<a id="pl.1.3"></a><var>1.3</var>establishing nonprofit housing bonds; authorizing sale and issuance of state <br/>
<a id="pl.1.4"></a><var>1.4</var>bonds; requiring a report;amending Minnesota Statutes 2006, section 462A.21, <br/>
<a id="pl.1.5"></a><var>1.5</var>by adding a subdivision; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.1.6"></a><var>1.6</var>chapter 462A.<br/>
<a id="pl.1.7"></a><var>1.7</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.8"></a><var>1.8</var>    Section 1. <b>CAPITAL IMPROVEMENT APPROPRIATIONS.</b><br/>
<a id="pl.1.9"></a><var>1.9</var>The sums shown in the column under "Appropriations" are appropriated from the <br/>
<a id="pl.1.10"></a><var>1.10</var>bond proceeds fund, or another named fund, to the state agencies or officials indicated, <br/>
<a id="pl.1.11"></a><var>1.11</var>to be spent for public purposes. Appropriations of bond proceeds must be spent as <br/>
<a id="pl.1.12"></a><var>1.12</var>authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire <br/>
<a id="pl.1.13"></a><var>1.13</var>and better public land and buildings and other public improvements of a capital nature, or <br/>
<a id="pl.1.14"></a><var>1.14</var>as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or <br/>
<a id="pl.1.15"></a><var>1.15</var>article XIV. Unless otherwise specified, the appropriations in this act are available until <br/>
<a id="pl.1.16"></a><var>1.16</var>the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.17"></a><var>1.17</var>    Sec. 2. <b>PRIORITIES.</b><br/>
<a id="pl.1.18"></a><var>1.18</var>    Subdivision 1. <b>General.</b> The Housing Policy and Finance and Public Health <br/>
<a id="pl.1.19"></a><var>1.19</var>Finance Division of the House Finance Committee prioritizes the appropriations in this act <br/>
<a id="pl.1.20"></a><var>1.20</var>as provided in this section.<br/>
<a id="pl.1.21"></a><var>1.21</var>    Subd. 2. <b>High priorities.</b> (1) For the housing development fund under section 3, <br/>
<a id="pl.1.22"></a><var>1.22</var>subdivision 1;<br/>
<a id="pl.1.23"></a><var>1.23</var>    (2) for public housing rehabilitation under section 3, subdivision 2;<br/>
<a id="pl.1.24"></a><var>1.24</var>    (3) for the Hennepin County Opportunity Center under section 3, subdivision 3; and<br/>
<a id="pl.2.1"></a><var>2.1</var>    (4) for debt service appropriations under section 5.<br/>
<a id="pl.2.2"></a><var>2.2</var>    Subd. 3. <b>Medium.</b><br/>
<a id="pl.2.3"></a><var>2.3</var>    Subd. 4. <b>Low.</b><br/>
<a id="pl.2.4"></a><var>2.4</var>    Subd. 5. <b>Do not fund.</b><br/>
<br/>
<a id="bill.0.3.0"></a><table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.5"></a><var>2.5</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Sec. 3. <b>APPROPRIATION.</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
</tr>
</table>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.6"></a><var>2.6</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subdivision 1.<b>Housing Development Fund</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom">$<br/>
</td>
<td align="right" valign="bottom">10,000,000<br/>
</td>
</tr>
</table><a id="pl.2.7"></a><var>2.7</var>To the commissioner of the Housing <br/>
<a id="pl.2.8"></a><var>2.8</var>Finance Agency for transfer to the housing <br/>
<a id="pl.2.9"></a><var>2.9</var>development fund for the purposes specified <br/>
<a id="pl.2.10"></a><var>2.10</var>in this subdivision. This appropriation is <br/>
<a id="pl.2.11"></a><var>2.11</var>for loans or grants: (1) for publicly owned <br/>
<a id="pl.2.12"></a><var>2.12</var>emergency shelter; (2) for publicly owned <br/>
<a id="pl.2.13"></a><var>2.13</var>temporary or transitional housing under <br/>
<a id="pl.2.14"></a><var>2.14</var>Minnesota Statutes, section 462A.201, <br/>
<a id="pl.2.15"></a><var>2.15</var>subdivision 2; and (3) for publicly owned <br/>
<a id="pl.2.16"></a><var>2.16</var>permanent rental housing under Minnesota <br/>
<a id="pl.2.17"></a><var>2.17</var>Statutes, section 462A.202, subdivision <br/>
<a id="pl.2.18"></a><var>2.18</var>3a, for persons who have been without a <br/>
<a id="pl.2.19"></a><var>2.19</var>permanent residence either for at least 12 <br/>
<a id="pl.2.20"></a><var>2.20</var>months or on at least four occasions in the <br/>
