1.1 	A bill for an act
1.2 	relating to taxation; providing a tax credit advance loan program;proposing 
1.3 	coding for new law in Minnesota Statutes, chapter 462A.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [462A.2094] TAX CREDIT ADVANCE LOAN PROGRAM.
1.6 	The agency, as defined in section 462A.03, subdivision 6, must develop the tax 
1.7 	credit advance loan program. The loan program provides second mortgages for first-time 
1.8 	home buyers to finance loans for up to $8,000 of the home purchase price. Tax credit 
1.9 	advance loans must be used in conjunction with a conventional loan at a 30-year fixed 
1.10 	rate mortgage and require that the home buyer file for a federal tax credit for first-time 
1.11 	home buyers and use the credit refund to repay the loan. If the tax credit advance loan is 
1.12 	repaid when due, the homeowner will be required to pay no interest, although reasonable 
1.13 	servicing fees may be required to be paid. If the tax credit advance loan is not paid when 
1.14 	due, principal and interest payments to repay the loan over ten years begins. The agency 
1.15 	must issue tax-exempt bonds to fund the program. The program shall remain in effect 
1.16 	during the time when the federal tax credit is in effect.