SF 2178

as introduced - 91st Legislature (2019 - 2020) Posted on 03/08/2019 08:55am

A bill for an act
relating to housing; modifying requirement for economic and housing challenge
grants; amending Minnesota Statutes 2018, section 462A.33, subdivision 1, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:

Subdivision 1.

Created.

The economic development and housing challenge program is
created to be administered by the agency. new text begin Notwithstanding section 462A.24, this section
shall be construed based on the specific language within this section and within an
appropriation pursuant to this section.
new text end

(a) The program shall provide grants or loans for the purpose of construction, acquisition,
rehabilitation, demolition or removal of existing structures, construction financing, permanent
financing, interest rate reduction, refinancing, and gap financing of housing to support
economic development and redevelopment activities or job creation or job preservation
within a community or region by meeting locally identified housing needs.

Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(b) Preference for grants and loans shall be given to comparable proposals that include
regulatory changes or waivers that result in identifiable cost avoidance or cost reductions,
such as increased density, flexibility in site development standards, or zoning code
requirements. Preference must also be given among comparable proposals to proposals for
projects that are accessible to transportation systems, jobs, schools, and other services.

(c) If a grant or loan is used for demolition or removal of existing structures, the cleared
land must be used for the construction of housing to be owned or rented by persons who
meet the income limits of this section or for other housing-related purposes that primarily
benefit the persons residing in the adjacent housing. In making selections for grants or loans
for projects that demolish affordable housing units, the agency must review the potential
displacement of residents and consider the extent to which displacement of residents is
minimized.

Sec. 2.

Minnesota Statutes 2018, section 462A.33, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the meanings
given them:
new text end

new text begin (1) "locally identified housing needs" means housing for the area workforce supported
by the local municipality, housing redevelopment authority, economic development authority,
or other political subdivision responsible for housing; and
new text end

new text begin (2) "workforce" means people working at least 30 hours per week or enrolled full time
in an accredited postsecondary school.
new text end