<a id="pl.2.21"></a><var>2.21</var>last three years, or who were at significant <br/>
<a id="pl.2.22"></a><var>2.22</var>risk of lacking a permanent residence for at <br/>
<a id="pl.2.23"></a><var>2.23</var>least 12 months or on at least four occasions <br/>
<a id="pl.2.24"></a><var>2.24</var>in the last three years. Loans or grants <br/>
<a id="pl.2.25"></a><var>2.25</var>under Minnesota Statutes, section 462A.202, <br/>
<a id="pl.2.26"></a><var>2.26</var>subdivision 3a, must be for housing that <br/>
<a id="pl.2.27"></a><var>2.27</var>provides or coordinates with linkages to <br/>
<a id="pl.2.28"></a><var>2.28</var>services necessary for residents to maintain <br/>
<a id="pl.2.29"></a><var>2.29</var>housing stability and maximize opportunities <br/>
<a id="pl.2.30"></a><var>2.30</var>for education and employment.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.2.31"></a><var>2.31</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subd. 2.<b>Public Housing Rehabilitation</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom">$<br/>
</td>
<td align="right" valign="bottom">20,000,000<br/>
</td>
</tr>
</table><a id="pl.2.32"></a><var>2.32</var>To the Housing Finance Agency for the <br/>
<a id="pl.2.33"></a><var>2.33</var>purposes of financing the rehabilitation costs <br/>
<a id="pl.2.34"></a><var>2.34</var>to preserve public housing. For purposes of <br/>
<a id="pl.3.1"></a><var>3.1</var>this subdivision, "public housing" is housing <br/>
<a id="pl.3.2"></a><var>3.2</var>for low-income persons and households <br/>
<a id="pl.3.3"></a><var>3.3</var>financed by the federal government and <br/>
<a id="pl.3.4"></a><var>3.4</var>owned and operated by public housing <br/>
<a id="pl.3.5"></a><var>3.5</var>authorities and agencies. Eligible public <br/>
<a id="pl.3.6"></a><var>3.6</var>housing authorities must have a public <br/>
<a id="pl.3.7"></a><var>3.7</var>housing assessment system rating of standard <br/>
<a id="pl.3.8"></a><var>3.8</var>or above. Priority must be given to proposals <br/>
<a id="pl.3.9"></a><var>3.9</var>that maximize federal or local resources to <br/>
<a id="pl.3.10"></a><var>3.10</var>finance the capital costs.<br/>
<table>
<col width="50px"/>
<col width="21.5"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<col width="2.5"/>
<col width="12"/>
<tr>
<td><a id="pl.3.11"></a><var>3.11</var><br/>
</td>
<td align="left" colspan="3" valign="bottom">Subd. 3.<b>Hennepin County Opportunity Center</b><br/>
</td>
<td align="center" valign="bottom"></td>
<td align="right" valign="bottom"></td>
<td align="center" valign="bottom">$<br/>
</td>
<td align="right" valign="bottom">2,500,000<br/>
</td>
</tr>
</table><a id="pl.3.12"></a><var>3.12</var>To the commissioner of human services <br/>
<a id="pl.3.13"></a><var>3.13</var>for a grant to Hennepin County for site <br/>
<a id="pl.3.14"></a><var>3.14</var>acquisition, design, and development of the <br/>
<a id="pl.3.15"></a><var>3.15</var>Opportunity Center. The Opportunity Center <br/>
<a id="pl.3.16"></a><var>3.16</var>will provide a one-stop site connecting <br/>
<a id="pl.3.17"></a><var>3.17</var>people experiencing homelessness or at risk <br/>
<a id="pl.3.18"></a><var>3.18</var>of becoming homeless to the continuum of <br/>
<a id="pl.3.19"></a><var>3.19</var>services needed to secure and maintain safe <br/>
<a id="pl.3.20"></a><var>3.20</var>and permanent housing. Heading Home <br/>
<a id="pl.3.21"></a><var>3.21</var>Hennepin, the Minneapolis/Hennepin County <br/>
<a id="pl.3.22"></a><var>3.22</var>ten-year plan to end homelessness, calls for <br/>
<a id="pl.3.23"></a><var>3.23</var>opening the Opportunity Center in 2009.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.24"></a><var>3.24</var>    Sec. 4. Minnesota Statutes 2006, section 462A.21, is amended by adding a subdivision <br/>
<a id="pl.3.25"></a><var>3.25</var>to read:<br/>
<a id="pl.3.26"></a><var>3.26</var>    Subd. 32. <b>Nonprofit housing bonds account.</b> The agency may establish a nonprofit <br/>
<a id="pl.3.27"></a><var>3.27</var>housing bond account as a separate account within the housing development fund. <br/>
<a id="pl.3.28"></a><var>3.28</var>Proceeds of nonprofit housing bonds and payments made by the state pursuant to section <br/>
