HF 1928

as introduced - 90th Legislature (2017 - 2018) Posted on 03/02/2017 12:53pm

A bill for an act
relating to the Metropolitan Council; repealing the Livable Communities Act and
transferring its funding sources to council bus operations; making conforming
changes; amending Minnesota Statutes 2016, sections 116J.554, subdivision 1;
473.253, subdivision 1; 473F.08, subdivision 3b; proposing coding for new law
in Minnesota Statutes, chapter 473; repealing Minnesota Statutes 2016, sections
116J.554, subdivision 1a; 473.25; 473.251; 473.252; 473.253, subdivision 2;
473.254; 473.255; 473.3875.

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

Section 1.

Minnesota Statutes 2016, section 116J.554, subdivision 1, is amended to read:

Subdivision 1.

Authority.

(a) The commissioner may make a grant to an applicant
development authority to pay for up to 75 percent of the project costs for a qualifying site.

(b) The commissioner may also make a grant to an applicant development authority to
pay up to 75 percent or $50,000, whichever is less, toward the cost of performing contaminant
investigations and the development of a response action plan for a qualifying site.

(c) The commissioner may also make a grant to an applicant to fill a site that would
represent more than 50 percent of the remaining land in a city suitable for industrial
development if it were properly filled.

(d) The determination of whether to make a grant for a qualifying site is within the sole
discretion of the commissioner, subject to the process provided by this section, and available
unencumbered money in the appropriation. The commissioner's decisions and application
of the priorities under section 116J.555 are not subject to judicial review, except for abuse
of discretion.

(e) The total amount of money provided in grants under paragraph (b) may not exceed
$500,000 per fiscal year.

(f) In making grants under paragraph (b), the commissioner shall give priority to
applicants that have not received a grant under paragraph (a) deleted text begin or section 473.252 deleted text end during the
year ending on the date of application.

Sec. 2.

Minnesota Statutes 2016, section 473.253, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Sources of funds deleted text end new text begin Additional levy for transit operations new text end .

The council
shall deleted text begin credit to the livable communities demonstration account deleted text end new text begin use new text end the revenues provided in
this subdivision new text begin for council transit operations, excluding light rail transit and commuter rail
transit operations new text end . new text begin Each year, the council must allocate $3,000,000 of the revenues provided
for in this subdivision to the replacement service program under section 473.388. new text end This tax
shall be levied and collected in the manner provided by section 473.13. The levy shall not
exceed the following amount for the years specified:

(1) for taxes payable in 2004 and 2005, $8,259,070; and

(2) for taxes payable in 2006 and subsequent years, the product of (i) the property tax
levy limit under this subdivision for the previous year multiplied by (ii) one plus a percentage
equal to the growth in the implicit price deflator as defined in section 275.70, subdivision
2.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective for taxes payable in
2018 and thereafter, and applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
new text end

Sec. 3.

new text begin [473.4455] COUNCIL TRANSIT OPERATIONS LEVIES.
new text end

new text begin In addition to the levies for council transit operations in sections 473.253, subdivision
1, and 473F.08, subdivision 3b, $1,000,000 of the proceeds of the levy imposed under
section 473.249 each year shall be used by the council for the council's transit operations,
excluding light rail transit and commuter rail operations.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective for taxes payable in
2018 and thereafter, and applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
new text end

Sec. 4.

Minnesota Statutes 2016, section 473F.08, subdivision 3b, is amended to read:

Subd. 3b.

deleted text begin Livable communities fund deleted text end new text begin Metropolitan Council bus operations new text end .

(a) The
Hennepin County auditor shall certify the city of Bloomington's interest payments for 1987
for the bonds which were sold for highway improvements pursuant to Laws 1986, chapter
391, section 2, paragraph (g), and which were certified as an addition to the city of
Bloomington's areawide levy for taxes payable in 1988.

(b) For taxes payable in 1996 through taxes payable in 1999, the Hennepin County
auditor shall certify the amount calculated by subtracting the amount certified under
subdivision 3a from the amount in paragraph (a). For taxes payable in 2000 and subsequent
years, the Hennepin County auditor shall certify the amount calculated in paragraph (a).

(c) The Metropolitan Council may annually certify to the Ramsey County auditor the
amount calculated under paragraph (b), or a lesser amount, but not to exceed $5,000,000,
to be used to provide funds for deleted text begin the cleanup of polluted lands deleted text end new text begin the council's transit operations,
excluding light rail transit and commuter rail operations, new text end in the metropolitan area.

(d) The amount certified under paragraph (c) shall be certified annually by the Ramsey
County auditor to the administrative auditor as an addition to the Metropolitan Council's
areawide levy under subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2018 and thereafter.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 116J.554, subdivision 1a; 473.25; 473.251; 473.252;
473.253, subdivision 2; 473.254; 473.255; and 473.3875, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective December 31, 2017,
and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-3744

116J.554 GRANTS.

