Market-Ready Homes Revolving Loan Program; create to assist homeowners with necessary home repairs and upgrades to increase listing price.

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To: Business and Financial
Institutions
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Johnson

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2769

AN ACT TO CREATE THE "MARKET-READY HOMES REVOLVING LOAN 1
PROGRAM" TO ASSIST HOMEOWNERS WITH MAKING NECESSARY REPAIRS AND 2
UPGRADES TO EXISTING HOMES TO ESTABLISH AN ENHANCED POST-REPAIR 3
LISTING PRICE WITH LENDING OPTIONS FOR THE HOMEOWNER; TO CREATE 4
THE "MARKET-READY HOMES REVOLVING LOAN FUND" IN THE STATE 5
TREASURY; TO PROVIDE THAT THE PROGRAM AND FUND SHALL BE 6
ADMINISTERED BY THE MISSISSIPPI HOME CORPORATION; TO PROVIDE 7
ELIGIBILITY AND CONDITIONS FOR MAKING LOANS FROM THE FUND; TO 8
AMEND SECTION 43-33-717, MISSISSIPPI CODE OF 1972, TO CONFORM; AND 9
FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. (1) For purposes of this section, the following 12
terms shall have the meanings ascribed herein unless the context 13
clearly requires otherwise: 14
(a) "Corporation" means the Mississippi Home 15
Corporation. 16
(b) "Fund" means the Market-Ready Homes Revolving Loan 17
Fund created under subsection (3) of this section. 18
(c) "Program" means the Market-Ready Homes Revolving 19
Loan Program created under subsection (2) of this section. 20
(d) "Project" means a home repair and renovation 21
project meeting standards and conditions of the Mississippi Home 22
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Corporation under the provisions of this act and approved for 23
funding from the Market-Ready Homes Revolving Loan Fund. 24
(e) "State" means the State of Mississippi. 25
(2) The Market-Ready Homes Revolving Loan Program is 26
established to assist homeowners with making necessary repairs and 27
upgrades to existing homes to establish an enhanced post-repair 28
listing price with lending options for the homeowner. The 29
corporation shall administer the program utilizing monies in the 30
fund. The corporation shall promulgate such guidelines, rules, 31
forms, regulations and application procedures as may be necessary 32
to carry out the provisions of this act under the following 33
conditions: 34
(a) (i) Loans from the fund shall be for a six (6) 35
month loan term with a mandatory payback provision and shall be 36
available only to owners of starter homes. 37
(ii) Interest rates for loans shall be set by the 38
corporation to be below the current market interest rate. 39
(iii) "Starter home" for purposes of determining 40
loan eligibility shall be calculated by taking the median 41
individual income for the municipality or county in which the home 42
is located, multiplying by 5.4 and allowing for a range of plus or 43
minus twenty percent (20%). 44
(iv) Post-repair listing price estimate for the 45
home shall be based on a Broker Price Opinion (BPO). 46
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(v) Fund loan amounts may be used for replacing 47
windows and doors, foundation repairs, electrical and plumbing 48
repairs, roof repairs or replacement, HVAC repairs or replacement, 49
and any other items or projects approved by the corporation that 50
will qualify the home for a mortgage. 51
(vi) To qualify for a fund loan, the corporation 52
shall require a quote for repairs from a licensed and bonded 53
contractor, and a listing with a licensed real estate agent to be 54
for a period of not less than six (6) months with a public listing 55
upon completion of the repairs for the amount of the Broker Price 56
Opinion (BPO). 57
(vii) A fund loan amount shall be based on a cost 58
estimate by a licensed and bonded contractor for repairs approved 59
by the corporation, not to exceed eighty-five percent (85%) of the 60
Broker Price Opinion (BPO) of the home based on the repairs being 61
made, less all liens and encumbrances existing on the property, 62
but in no event shall a fund loan exceeding Thirty Thousand 63
Dollars ($30,000.00) be issued. 64
(viii) The borrower shall be responsible for any 65
costs associated with verifying lien amounts, title searches and 66
filing fees. 67
(ix) The Mississippi Home Corporation may charge a 68
fee of at least Two Hundred Dollars ($200.00) for a loan 69
application not to exceed one percent (1%) of the loan amount. 70
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(b) Notwithstanding paragraph (a)(i) and (a)(ii) of 71
this subsection (2), the corporation may provide one (1) loan 72
extension for a three (3) month loan term at the prime interest 73
