HF 3346

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to housing; providing assistance to prevent mortgage foreclosure;
increasing the maximum amount of financial assistance; amending Minnesota
Statutes 2006, section 462A.209, subdivision 7.

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

Section 1.

Minnesota Statutes 2006, section 462A.209, subdivision 7, is amended to
read:

Subd. 7.

Assistance to prevent mortgage foreclosures.

(a) Program assistance
and counseling to prevent mortgage foreclosures or cancellations of contract for deeds
includes general information, screening, assessment, referral services, case management,
advocacy, and financial assistance to borrowers who are delinquent on mortgage or
contract for deed payments.

(b) Not more than one-half of funds awarded for foreclosure prevention and
assistance activities may be used for mortgage or financial counseling services.

(c) Financial assistance consists of payments for delinquent mortgage or contract
for deed payments, future mortgage or contract for deed payments for a period of up to
six months, property taxes, assessments, utilities, insurance, home improvement repairs,
future rent payments for a period of up to six months, and relocation costs if necessary, or
other costs necessary to prevent foreclosure.

(d) deleted text begin An individual or family may receive a maximum of $5,500 of financial assistance deleted text end
new text begin The maximum amount of financial assistance an individual or family may receive new text end to
prevent a mortgage foreclosure or the cancellation of a contract for deed new text begin is 110 percent of
the greater of state or applicable metropolitan statistical area median monthly owner cost
of owner-occupied housing, as estimated by the United States Census Bureau using data
collected in the most recent American Community Survey, multiplied by six new text end .

(e) The agency may require the recipient of financial assistance to enter into an
agreement with the agency for repayment. The repayment agreement for mortgages or
contract for deed buyers must provide that in the event the property is sold, transferred,
or otherwise conveyed, or ceases to be the recipient's principal place of residence, the
recipient shall repay all or a portion of the financial assistance. The agency may take into
consideration financial hardship in determining repayment requirements. The repayment
agreement may be secured by a lien on the property for the benefit of the agency.

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end