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HF 666

as introduced - 88th Legislature (2013 - 2014) Posted on 02/28/2013 12:49pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/18/2013

Current Version - as introduced

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A bill for an act
relating to bonding; tax-exempt bond allocations; changing the carryforward
period from one year to three years; reversing the reallocations for 2013;
amending Minnesota Statutes 2012, sections 474A.04, subdivision 1a; 474A.062;
474A.091, subdivision 3a.

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

Section 1.

Minnesota Statutes 2012, section 474A.04, subdivision 1a, is amended to
read:


Subd. 1a.

Entitlement reservationsdeleted text begin ; carryforward; deductiondeleted text end .

Any amount
returned by an entitlement issuer before July 15 shall be reallocated through the housing
pool. Any amount returned on or after July 15 shall be reallocated through the unified
pool. An amount returned after the last Monday in November shall be reallocated to the
Minnesota Housing Finance Agency. deleted text begin Any amount of bonding authority that an entitlement
issuer carries forward under federal tax law that is not permanently issued or for which
the governing body of the entitlement issuer has not enacted a resolution electing to use
the authority for mortgage credit certificates and has not provided a notice of issue to the
commissioner before 4:30 p.m. on the last business day in December of the succeeding
calendar year shall be deducted from the entitlement allocation for that entitlement issuer
in the next succeeding calendar year. Any amount deducted from an entitlement issuer's
allocation under this subdivision shall be reallocated to other entitlement issuers, the
housing pool, the small issue pool, and the public facilities pool on a proportional basis
consistent with section 474A.03.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any bonding authority allocated in 2012 and subsequent years.
new text end

Sec. 2.

Minnesota Statutes 2012, section 474A.062, is amended to read:


474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY
ISSUANCE EXEMPTION.

The Minnesota Office of Higher Education is exempt from the 120-day issuance
requirements in this chapter and may carry forward allocations for student loan bonds deleted text begin into
one successive calendar year
deleted text end , subject to carryforward notice requirements of section
474A.131, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any bonding authority allocated in 2012 and subsequent years.
new text end

Sec. 3.

Minnesota Statutes 2012, section 474A.091, subdivision 3a, is amended to read:


Subd. 3a.

Mortgage bonds.

(a) Bonding authority remaining in the unified pool on
October 1 is available for single-family housing programs for cities that applied in January
and received an allocation under section 474A.061, subdivision 2a, in the same calendar
year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
bonds pursuant to this section, minus any amounts for a city or consortium that intends to
issue bonds on its own behalf under paragraph (c).

(b) The agency may issue bonds on behalf of participating cities. The agency shall
request an allocation from the commissioner for all applicants who choose to have the
agency issue bonds on their behalf and the commissioner shall allocate the requested
amount to the agency. Allocations shall be awarded by the commissioner each Monday
commencing on the first Monday in October through the last Monday in November for
applications received by 4:30 p.m. on the Monday of the week preceding an allocation.

For cities who choose to have the agency issue bonds on their behalf, allocations
will be made loan by loan, on a first-come, first-served basis among the cities. The
agency shall submit an application fee pursuant to section 474A.03, subdivision 4, and an
application deposit equal to two percent of the requested allocation to the commissioner
when requesting an allocation from the unified pool. After awarding an allocation and
receiving a notice of issuance for mortgage bonds issued on behalf of the participating
cities, the commissioner shall transfer the application deposit to the Minnesota Housing
Finance Agency.

For purposes of paragraphs (a) to (d), "city" means a county or a consortium of
local government units that agree through a joint powers agreement to apply together
for single-family housing programs, and has the meaning given it in section 462C.02,
subdivision 6
. "Agency" means the Minnesota Housing Finance Agency.

(c) Any city that received an allocation pursuant to section 474A.061, subdivision
2a, paragraph (f)
, in the current year that wishes to receive an additional allocation from
the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement
shall notify the Minnesota Housing Finance Agency by the third Monday in September.
The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its
own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount
requested, or (ii) the product of the total amount available for mortgage bonds from the
unified pool, multiplied by the ratio of the population of each city that applied in January
and received an allocation under section 474A.061, subdivision 2a, in the same calendar
year, as determined by the most recent estimate of the city's population released by the
state demographer's office to the total of the population of all the cities that applied in
January and received an allocation under section 474A.061, subdivision 2a, in the same
calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers
agreement is located within a county that has also chosen to issue bonds on its own behalf
or through a joint powers agreement, the city's population will be deducted from the
county's population in calculating the amount of allocations under this paragraph.

The Minnesota Housing Finance Agency shall notify each city choosing to issue
bonds on its own behalf or pursuant to a joint powers agreement of the amount of its
allocation by October 15. Upon determining the amount of the allocation of each choosing
to issue bonds on its own behalf or through a joint powers agreement, the agency shall
forward a list specifying the amounts allotted to each city.

A city that chooses to issue bonds on its own behalf or through a joint powers
agreement may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and an application
deposit equal to two percent of the requested amount to the commissioner no later than
4:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that
choose to issue bonds on their own behalf shall be awarded by the commissioner on
the first Monday after October 15 through the last Monday in November. No city may
receive an allocation from the commissioner after the last Monday in November. The
commissioner shall allocate the requested amount to the city or cities subject to the
limitations under this subdivision.

If a city issues mortgage bonds from an allocation received under this paragraph,
the issuer must provide for the recycling of funds into new loans. If the issuer is not
able to provide for recycling, the issuer must notify the commissioner in writing of the
reason that recycling was not possible and the reason the issuer elected not to have the
Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money
generated from the repayment and prepayment of loans for further eligible loans or for the
redemption of bonds and the issuance of current refunding bonds.

(d) No entitlement city or county or city in an entitlement county may apply for or
be allocated authority to issue mortgage bonds or use mortgage credit certificates from
the unified pool.

(e) An allocation awarded to the agency for mortgage bonds under this section
may be carried forward by the agency deleted text begin into the next succeeding calendar yeardeleted text end subject to
notice requirements under section 474A.131 deleted text begin and is available until the last business day in
December of that succeeding calendar year
deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any bonding authority allocated in 2012 and subsequent years.
new text end

Sec. 4. new text begin CARRYFORWARD OF BONDING AUTHORITY FOR 2011; NO
DEDUCTION FROM ENTITLEMENT ALLOCATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, bonding
authority that was allocated to an entitlement issuer in 2011 and that was carried forward
under federal tax law, but for which the entitlement issuer did not provide a notice of issue
to the commissioner of management and budget before 4:30 p.m. on the last business
day of December 2012 must not be deducted from the entitlement allocation for that
entitlement issuer in 2013.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies retroactively to rescind any reallocation by the commissioner of management
and budget under Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so
deducted.
new text end