<a id="pl.3.29"></a><var>3.29</var>462A.36 may be deposited in the account. The agency may transfer the proceeds of <br/>
<a id="pl.3.30"></a><var>3.30</var>nonprofit housing bonds to another account within the housing development fund that it <br/>
<a id="pl.3.31"></a><var>3.31</var>determines appropriate to accomplish the purposes for which the bonds are authorized <br/>
<a id="pl.3.32"></a><var>3.32</var>under section 462A.36.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.33"></a><var>3.33</var>    Sec. 5. <b>[462A.36] NONPROFIT HOUSING BONDS; AUTHORIZATION; </b><br/>
<a id="pl.3.34"></a><var>3.34</var><b>STANDING APPROPRIATION.</b><br/>
<a id="pl.4.1"></a><var>4.1</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.4.2"></a><var>4.2</var>have the meanings given them.<br/>
<a id="pl.4.3"></a><var>4.3</var>    (b) "Debt service" means the amount payable in any fiscal year of principal of, <br/>
<a id="pl.4.4"></a><var>4.4</var>premium, if any, and interest on nonprofit housing bonds and the fees, charges, and <br/>
<a id="pl.4.5"></a><var>4.5</var>expenses related to the bonds.<br/>
<a id="pl.4.6"></a><var>4.6</var>    (c) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.<br/>
<a id="pl.4.7"></a><var>4.7</var>    (d) "Nonprofit housing bonds" means bonds issued by the agency under this chapter <br/>
<a id="pl.4.8"></a><var>4.8</var>that are "qualified 501(c)(3) bonds" (within the meaning of Section 145(a) of the Internal <br/>
<a id="pl.4.9"></a><var>4.9</var>Revenue Code) or are not "private activity bonds" (within the meaning of Section 141(a) <br/>
<a id="pl.4.10"></a><var>4.10</var>of the Internal Revenue Code) for the purpose of financing or refinancing affordable <br/>
<a id="pl.4.11"></a><var>4.11</var>housing authorized under this chapter.<br/>
<a id="pl.4.12"></a><var>4.12</var>    Subd. 2. <b>Appropriation of debt service; payment to agency or trustee.</b> (a) Up to <br/>
<a id="pl.4.13"></a><var>4.13</var>$2,400,000 annually is appropriated from the general fund for deposit in the nonprofit <br/>
<a id="pl.4.14"></a><var>4.14</var>housing bond account established in section 462A.21, subdivision 32, to pay the debt <br/>
<a id="pl.4.15"></a><var>4.15</var>service on nonprofit housing bonds. The appropriation may be made for no more than 20 <br/>
<a id="pl.4.16"></a><var>4.16</var>years, commencing with the fiscal year beginning July 1, 2009.<br/>
<a id="pl.4.17"></a><var>4.17</var>    (b) On July 1 of each year, but no earlier than July 1, 2009, and for so long as any <br/>
<a id="pl.4.18"></a><var>4.18</var>nonprofit housing bonds are outstanding, the state must transfer from the general fund <br/>
<a id="pl.4.19"></a><var>4.19</var>to the nonprofit housing bond account established under section 462A.21, subdivision <br/>
<a id="pl.4.20"></a><var>4.20</var>32, the amount of debt service payable in the fiscal year certified by the agency to the <br/>
<a id="pl.4.21"></a><var>4.21</var>commissioner of finance, not  to exceed $2,400,000 annually.<br/>
<a id="pl.4.22"></a><var>4.22</var>    (c) The agency may pledge to the payment of the nonprofit housing bonds the <br/>
<a id="pl.4.23"></a><var>4.23</var>payments to be made by the state pursuant to this section.<br/>
<a id="pl.4.24"></a><var>4.24</var>    Subd. 3. <b>No full faith and credit.</b> The nonprofit housing bonds are not public debt <br/>
<a id="pl.4.25"></a><var>4.25</var>of the state, and the full faith and credit and taxing powers of the state are not pledged <br/>
<a id="pl.4.26"></a><var>4.26</var>to the payment of the nonprofit housing bonds or to any payment that the state agrees to <br/>
<a id="pl.4.27"></a><var>4.27</var>make under this section. The bonds must contain a conspicuous statement to such effect.<br/>
<a id="pl.4.28"></a><var>4.28</var>    Subd. 4. <b>Authorization.</b> The agency may issue up to $30 million of nonprofit <br/>
<a id="pl.4.29"></a><var>4.29</var>housing bonds in one or more series to which the payments made pursuant to this section <br/>
<a id="pl.4.30"></a><var>4.30</var>may be pledged. The nonprofit housing bonds authorized in this subdivision may be issued <br/>
<a id="pl.4.31"></a><var>4.31</var>for the purpose of making loans, on terms and conditions the agency deems appropriate, <br/>
