MS SB2658

Authorizes municipalities with populations exceeding 25,000 to create special local improvement assessment districts and levy up to 6 mills in special assessments on taxable real property within those districts, contingent on 60% petition support from property owners.

Permits homeowners' associations and nonprofit organizations to initiate district formation by submitting improvement plans and petitions signed by 60% of property owners, with districts automatically dissolving after 10 years unless reestablished.

Allows special assessment revenues to fund parks, sidewalks, streets, landscaping, security enhancements, property rehabilitation, and related infrastructure improvements within districts.

Authorizes municipalities to issue bonds payable solely from special assessment revenues (without pledging full faith and credit) for district improvements, with bonds exempt from state taxation and municipal debt limitations.

Requires homeowners' associations managing districts to maintain separate accounting records, obtain annual independent audits filed with the municipality by December 31, or face automatic district dissolution.