HF 4278

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/26/2024 02:21pm

A bill for an act
relating to housing; providing funding for The Heights housing development in
the city of St. Paul from the housing infrastructure program; requiring a report;
proposing coding for new law in Minnesota Statutes, chapter 462A.

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

Section 1.

new text begin [462A.376] THE HEIGHTS HOUSING DEVELOPMENT IN THE CITY
OF ST. PAUL; HOUSING INFRASTRUCTURE PROGRAM FUNDING.
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) "Affordable and workforce apartment homes" means 899 multifamily,
multigenerational rental apartment homes planned for The Heights, including deeply
affordable homes for the local workforce, for families, and for seniors, as set forth in the
development agreement.
new text end

new text begin (c) "Area median income" means the median income for the Minneapolis-St.
Paul-Bloomington metropolitan statistical area published by the United States Department
of Housing and Urban Development, as adjusted for household size.
new text end

new text begin (d) "City" means the city of St. Paul.
new text end

new text begin (e) "Development agreement" means the agreement dated December 7, 2023, between
the port authority and the lead developer of the multifamily and single-family homes at The
Heights.
new text end

new text begin (f) "Habitat single-family homes" means 147 owner-occupied homes including single-
family, twin homes, and townhomes as set forth in the development agreement.
new text end

new text begin (g) "Port authority" means the Port Authority of the city of Saint Paul.
new text end

new text begin (h) "The Heights" means the 112-acre site in the city that was acquired by the port
authority under the authority of City Ordinance 19-39 for which a master plan was approved
by the city on June 1, 2022, which envisions 1,000 permanent modern manufacturing jobs;
over 1,000 new homes on 25 acres of the site; 20 acres of parks, trails, and open space; and
community amenities, including shops, services, and civic and recreational facilities.
new text end

new text begin Subd. 2. new text end

new text begin Housing infrastructure funding and sources for The Heights. new text end

new text begin The agency
must provide housing infrastructure funding for The Heights consisting of $49,000,000 for
the affordable and work force apartment homes and $23,600,000 for the habitat single-family
homes according to the terms, conditions, and procedures provided in subdivision 3. The
sources of the housing infrastructure funding must include all general fund appropriations
to the housing infrastructure program and all the proceeds of housing infrastructure bonds
authorized for fiscal years 2024 and 2025 and additional appropriations and bonds authorized
for the housing infrastructure program for fiscal years 2026 and 2027. No housing
infrastructure funding may be provided to The Heights from housing infrastructure funds
committed by the agency in 2023, unless the agency determines that there will be additional
housing infrastructure funding available due to funding commitments that will not be utilized.
new text end

new text begin Subd. 3. new text end

new text begin Terms, conditions, and procedures. new text end

new text begin Notwithstanding sections 462A.37 and
462A.375, the housing infrastructure funding provided for The Heights under subdivision
2 must be provided under the following terms, conditions, and procedures:
new text end

new text begin (1) the rental income rates for the affordable and work force apartment homes, which
includes homes for seniors, will include 91 units at 30 percent of area median income or
less, 93 units at 50 percent of area median income or less, 343 units at 60 percent of area
median income or less, and 372 units at rents that will address unmet housing needs in the
community based on local economic and social conditions;
new text end

new text begin (2) the buyer income limits for the habitat single-family homes will include 38 units at
60 percent of area median income or less, 74 units at 80 percent of area median income or
less, and 35 units at 100 percent of area median income or less, inclusive of the funding for
the habitat single-family homes awarded by the agency in December 2023;
new text end

new text begin (3) the housing infrastructure funding must be provided to accommodate the construction
schedule for The Heights, which is for 559 affordable and work force apartment homes and
40 habitat single-family homes in 2024, 34 habitat single-family homes in 2025, 90 affordable
work force and apartment homes and 29 habitat homes in 2026, and 250 affordable and
work force apartment homes and 44 habitat single-family homes in 2027;
new text end

new text begin (4) loans provided for The Heights from housing infrastructure funding must be provided
to one or more private or nonprofit developers based on the terms of the development
agreement;
new text end

new text begin (5) the terms and conditions of the loans, the underwriting standards to be utilized, and
related matters must be commercially reasonable and consistent with The Heights as an
important statewide priority and facilitate the overall financial plan for The Heights, including
specifically subordination of the loans to the United States Department of Housing and
Urban Development, other federal agencies, and government sponsored enterprises;
new text end

new text begin (6) if the agency will issue housing infrastructure bonds to fund the loans, the
commissioner of management and budget must coordinate with the agency to the maximum
extent reasonably practicable to facilitate the issuance of the bonds on a timely basis to fund
the loans consistent with the construction schedule for The Heights. As necessary, and to
the extent reasonably practicable, the agency will fund the loans with other resources
available to the agency until the proceeds of housing infrastructure bonds are available to
fund the loans;
new text end

new text begin (7) the amount of the loans from housing infrastructure funding may be increased by
reasonable amounts based on changed economic and financial conditions subject to the
availability of housing infrastructure funding;
new text end

new text begin (8) the number of affordable and work force apartment homes and habitat single-family
homes, the rental income and buyer income limits, and the construction schedule are subject
to reasonable adjustment based on changed economic and financial conditions, and the
amount of the loans from housing infrastructure funding may be increased or decreased
based on these adjustments and the availability of housing infrastructure funding;
new text end

new text begin (9) the private and nonprofit developers eligible to receive housing infrastructure funding
for The Heights may apply to the agency for funding from other agency programs for The
Heights, provided that to the extent funding is awarded it will be deducted from the amount
for which The Heights is eligible under subdivision 2; and
new text end

new text begin (10) in order to advance The Heights as a statewide priority, the agency, the city, the
port authority, and the lead developer identified in the development agreement must enter
into a memorandum of understanding on how they will work to implement this section by
July 1, 2024. If the agency is unable to meet this deadline due to its other responsibilities
and resources available to advance its mission, then the city, in consultation with the port
authority, is authorized to act as the agent of and on behalf of the agency and to request the
agency to take actions necessary to implement this section. The city must consult with the
agency on the requested actions of the agency and provide reasonable timelines for agency
actions. After being consulted by the city, the agency must take the actions requested by
the city according to the reasonable timelines provided by the city.
new text end

new text begin Subd. 4. new text end

new text begin Report to the legislature; certificate of completion; repeal. new text end

new text begin The agency, with
the input of the city, the port authority, and the lead developer under the development
agreement will provide a report on the status of the implementation of this section by January
30 of each year to the chairs and ranking minority members of the legislative committees
with jurisdiction over housing finance and policy. A final report must be provided by January
30 in the year after the agency, with the input of the city, the port authority, and the lead
developer under the development agreement, certifies that the provisions of this section
have been completed. This certification may include a recommendation that this section be
repealed, provided that the rights and responsibilities of all parties to all agreements entered
into under the authority or funding provided by this section will survive any repeal based
on the terms of those agreements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end