2007 Minnesota Statutes

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. 3. Affordable, life-cycle housing opportunities amount through 2002. (1) By July 1,
1996, each county assessor shall certify each municipality's average residential homestead limited
market value for the 1994 assessment year, including the value of the farm house, garage, and
one acre only in the case of farm homesteads, multiplied by a factor of two, as the municipality's
"market value base amount." For 1997 through 2001, the "market value base amount" shall be
equal to the product of (i) the market value base amount for the previous year multiplied by (ii)
the annual average United States Consumer Price Index for all urban consumers, United States
average, as determined by the United States Department of Labor, for the previous year divided
by that annual average for the year before the previous year.
(2) By July 1, 1996, and each succeeding year through 2001, the county assessor shall
determine which homesteads have market values in excess of the municipality's market value
base amount and the county auditor shall certify the aggregate net tax capacity corresponding to
the amount by which those homesteads' market values exceed the municipality's market value
base amount as the "net tax capacity excess amount" for the assessment year corresponding to
the current taxes payable year. By July 1, 1996, the county auditor shall also certify the net tax
capacity excess amount for taxes payable in 1995.
(3) By July 1, 1996, and each succeeding year through 2001, the county auditor shall also
certify each municipality's local tax rate for the current taxes payable year.
(4) By July 1, 1996, and each succeeding year through 2001, the county auditor shall certify
for each municipality the amount equal to four percent of the municipality's current year total
residential homestead tax capacity multiplied by the local tax rate.
(5) By August 1, 1996, and each succeeding year through 2001, the Metropolitan Council
shall notify each municipality of its "affordable and life-cycle housing opportunities amount"
for the following calendar year equal to the lesser of the amount certified under clause (4) or the
amount, if any, by which the net tax capacity excess amount for the current year exceeds the
amount for taxes payable in 1995, multiplied by the municipality's local tax rate certified in
clause (3).
    Subd. 3a. Affordable, life-cycle housing opportunities amount after 2002. (1)
Notwithstanding any other provisions of this section, commencing for calendar year 2003
and each succeeding calendar year, each municipality's "affordable and life-cycle housing
opportunities amount" for that year must be determined 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.
(2) 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.
(3) 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.
(4) A municipality's affordable and life-cycle housing opportunities amount for the calendar
year is the sum of the amounts determined under clauses (2) and (3).
(5) Within 90 days after the effective date of this act, the council must notify each
municipality of its affordable and life-cycle housing opportunities amount for calendar years 2003
and 2004 as determined by the method in this subdivision. These amounts replace the affordable
and life-cycle housing opportunities amount for each municipality for calendar years 2003 and
2004 as previously determined by the method in subdivision 3.
(6) By August 1, 2004, and by August 1 of each succeeding 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. In 1998, and thereafter, 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 3 or 3a, as applicable:
(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.
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 (b), clause (1).
(b) The council shall credit $1,000,000 of the proceeds of solid waste bonds issued by
the council under Minnesota Statutes, section 473.831, before its repeal, to the local housing
incentives account in the metropolitan livable communities fund. In 1998 and each year thereafter,
the council shall credit $1,000,000 of the revenues generated by the levy authorized in section
473.249 to the local housing incentives account.
(c) In 1997, and each year thereafter, the council shall 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.
History: 1995 c 255 art 1 s 5; 2002 c 246 s 2,3; 2004 c 259 s 1-7