Subd. 1a.

Metropolitan livable communities.

The commissioner may not make a grant to a municipality in the metropolitan area unless it is participating in the local housing incentives program under section 473.254.

473.25 LIVABLE COMMUNITIES CRITERIA AND GUIDELINES.

(a) The council shall establish criteria for uses of the fund provided in section 473.251 that are consistent with and promote the purposes of this article and the policies of the Metropolitan Development Guide adopted by the council including, but not limited to:

(1) helping to change long-term market incentives that adversely impact creation and preservation of living-wage jobs in the fully developed area;

(2) creating incentives for developing communities to include a full range of housing opportunities;

(3) creating incentives to preserve and rehabilitate affordable housing in the fully developed area; and

(4) creating incentives for all communities to implement compact and efficient development.

(b) The council shall establish guidelines for the livable community demonstration account for projects that the council would consider funding with either grants or loans. The guidelines must provide that the projects will:

(1) interrelate development or redevelopment and transit;

(2) interrelate affordable housing and employment growth areas;

(3) intensify land use that leads to more compact development or redevelopment;

(4) involve development or redevelopment that mixes incomes of residents in housing, including introducing or reintroducing higher value housing in lower income areas to achieve a mix of housing opportunities; or

(5) encourage public infrastructure investments which connect urban neighborhoods and suburban communities, attract private sector redevelopment investment in commercial and residential properties adjacent to the public improvement, and provide project area residents with expanded opportunities for private sector employment.

(c) The council shall establish guidelines governing who may apply for a grant or loan from the fund, providing priority for proposals using innovative partnerships between government, private for-profit, and nonprofit sectors.

(d) The council shall prepare an annual plan for distribution of the fund based on the criteria for project and applicant selection.

(e) The council shall prepare and submit to the legislature, as provided in section 3.195, an annual report on the metropolitan livable communities fund. The report must include information on the amount of money in the fund, the amount distributed, to whom the funds were distributed and for what purposes, and an evaluation of the effectiveness of the projects funded in meeting the policies and goals of the council. The report may make recommendations to the legislature on changes to Laws 1995, chapter 255.

473.251 METROPOLITAN LIVABLE COMMUNITIES FUND.

The metropolitan livable communities fund is created and consists of the following accounts:

(1) the tax base revitalization account;

(2) the livable communities demonstration account;

(3) the local housing incentives account; and

(4) the inclusionary housing account.

473.252 TAX BASE REVITALIZATION ACCOUNT.

Subdivision 1.

Definition.

For the purpose of this section, "municipality" means a statutory or home rule charter city or town participating in the local housing incentives program under section 473.254, or a county in the metropolitan area.

Subd. 1a.

Development authority.

For the purpose of this section, "development authority" means a statutory or home rule charter city, housing and redevelopment authority, economic development authority, and a port authority.

Subd. 2.

Sources of funds.

The council shall credit to the tax base revitalization account within the fund the amount, if any, distributed to the council under section 473F.08, subdivision 3b.

Subd. 3.

Distribution of funds.

(a) The council must use the funds in the account to make grants to municipalities or development authorities for the cleanup of polluted land in the metropolitan area. A grant to a metropolitan county or a development authority must be used for a project in a participating municipality. The council shall prescribe and provide the grant application form to municipalities. The council must consider the probability of funding from other sources when making grants under this section.

(b)(1) The legislature expects that applications for grants will exceed the available funds and the council will be able to provide grants to only some of the applicant municipalities. If applications for grants for qualified sites exceed the available funds, the council shall make grants that provide the highest return in public benefits for the public costs incurred, that encourage development that will lead to the preservation or growth of living-wage jobs or the production of affordable housing, and that enhance the tax base of the recipient municipality.

(2) In making grants, the council shall establish regular application deadlines in which grants will be awarded from the available money in the account. If the council provides for application cycles of less than six-month intervals, the council must reserve at least 40 percent of the receipts of the account for a year for application deadlines that occur in the second half of the year. If the applications for grants exceed the available funds for an application cycle, no more than one-half of the funds may be granted to projects in a statutory or home rule charter city and no more than three-quarters of the funds may be granted to projects located in cities of the first class.

(c) A municipality may use the grant to provide a portion of the local match requirement for project costs that qualify for a grant under sections 116J.551 to 116J.557.

473.253 LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT.

Subd. 2.

Distribution of funds.

The council shall use the funds in the livable communities demonstration account to make grants or loans to municipalities participating in the local housing incentives program under section 473.254 or to metropolitan area counties or development authorities to fund the initiatives specified in section 473.25, paragraph (b), in participating municipalities. A grant to a metropolitan county or a development authority must be used for a project in a participating municipality. For the purpose of this section, "development authority" means a statutory or home rule charter city, housing and redevelopment authority, economic development authority, or port authority.