rate under either of the following conditions: 74
(i) The homeowner is under contract and will close 75
during such three (3) month loan extension period; or 76
(ii) The homeowner is borrowing from a separate 77
lending source to pay off the initial loan and payback will be 78
completed during such three (3) month loan extension period. 79
(3) There is created in the State Treasury a fund to be 80
known as the "Market-Ready Homes Revolving Loan Fund." Subject to 81
appropriation by the Legislature, the fund shall be administered 82
by the Mississippi Home Corporation to make loans for qualified 83
home repair and renovation. The fund shall be funded through a 84
one-time appropriation by the Legislature and funds from any other 85
source designated for deposit into such fund. Unexpended amounts 86
remaining in the fund at the end of a fiscal year shall not lapse 87
into the State General Fund, and any investment earnings or 88
interest earned on amounts in the fund shall be deposited to the 89
credit of the fund. The fund shall be maintained in perpetuity 90
for the purposes established in this section. 91
(4) This section shall stand repealed from and after July 1, 92
2029. 93
SECTION 2. Section 43-33-717, Mississippi Code of 1972, is 94
amended as follows: 95
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43-33-717. (1) The corporation shall have all the powers 96
necessary or convenient to carry out and effectuate the purposes 97
and provisions of this article, including, but without limiting 98
the generality of the foregoing, the power: 99
(a) To make and alter bylaws for its organization and 100
internal management; 101
(b) To sue and be sued, have a seal and alter the same 102
at pleasure, and maintain an office at such place or places in the 103
state as it may determine; 104
(c) To appoint officers, agents and employees, 105
prescribe their duties and qualifications, and fix their 106
compensation; 107
(d) To acquire real or personal property, or any 108
interest therein, by purchase, exchange, gift, assignment, 109
transfer, foreclosure, lease, condemnation or otherwise, including 110
rights or easements; to hold, manage, operate or improve real or 111
personal property; to sell, assign, exchange, lease, encumber, 112
mortgage or otherwise dispose of any real or personal property, or 113
any interest therein, or deed of trust or mortgage lien interest 114
owned by it or under its control, custody or in its possession and 115
release or relinquish any right, title, claim, lien, interest, 116
easement or demand however acquired, including any equity or right 117
of redemption in property foreclosed by it and to do any of the 118
foregoing by public sale; 119
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(e) To make and execute agreements, contracts and other 120
instruments necessary or convenient to the exercise of the powers 121
and functions of the corporation under this article; 122
(f) To employ or contract with architects, engineers, 123
attorneys, accountants, financial experts and other advisors as 124
may be necessary in its judgment and to fix and pay their 125
compensation; 126
(g) To make and execute contracts for the 127
administration, servicing or collection of any mortgage loan and 128
pay the reasonable value of services rendered to the corporation 129
pursuant to such contracts; 130
(h) To contract for the employment of a financial 131
advisor, underwriting attorneys, trustees, paying agents, 132
depositories or any consultants retained in connection with the 133
issuance of any bonds or notes including refunding bonds or notes 134
or dealing with the disposition of any proceeds thereof; 135
(i) To issue negotiable bonds and notes and to provide 136
for the rights of the holders thereof; 137
(j) Subject to any agreement with bondholders or 138
noteholders, to sell any mortgage loans at public or private sale 139
at the fair market value for such a mortgage; and 140
(k) Subject to any agreement with bondholders and 141
noteholders, to make, alter or repeal such rules and regulations 142
with respect to the operations, properties and facilities of the 143
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corporation as are necessary to carry out its functions and duties 144
in the administration of this article. 145
(2) The corporation shall also have the power: 146
(a) To make loans to mortgage lenders for the purpose 147
of: 148
(i) Making housing development mortgage loans to 149
qualified sponsors for low- and moderate- income rental or 150
residential housing; 151
(ii) Making loans to low- and moderate- income 152
