUNDS IN THE TRUST FUND EXPENDED IN ANY FISCAL YEAR SHALL BE USED FOR THE PURPOSE OF RENTAL HOUSING DEVELOPMENT OR REHABILITATION; TO PROVIDE THAT A PORTION OF THE MONEY IN THE TRUST FUND MAY BE USED TO MAKE CAPACITY BUILDING GRANTS TO CERTAIN ENTITIES; TO AUTHORIZE LOCAL GOVERNMENTS TO CREATE OR PARTICIPATE IN LOCAL HOUSING TRUST FUNDS OR OTHERWISE PROVIDE FUNDING OR SUPPORT FOR THE PURPOSE OF SUPPORTING AFFORDABLE HOUSING; AND FOR RELATED PURPOSES.

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

SECTION 1. The Legislature hereby finds and declares that there exists in this state a need to assist low and moderate income individuals and families in accessing affordable housing and to provide for the development, rehabilitation and preservation of decent, safe and affordable housing for low and moderate income individuals and families and to address homelessness. To address these needs, the purposes of this act shall be the following:

(a) To fill the growing gap in Mississippi's ability to build affordable housing by encouraging the dedication of public and private sources to fund additional housing activities.

(b) To develop rental housing for individuals and families with the greatest economic need, in mixed-income settings and in areas with the greatest economic opportunities.

(c) To promote home ownership for low and moderate income individuals and families, to address homelessness and the prevention of homelessness, and to produce, rehabilitate and preserve affordable dwellings.

SECTION 2. There is hereby created the Mississippi Affordable Housing Trust Fund, hereafter referred to as the "trust fund" to be held as a separate fund within the State Treasury to be administered by the Mississippi Home Corporation, hereinafter referred to as the "trust administrator." Interest earned on investment of monies in the trust fund shall be credited to the trust fund. Unexpended and unencumbered amounts in the trust fund at the end of each fiscal year shall not lapse. Money in the trust fund shall be made available for assisting the development, rehabilitation and preservation of affordable housing and for other purposes consistent with this act.

SECTION 3. (1) The trust administrator may use money from the trust fund to provide loans or grants for the following activities, without limitation:

(a) Housing production, including, without limitation, new construction, rehabilitation and adaptive re-use.

(b) Acquisition, including, without limitation, land, single-family homes, multi-unit buildings, and other existing structures that may be used in whole or in part for residential use.

(d) Home ownership purchase assistance.

(e) Preservation of existing affordable housing.

(f) Emergency repairs.

(g) Housing related support services, including homeownership education and financial counseling.

(h) Grants or loans to not-for-profit organizations engaged in addressing the affordable housing needs of low and moderate income households.

(2) The trust fund shall be used for the benefit of persons and families whose income, at the time of initial occupancy, does not exceed eighty percent (80%) of median income as determined by the United States Department of Housing and Urban Development for the metropolitan area or county. At least fifty percent (50%) of the funds in the trust fund expended in any given fiscal year must be used for the benefit of persons and families whose income, at the time of initial occupancy, does not exceed fifty percent (50%) of the median family income for the metropolitan area as determined by the United States Department of Housing and Urban Development for the metropolitan area or county.

(3) At least fifty percent (50%) of the funds in the trust fund expended in any fiscal year must be used for the purposes of rental housing development or rehabilitation, as described in subsection (1)(a), (b) and (c) of this section.

SECTION 4. There shall be deposited in the trust fund such amounts as may become available under the provisions of this act, including, but not limited to:

(a) All receipts, including dividends, principal and interest repayments attributable to any loans or agreements funded from the trust fund;

(b) All proceeds of assets of whatever nature received by the trust administrator, and attributable to default with respect to loans or agreements funded from the trust fund;

(c) Any appropriations, grants or gifts of funds or property, or financial or other aid from any federal or state agency, local government or any other public organization or private individual made to the trust fund;

(d) Any income received as a result of the investment of monies in the trust fund;

(e) All fees or charges collected pursuant to this act; and

(f) Other funds may be appropriated by the Legislature.

SECTION 5. Five percent (5%) of the money credited to the trust fund account may be used to make capacity building grants to nonprofit organizations, local government units, Indian tribes, and Indian tribal organizations to expand their capacity to provide affordable housing and housing related services. The grants may be used to assess housing needs and to develop and implement strategies to meet those needs, including the creation or preservation of affordable housing, pre-purchase and post-purchase counseling and associated administrative costs, and the linking of supportive services to the housing. The trust administrator shall adopt rules specifying the eligible uses of grant money. Funding priority shall be given to those applicants that include low and moderate income persons in their membership, have provided housing related services to low and moderate income people and demonstrate a local commitment of local resources, which may include in-kind contributions.

SECTION 6. Administrative and personnel costs incurred in implementing this act may be paid from the Housing Fund, but such costs may not exceed five percent (5%) of the monies deposited into the fund.

SECTION 7. (1) In order to promote the creation, establishment or preservation of affordable housing throughout the State of Mississippi, counties and municipalities may individually or jointly create or participate in a housing trust fund or otherwise provide funding or support for the purpose of supporting affordable housing, including, without limitation, to support the following affordable housing activities:

(a) Housing production, including, without limitation, new construction, rehabilitation and adaptive re-use.

(b) Acquisition, including, without limitation, land, single-family homes, multi-unit buildings, and other existing structures that may be used in whole or in part for residential use.

(d) Home-ownership purchase assistance.

(e) Preservation of existing affordable housing.

(f) Emergency repairs.

(g) Housing related support services, including homeownership education and financial counseling.

(h) Grants or loans to not-for-profit organizations engaged in addressing the affordable housing needs of low income or moderate income housing.

(2) Counties and municipalities may authorize housing trust funds to accept and utilize funds, property and other resources from all proper and lawful public and private sources so long as those funds are used solely for addressing the affordable housing needs of individuals or households that may occupy low income or moderate income housing.

SECTION 8. This act shall take effect and be in force from and after July 1, 2006.