HF 4271

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/18/2024 04:30pm

A bill for an act
relating to housing; authorizing housing and redevelopment authorities to create
public corporations for the purpose of purchasing, owning, and operating properties
converted under the federal Rental Assistance Demonstration program; amending
Minnesota Statutes 2022, sections 15.082; 469.012, subdivision 2j; proposing
coding for new law in Minnesota Statutes, chapter 469.

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

Section 1.

Minnesota Statutes 2022, section 15.082, is amended to read:

15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.

Notwithstanding any other law, the state is not liable for obligations of a public
corporation created by statute. Upon dissolution of the public corporation, its wholly owned
assets become state property. Partially owned assets become state property to the extent
that state money was used to acquire them.

This section does not apply to a public corporation governed by chapter 119 new text begin or section
469.0121 new text end .

Sec. 2.

Minnesota Statutes 2022, section 469.012, subdivision 2j, is amended to read:

Subd. 2j.

May be in LLP, LLC, or corporation; bound as if HRA.

new text begin (a) new text end An authority
may become a member or shareholder in and enter into or form limited partnerships, limited
liability companies, or corporations for the purpose of developing, constructing, rehabilitating,
managing, supporting, or preserving housing projects and housing development projects,
including low-income housing tax credit projects. These limited partnerships, limited liability
companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
and other laws that apply to housing and redevelopment authorities, as if the limited
partnership, limited liability company, or corporation were a housing and redevelopment
authority.

new text begin (b) An authority may create a public corporation in accordance with section 469.0121
for the purpose of purchasing, owning, and operating real property converted through the
federal Rental Assistance Demonstration program under Public Law 112-55, as amended.
new text end

Sec. 3.

new text begin [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE
DEMONSTRATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Authority" has the meaning given under section 469.002, subdivision 2.
new text end

new text begin (c) "Board" means the board of directors of a corporation created under this section.
new text end

new text begin (d) "Corporation" means a public corporation created under this section.
new text end

new text begin (e) "RAD" means the federal Rental Assistance Demonstration program under Public
Law 112-55, as amended.
new text end

new text begin Subd. 2. new text end

new text begin Public corporation created. new text end

new text begin An authority may create a public corporation to
purchase, own, and operate real property that has been converted through RAD to preserve
and improve public housing properties.
new text end

new text begin Subd. 3. new text end

new text begin Corporation powers. new text end

new text begin (a) The corporation has the following general powers:
new text end

new text begin (1) to have succession until dissolved by law;
new text end

new text begin (2) to sue and be sued in its corporate name;
new text end

new text begin (3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
new text end

new text begin (4) to accept, hold, and administer gifts and bequests of money, securities, or other
personal property of whatsoever character, absolutely or in trust, for the purposes for which
the corporation is created. Unless otherwise restricted by the terms of the gift or bequest,
the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or
reinvest in such investments as it may determine from time to time the money, securities,
or other property given or bequeathed to it. The principal of such corporate funds and the
income therefrom, and all other revenues received by it from any source whatsoever shall
be placed in such depositories as the board of directors shall determine and shall be subject
to expenditure for corporate purposes;
new text end

new text begin (5) to enter into contracts generally and to execute all instruments necessary or appropriate
to carry out its corporate purposes;
new text end

new text begin (6) to appoint and prescribe the duties of officers, agents, and employees as may be
necessary to carry out its work and to compensate them;
new text end

new text begin (7) to purchase all supplies and materials necessary for carrying out its purposes;
new text end

new text begin (8) to accept from the United States or the state of Minnesota, or any of their agencies,
moneys or other assistance whether by gift, loan, or otherwise to carry out its corporate
purposes, and to enter into such contracts with the United States or the state of Minnesota,
or any of the agencies of either, or with any of the political subdivisions of the state, as it
may deem proper and consistent with the purposes of this section; and
new text end

new text begin (9) to contract and make cooperative agreements with federal, state, and municipal
departments and agencies and private corporations, associations, and individuals for the use
of the corporation property, including but not limited to rental agreements.
new text end

new text begin (b) A corporation may acquire properties converted under RAD, subject to restrictions
and conditions compatible with funding acquisitions of and improvements to real property
with state general obligation bond proceeds. The commissioner of management and budget
must determine the necessary restrictions and conditions under this paragraph.
new text end

new text begin Subd. 4. new text end

new text begin Board of directors. new text end

new text begin (a) A corporation is governed by a board of directors as
follows:
new text end

new text begin (1) a member of the city council from the city in which the corporation is incorporated;
new text end

new text begin (2) a commissioner of the authority that created the corporation; and
new text end

new text begin (3) the commissioner of the Minnesota Housing Finance Agency or the commissioner's
delegate.
new text end

new text begin (b) The term of a director is six years. Two members of the initial board of directors
must be appointed for terms of four years, and one for a term of two years.
new text end

new text begin (c) Vacancies on the board must be filled by the authority.
new text end

new text begin (d) Board members must not be compensated for their service as board members other
than to be reimbursed for reasonable expenses incurred in connection with their duties as
board members. Reimbursement shall be reviewed each year by the state auditor.
new text end

new text begin (e) The board must annually elect from among its members a chair and other officers
necessary for the performance of its duties.
new text end

new text begin Subd. 5. new text end

new text begin Bylaws. new text end

new text begin The board of directors must adopt bylaws and rules as it deems
necessary for the administration of its functions and the accomplishment of its purpose,
including among other matters the establishment of a business office and the rules, the use
of the project-based rental assistance properties, and the administration of corporation funds.
new text end

new text begin Subd. 6. new text end

new text begin Place of business. new text end

new text begin The board must locate and maintain the corporation's place
of business in the city in which the authority that created the corporation is located.
new text end

new text begin Subd. 7. new text end

new text begin Open meetings; data practices. new text end

new text begin Meetings of the board are subject to chapter
13D and meetings of the board conducted by interactive technology are subject to section
13D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act,
and shall protect from unlawful disclosure data classified as not public.
new text end

new text begin Subd. 8. new text end

new text begin Compliance. new text end

new text begin The corporation must comply with all federal, state, and local
laws, rules, ordinances, and other regulations required to own and operate properties as
project-based rental assistance properties.
new text end

new text begin Subd. 9. new text end

new text begin Dissolution. new text end

new text begin Upon dissolution of the corporation for any reason, its wholly
owned assets become property of the authority that created the corporation.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2024.
new text end