HF 564

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to housing; establishing a pilot program to 
  1.3             improve neighborhoods by providing deferred 
  1.4             low-interest loans; appropriating money. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [DEFERRED HOME IMPROVEMENT LOAN PILOT PROJECT.] 
  1.7      Subdivision 1.  [PILOT PROJECT ESTABLISHED.] (a) The 
  1.8   housing finance agency shall establish a pilot project to 
  1.9   stabilize and improve neighborhoods by encouraging owners of 
  1.10  deteriorating properties to make exterior housing improvements. 
  1.11     (b) The agency shall work with and assist local units of 
  1.12  government to: 
  1.13     (1) identify and target single-family homes that violate 
  1.14  the housing maintenance code of the local unit of government in 
  1.15  which the home is located; 
  1.16     (2) provide homeowners a deferred low-interest loan to 
  1.17  finance exterior improvements; and 
  1.18     (3) take enforcement action against homeowners who fail to 
  1.19  remedy code violations. 
  1.20     Subd. 2.  [PILOT SCOPE.] (a) The pilot shall operate in 
  1.21  urban and rural neighborhoods and inner ring suburbs, as defined 
  1.22  by the metropolitan council, to improve a minimum of 153 
  1.23  properties over the fiscal biennium. 
  1.24     (b) Loans under this section may be applied toward exterior 
  1.25  improvements such as tree or stump removal; exterior painting; 
  2.1   garage repair; and the repair or replacement of roofs, windows, 
  2.2   siding, private sidewalks, and steps. 
  2.3      Subd. 3.  [LOANS.] (a) The agency shall establish a 
  2.4   revolving loan fund for each community that participates in the 
  2.5   pilot program. 
  2.6      (b) Loan interest must be deferred for 15 years.  After 
  2.7   that, loans shall bear simple interest at a rate not exceeding 
  2.8   five percent per annum.  Local units of government shall 
  2.9   determine the interest rate on loans. 
  2.10     (c) If the property is sold before the loan has been 
  2.11  repaid, the balance of the loan, together with interest that has 
  2.12  accrued, if any, is due at the time of sale. 
  2.13     (d) The maximum loan that can be awarded under this pilot 
  2.14  program is $10,000.  If improvement costs are greater than the 
  2.15  maximum, the homeowner is responsible for the excess. 
  2.16     Subd. 4.  [INCOME LIMITS; LOAN AMOUNT.] If household income 
  2.17  is: 
  2.18     (1) greater than 115 percent of the area median income, the 
  2.19  homeowner must pay 50 percent of the cost of the improvement, 
  2.20  with the remaining balance to be paid with a loan under this 
  2.21  section; 
  2.22     (2) equal to or less than 115 percent of the area median 
  2.23  income, the homeowner must pay 25 percent of the cost of the 
  2.24  improvement, with the remaining balance to be paid with a loan 
  2.25  under this section; and 
  2.26     (3) equal to or less than 80 percent of the area median 
  2.27  income, the entire cost of the improvement may be paid with a 
  2.28  loan under this section. 
  2.29     Sec. 2.  [APPROPRIATION.] 
  2.30     $1,500,000 is appropriated from the general fund to the 
  2.31  housing development fund for purposes of section 1.  This 
  2.32  appropriation is available until June 30, 2003.