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HF 4317

1st Division Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/07/2022 09:00am

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

Bill Text Versions

Engrossments
Introduction Posted on 03/17/2022
Division Engrossments
1st Division Engrossment Posted on 04/06/2022

Current Version - 1st Division Engrossment

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A bill for an act
relating to state government; creating opportunities for homeownership for certain
groups; appropriating money for an affordable homeownership incentive account
to support homeownership for African Americans and African immigrants and
other protected groups; requiring a report; amending Minnesota Statutes 2020,
section 473.251; proposing coding for new law in Minnesota Statutes, chapter
473.

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

Section 1.

Minnesota Statutes 2020, section 473.251, is amended to read:


473.251 METROPOLITAN LIVABLE COMMUNITIES FUND.

The metropolitan livable communities fund is created and consists of the following
accounts:

(1) the tax base revitalization account;

(2) the livable communities demonstration account;

(3) the local housing incentives account; deleted text begin and
deleted text end

(4) the inclusionary housing accountdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (5) affordable homeownership incentive account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022.
new text end

Sec. 2.

new text begin [473.256] AFFORDABLE HOMEOWNERSHIP INCENTIVE ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Participation. new text end

new text begin (a) A municipality may elect to participate in the affordable
homeownership incentive account program to address disparities in homeownership rates
between whites, African Americans, African immigrants, and other protected groups. If the
election to participate occurs by November 15 of any year, it is effective commencing the
next calendar year; otherwise it is effective commencing the next succeeding calendar year.
An election to participate in the program is effective until revoked according to paragraph
(b). A municipality is subject to this section only in those calendar years for which its
election to participate in the program is effective. For purposes of this section, municipality
means a municipality electing to participate in the affordable homeownership incentive
account program to address disparities in homeownership rates between whites, African
Americans, African immigrants, and other protected groups for the calendar year in question,
unless the context indicates otherwise.
new text end

new text begin (b) A municipality may revoke its election to participate in the affordable homeownership
incentive account program to address disparities in homeownership rates between whites,
African Americans, African immigrants, and other protected groups. If the revocation occurs
by November 15 of any year, it is effective commencing the next calendar year; otherwise
it is effective commencing the next succeeding calendar year. After revoking its election
to participate in the program, a municipality may again elect to participate in the program
according to paragraph (a).
new text end

new text begin (c) A municipality that elects to participate may receive grants or loans from the
affordable homeownership incentive account to address disparities in homeownership rates
between whites, African Americans, African immigrants, and other protected groups. The
council, when making discretionary funding decisions, shall give consideration to a
municipality's participation in the affordable homeownership incentive program to address
disparities in homeownership rates between whites, African Americans, African immigrants,
and other protected groups.
new text end

new text begin Subd. 2. new text end

new text begin Affordable homeownership priorities. new text end

new text begin The affordable homeownership
incentive account priorities are:
new text end

new text begin (1) increasing affordable homeownership options in areas that are predominantly
single-family and have higher sale prices;
new text end

new text begin (2) increasing affordable homeownership opportunities focused on servicing African
Americans, African immigrants, and other protected groups that own homes in
disproportionately lower rates than white households;
new text end

new text begin (3) leveraging municipal revenues deposited with financial institutions to influence credit
in a useful form to increase affordable homeownership opportunities focused on serving
African Americans, African immigrants, and other protected groups that own homes at
disproportionately lower rates than white households;
new text end

new text begin (4) leveraging municipal purchase of insurance to influence insurance access in a useful
form to increase affordable homeownership opportunities focused on serving African
Americans, African immigrants, and other protected groups that own homes at
disproportionately lower rates than white households; and
new text end

new text begin (5) leveraging municipality enforcement of equal opportunity and affirmative action
laws under chapters 363A and 473 to increase employment opportunities for protected
groups and minority business enterprises in the development of affordable homeownership
opportunities focused on serving African Americans, African immigrants, and other protected
groups that own homes at disproportionately lower rates than white households.
new text end

new text begin Subd. 3. new text end

new text begin Affordable homeownership eligibility. new text end

new text begin The council, in collaboration with
members of protected groups, shall establish eligibility and homeownership scoring criteria.
new text end

new text begin Subd. 4. new text end

new text begin Report to legislature. new text end

new text begin On or before January 31, 2023, and every January 31
of each year, the council shall submit a report as required under section 3.195 that details
the grants awarded under this section to the chairs and ranking minority members of the
legislative committees having jurisdiction over capital investment and economic development.
The report must include the following information:
new text end

new text begin (1) the total number of grants distributed;
new text end

new text begin (2) the grantees receiving the grants;
new text end

new text begin (3) the services supported by the grants; and
new text end

new text begin (4) any other information the council deems pertinent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2022.
new text end

Sec. 3. new text begin APPROPRIATION; AFFORDABLE HOMEOWNERSHIP INCENTIVE
ACCOUNT.
new text end

new text begin $40,000,000 in fiscal year 2023 is appropriated from the general fund to the Metropolitan
Council to create the affordable homeownership incentive account to address disparities in
homeownership rates between whites, African Americans, African immigrants, and other
protected groups, and to:
new text end

new text begin (1) develop a program or policy to provide for regular review of local lending practices
for fair housing issues;
new text end

new text begin (2) increase funding for homeownership down-payment assistance programs targeted
to African Americans, African immigrants, and other protected groups;
new text end

new text begin (3) fund and facilitate credit counseling and credit improvement programs targeted at
African Americans, African immigrants, and other protected groups;
new text end

new text begin (4) provide opportunities for African Americans, African immigrants, and other protected
groups on public assistance to transition to homeownership;
new text end

new text begin (5) create equal employment opportunities in housing development in the metropolitan
area;
new text end

new text begin (6) close the homeownership gap between whites and African Americans, African
immigrants, and other protected groups;
new text end

new text begin (7) provide equitable wealth creation and transfer for African Americans, African
immigrants, and other protected groups; and
new text end

new text begin (8) provide equity in homeownership for African Americans, African immigrants, and
other protected groups.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end