<a id="pl.4.32"></a><var>4.32</var>to finance the costs of the construction, acquisition, preservation, and rehabilitation of <br/>
<a id="pl.4.33"></a><var>4.33</var>permanent supportive housing for individuals and families who: (1) either have been <br/>
<a id="pl.4.34"></a><var>4.34</var>without a permanent residence for at least 12 months or at least four times in the last three <br/>
<a id="pl.4.35"></a><var>4.35</var>years; or (2) are at significant risk of lacking a permanent residence for 12 months or at <br/>
<a id="pl.4.36"></a><var>4.36</var>least four times in the last three years. An insubstantial portion of the bond proceeds <br/>
<a id="pl.5.1"></a><var>5.1</var>may be used for permanent supportive housing for individuals and families experiencing <br/>
<a id="pl.5.2"></a><var>5.2</var>homelessness who do not meet the criteria of the previous sentence. For purposes of this <br/>
<a id="pl.5.3"></a><var>5.3</var>subdivision, "permanent supportive housing" means housing that is not time-limited and <br/>
<a id="pl.5.4"></a><var>5.4</var>provides or coordinates with linkages to services necessary for residents to maintain <br/>
<a id="pl.5.5"></a><var>5.5</var>housing stability and maximize opportunities for education and employment.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.5.6"></a><var>5.6</var>    Sec. 6. <b>BOND SALE AUTHORIZATION.</b><br/>
<a id="pl.5.7"></a><var>5.7</var>    To provide the money appropriated in this act from the bond proceeds fund, the <br/>
<a id="pl.5.8"></a><var>5.8</var>commissioner of finance shall sell and issue bonds of the state in an amount up to <br/>
<a id="pl.5.9"></a><var>5.9</var>$32,500,000 in the manner, upon the terms, and with the effect prescribed by Minnesota <br/>
<a id="pl.5.10"></a><var>5.10</var>Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, <br/>
<a id="pl.5.11"></a><var>5.11</var>sections 4 to 7.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.5.12"></a><var>5.12</var>    Sec. 7. <b>STAKEHOLDER CONSULTATION.</b><br/>
<a id="pl.5.13"></a><var>5.13</var>    The Minnesota Housing Finance Agency shall meet with the stakeholders described <br/>
<a id="pl.5.14"></a><var>5.14</var>in section 8 for the following purposes: <br/>
<a id="pl.5.15"></a><var>5.15</var>    (1) to consider the use of 501(c)(3) bonds as a means to prevent residential mortgage <br/>
<a id="pl.5.16"></a><var>5.16</var>foreclosures and to address the effects of widespread residential mortgage foreclosures; <br/>
<a id="pl.5.17"></a><var>5.17</var>    (2) to consider means to make community activity set aside (CASA) mortgages <br/>
<a id="pl.5.18"></a><var>5.18</var>more accessible to neighborhood land trusts; and <br/>
<a id="pl.5.19"></a><var>5.19</var>    (3) to consider alternative tax classifications for neighborhood land trust properties <br/>
<a id="pl.5.20"></a><var>5.20</var>to make taxation of such properties more equitable and to provide an incentive for greater <br/>
<a id="pl.5.21"></a><var>5.21</var>utilization of neighborhood land trusts.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.5.22"></a><var>5.22</var>    Sec. 8. <b>STAKEHOLDERS.</b><br/>
<a id="pl.5.23"></a><var>5.23</var>    The stakeholders referenced in section 7 must include individuals with experience in <br/>
<a id="pl.5.24"></a><var>5.24</var>community land trusts, providers of mortgage foreclosure prevention services, bankers, <br/>
<a id="pl.5.25"></a><var>5.25</var>individuals who have experienced mortgage foreclosure, legal aid attorneys, and a <br/>
<a id="pl.5.26"></a><var>5.26</var>representative of the property tax division of the Department of Revenue.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.5.27"></a><var>5.27</var>    Sec. 9. <b>REPORT TO LEGISLATURE.</b><br/>
<a id="pl.5.28"></a><var>5.28</var>    The Minnesota Housing Finance Agency shall report the results and <br/>
<a id="pl.5.29"></a><var>5.29</var>recommendations of the meetings under section 7 to the legislature by January 1, 2009.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.5.30"></a><var>5.30</var>    Sec. 10. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.5.31"></a><var>5.31</var>    Except as otherwise provided, this act is effective the day following final enactment.<br/>