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HF 1635

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 02/27/2023 04:59pm

KEY: stricken = removed, old language.
underscored = added, new language.
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Current Version - 1st Engrossment

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A bill for an act
 relating to housing; modifying the workforce and affordable homeownership
development program; creating the workforce and affordable homeownership
account in the housing development fund; appropriating money; amending
Minnesota Statutes 2022, section 462A.38.

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

Section 1.

Minnesota Statutes 2022, section 462A.38, is amended to read:


462A.38 WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
DEVELOPMENT PROGRAM.

Subdivision 1.

Establishment.

A workforce and affordable homeownership development
program is established to award homeownership development grantsnew text begin and loansnew text end to cities,
tribal governments, nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
subdivision 1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Subd. 2.

Use of funds.

(a) Grant funds new text begin and loans new text end awarded under this program may be
used for:

(1) development costs;

(2) rehabilitation;

(3) land development; and

(4) residential housing, including storm shelters and related community facilities.

(b) A project funded through deleted text begin the grantdeleted text end new text begin thisnew text end program shall serve households that meet
the income limits as provided in section 462A.33, subdivision 5, unless a project is intended
for the purpose outlined in section 462A.02, subdivision 6.

Subd. 3.

Application.

The commissioner shall develop forms and procedures for soliciting
and reviewing applications for grantsnew text begin and loansnew text end under this section. The commissioner shall
consult with interested stakeholders when developing the guidelines and procedures for the
program. In making grantsnew text begin and loansnew text end , the commissioner shall establish semiannual application
deadlines in which grantsnew text begin and loansnew text end will be authorized from all or part of the available
appropriations.

Subd. 4.

Awarding grantsnew text begin and loansnew text end .

Among comparable proposals, preference must
be given to proposals that include contributions from nonstate resources for the greatest
portion of the total development cost.

Subd. 5.

Statewide program.

The agency shall attempt to make grantsnew text begin and loansnew text end in
approximately equal amounts to applicants outside and within the metropolitan areanew text begin , as
defined under section 473.121, subdivision 2new text end .

Subd. 6.

Report.

Beginning January 15, deleted text begin 2018deleted text end new text begin 2024new text end , the commissioner must annually
submit a report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over housing and workforce development
specifying the projects that received grantsnew text begin and loansnew text end under this section and the specific
purposes for which the grantnew text begin or loannew text end funds were used.

new text begin Subd. 7. new text end

new text begin Workforce and affordable homeownership development account. new text end

new text begin A
workforce and affordable homeownership development account is established in the housing
development fund. Money in the account, including interest, is appropriated to the
commissioner of the Housing Finance Agency for the purposes of this section. The amount
appropriated under this section must supplement traditional sources of funding for this
purpose and must not be used as a substitute for traditional sources of funding or to pay
debt service on bonds.
 new text end

new text begin Subd. 8. new text end

new text begin Deposits; funding amount. new text end

new text begin (a) In fiscal years 2024 to 2034, an amount equal
to $15,000,000 of the state's portion of the proceeds derived from the mortgage registry tax
imposed under section 287.035 and the deed tax imposed under section 287.21 is appropriated
from the general fund to the commissioner of the Housing Finance Agency to transfer to
the housing development fund for deposit into the workforce and affordable homeownership
development account. The appropriation must be made annually by September 15.
 new text end

new text begin (b) All loan repayments received under this section are to be deposited into the workforce
and affordable homeownership development account in the housing development fund.
 new text end

new text begin (c) This subdivision expires September 16, 2033.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
 new text end