HF 1257

as introduced - 87th Legislature (2011 - 2012) Posted on 02/01/2012 06:40pm

A bill for an act
relating to housing; authorizing the sale and issuance of nonprofit housing bonds
for community land trusts; amending Minnesota Statutes 2010, section 462A.36.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 462A.36, is amended to read:

462A.36 NONPROFIT HOUSING BONDS; deleted text begin AUTHORIZATION; STANDING
APPROPRIATION deleted text end new text begin AUTHORIZATIONS AND APPROPRIATIONS new text end .

Subdivision 1.

Definitions.

(a) For purposes of this section the following terms have
the meanings given them in this subdivision.

(b) "Debt service" means the amount payable in any fiscal year of principal,
premium, if any, and interest on nonprofit housing bonds and the fees, charges, and
expenses related to the bonds.

(c) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

(d) "Nonprofit housing bonds" means bonds issued by the agency under chapter
462A that are "qualified 501(c)(3) bonds" (within the meaning of Section 145(a) of
the Internal Revenue Code) or are not "private activity bonds" (within the meaning of
Section 141(a) of the Internal Revenue Code), for the purpose of financing or refinancing
affordable housing authorized under this chapter.

(e) "Permanent supportive housing" means housing that is not time-limited and
provides or coordinates with linkages to services necessary for residents to maintain
housing stability and maximize opportunities for education and employment.

Subd. 2.

Authorization new text begin ; permanent supportive housing new text end .

(a) The agency may issue
up to $36,000,000 of nonprofit housing bonds in one or more series to which the payments
made under this section may be pledged. The nonprofit housing bonds authorized in this
subdivision may be issued for the purpose of making loans, on terms and conditions
the agency deems appropriate, to finance the costs of the construction, acquisition,
preservation, and rehabilitation of permanent supportive housing for individuals and
families who: (1) either have been without a permanent residence for at least 12 months
or at least four times in the last three years; or (2) are at significant risk of lacking a
permanent residence for 12 months or at least four times in the last three years. The bonds
may also be issued to finance the costs of the construction, acquisition, preservation, and
rehabilitation of foreclosed or vacant housing to be used for affordable rental housing.

(b) An insubstantial portion of the bond proceeds may be used for permanent
supportive housing for individuals and families experiencing homelessness who do not
meet the criteria of paragraph (a).

new text begin Subd. 2a. new text end

new text begin Authorization; community land trusts. new text end

new text begin (a) The agency may issue up
to $5,000,000 of nonprofit housing bonds in one or more series to which the payments
made under this section may be pledged. The nonprofit housing bonds authorized in this
subdivision may be issued for the purpose of making grants, on terms and conditions the
agency deems appropriate, to community land trusts authorized under section 462A.31,
to acquire land for residential properties that are at risk of foreclosure, undergoing the
foreclosure process, or foreclosed.
new text end

new text begin (b) Grants made under this subdivision are a supplement to be used by the agency
with other funding for the purposes specified in paragraph (a). The agency must consider
the award of a grant under this subdivision when making decisions under other funding
programs for long-term affordable housing through land leases.
new text end

Subd. 3.

No full faith and credit.

The nonprofit housing bonds are not public debt
of the state, and the full faith and credit and taxing powers of the state are not pledged
to the payment of the nonprofit housing bonds or to any payment that the state agrees to
make under this section. The bonds must contain a conspicuous statement to that effect.

Subd. 4.

deleted text begin Appropriation deleted text end new text begin Appropriations new text end ; payment to agency or trustee.

(a)
The agency must certify annually to the commissioner of management and budget the
actual amount of annual debt service on each series of bonds issued under deleted text begin subdivision deleted text end new text begin
subdivisions new text end 2 new text begin and 2a, respectively new text end .

(b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing
bonds issued under subdivision 2 remain outstanding, the commissioner of management
and budget must transfer to the nonprofit housing bond account established under
section 462A.21, subdivision 32, the amount certified under paragraph (a), not to exceed
$2,400,000 annually.

new text begin (c) Each July 15, beginning in 2011 and through 2033, if any nonprofit housing
bonds issued under subdivision 2a remain outstanding, the commissioner of management
and budget must transfer to the nonprofit housing bond account the amount certified under
paragraph (a), not to exceed $400,000 annually.
new text end

new text begin (d) new text end The amounts necessary to make the transfers new text begin under this subdivision new text end are
appropriated from the general fund to the commissioner of management and budget.

deleted text begin (c) deleted text end new text begin (e) new text end The agency may pledge to the payment of the nonprofit housing bonds the
payments to be made by the state under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall change the term "neighborhood land trust" to
"community land trust" and the term "neighborhood land trusts" to "community land
trusts" wherever they appear in Minnesota Statutes, chapter 462A.
new text end