House Bill 1312

AN ACT TO ESTABLISH THE FIRST-TIME HOMEBUYER CREDIT DOWN PAYMENT/CLOSING COST LOAN ASSISTANCE PROGRAM, WHICH SHALL BE ADMINISTERED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY; TO PROVIDE THAT UNDER THE PROGRAM, A FIRST-TIME HOMEBUYER WHO IS ELIGIBLE FOR THE FEDERAL FIRST-TIME HOMEBUYER TAX CREDIT MAY RECEIVE A SECOND MORTGAGE LOAN FROM THE MISSISSIPPI DEVELOPMENT AUTHORITY FOR ASSISTANCE WITH DOWN PAYMENT AND CLOSING COSTS IN CONNECTION WITH A FIRST MORTGAGE LOAN; TO PROVIDE THAT THE SECOND MORTGAGE LOAN WILL BE REPAID WITH THE FUNDS THAT THE BUYER WILL RECEIVE FROM THE FEDERAL GOVERNMENT FROM THE TAX CREDIT; TO DIRECT THE MISSISSIPPI DEVELOPMENT AUTHORITY TO PROMULGATE RULES AND REGULATIONS REGARDING THE TERMS OF THE PROGRAM; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is established the First-Time Homebuyer Credit Down Payment/Closing Cost Loan Assistance Program, which shall be administered by the Mississippi Development Authority. Under the program, a first-time homebuyer who is eligible for the First-Time Homebuyer Tax Credit may receive a second mortgage loan from the Mississippi Development Authority for assistance with down payment and closing costs in connection with a first mortgage loan, which will be repaid with the funds that the buyer will receive from the federal government from the tax credit. Payment of the amount that the buyer will receive from the tax credit shall be made on behalf of the buyer at the time of closing of the first mortgage loan, and repayment of the principal and interest on the second mortgage loan shall be deferred until the time that the buyer receives the funds from the federal government. The second mortgage loan note and mortgage shall be in the name of the Mississippi Development Authority.

(2) The Mississippi Development Authority shall promulgate rules and regulations regarding the terms of the program, including, but not limited to, eligibility criteria for the borrower, maximum loan amount, term of the loan, underwriting criteria, allowable fees and loan servicing.

(3) "First-Time Homebuyer Tax Credit" means the tax credit authorized under Section 3011 of the Housing and Economic Recovery Act of 2008, as amended by Section 1006 of the American Recovery and Reinvestment Tax Act of 2009.

SECTION 2. This act shall take effect and be in force from and after its passage.