MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Finance
By: Senator(s) Frazier
AN ACT TO ESTABLISH THE MISSISSIPPI AFFORDABLE HOUSING OPPORTUNITY FUND; TO CREATE SECTION 43-33-801, MISSISSIPPI CODE OF 1972, TO DEFINE CERTAIN TERMS RELATED TO THE HOUSING OPPORTUNITY FUND; TO CREATE SECTION 43-33-803, MISSISSIPPI CODE OF 1972, TO ESTABLISH AND PROVIDE FOR THE ADMINISTRATION OF THE HOUSING OPPORTUNITY FUND; TO CREATE SECTION 43-33-805, MISSISSIPPI CODE OF 1972, TO AUTHORIZE MISSISSIPPI HOME CORPORATION TO IMPLEMENT AND ADMINISTER THE HOUSING OPPORTUNITY FUND; TO CREATE SECTION 43-33-807, MISSISSIPPI CODE OF 1972, TO ESTABLISH THE MISSISSIPPI AFFORDABLE HOUSING OPPORTUNITY FUND ADVISORY COUNCIL; TO CREATE SECTION 43-33-809, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE PERCENTAGE OF FUNDING AVAILABLE TO CERTAIN PERSONS OR TO CERTAIN ACTIVITIES; TO CREATE SECTION 43-33-811, MISSISSIPPI CODE OF 1972, TO ESTABLISH MINIMUM AFFORDABILITY PERIODS FOR APPLICANTS; TO CREATE SECTION 43-33-813, MISSISSIPPI CODE OF 1972, TO PROVIDE MINIMUM STANDARDS FOR THE HOUSING OPPORTUNITY FUND APPLICATION PROCESS; TO CREATE SECTION 43-33-815, MISSISSIPPI CODE OF 1972, TO AUTHORIZE MISSISSIPPI HOME CORPORATION TO ADMINISTER THE HOUSING OPPORTUNITY FUND IN COMPLIANCE WITH STATE AND FEDERAL HOUSING PROGRAMS; TO IMPOSE A FEE ON EACH ENTRY BY CUSTOMERS TO BUSINESSES THAT PROVIDE NUDE ENTERTAINMENT FOR AN AUDIENCE OF TWO OR MORE INDIVIDUALS; TO PROVIDE THAT REVENUE COLLECTED FROM SUCH FEE SHALL BE DEPOSITED INTO THE MISSISSIPPI AFFORDABLE HOUSING TRUST FUND; TO AUTHORIZE THE GOVERNING AUTHORITY OF A MUNICIPALITY TO ESTABLISH AND OPERATE A MUNICIPAL AFFORDABLE HOUSING OPPORTUNITY FUND; TO BRING FORWARD SECTIONS 29-1-95 AND 89-12-37, MISSISSIPPI CODE OF 1972, FOR THE PURPOSES OF AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 43-33-801, Mississippi Code of 1972:
43-33-801. (1) The Legislature hereby finds and declares that there exists in the state a need to:
(a) Assist extremely low-income to moderate-income persons in accessing affordable rental and home ownership housing;
(b) Provide for the development, rehabilitation and preservation of decent, safe and affordable housing for extremely low-income to moderate-income persons;
(c) Revitalize distressed neighborhoods and build healthy, vibrant communities; and
(d) Leverage additional private investment in state communities and contribute to economic growth through increased housing production, employment and tax revenues.
(2) To address these needs, there is established the Mississippi Affordable Housing Opportunity Fund. The fund shall seek to:
(a) Fill the growing gap in the state's ability to build affordable rental and ownership housing by the dedication of public revenue sources to fund additional needed housing activities;
(b) Promote home ownership, address and prevent homelessness, and produce, rehabilitate and preserve affordable housing throughout the state for extremely low-income to moderate-income individuals and families;
(c) Develop affordable rental housing for extremely low-income to moderate-income individuals and families both in mixed-income areas and in areas with the greatest economic opportunities; and
(d) Promote accessible housing for individuals with disabilities, down-payment assistance for eligible homebuyers, housing and foreclosure counseling, technical assistance and capacity building for nonprofit housing organizations.
