HB 207 Summary

• Establishes the Housing Loan Assistance Pilot Program administered by the Mississippi Development Authority to provide loans at 1% interest for home repair or construction to eligible applicants in the 10 poorest counties in Mississippi.

• Requires loan applicants to be at least 65 years old, legally disabled, or employed for 2 years; have total household income not exceeding $30,000 annually; own the property; and have been rejected for conventional loans in the preceding 12 months.

• Authorizes issuance of $3,000,000 in state general obligation bonds to fund the program, with bonds maturing within 25 years and bearing interest rates not to exceed limits set in Mississippi Code Section 75-17-101.

• Creates the Housing Loan Assistance Bond Sinking Fund to be funded primarily through $3 additional fees on deed and deed of trust recordings collected by chancery clerks and remitted to the Mississippi Development Authority.

• Pledges the full faith and credit of the State of Mississippi for bond repayment, with any shortfalls in the sinking fund covered by the State Treasurer from general funds.