Revolving Fund; establish within the Mississippi Home Corporation.

S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~ G3/5
26/SS36/R894
PAGE 1 (rdd\kr)

To: Business and Financial
Institutions
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson

SENATE BILL NO. 2768

AN ACT TO ESTABLISH THE "FIRST-TIME HOMEBUYERS REVOLVING 1
FUND" ADMINISTERED BY THE MISSISSIPPI HOME CORPORATION ON A PILOT 2
PROGRAM BASIS TO MAKE NECESSARY REPAIRS AND UPGRADES TO EXISTING 3
SINGLE-FAMILY RENTAL HOUSING; TO PROVIDE ELIGIBILITY AND 4
CONDITIONS FOR MAKING LOANS FROM THE FUND; TO AMEND SECTIONS 5
43-33-717 AND 21-49-7, MISSISSIPPI CODE OF 1972, IN CONFORMITY; 6
AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. (1) For purposes of this act, the following 9
terms shall have the meanings ascribed herein unless the context 10
clearly requires otherwise: 11
(a) "Corporation" means the Mississippi Home 12
Corporation. 13
(b) "Grant fund" means the First-Time Homebuyers Home 14
Upgrade Revolving Fund administered by the Mississippi Home 15
Corporation created under Section (2) of this act. 16
(c) "Project" means a home repair and renovation 17
project meeting standards and conditions of the Mississippi Home 18
Corporation under the provisions of this act and approved for 19
funding from the Home Upgrade Revolving Fund. 20
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 2 (rdd\kr)

(d) "State" means the State of Mississippi. 21
(2) There is established in the State Treasury a fund to be 22
known as the "First-Time Homebuyers Home Upgrade Revolving Fund" 23
which shall be administered by the Mississippi Home Corporation on 24
a pilot program basis to make grants for qualified home repair and 25
renovation. The grant fund shall be funded from any funds 26
appropriated or otherwise made available by the Legislature in any 27
manner and funds from any other source designated for deposit into 28
such fund. The balance of the First-Time Homebuyers Home Upgrade 29
Revolving Fund shall not exceed One Million Dollars 30
($1,000,000.00). Unexpended amounts remaining in the grant fund 31
at the end of a fiscal year shall not lapse into the State General 32
Fund, and any investment earnings or interest earned on amounts in 33
the grant fund shall be deposited to the credit of the grant fund. 34
The grant fund shall be maintained in perpetuity for the purposes 35
established in this section. 36
(3) The corporation shall establish a grant pilot program 37
utilizing the funds in the grant fund which shall commence after 38
July 1, 2026, to assist first-time homeowners to make necessary 39
repairs and upgrades to single-family rental property to establish 40
an enhanced post repair listing price with lending options for the 41
homeowner. The homes under this grant pilot program shall be sold 42
exclusively to first-time owner occupants. Income-qualified 43
buyers shall be given priority. The corporation shall establish 44
owner-occupancy requirements to prevent reconversion to rental 45
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 3 (rdd\kr)

property. The corporation shall partner with the local 46
municipality and local private sector builders, developers and 47
nonprofit entities to encourage participation and leverage state 48
funds with nonpublic funds. The corporation shall promulgate such 49
guidelines, rules, forms and regulations as may be necessary to 50
carry out the provisions of this act under the following 51
conditions: 52
(a) Loans from the fund shall be for a six (6) month 53
loan term with a mandatory payback provision. 54
(b) Interest rates for loans shall be set by the 55
corporation to be below the current market interest rate. 56
(c) "Starter Home" loan amounts shall be calculated by 57
taking the median individual income for the municipality or county 58
in which the home is located, multiply by 5.4 and allow for a 59
range of plus or minus twenty percent (20%). 60
(d) Post repair listing price estimate for the home 61
shall be based on a Broker Price Opinion (BPO). 62
(e) Grant fund loan amounts may be used for replacing 63
windows, doors, foundation repairs, electrical and plumbing 64
repairs, roof replacement or repairs, HVAC replacement or repairs, 65
and any other items approved by the corporation that will qualify 66
the home for a mortgage. 67
(f) To qualify for a grant fund loan, the corporation 68
shall require a quote for repairs from a licensed and insured 69
contractor, and a listing with a licensed real estate agent to be 70
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 4 (rdd\kr)