purchasers of residential housing with preference to those who are 153
displaced from adequate housing as a result of a major disaster, 154
whether it be a man-made, technological or natural disaster, upon 155
a declaration by the Governor that a major disaster exists in the 156
state; 157
(b) To purchase from mortgage lenders any of the loans 158
enumerated in subparagraphs (i) and (ii); 159
(c) To insure, reinsure or guarantee any of the types 160
of loans enumerated in subparagraphs (i) and (ii); 161
(d) To make, in such amounts and upon such terms and 162
conditions as the corporation shall approve, temporary loans, 163
preconstruction loans, interim financing loans to any qualified 164
sponsor and permanent financing to any qualified sponsor of 165
multifamily housing. 166
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(3) The corporation shall also have the power to make loans 167
from funds not otherwise encumbered by pledge or indenture to low- 168
and moderate- income persons for the following purposes: 169
(a) Purchasing, improving or rehabilitating existing 170
residential housing and occupied by the owners; 171
(b) Making loans to qualified nonprofit sponsors, to 172
local housing authorities and to owners of residential housing for 173
the development, construction, purchase, rehabilitation, 174
weatherization or maintenance of residential housing. 175
(4) Using funds not otherwise encumbered by pledge or 176
indenture, the corporation may: 177
(a) Establish a rental assistance program; 178
(b) Provide such advisory consultation, training and 179
educational services as will assist in the planning, construction, 180
rehabilitation and operation of housing, including, but not 181
limited to, assistance in community development and organization, 182
home management and advisory services for residents, and in 183
promotion of community organizations and local governments to 184
assist in developing housing; 185
(c) Encourage research and demonstration projects to 186
develop new and better methods for increasing the supply, types 187
and financing of housing and to receive and accept contributions, 188
grants or aid from any source, public or private, including, but 189
not limited to, the United States and this state, for carrying out 190
this purpose; 191
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(d) Encourage and stimulate cooperatives and other 192
forms of housing with tenant participation; 193
(e) Promote innovative programs for home ownership, 194
including, but not limited to, lease-purchase programs, 195
employer-sponsored housing programs, tenant cooperatives and 196
nonprofit associations; 197
(f) Design and support programs to address special 198
needs groups including, but not limited to, handicapped, disabled, 199
elderly, homeless, HIV/AIDS carriers and families with children; 200
(g) Develop a comprehensive plan for, and engage in a 201
yearly planning process for, addressing the housing needs of low- 202
and moderate- income persons in Mississippi. 203
(5) The corporation also has the power: 204
(a) To procure, or require the procurement of, 205
insurance against any loss in connection with its operations, 206
including, without limitation, the repayment of any mortgage loan 207
or loans, in such amounts and from such insurers, including the 208
federal government, as it may deem necessary or desirable, and to 209
pay any premiums therefor; 210
(b) Subject to any agreement with bondholders or 211
noteholders: (i) to renegotiate any loan in default; (ii) to 212
waive any default or consent to the modification of the terms of 213
any loan or agreement; (iii) to commence, prosecute and enforce a 214
judgment in any action or proceeding, including, without 215
limitation a foreclosure proceeding, to protect or enforce any 216
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right conferred upon it by law, mortgage loan agreement, contract 217
or other agreement; and (iv) in connection with any such 218
proceeding, to bid for and purchase the property or acquire or 219
take possession thereof and, in such event, complete, administer 220
and pay the principal of and interest on any obligations incurred 221
in connection with such property and dispose of and otherwise deal 222
with such property in such manner as the corporation may deem 223
advisable to protect its interest therein; 224
(c) To fix, revise, charge and collect fees and other 225
charges in connection with the making of loans, the purchasing of 226
mortgage loans, and any other services rendered by the 227
corporation; 228
(d) To arrange for guarantees of its bonds, notes or 229
