Bonds; authorize issuance to assist City of Jackson with demolition and removal of blighted properties.
The impact of this legislation on state laws involves an expansion of the financial tools available to municipalities for urban renewal. By allowing the issuance of bonds, the state provides a mechanism for local governments to finance the acquisition, demolition, and rehabilitation of neglected or hazardous properties. It empowers local authorities to tackle blight directly, potentially improving community standards and property values in affected areas. Moreover, the bill has safeguards in place regarding how funds are allocated and mandates the establishment of a separate account to manage these funds effectively.
House Bill 777 authorizes the issuance of general obligation bonds by the State of Mississippi to assist the City of Jackson in addressing blighted properties through their Department of Planning and Development. The bill establishes a dedicated fund for this purpose, the '2023 City of Jackson Blighted Properties Improvements Fund', from which the proceeds of these bonds will be disbursed. The proposed bond issuance amount is capped at two million dollars, with the provision that no bonds shall be issued after July 1, 2027. The act is set to take effect from July 1, 2023.
Potential contention around HB 777 could arise regarding the effectiveness and long-term sustainability of funding for blight removal. Critics may argue that such bond issuances could lead to an irresponsible accumulation of debt if not managed prudently, particularly in light of the economic conditions. There might also be discussions on whether prioritizing funding for blight removal over other community needs is the best approach. Additionally, the approach to determining which properties are blighted and deserving of funding can also generate debate among community stakeholders.