for a period of not less than six (6) months with a public listing 71
upon completion of the repairs for the amount of the Broker Price 72
Opinion (BPO). 73
(g) Homes shall be required to meet code compliance and 74
modernization standards. 75
(h) The Mississippi Home Corporation may charge a fee 76
of at least Two Hundred Dollars ($200.00) for a loan application 77
not to exceed one percent (1%) of the loan amount. 78
SECTION 2. Section 43-33-717, Mississippi Code of 1972, is 79
amended as follows: 80
43-33-717. (1) The corporation shall have all the powers 81
necessary or convenient to carry out and effectuate the purposes 82
and provisions of this article, including, but without limiting 83
the generality of the foregoing, the power: 84
(a) To make and alter bylaws for its organization and 85
internal management; 86
(b) To sue and be sued, have a seal and alter the same 87
at pleasure, and maintain an office at such place or places in the 88
state as it may determine; 89
(c) To appoint officers, agents and employees, 90
prescribe their duties and qualifications, and fix their 91
compensation; 92
(d) To acquire real or personal property, or any 93
interest therein, by purchase, exchange, gift, assignment, 94
transfer, foreclosure, lease, condemnation or otherwise, including 95
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 5 (rdd\kr)

rights or easements; to hold, manage, operate or improve real or 96
personal property; to sell, assign, exchange, lease, encumber, 97
mortgage or otherwise dispose of any real or personal property, or 98
any interest therein, or deed of trust or mortgage lien interest 99
owned by it or under its control, custody or in its possession and 100
release or relinquish any right, title, claim, lien, interest, 101
easement or demand however acquired, including any equity or right 102
of redemption in property foreclosed by it and to do any of the 103
foregoing by public sale; 104
(e) To make and execute agreements, contracts and other 105
instruments necessary or convenient to the exercise of the powers 106
and functions of the corporation under this article; 107
(f) To employ or contract with architects, engineers, 108
attorneys, accountants, financial experts and other advisors as 109
may be necessary in its judgment and to fix and pay their 110
compensation; 111
(g) To make and execute contracts for the 112
administration, servicing or collection of any mortgage loan and 113
pay the reasonable value of services rendered to the corporation 114
pursuant to such contracts; 115
(h) To contract for the employment of a financial 116
advisor, underwriting attorneys, trustees, paying agents, 117
depositories or any consultants retained in connection with the 118
issuance of any bonds or notes including refunding bonds or notes 119
or dealing with the disposition of any proceeds thereof; 120
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 6 (rdd\kr)

(i) To issue negotiable bonds and notes and to provide 121
for the rights of the holders thereof; 122
(j) Subject to any agreement with bondholders or 123
noteholders, to sell any mortgage loans at public or private sale 124
at the fair market value for such a mortgage; and 125
(k) Subject to any agreement with bondholders and 126
noteholders, to make, alter or repeal such rules and regulations 127
with respect to the operations, properties and facilities of the 128
corporation as are necessary to carry out its functions and duties 129
in the administration of this article. 130
(2) The corporation shall also have the power: 131
(a) To make loans to mortgage lenders for the purpose 132
of: 133
(i) Making housing development mortgage loans to 134
qualified sponsors for low and moderate income rental or 135
residential housing; 136
(ii) Making loans to low and moderate income 137
purchasers of residential housing with preference to those who are 138
displaced from adequate housing as a result of a major disaster, 139
whether it be a man-made, technological or natural disaster, upon 140
a declaration by the Governor that a major disaster exists in the 141
state; 142
(b) To purchase from mortgage lenders any of the loans 143
enumerated in subparagraphs (i) and (ii); 144
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 7 (rdd\kr)

