HF 2734

1st Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:38 p.m.

1.1A bill for an act 1.2relating to capital investment; appropriating money for public housing; 1.3establishing nonprofit housing bonds; authorizing sale and issuance of state 1.4bonds; requiring a report;amending Minnesota Statutes 2006, section 462A.21, 1.5by adding a subdivision; proposing coding for new law in Minnesota Statutes, 1.6chapter 462A. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8    Section 1. new text begin CAPITAL IMPROVEMENT APPROPRIATIONS. new text end 1.9 new text begin The sums shown in the column under "Appropriations" are appropriated from the new text end 1.10 new text begin bond proceeds fund, or another named fund, to the state agencies or officials indicated, new text end 1.11 new text begin to be spent for public purposes. Appropriations of bond proceeds must be spent as new text end 1.12 new text begin authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire new text end 1.13 new text begin and better public land and buildings and other public improvements of a capital nature, or new text end 1.14 new text begin as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or new text end 1.15 new text begin article XIV. Unless otherwise specified, the appropriations in this act are available until new text end 1.16 new text begin the project is completed or abandoned subject to Minnesota Statutes, section 16A.642. new text end 1.17    Sec. 2. new text begin PRIORITIES. new text end 1.18     new text begin Subdivision 1. new text end new text begin General. new text end new text begin The Housing Policy and Finance and Public Health new text end 1.19 new text begin Finance Division of the House Finance Committee prioritizes the appropriations in this act new text end 1.20 new text begin as provided in this section. new text end 1.21     new text begin Subd. 2. new text end new text begin High priorities. new text end new text begin (1) For the housing development fund under section 3, new text end 1.22 new text begin subdivision 1; new text end 1.23     new text begin (2) for public housing rehabilitation under section 3, subdivision 2; new text end 1.24     new text begin (3) for the Hennepin County Opportunity Center under section 3, subdivision 3; and new text end 2.1     new text begin (4) for debt service appropriations under section 5. new text end 2.2     new text begin Subd. 3. new text end new text begin Medium. new text end 2.3     new text begin Subd. 4. new text end new text begin Low. new text end 2.4     new text begin Subd. 5. new text end new text begin Do not fund. new text end 2.5 Sec. 3. new text begin APPROPRIATION. new text end 2.6 new text begin Subdivision 1. new text end new text begin Housing Development Fund new text end new text begin $ new text end new text begin 10,000,000 new text end 2.7 new text begin To the commissioner of the Housing new text end 2.8 new text begin Finance Agency for transfer to the housing new text end 2.9 new text begin development fund for the purposes specified new text end 2.10 new text begin in this subdivision. This appropriation is new text end 2.11 new text begin for loans or grants: (1) for publicly owned new text end 2.12 new text begin emergency shelter; (2) for publicly owned new text end 2.13 new text begin temporary or transitional housing under new text end 2.14 new text begin Minnesota Statutes, section 462A.201, new text end 2.15 new text begin subdivision 2; and (3) for publicly owned new text end 2.16 new text begin permanent rental housing under Minnesota new text end 2.17 new text begin Statutes, section 462A.202, subdivision new text end 2.18 new text begin 3a, for persons who have been without a new text end 2.19 new text begin permanent residence either for at least 12 new text end 2.20 new text begin months or on at least four occasions in the new text end 2.21 new text begin last three years, or who were at significant new text end 2.22 new text begin risk of lacking a permanent residence for at new text end 2.23 new text begin least 12 months or on at least four occasions new text end 2.24 new text begin in the last three years. Loans or grants new text end 2.25 new text begin under Minnesota Statutes, section 462A.202, new text end 2.26 new text begin subdivision 3a, must be for housing that new text end 2.27 new text begin provides or coordinates with linkages to new text end 2.28 new text begin services necessary for residents to maintain new text end 2.29 new text begin housing stability and maximize opportunities new text end 2.30 new text begin for education and employment. new text end 2.31 new text begin Subd. 2. new text end new text begin Public Housing Rehabilitation new text end new text begin $ new text end new text begin 20,000,000 new text end 2.32 new text begin To the Housing Finance Agency for the new text end 2.33 new text begin purposes of financing the rehabilitation costs new text end 2.34 new text begin to preserve public housing. For purposes of new text end 3.1 new text begin