1.1                          A bill for an act
  1.2             relating to housing finance agency; establishing a 
  1.3             state homeownership zones program; appropriating 
  1.4             money; amending Minnesota Statutes 1996, section 
  1.5             462A.21, by adding a subdivision; proposing coding for 
  1.6             new law in Minnesota Statutes, chapter 462A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [462A.2066] [HOMEOWNERSHIP ZONES PROGRAM.] 
  1.9      Subdivision 1.  [ACCOUNT.] The homeownership zones fund 
  1.10  account is established as a separate account in the housing 
  1.11  development fund.  Money in the account is appropriated to the 
  1.12  agency for the purposes specified in this section. 
  1.13     Subd. 2.  [COMPLEMENTARY TO FEDERAL PROGRAM.] In 
  1.14  implementing the state homeownership zones program, the agency 
  1.15  shall follow, to the extent practicable and not inconsistent 
  1.16  with provisions in this section, the federal program guidelines 
  1.17  for homeownership zones, established in the Federal Register, 
  1.18  volume 62, number 129, July 7, 1997. 
  1.19     Subd. 3.  [ELIGIBILITY; GRANTS AND LOANS.] The agency may 
  1.20  make grants or loans to cities, counties, or nonprofit 
  1.21  organizations for the purposes of this section.  In awarding 
  1.22  grants and loans, the agency shall take into account the amount 
  1.23  of money that the applicant leverages from other sources, 
  1.24  including the federal homeownership zones program.  The 
  1.25  applicant must indicate in its application how the proposed 
  1.26  project is consistent with the consolidated housing plan.  Not 
  2.1   less than ten days before submitting its application to the 
  2.2   agency, a county or nonprofit organization must notify the city 
  2.3   in which the project will be located of its intent to apply for 
  2.4   funds.  The city may submit to the agency its written comments 
  2.5   on the county's or nonprofit organization's application and the 
  2.6   agency shall consider the city's comments in reviewing the 
  2.7   application. 
  2.8      Subd. 4.  [SPECIAL PROJECT CHARACTERISTICS.] A 
  2.9   homeownership zone project may include scattered sites in an 
  2.10  identified zone as well as a single contiguous tract.  A 
  2.11  homeownership zone project must incorporate energy conservation 
  2.12  design and measures into the project. 
  2.13     Sec. 2.  Minnesota Statutes 1996, section 462A.21, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 24.  [HOMEOWNERSHIP ZONES.] The agency may spend 
  2.16  money for the purposes of the homeownership zones program under 
  2.17  section 462A.2066, and may pay the costs and expenses necessary 
  2.18  and incidental to the development and operation of the program. 
  2.19     Sec. 3.  [APPROPRIATION.] 
  2.20     $....... is appropriated from the general fund for transfer 
  2.21  to the housing development fund for the homeownership zones 
  2.22  program, under section 462A.2066.