HF 2767

as introduced - 91st Legislature (2019 - 2020) Posted on 04/01/2019 02:53pm

A bill for an act
relating to housing; capital investment; adding the use of housing infrastructure
bonds for housing stabilization projects; authorizing the sale and issuance of
housing infrastructure bonds; appropriating money; amending Minnesota Statutes
2018, section 462A.37, subdivisions 1, 2, 5, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 462A.37, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

(d) "Debt service" means the amount payable in any fiscal year of principal, premium,
if any, and interest on housing infrastructure bonds and the fees, charges, and expenses
related to the bonds.

(e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.

(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter
that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the Internal
Revenue Code, finance qualified residential rental projects within the meaning of Section
142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private activity
bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the purpose
of financing or refinancing affordable housing new text begin or housing stabilization projects new text end authorized
under this chapter.

(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

(h) "Senior" means a person 55 years of age or older with an annual income not greater
than 50 percent of:

(1) the metropolitan area median income for persons in the metropolitan area; or

(2) the statewide median income for persons outside the metropolitan area.

(i) "Senior housing" means housing intended and operated for occupancy by at least one
senior per unit with at least 80 percent of the units occupied by at least one senior per unit,
and for which there is publication of, and adherence to, policies and procedures that
demonstrate an intent by the owner or manager to provide housing for seniors. Senior
housing may be developed in conjunction with and as a distinct portion of mixed-income
senior housing developments that use a variety of public or private financing sources.

(j) "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.

new text begin (k) "Housing stabilization" means providing shelter, including emergency shelter,
transitional housing, and other means to provide safe, decent, and affordable lodging that
is not permanent housing, for individuals and families without a permanent residence,
including those who are unsheltered or being released from institutions such as hospitals.
Housing stabilization must provide opportunity for rest and respite and service supports
such as outreach, housing and vulnerability assessments, housing placement, social and
other services specifically designed to assist individuals and families to obtain permanent
housing.
new text end

Sec. 2.

Minnesota Statutes 2018, 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 clause (4), 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 homebuyers;

(4) to finance that portion of the improvement and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b, that is attributable to land to be leased to
low- and moderate-income manufactured home owners;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing; deleted text begin and
deleted text end

(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 . deleted text end new text begin ; and
new text end

new text begin (7) to finance the construction, acquisition, and rehabilitation of property and facilities
for housing stabilization.
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) Among comparable proposals for housing stabilization, preference shall be given to
housing stabilization projects that:
new text end

new text begin (1) provide housing stabilization for veterans and other individuals or families who are
or would otherwise be unsheltered, specifically including those who are or have been resistant
to using existing emergency shelters or other alternatives to being unsheltered due to their
circumstances and preferences; or
new text end

new text begin (2)(i) preserve, expand, or enhance existing housing stabilization in conjunction with
or proximate to permanent supportive housing options, including options for youth, young
adults, veterans, single adults, and families; and
new text end

new text begin (ii) are on sites designed and constructed or rehabilitated to enhance the opportunity to
be converted to permanent supportive housing or affordable housing.
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.

Sec. 3.

Minnesota Statutes 2018, section 462A.37, is amended by adding a subdivision to
read:

new text begin Subd. 2f. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2e, the agency may issue up to $120,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged. Up to $30,000,000
of this authorization and any remaining eligible authorization under subdivision 2, 2a, 2b,
2c, or 2e, may be used for housing stabilization.
new text end

Sec. 4.

Minnesota Statutes 2018, 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 subdivisions 2a deleted text begin , 2b, 2c, 2d, and 2e deleted text end new text begin to 2f new text end .

(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.

new text begin (g) Each July 15, beginning in 2021 and through 2042, 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.
new text end

deleted text begin (g) deleted text end new text begin (h) 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.