(c) To insure, reinsure or guarantee any of the types 145
of loans enumerated in subparagraphs (i) and (ii); 146
(d) To make, in such amounts and upon such terms and 147
conditions as the corporation shall approve, temporary loans, 148
preconstruction loans, interim financing loans to any qualified 149
sponsor and permanent financing to any qualified sponsor of 150
multifamily housing. 151
(3) The corporation shall also have the power to make loans 152
from funds not otherwise encumbered by pledge or indenture to low 153
and moderate income persons for the following purposes: 154
(a) Purchasing, improving or rehabilitating existing 155
residential housing and occupied by the owners; 156
(b) Making loans to qualified nonprofit sponsors, to 157
local housing authorities and to owners of residential housing for 158
the development, construction, purchase, rehabilitation, 159
weatherization or maintenance of residential housing. 160
(4) Using funds not otherwise encumbered by pledge or 161
indenture, the corporation may: 162
(a) Establish a rental assistance program; 163
(b) Provide such advisory consultation, training and 164
educational services as will assist in the planning, construction, 165
rehabilitation and operation of housing, including but not limited 166
to, assistance in community development and organization, home 167
management and advisory services for residents, and in promotion 168
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 8 (rdd\kr)

of community organizations and local governments to assist in 169
developing housing; 170
(c) Encourage research and demonstration projects to 171
develop new and better methods for increasing the supply, types 172
and financing of housing and to receive and accept contributions, 173
grants or aid from any source, public or private, including but 174
not limited to the United States and this state, for carrying out 175
this purpose; 176
(d) Encourage and stimulate cooperatives and other 177
forms of housing with tenant participation; 178
(e) Promote innovative programs for home ownership, 179
including but not limited to lease-purchase programs, 180
employer-sponsored housing programs, tenant cooperatives and 181
nonprofit associations; 182
(f) Design and support programs to address special 183
needs groups including, but not limited to, handicapped, disabled, 184
elderly, homeless, HIV/AIDS carriers and families with children; 185
(g) Develop a comprehensive plan for, and engage in a 186
yearly planning process for, addressing the housing needs of low 187
and moderate income persons in Mississippi. 188
(5) The corporation also has the power: 189
(a) To procure, or require the procurement of, 190
insurance against any loss in connection with its operations, 191
including without limitation the repayment of any mortgage loan or 192
loans, in such amounts and from such insurers, including the 193
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 9 (rdd\kr)

federal government, as it may deem necessary or desirable, and to 194
pay any premiums therefor; 195
(b) Subject to any agreement with bondholders or 196
noteholders: (i) to renegotiate any loan in default; (ii) to 197
waive any default or consent to the modification of the terms of 198
any loan or agreement; (iii) to commence, prosecute and enforce a 199
judgment in any action or proceeding, including without limitation 200
a foreclosure proceeding, to protect or enforce any right 201
conferred upon it by law, mortgage loan agreement, contract or 202
other agreement; and (iv) in connection with any such proceeding, 203
to bid for and purchase the property or acquire or take possession 204
thereof and, in such event, complete, administer and pay the 205
principal of and interest on any obligations incurred in 206
connection with such property and dispose of and otherwise deal 207
with such property in such manner as the corporation may deem 208
advisable to protect its interest therein; 209
(c) To fix, revise, charge and collect fees and other 210
charges in connection with the making of loans, the purchasing of 211
mortgage loans, and any other services rendered by the 212
corporation; 213
(d) To arrange for guarantees of its bonds, notes or 214
other obligations by the federal government or by any private 215
insurer and to pay any premiums therefor; 216
(e) Notwithstanding any law to the contrary, but 217
subject to any agreement with bondholders or noteholders, to 218
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 10 (rdd\kr)