(3) For the purposes of Sections 43-33-801 through 43-33-815, these words and phrases shall be defined as follows:
(a) "Advisory council" means the Mississippi Affordable Housing Opportunity Fund Advisory Council.
(b) "Affordability period" means the length of time during which a housing project must comply with prescribed rental, income and deed restrictions.
(c) "Area median income" means: (i) for a rural area, the median income for the state, or (ii) for a nonrural area, the greater of the median income for the state or the median income for the applicable metropolitan area or county, all as determined by the United States Department of Housing and Urban Development.
(d) "Corporation" means Mississippi Home Corporation.
(e) "Eligible" means any for-profit entity, nonprofit entity, tribal government, housing authority, political subdivision of this state, or state agency who meets the qualifications to receive funds from the Mississippi Housing Opportunity Fund. An individual is not eligible to apply for funding directly from the fund.
(f) "Extremely low-income individual or family" means an individual or family that, at the time of initial occupancy of a unit, has a total annual gross household income at or below thirty percent (30%) of the area median income, as adjusted for family size.
(g) "Fund" or "Housing Opportunity Fund" means the Mississippi Affordable Housing Opportunity Fund.
(h) "Low-income individual or family" means an individual or family that, at the time of initial occupancy of a unit, has a total annual gross household income at or below eighty percent (80%) of the area median income, as adjusted for family size.
(i) "Nonrural area" means a county inside a Metropolitan Statistical Area as designated by the United States Office of Management and Budget.
(j) "Rural area" means a county outside of a Metropolitan Statistical Area as designated by the United States Office of Management and Budget.
(k) "Very low-income individual or family" means an individual or family that, at the time of initial occupancy of a unit, has a total annual gross household income at or below fifty percent (50%) of the area median income, as adjusted for family size.
SECTION 2. The following shall be codified as Section 43-33-803, Mississippi Code of 1972:
43-33-803. (1) There is hereby created within the State Treasury a special fund to be known as the "Mississippi Affordable Housing Opportunity Fund," which shall consist of funds required to be deposited under Section (9) of this act and funds designated for deposit into the fund from any source. Unexpended and unencumbered monies in the fund at the end of each fiscal year shall remain in the fund. Except for the income that a recipient earns and expends on a Housing Opportunity Fund financed project, the following amounts shall be deposited:
(a) All receipts, including dividends, principal and interest repayments attributable to any loans or agreements funded from the fund;
(b) All proceeds of assets of whatever nature received by the corporation that are attributable to the default of loans or agreements funded from the fund;
(c) Any appropriations, grants, gifts of funds or property, or financial or other assistance from any individual or entity made to the fund;
(d) Any income received as a result of the investment of monies in the fund; and
(e) All fees or charges collected related to the fund.
(2) The corporation shall be responsible for the general administration of the fund. The corporation shall promulgate and enact the rules and regulations necessary to distribute payments from the fund.
SECTION 3. The following shall be codified as Section 43-33-805, Mississippi Code of 1972:
43-33-805. (1) The corporation shall have the duty and responsibility of managing and overseeing the fund.
(2) Consistent with the provisions of Sections 43-33-801 through 43-33-815, the corporation shall:
(a) Market the fund to eligible applicants;
(b) Receive, evaluate and approve applications for fund awards;
(c) Ensure that an independent auditor completes an annual audit of the fund in accordance with generally accepted accounting principles and that the auditor submits such audit to the advisory council not later than one hundred eighty (180) days after the end of each fiscal year;
(d) Produce an annual report on all activities, expenditures and accomplishments of the fund and an assessment of the areas of the state with the greatest housing needs that shall be made available to the public and be submitted to the Governor and to the Mississippi Legislature;
(e) Receive and consider the recommendations of the advisory council; and
(f) Promulgate and enact rules and regulations for the fund. At a minimum, these rules and regulations shall establish a competitive application process for making awards from the fund and shall reflect the:
(i) Percentage goals for fund awards according to applicant income, project location and project type;
(ii) Eligible uses for fund awards;
(iii) Minimum applicable affordability periods;
(iv) Procedure for the annual verification of rental and income levels of tenants;
(v) Procedure requiring the deed or other applicable land title recordation document to a project financed by the fund to provide for binding periods of affordability and mandatory resale or recapture upon any transfer of title during the affordability period; and
(vi) Procedure to ensure that recipients of fund awards comply in all respects with applicable fair housing laws and regulations.
