MS HB301

Establishes the Housing Loan Assistance Pilot Program administered by the Mississippi Development Authority to provide loans at 1% annual interest to eligible homeowners in the ten poorest counties in Mississippi.

Applicants must be at least 65 years old, legally disabled, or employed for two years preceding application; own the property; have household income not exceeding $30,000 annually; and have been rejected for conventional loans in the preceding 12 months.

Authorizes issuance of $3,000,000 in state general obligation bonds with proceeds deposited into a Housing Loan Assistance Fund created for the loan program.

Creates a Housing Loan Assistance Bond Sinking Fund to pay principal and interest on bonds, funded primarily by a $3 fee added to each deed and deed of trust recording collected by chancery clerks and remitted to the Mississippi Development Authority.

Bonds mature within 25 years, are exempt from state taxation, and backed by full faith and credit of the State; any deficiency in the sinking fund shall be paid from the state treasury.