invest money of the corporation not required for immediate use, 219
including proceeds from the sale of any bonds or notes * * *: 220
(i) In obligations of any municipality or the 221
state or the United States of America; 222
(ii) In obligations the principal and interest of 223
which are guaranteed by the state or the United States of America; 224
(iii) In obligations of any corporation wholly 225
owned by the United States of America; 226
(iv) In obligations of any corporation sponsored 227
by the United States of America which are, or may become, eligible 228
as collateral for advances to member banks as determined by the 229
Board of Governors of the Federal Reserve System; 230
(v) In obligations of insurance firms or other 231
corporations whose investments are rated "A" or better by 232
recognized rating companies; 233
(vi) In certificates of deposit or time deposits 234
of qualified depositories of the state as approved by the State 235
Depository Commission, secured in such manner, if any, as the 236
corporation shall determine; 237
(vii) In contracts for the purchase and sale of 238
obligations of the type specified in * * * subparagraphs (i) 239
through (v) above; 240
(viii) In repurchase agreements secured by 241
obligations specified in * * * subparagraphs (i) through (v) 242
above; 243
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 11 (rdd\kr)

(ix) In money market funds, the assets of which 244
are required to be invested in obligations specified in * * * 245
subparagraphs (i) through (vi) above; 246
(f) Subject to any agreement with bondholders or 247
noteholders, to purchase, and to agree to purchase, bonds or notes 248
of the corporation at a price not exceeding: (i) if the bonds or 249
notes are then redeemable, the redemption price then applicable 250
plus accrued interest to the date of purchase; or (ii) if the 251
bonds or notes are not then redeemable, the redemption price 252
applicable on the first date after such purchase upon which the 253
notes or bonds become subject to redemption at the option of the 254
corporation plus accrued interest to the date of purchase; 255
(g) Subject to the provisions of this article, to 256
contract for and to accept any gifts, grants or loans of funds or 257
property or financial or other aid in any form from federal, state 258
or local governments, private or public entities, or individuals; 259
(h) To enter into agreements or other transactions with 260
the federal or state government, any agency thereof or any 261
municipality in furtherance of the purposes of this article; to 262
operate and administer loan programs of the federal government, 263
the State of Mississippi, or any governmental agency thereof; and 264
to operate and administer any program of housing assistance for 265
persons and families of low or moderate income, however funded; 266
(i) To establish a benevolent loan fund, housing 267
development fund, or such additional and further funds as may be 268
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 12 (rdd\kr)

necessary and desirable to accomplish any corporate purpose or to 269
comply with the provisions of any agreement made by the 270
corporation or any resolution approved by the corporation. The 271
resolution establishing such a fund shall specify the source of 272
monies from which it shall be funded and the purposes for which 273
monies held in the fund shall be disbursed; 274
(j) In carrying out the provisions of this article, the 275
corporation shall cooperate with the housing authorities created 276
under Sections 43-33-1 through 43-33-69 and Sections 43-33-101 277
through 43-33-137, Mississippi Code of 1972; 278
(k) To accept letters of credit and other credit 279
facilities necessary to make loans authorized herein to repay 280
bonds or notes issued by the corporation; 281
(l) To do any and all things necessary or convenient to 282
carry out its purposes and exercise the powers given and granted 283
in this article * * *; 284
(m) To carry out the provisions of the First-Time 285
Homebuyers Revolving Fund grant program established under this 286
act. 287
SECTION 3. Section 21-49-7, Mississippi Code of 1972, is 288
amended as follows: 289
21-49-7. Municipal authority. (1) Municipalities are 290
hereby authorized to apply for a grant and to enter into 291
agreements and to take such actions necessary to obtain such 292
grants under the provisions of this chapter. 293
S. B. No. 2768 *SS36/R894* ~ OFFICIAL ~
26/SS36/R894
PAGE 13 (rdd\kr)
ST: Revolving Fund; establish within the
Mississippi Home Corporation.
(2) Municipalities are further authorized to apply for a 294
grant and to enter into agreements under the provisions of the 295
First-time Homebuyers Revolving Fund grant program established 296
under this act. 297
SECTION 4. This act shall take effect and be in force from 298
and after July 1, 2026. 299