SECTION 4. The following shall be codified as Section 43-33-807, Mississippi Code of 1972:
43-33-807. (1) There is created the Mississippi Affordable Housing Opportunity Fund Advisory Council, which shall consist of at least eleven (11) members. The corporation shall appoint council members based upon recommendations from affected stakeholders. In the administration of the fund, the corporation shall solicit and receive input from advisory council members, affected stakeholders and their representatives, including, but not limited to, the following: low-income, very low-income and extremely low-income individuals and communities, senior citizens and retired persons, disabled citizens, homeless individuals, the Mississippi Association of Affordable Housing Providers, nonprofit organizations that provide affordable housing assistance to low-income or distressed communities, the University of Mississippi Housing Law Clinic, representatives from the legal services community, fair housing advocates and any other similar individuals and organizations as may exist in the future to promote the development of affordable housing.
(2) The members of the advisory council shall be Mississippi residents who reflect the demographics of the state with respect to geography, race, gender and urban-rural mix. Members shall have a demonstrated interest in the needs of low-income individuals and families and the revitalization of distressed neighborhoods.
(3) Members of the advisory council shall serve four-year terms and shall be eligible for reappointment to two (2) additional terms of service.
(4) Members of the advisory council shall serve without compensation but shall be reimbursed from the fund for necessary expenses and mileage incurred in the discharge of their official duties.
(5) The advisory council shall advise the corporation on all matters relating to the fund. The advisory council shall have the duty and responsibility to:
(a) Review and make recommendations on all matters related to the operation of the fund such as applicable rules, regulations and funding determinations; and
(b) Review and submit comments with any recommended changes on the corporation's annual report on the fund operations, expenditures and activities by July 1 of each year.
SECTION 5. The following shall be codified as Section 43-33-809, Mississippi Code of 1972:
43-33-809. (1) The corporation shall expend the fund to eligible applicants to conduct activities to assist extremely low-income to moderate-income individuals and to finance activities that benefit such individuals and families. Eligible applicants may receive loans, loan guarantees, loan subsidies, grants or other comparable forms of assistance from the fund for the following activities:
(a) To construct, rehabilitate or adapt rental or residential houses;
(b) To acquire land or other existing dwellings that may be used in whole or in part for residential purposes;
(c) To provide rental assistance payments;
(d) To provide down-payment assistance for home ownership;
(e) To preserve existing affordable housing, including emergency repair and weatherization; and
(f) To provide housing-related support services, including home ownership education, financial counseling and foreclosure prevention.
(2) Each fiscal year, the corporation shall disburse fund awards consistent with the following guidelines:
(a) One hundred percent (100%) of funds disbursed for affordable housing shall be used for persons or families who earn up to one hundred twenty percent (120%) of the area median income;
(i) At least sixty percent (60%) of the fund shall benefit low-income individuals or families; and
(ii) At least fifteen percent (15%) of the fund shall benefit extremely low-income individuals or families;
(b) At least fifty-five percent (55%) of the fund shall benefit rural areas;
(c) No more than five percent (5%) of the fund may be awarded to nonprofit organizations, Native American tribes, and tribal organizations to expand their capacity to provide affordable housing and housing-related services; and
(d) No more than eight percent (8%) of the fund shall be used to defray the administrative costs of the corporation and the advisory council, but such administrative costs shall not exceed Four Hundred Thousand Dollars ($400,000.00).
(3) If sufficient acceptable applications are not received to meet the set-aside funding priorities for each fiscal year, any remaining available funds may be used for other eligible activities outlined in this section.
SECTION 6. The following shall be codified as Section 43-33-811, Mississippi Code of 1972:
43-33-811. All housing projects financed by the fund shall meet a minimum applicable affordability period of fifteen (15) years.
