Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 302

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 04:31pm

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

Bill Text Versions

Engrossments
Introduction Posted on 01/11/2023
1st Engrossment Posted on 02/01/2023

Current Version - 1st Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
1.7 1.8 1.9 1.10 1.11
1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32
4.1
4.2 4.3 4.4 4.5 4.6
4.7
4.8 4.9 4.10 4.11 4.12
4.13
4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14
6.15

A bill for an act
relating to housing; adding an eligible use of housing infrastructure bonds;
prescribing the issuance of housing infrastructure bonds; amending Minnesota
Statutes 2022, sections 462A.22, subdivision 1; 462A.37, subdivisions 2, 5, by
adding subdivisions.

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

Section 1.

Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:


Subdivision 1.

Debt ceiling.

The aggregate principal amount of new text begin general obligation new text end bonds
and notes which are outstanding at any time, excluding the principal amount of any bonds
and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of
$5,000,000,000.

Sec. 2.

Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:


Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of deleted text begin clausedeleted text end new text begin clausesnew text end
(4)new text begin and (7)new text end , on terms and conditions the agency deems appropriate, made for one or more
of the following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income home buyers;

(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing;

(6) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in part,
outstanding bonds previously issued by the agency or another government unit to finance
or refinance such costs; deleted text begin and
deleted text end

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housingdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (8) to finance the costs of construction, acquisition, and rehabilitation of permanent
housing that is affordable to households with incomes at or below 50 percent of the area
median income for the applicable county or metropolitan area as published by the Department
of Housing and Urban Development, as adjusted for household size.
new text end

(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or 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.

(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to
seniors;

(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;

(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;

(4) provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and

(5) include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.

new text begin (d) new text end To the extent practicable, the agency shall balance the loans made between projects
in the metropolitan area and projects outside the metropolitan area. Of the loans made to
projects outside the metropolitan area, the agency shall, to the extent practicable, balance
the loans made between projects in counties or cities with a population of 20,000 or less,
as established by the most recent decennial census, and projects in counties or cities with
populations in excess of 20,000.

new text begin (e) Among comparable proposals for permanent housing, the agency must give preference
to projects that will provide housing that is affordable to households at or below 30 percent
of the area median income.
new text end

new text begin (f) If a loan recipient uses the loan for any of the purposes in paragraph (a) on a building
containing more than four units, the loan recipient must construct, convert, or otherwise
adapt the building to include:
new text end

new text begin (1) the greater of (i) at least one unit, or (ii) at least five percent of units that are accessible
units, as defined by section 1002 of the current State Building Code Accessibility Provisions
for Dwelling Units in Minnesota, and include at least one roll-in shower; and
new text end

new text begin (2) the greater of (i) at least one unit, or (ii) at least five percent of units that are
sensory-accessible units that include:
new text end

new text begin (A) soundproofing between shared walls for first and second floor units;
new text end

new text begin (B) no florescent lighting in units and common areas;
new text end

new text begin (C) low-fume paint;
new text end

new text begin (D) low-chemical carpet; and
new text end

new text begin (E) low-chemical carpet glue in units and common areas.
new text end

new text begin Nothing in this paragraph will relieve a project funded by the agency from meeting other
applicable accessibility requirements.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
read:


new text begin Subd. 2i. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amounts authorized in subdivisions
2 to 2h, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
read:


new text begin Subd. 2j. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amounts authorized in subdivisions
2 to 2i, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 5.

Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:


Subd. 5.

Additional appropriation.

(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 this section.

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2c remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2d remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2e remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2f remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2g remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2h remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(j) new text begin Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
bonds issued under subdivision 2i remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.
new text end

new text begin (k) Each July 15, beginning in 2025 and through 2046, if any housing infrastructure
bonds issued under subdivision 2j remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.
new text end

new text begin (l) new text end The agency may pledge to the payment of the housing infrastructure 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