this subdivision, "public housing" is housing new text end 3.2 new text begin for low-income persons and households new text end 3.3 new text begin financed by the federal government and new text end 3.4 new text begin owned and operated by public housing new text end 3.5 new text begin authorities and agencies. Eligible public new text end 3.6 new text begin housing authorities must have a public new text end 3.7 new text begin housing assessment system rating of standard new text end 3.8 new text begin or above. Priority must be given to proposals new text end 3.9 new text begin that maximize federal or local resources to new text end 3.10 new text begin finance the capital costs. new text end 3.11 new text begin Subd. 3. new text end new text begin Hennepin County Opportunity Center new text end new text begin $ new text end new text begin 2,500,000 new text end 3.12 new text begin To the commissioner of human services new text end 3.13 new text begin for a grant to Hennepin County for site new text end 3.14 new text begin acquisition, design, and development of the new text end 3.15 new text begin Opportunity Center. The Opportunity Center new text end 3.16 new text begin will provide a one-stop site connecting new text end 3.17 new text begin people experiencing homelessness or at risk new text end 3.18 new text begin of becoming homeless to the continuum of new text end 3.19 new text begin services needed to secure and maintain safe new text end 3.20 new text begin and permanent housing. Heading Home new text end 3.21 new text begin Hennepin, the Minneapolis/Hennepin County new text end 3.22 new text begin ten-year plan to end homelessness, calls for new text end 3.23 new text begin opening the Opportunity Center in 2009. new text end 3.24    Sec. 4. Minnesota Statutes 2006, section 462A.21, is amended by adding a subdivision 3.25to read: 3.26     new text begin Subd. 32. new text end new text begin Nonprofit housing bonds account. new text end new text begin The agency may establish a nonprofit new text end 3.27 new text begin housing bond account as a separate account within the housing development fund. new text end 3.28 new text begin Proceeds of nonprofit housing bonds and payments made by the state pursuant to section new text end 3.29 new text begin 462A.36 may be deposited in the account. The agency may transfer the proceeds of new text end 3.30 new text begin nonprofit housing bonds to another account within the housing development fund that it new text end 3.31 new text begin determines appropriate to accomplish the purposes for which the bonds are authorized new text end 3.32 new text begin under section 462A.36. new text end 3.33    Sec. 5. new text begin [462A.36] NONPROFIT HOUSING BONDS; AUTHORIZATION; new text end 3.34 new text begin STANDING APPROPRIATION. new text end 4.1     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 4.2 new text begin have the meanings given them. new text end 4.3     new text begin (b) "Debt service" means the amount payable in any fiscal year of principal of, new text end 4.4 new text begin premium, if any, and interest on nonprofit housing bonds and the fees, charges, and new text end 4.5 new text begin expenses related to the bonds. new text end 4.6     new text begin (c) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended. new text end 4.7     new text begin (d) "Nonprofit housing bonds" means bonds issued by the agency under this chapter new text end 4.8 new text begin that are "qualified 501(c)(3) bonds" (within the meaning of Section 145(a) of the Internal new text end 4.9 new text begin Revenue Code) or are not "private activity bonds" (within the meaning of Section 141(a) new text end 4.10 new text begin of the Internal Revenue Code) for the purpose of financing or refinancing affordable new text end 4.11 new text begin housing authorized under this chapter. new text end 4.12     new text begin Subd. 2. new text end new text begin Appropriation of debt service; payment to agency or trustee. new text end new text begin (a) Up to new text end 4.13 new text begin $2,400,000 annually is appropriated from the general fund for deposit in the nonprofit new text end 4.14 new text begin housing bond account established in section 462A.21, subdivision 32, to pay the debt new text end 4.15 new text begin service on nonprofit housing bonds. The appropriation may be made for no more than 20 new text end 4.16 new text begin years, commencing with the fiscal year beginning July 1, 2009. new text end 4.17     new text begin (b) On July 1 of each year, but no earlier than July 1, 2009, and for so long as any new text end 4.18 new text begin nonprofit housing bonds are outstanding, the state must transfer from the general fund new text end 4.19 new text begin to the nonprofit housing bond account established under section 462A.21, subdivision new text end 4.20 new text begin 32, the amount of debt service payable in the fiscal year certified by the agency to the new text end 4.21 new text begin commissioner of finance, not to exceed $2,400,000 annually. new text end 4.22     new text begin (c) The agency may pledge to the payment of the nonprofit housing bonds the new text end 4.23 new text begin payments to be made by the state pursuant to this section. new text end 4.24     new text begin Subd. 3. new text end new text begin No full faith and credit. new text end new text begin The nonprofit housing bonds are not public debt new text end 4.25 new text begin of the state, and the full faith and credit and taxing powers of the state are not pledged new text end 4.26 new text begin to the payment of the nonprofit housing bonds or to any payment that the state agrees to new text end 4.27 new text begin make under this section. The bonds must contain a conspicuous statement to such effect. new text end 4.28     new text begin Subd. 4. new text end new text begin Authorization. new text end new text begin The agency may issue up to $30 million of nonprofit new text end 4.29 new text begin housing bonds in one or more series to which the payments made pursuant to this section new text end 4.30 new text begin may be pledged. The nonprofit housing bonds authorized in this subdivision may be issued new text end 4.31 new text begin for the purpose of making loans, on terms and conditions the agency deems appropriate, new text end 4.32 new text begin to finance the costs of the construction, acquisition, preservation, and rehabilitation of new text end 4.33 new text begin permanent supportive housing for individuals and families who: (1) either have been new text end 4.34 new text begin without a permanent residence for at least 12 months or at least four times in the last three new text end 4.35 new text begin years; or (2) are at significant risk of lacking a permanent residence for 12 months or at new text end 4.36 new text begin least four times in the last three years. An insubstantial portion of the bond proceeds new text end 5.1 new text begin may be used for permanent supportive housing for individuals and families experiencing new text end 5.2 new text begin homelessness who do not meet the criteria of the previous sentence. For purposes of this new text end 5.3 new text begin subdivision, "permanent supportive housing" means housing that is not time-limited and new text end 5.4 new text begin provides or coordinates with linkages to services necessary for residents to maintain new text end 5.5 new text begin housing stability and maximize opportunities for education and employment. new text end 5.6    Sec. 6. new text begin BOND SALE AUTHORIZATION. new text end 5.7     new text begin To provide the money appropriated in this act from the bond proceeds fund, the new text end 5.8 new text begin commissioner of finance shall sell and issue bonds of the state in an amount up to new text end 5.9 new text begin $32,500,000 in the manner, upon the terms, and with the effect prescribed by Minnesota new text end 5.10 new text begin Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, new text end 5.11 new text begin sections 4 to 7. new text end 5.12    Sec. 7. new text begin STAKEHOLDER CONSULTATION. new text end 5.13     new text begin The Minnesota Housing Finance Agency shall meet with the stakeholders described new text end 5.14 new text begin in section 8 for the following purposes: new text end 5.15     new text begin (1) to consider the use of 501(c)(3) bonds as a means to prevent residential mortgage new text end 5.16 new text begin foreclosures and to address the effects of widespread residential mortgage foreclosures; new text end 5.17     new text begin (2) to consider means to make community activity set aside (CASA) mortgages new text end 5.18 new text begin more accessible to neighborhood land trusts; and new text end 5.19     new text begin (3) to consider alternative tax classifications for neighborhood land trust properties new text end 5.20 new text begin to make taxation of such properties more equitable and to provide an incentive for greater new text end 5.21 new text begin utilization of neighborhood land trusts. new text end 5.22    Sec. 8. new text begin STAKEHOLDERS. new text end 5.23     new text begin The stakeholders referenced in section 7 must include individuals with experience in new text end 5.24 new text begin community land trusts, providers of mortgage foreclosure prevention services, bankers, new text end 5.25 new text begin individuals who have experienced mortgage foreclosure, legal aid attorneys, and a new text end 5.26 new text begin representative of the property tax division of the Department of Revenue. new text end 5.27    Sec. 9. new text begin REPORT TO LEGISLATURE. new text end 5.28     new text begin The Minnesota Housing Finance Agency shall report the results and new text end 5.29 new text begin recommendations of the meetings under section 7 to the legislature by January 1, 2009. new text end 5.30    Sec. 10. new text begin EFFECTIVE DATE. new text end 5.31     new text begin Except as otherwise provided, this act is effective the day following final enactment. new text end