MS HB1574

Authorizes municipalities to create special local improvement assessment districts and levy special assessments up to 6 mills on taxable real property within such districts, subject to petition by owners of at least 60% of taxable property and public hearing.

Allows districts to be created through an alternative procedure involving homeowners' associations, where the association's boundaries align with the proposed district and owners approve creation by referendum with 60% support.

Permits municipalities to issue bonds payable solely from special assessment revenues (not full faith and credit) for local improvements including parks, sidewalks, streets, security enhancements, and property rehabilitation.

Special assessment bonds are excluded from municipal debt limitations, are legal investments for certain financial institutions, and income from bonds is exempt from Mississippi state taxation.

Requires homeowners' associations managing districts to keep assessment proceeds separate, conduct annual independent audits, and file audit reports with the municipality clerk for public review.