SECTION 7. The following shall be codified as Section 43-33-813, Mississippi Code of 1972:
43-33-813. (1) The corporation shall establish, publish and administer a competitive application process to distribute fund awards. The corporation shall evaluate applications and award points based on the following minimum standards:
(a) The property management history of the developer and management agent in maintaining quality housing;
(b) The timeliness with which the proposed project will be placed in service and available for occupancy;
(c) The commitment to extend the required length of the affordability period for the project;
(d) The percentage of units in the proposed project that will be made available to extremely low-income individuals or families;
(e) The degree to which fund monies will be used to leverage additional funds for the proposed project or the time frame for repayment of fund monies;
(f) Demonstration of the ability to minimize negative impacts on existing tenants and community members and to avoid the displacement of existing occupants;
(g) The extent to which the proposed project serves individuals with all types of disabilities and the families of those members;
(h) The extent to which the proposed project serves the housing needs of elderly individuals;
(i) The extent to which special needs and elderly individuals are integrated into mixed affordable housing communities; and
(j) The extent to which the proposed project adheres to energy-efficient standards and other such principles.
(2) For applications for capacity building grants, the corporation shall give funding priority to applications that:
(a) Benefit extremely low-income individuals or families;
(b) Are submitted by applicants who have previously provided housing-related services to extremely low-income individuals or families; and
(c) Demonstrate a commitment of local resources, which may include in-kind contributions.
SECTION 8. The following shall be codified as Section 43-33-815, Mississippi Code of 1972:
43-33-815. To the greatest extent possible, the corporation shall implement and operate the fund in coordination with other state and federal housing programs, including, but not limited to, the HOME Investment Partnership program, the Community Development Block Grant program, the Low-Income Housing Tax Credit program, any United States Department of Housing and Urban Development programs and any United States Department of Agriculture Rural Housing programs.
SECTION 9. (1) As used in this section:
(a) "Nude" means:
(i) Entirely unclothed; or
(ii) Clothed in a manner that leaves uncovered or visible through less than fully opaque clothing any portion of the breasts below the top of the areola of the breasts, if the person is female, or any portion of the genitals or buttocks.
(b) "Sexually oriented business" means a nightclub, bar, restaurant, or similar commercial enterprise that provides for an audience of two (2) or more individuals live nude entertainment or live nude performances.
(c) "Department" means the Department of Revenue.
(2) (a) A fee is imposed on each sexually oriented business in the amount of Five Dollars ($5.00) for each entry by each customer admitted to the business.
(b) A sexually oriented business shall record daily in the manner required by the department the number of customers admitted to the business. The business shall maintain the records for the period required by the department and make the records available for inspection and audit on request by the department.
(c) This subsection does not require a sexually oriented business to impose a fee on a customer of the business. A business has discretion to determine the manner in which the business derives the money required to pay the fee imposed under this subsection.
(3) Each quarter, a sexually oriented business shall:
(a) Remit the fee imposed by subsection (2) of this section in the time and manner prescribed by the department; and
(b) File a report with the comptroller in the manner and containing the information required by the department.
(4) The department shall deposit all fees collected under this section into the State Treasury on the day collected. At the end of each quarter, the department shall certify to the State Treasurer the total fees collected under this section. The State Treasurer shall distribute such collection to the Mississippi Affordable Housing Opportunity Fund created in Section 43-33-803.
SECTION 10. The governing authority of any municipality is authorized to establish and operate a Municipal Affordable Housing Opportunity Fund. The corporation and the governing authority of the municipality must enter into a memorandum of understanding regarding each entity's duties as related to the municipal fund's operation.