other obligations by the federal government or by any private 230
insurer and to pay any premiums therefor; 231
(e) Notwithstanding any law to the contrary, but 232
subject to any agreement with bondholders or noteholders, to 233
invest money of the corporation not required for immediate use, 234
including proceeds from the sale of any bonds or notes * * *: 235
(i) In obligations of any municipality or the 236
state or the United States of America; 237
(ii) In obligations the principal and interest of 238
which are guaranteed by the state or the United States of America; 239
(iii) In obligations of any corporation wholly 240
owned by the United States of America; 241
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(iv) In obligations of any corporation sponsored 242
by the United States of America which are, or may become, eligible 243
as collateral for advances to member banks as determined by the 244
Board of Governors of the Federal Reserve System; 245
(v) In obligations of insurance firms or other 246
corporations whose investments are rated "A" or better by 247
recognized rating companies; 248
(vi) In certificates of deposit or time deposits 249
of qualified depositories of the state as approved by the State 250
Depository Commission, secured in such manner, if any, as the 251
corporation shall determine; 252
(vii) In contracts for the purchase and sale of 253
obligations of the type specified in * * * subparagraphs (i) 254
through (v) above; 255
(viii) In repurchase agreements secured by 256
obligations specified in * * * subparagraphs (i) through (v) 257
above; 258
(ix) In money market funds, the assets of which 259
are required to be invested in obligations specified in * * * 260
subparagraphs (i) through (vi) above; 261
(f) Subject to any agreement with bondholders or 262
noteholders, to purchase, and to agree to purchase, bonds or notes 263
of the corporation at a price not exceeding: (i) if the bonds or 264
notes are then redeemable, the redemption price then applicable 265
plus accrued interest to the date of purchase; or (ii) if the 266
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bonds or notes are not then redeemable, the redemption price 267
applicable on the first date after such purchase upon which the 268
notes or bonds become subject to redemption at the option of the 269
corporation plus accrued interest to the date of purchase; 270
(g) Subject to the provisions of this article, to 271
contract for and to accept any gifts, grants or loans of funds or 272
property or financial or other aid in any form from federal, state 273
or local governments, private or public entities, or individuals; 274
(h) To enter into agreements or other transactions with 275
the federal or state government, any agency thereof or any 276
municipality in furtherance of the purposes of this article; to 277
operate and administer loan programs of the federal government, 278
the State of Mississippi, or any governmental agency thereof; and 279
to operate and administer any program of housing assistance for 280
persons and families of low- or moderate- income, however funded; 281
(i) To establish a benevolent loan fund, housing 282
development fund, or such additional and further funds as may be 283
necessary and desirable to accomplish any corporate purpose or to 284
comply with the provisions of any agreement made by the 285
corporation or any resolution approved by the corporation. The 286
resolution establishing such a fund shall specify the source of 287
monies from which it shall be funded and the purposes for which 288
monies held in the fund shall be disbursed; 289
(j) In carrying out the provisions of this article, the 290
corporation shall cooperate with the housing authorities created 291
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ST: Market-Ready Homes Revolving Loan Program;
create to assist homeowners with necessary home
repairs and upgrades to increase listing price.
under Sections 43-33-1 through 43-33-69 and Sections 43-33-101 292
through 43-33-137, Mississippi Code of 1972; 293
(k) To accept letters of credit and other credit 294
facilities necessary to make loans authorized herein to repay 295
bonds or notes issued by the corporation; 296
(l) To do any and all things necessary or convenient to 297
carry out its purposes and exercise the powers given and granted 298
in this article * * *; and 299
(m) To carry out the provisions of the Market-Ready 300
Homes Revolving Loan Program established under this act. 301
SECTION 3. This act shall take effect and be in force from 302
and after July 1, 2026, and shall stand repealed on June 30, 2026. 303