MS HB871

Authorizes Mississippi municipalities to create special local improvement assessment districts and levy up to 6 mills in annual assessments on taxable real property within those districts, with approval from owners of at least 60% of property in the proposed district.

Establishes two alternative procedures for creating districts: one requiring municipal governing authority resolution and property owner petition, and another allowing districts within homeowners' association boundaries using a referendum process.

Permits districts to fund local improvements including parks, sidewalks, streets, lighting, security enhancements, and private patrol services through special assessments; allows municipalities to issue bonds payable solely from assessment revenues without including them in municipal debt limitations.

Requires homeowners' associations managing districts to maintain separate accounting records, submit annual independent audits to the municipality, and follow specified fiscal procedures for fund management.

Exempts bonds issued under this authority from municipal debt limitations and taxation, making them legal investments for commercial banks, savings institutions, and insurance companies; allows districts to be dissolved once all improvements are completed and debts are satisfied.