473.254 LOCAL HOUSING INCENTIVES ACCOUNT.

Subdivision 1.

Participation.

(a) A municipality may elect to participate in the local housing incentive account program. If the election to participate occurs by November 15 of any year, it is effective commencing the next calendar year; otherwise it is effective commencing the next succeeding calendar year. An election to participate in the program is effective until revoked according to paragraph (b). A municipality is subject to this section only in those calendar years for which its election to participate in the program is effective. For purposes of this section, municipality means a municipality electing to participate in the local housing incentive account program for the calendar year in question, unless the context indicates otherwise.

(b) A municipality may revoke its election to participate in the local housing incentive account program. If the revocation occurs by November 15 of any year, it is effective commencing the next calendar year; otherwise it is effective commencing the next succeeding calendar year. After revoking its election to participate in the program, a municipality may again elect to participate in the program according to paragraph (a).

(c) A municipality that elects to participate may receive grants or loans from the tax base revitalization account, livable communities demonstration account, or the local housing incentive account. A municipality that does not participate is not eligible to receive a grant under sections 116J.551 to 116J.557. The council, when making discretionary funding decisions, shall give consideration to a municipality's participation in the local housing incentives program.

Subd. 2.

Affordable, life-cycle goals.

The council shall negotiate with each municipality to establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide. The council shall adopt, by resolution after a public hearing, the negotiated affordable and life-cycle housing goals for each municipality by January 15, 1996, and by January 15 in each succeeding year for each municipality newly electing to participate in the program or for each municipality with which new housing goals have been negotiated. By June 30, 1996, and by June 30 in each succeeding year for each municipality newly electing to participate in the program or for each municipality with which new housing goals have been negotiated, each municipality shall identify to the council the actions it plans to take to meet the established housing goals.

Subd. 3a.

Affordable, life-cycle housing opportunities amount.

(a) Each municipality's "affordable and life-cycle housing opportunities amount" for that year must be determined annually by the council using the method in this subdivision. The affordable and life-cycle housing opportunities amount must be determined for each calendar year for all municipalities in the metropolitan area.

(b) The council must allocate to each municipality its portion of the $1,000,000 of the revenue generated by the levy authorized in section 473.249 which is credited to the local housing incentives account pursuant to subdivision 5, paragraph (b). The allocation must be made by determining the amount levied for and payable in each municipality in the previous calendar year pursuant to the council levy in section 473.249 divided by the total amount levied for and payable in the metropolitan area in the previous calendar year pursuant to such levy and multiplying that result by $1,000,000.

(c) The council must also determine the amount levied for and payable in each municipality in the previous calendar year pursuant to the council levy in section 473.253, subdivision 1.

(d) A municipality's affordable and life-cycle housing opportunities amount for the calendar year is the sum of the amounts determined under paragraphs (b) and (c).

(e) By August 1 of each year, the council must notify each municipality of its affordable and life-cycle housing opportunities amount for the following calendar year determined by the method in this subdivision.

Subd. 4.

Affordable and life-cycle housing requirement.

(a) A municipality that does not spend 85 percent of its affordable and life-cycle housing opportunities amount to create affordable and life-cycle housing opportunities in the previous calendar year must do one of the following with the affordable and life-cycle housing opportunities amount for the previous year as determined under subdivision 3a:

(1) distribute it to the local housing incentives account; or

(2) distribute it to the housing and redevelopment authority of the city or county in which the municipality is located to create affordable and life-cycle housing opportunities in the municipality.

(b) A municipality may enter into agreements with adjacent municipalities to cooperatively provide affordable and life-cycle housing. The housing may be provided in any of the cooperating municipalities, but must meet the combined housing goals of each participating municipality.

Subd. 5.

Sources of funds.

(a) The council shall credit to the local housing incentives account any revenues derived from municipalities under subdivision 4, paragraph (a), clause (1).

(b) The council shall annually credit $1,000,000 of the revenues generated by the levy authorized in section 473.249 to the local housing incentives account.

(c) The council shall annually transfer $500,000 from the livable communities demonstration account to the local housing incentives account.

Subd. 6.

Distribution of funds.

The funds in the account must be distributed annually by the council to municipalities that:

(1) have not met their affordable and life-cycle housing goals as determined by the council; and

(2) are actively funding projects designed to help meet the goals.

Funds may also be distributed to a development authority for a project in an eligible municipality. The funds distributed by the council must be matched on a dollar-for-dollar basis by the municipality or development authority receiving the funds. When distributing funds in the account, the council must give priority to projects that (1) are in municipalities that have contribution net tax capacities that exceed their distribution net tax capacities by more than $200 per household, (2) demonstrate the proposed project will link employment opportunities with affordable and life-cycle housing, and (3) provide matching funds from a source other than the required affordable and life-cycle housing opportunities amount under subdivision 3 or 3a, as applicable. For the purposes of this subdivision, "municipality" means a statutory or home rule charter city or town in the metropolitan area and "development authority" means a housing and redevelopment authority, economic development authority, or port authority.