SECTION 11. Section 29-1-95, Mississippi Code of 1972, is brought forward as follows:
29-1-95. (1) All taxes due the county, municipality, public school district, drainage district or levee board on lands sold to the state for taxes and listed into the Secretary of State's office shall remain in abeyance until the land be sold, and thereafter such taxes shall be paid out of the purchase money; but state, county, municipality, public school district, drainage district or levee board taxes shall not accrue on such lands after the fiscal year in which it was certified to the state. Upon the payment of the purchase money of any tax land into the treasury, the Secretary of State shall certify to the Department of Finance and Administration and to the Treasurer the amount of fees and costs allowed to the county tax collector and chancery clerk, as in cases of the redemption of lands from tax sales, under the provisions of Section 25-7-21; and the Department of Finance and Administration shall issue warrants in favor of such county tax collector and chancery clerk for the amount of such fees. The Secretary of State shall also certify to the Department of Finance and Administration and the Treasurer the amount of the county, municipality, public school district, drainage district and levee board taxes for which said land was sold to the state, and all taxes accruing on said land until the year in which it was certified to the state; and the Department of Finance and Administration shall issue warrants in favor of the proper county, municipality, public school district, drainage district, and levee board for the said four (4) years' taxes. The balance of the purchase money shall be deposited into a special fund to be known as the "Land Records Maintenance Fund," that is hereby created in the State Treasury and shall be used for the restoration, preservation and maintenance of the records of state-owned land and the disposition of lands sold to the state for taxes. The fund shall be administered by the Secretary of State. Any amount on hand in said Land Records Maintenance Fund at the end of the fiscal year shall not lapse into the State General Fund.
(2) If, after the payment of the fees and costs allowed to the county tax collector and the chancery clerk, as aforesaid, the balance of the purchase money of any tax land paid into the treasury shall be insufficient to cover the amount of the state, county, municipality, public school district, drainage district or levee board taxes due thereon, or if the records of the Secretary of State fail to show the amount of state, county, municipality, public school district, drainage district or levee board taxes accruing for the years until said land was certified to the state, on lands sold by the Secretary of State, he shall apportion the balance of the purchase money derived from the sale of such lands between the state, county, municipality, public school district, drainage district and levee board upon the basis of the amount of taxes due the state, county, municipality, public school district, drainage district and levee board, respectively, at the time said land was struck off to the state for delinquent taxes by the sheriff and tax collector, and for which said lands were struck off to the state.
(3) All funds derived from the sale of properties under the provisions of Sections 7-11-15, 29-1-27, 29-1-29, 29-1-35, 29-1-37, 29-1-53 through 29-1-57, 29-1-73 and 29-1-81 through 29-1-87 shall be handled in the manner provided herein for funds derived from the sale of lands.
SECTION 12. Section 89-12-37, Mississippi Code of 1972, is brought forward as follows:
89-12-37. (1) All funds received under the provisions of this chapter shall forthwith be deposited by the Treasurer in a special fund hereby established in the State Treasury to be designated the "Abandoned Property Fund," except that the Treasurer shall deposit in a separate special fund hereby established in the State Treasury to be designated the "Abandoned Property Claims Payment Fund" an amount not exceeding One Hundred Fifty Thousand Dollars ($150,000.00) from which he shall make prompt payment of claims duly allowed by him as hereinafter provided. Before making the deposits in either special fund, he shall record the name and last known address of each person appearing from the holders' reports to be entitled to the abandoned property and the name and last known address of each insured person or annuitant and, with respect to each policy or contract listed in the report of a life insurance corporation, its number, the name of the corporation and the amount due. The record shall be available for public inspection at all reasonable business hours.
(2) There is created within the Abandoned Property Fund in the State Treasury a trust to be known as the Historic Properties Financing Fund, which shall be used as provided in this section. On July 1, 1999, Ten Million Dollars ($10,000,000.00) in the Abandoned Property Fund shall be set aside and placed in the Historic Properties Financing Fund created herein. The principal of the Historic Properties Financing Fund shall remain inviolate within the Abandoned Property Fund, and shall be invested in the same manner as the remainder of the Abandoned Property Fund. The interest and income earned from the investment of the principal of the Historic Properties Financing Fund shall be transferred quarterly to the Mississippi Landmark Grant Program account within the Historic Properties Trust Fund created under Section 39-5-23. The transferred money shall be utilized by the Department of Archives and History for the purposes as specified in Section 39-5-23(3).
(3) Notwithstanding subsections (1) and (2) of this section, the funds reflected by the cancellation of State of Mississippi warrants that constitute part of the Abandoned Property Fund shall be transferred by the State Treasurer back to the original fund source if unclaimed by the owner within the time specified in Section 7-7-42.
SECTION 13. This act shall take effect and be in force from and after July 1, 2015.