Subd. 7.

Report to council.

By July 1, 2004, and by July 1 in each succeeding year, each municipality must certify to the council whether or not it has spent 85 percent of its affordable and life-cycle housing opportunities amount, as determined under subdivision 3a, in the previous calendar year to create affordable and life-cycle housing opportunities. The council may verify each municipality's certification.

Subd. 8.

Later election to participate.

If a municipality did not participate for one or more years and elects later to participate, the municipality must, with respect to its affordable and life-cycle housing opportunities amount for the calendar year preceding the participating calendar year:

(1) establish that it spent such amount on affordable and life-cycle housing during that preceding calendar year; or

(2) agree to spend such amount from the preceding calendar year on affordable and life-cycle housing in the participating calendar year, in addition to its affordable and life-cycle housing opportunities amount for the participating calendar year; or

(3) distribute such amount to the local housing incentives account.

The council will determine which investments count toward the required affordable and life-cycle housing opportunities amount by comparing the municipality to participating municipalities similar in terms of stage of development and demographics. If it determines it to be in the best interests of the region, the council may waive a reasonable portion of the amount.

Subd. 9.

Report to legislature.

By February 1 of each year, the council must report to the legislature the municipalities that have elected to participate and not to participate under subdivision 1. This report must be filed as provided in section 3.195.

Subd. 10.

Metro report card.

The Metropolitan Council shall present to the legislature and release to the public by November 15, 1996, and each year thereafter a comprehensive report card on affordable and life-cycle housing in each municipality in the metropolitan area. The report card must include information on government, nonprofit, and marketplace efforts.

473.255 INCLUSIONARY HOUSING ACCOUNT.

Subdivision 1.

Definitions.

(a) "Inclusionary housing development" means a new construction development, including owner-occupied or rental housing, or a combination of both, with a variety of prices and designs which serve families with a range of incomes and housing needs.

(b) "Municipality" means a statutory or home rule charter city or town participating in the local housing incentives program under section 473.254.

(c) "Development authority" means a housing and redevelopment authority, economic development authority, or port authority.

Subd. 2.

Application criteria.

The Metropolitan Council must give preference to economically viable proposals to the degree that they: (1) use innovative building techniques or materials to lower construction costs while maintaining high quality construction and livability; (2) are located in communities that have demonstrated a willingness to waive local restrictions which otherwise would increase costs of construction; and (3) include units affordable to households with incomes at or below 80 percent of area median income.

Priority shall be given to proposals where at least 15 percent of the owner-occupied units are affordable to households at or below 60 percent of the area annual median income and at least ten percent of the rental units are affordable to households at or below 30 percent of area annual median income.

An inclusionary housing development may include resale limitations on its affordable units. The limitations may include a minimum ownership period before a purchaser may profit on the sale of an affordable unit.

Cost savings from regulatory incentives must be reflected in the sale of all residences in an inclusionary development.

Subd. 3.

Inclusionary housing incentives.

The Metropolitan Council may work with municipalities and developers to provide incentives to inclusionary housing developments such as waiver of service availability charges and other regulatory incentives that would result in identifiable cost avoidance or reductions for an inclusionary housing development.

Subd. 4.

Inclusionary housing grants.

The council shall use funds in the inclusionary housing account to make grants or loans to municipalities or development authorities to fund the production of inclusionary housing developments that are located in municipalities that offer incentives to assist in the production of inclusionary housing. Such incentives include but are not limited to: density bonuses, reduced setbacks and parking requirements, decreased road widths, flexibility in site development standards and zoning code requirements, waiver of permit or impact fees, fast-track permitting and approvals, or any other regulatory incentives that would result in identifiable cost avoidance or reductions that contribute to the economic feasibility of inclusionary housing.

Subd. 5.

Grant application.

A grant application must at a minimum include the location of the inclusionary development, the type of housing to be produced, the number of affordable units to be produced, the monthly rent, or purchase price of the affordable units, and the incentives provided by the municipality to achieve development of the affordable units.

473.3875 TRANSIT FOR LIVABLE COMMUNITIES.

The council shall establish a transit for livable communities demonstration program fund. The council shall adopt guidelines for selecting and evaluating demonstration projects for funding. The selection guidelines must include provisions evaluating projects:

(1) interrelating development or redevelopment and transit;

(2) interrelating affordable housing and employment growth areas;

(3) helping intensify land use that leads to more compact development or redevelopment;

(4) coordinating school transportation and public transit service;

(5) implementing recommendations of the transit redesign plan; or

(6) otherwise promoting the goals of the Metropolitan Livable Communities Act.