<a id="pl.1.3"></a><var>1.3</var>for affordable housing and permanent supportive housing purposes; appropriating <br/>
<a id="pl.1.4"></a><var>1.4</var>money;amending Minnesota Statutes 2008, section 462A.21, by adding a <br/>
<a id="pl.1.5"></a><var>1.5</var>subdivision; proposing coding for new law in Minnesota Statutes, chapter 462A.<br/>
<a id="pl.1.6"></a><var>1.6</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></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.1.9"></a><var>1.9</var><br/>
</td>
<td colspan="7">Section 1.<b> SUMMARY OF APPROPRIATIONS.</b><br/>
</td>
</tr>
</table><a id="pl.1.10"></a><var>1.10</var>The amounts shown in this section summarize direct appropriations, by fund, made <br/>
<a id="pl.1.11"></a><var>1.11</var>in this article.<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.1.12"></a><var>1.12</var><br/>
</td>
<td></td>
<td></td>
<td align="center"><b>2010</b><br/>
</td>
<td></td>
<td align="center"><b>2011</b><br/>
</td>
<td></td>
<td align="center"><b>Total</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.1.13"></a><var>1.13</var><br/>
</td>
<td>General<br/>
</td>
<td align="center">$<br/>
</td>
<td align="right">-0-<br/>
</td>
<td align="center">$<br/>
</td>
<td align="right">(2,400,000)<br/>
</td>
<td align="center">$<br/>
</td>
<td align="right">(2,400,000)<br/>
</td>
</tr>
<tr>
<td><a id="pl.1.14"></a><var>1.14</var><br/>
</td>
<td><b>Total</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>-0-</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>(2,400,000)</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>(2,400,000)</b><br/>
</td>
</tr>
</table><br/>
<a id="bill.1.2.0"></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.1.15"></a><var>1.15</var><br/>
</td>
<td colspan="7">Sec. 2.<b>APPROPRIATIONS.</b><b> </b><br/>
</td>
</tr>
</table><a id="pl.1.16"></a><var>1.16</var>The sums shown in the columns marked "Appropriations" are added to or, if shown <br/>
<a id="pl.1.17"></a><var>1.17</var>in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1, <br/>
<a id="pl.1.18"></a><var>1.18</var>to the agencies and for the purposes specified in this article. The appropriations and <br/>
<a id="pl.1.19"></a><var>1.19</var>subtractions are from the general fund or another named fund, and are available for the <br/>
<a id="pl.1.20"></a><var>1.20</var>fiscal years indicated for each purpose. The figures "2010" and "2011" used in this <br/>
<a id="pl.1.21"></a><var>1.21</var>article mean that the addition to or subtraction from the appropriation listed under them <br/>
<a id="pl.1.22"></a><var>1.22</var>is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. <br/>
<a id="pl.2.1"></a><var>2.1</var>Supplemental appropriations and reductions to appropriations for the fiscal year ending <br/>
<a id="pl.2.2"></a><var>2.2</var>June 30, 2010, are effective the day following final enactment.<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.2.3"></a><var>2.3</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="4"><b>APPROPRIATIONS</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.2.4"></a><var>2.4</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="4"><b>Available for the Year</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.2.5"></a><var>2.5</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center" colspan="4"><b>Ending June 30</b><br/>
</td>
</tr>
<tr>
<td><a id="pl.2.6"></a><var>2.6</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td align="center"><b>2010</b><br/>
</td>
<td></td>
<td align="center"><b>2011</b><br/>
</td>
</tr>
</table><br/>
<a id="bill.1.3.0"></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.2.7"></a><var>2.7</var><br/>
</td>
<td colspan="3">Sec. 3.<b>Challenge Program</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>-0-</b><br/>
</td>
<td align="center"><b>$</b><br/>
</td>
<td align="right"><b>(2,400,000)</b><br/>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td></td>
<td></td>
<td align="center"></td>
<td align="right"></td>
<td align="center"></td>
<td align="right"></td>
</tr>
</table><a id="pl.2.8"></a><var>2.8</var>This reduction is from the appropriation <br/>
<a id="pl.2.9"></a><var>2.9</var>for the economic development and housing <br/>
<a id="pl.2.10"></a><var>2.10</var>challenge program under Minnesota Statutes, <br/>
<a id="pl.2.11"></a><var>2.11</var>section 462A.33.<br/>
<a id="pl.2.12"></a><var>2.12</var>In fiscal year 2011, the Housing Finance <br/>
<a id="pl.2.13"></a><var>2.13</var>Agency shall transfer $2,400,000 from <br/>
<a id="pl.2.14"></a><var>2.14</var>the economic development and housing <br/>
<a id="pl.2.15"></a><var>2.15</var>challenge program in the housing <br/>
<a id="pl.2.16"></a><var>2.16</var>development fund to the general fund.<br/>
<a id="pl.2.17"></a><var>2.17</var>The base appropriation for the economic <br/>
<a id="pl.2.18"></a><var>2.18</var>development and housing challenge program <br/>
<a id="pl.2.19"></a><var>2.19</var>for fiscal years 2012 and 2013 is $6,993,000 <br/>
<a id="pl.2.20"></a><var>2.20</var>for each year.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.2.23"></a><var>2.23</var>    Section 1. Minnesota Statutes 2008, section 462A.21, is amended by adding a <br/>
<a id="pl.2.24"></a><var>2.24</var>subdivision to read:<br/>
<a id="pl.2.25"></a><var>2.25</var>    Subd. 33. <b>Challenge program bond account.</b> The agency may establish a <br/>
<a id="pl.2.26"></a><var>2.26</var>challenge program bond account as a separate account within the housing development <br/>
<a id="pl.2.27"></a><var>2.27</var>fund. Proceeds of challenge program bonds under section 462A.40 may be credited to the <br/>
<a id="pl.2.28"></a><var>2.28</var>account. Money in the account is appropriated to the agency for the purposes for which <br/>
<a id="pl.2.29"></a><var>2.29</var>the bonds are authorized under section 462A.40. The agency may transfer the proceeds <br/>
<a id="pl.2.30"></a><var>2.30</var>of challenge program housing bonds to another account within the housing development <br/>
<a id="pl.2.31"></a><var>2.31</var>fund that it determines appropriate to accomplish the purposes for which the bonds are <br/>
<a id="pl.2.32"></a><var>2.32</var>authorized under section 462A.40.<br/>
<a id="pl.2.33"></a><var>2.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.3.1"></a><var>3.1</var>    Sec. 2. <b>[462A.40] CHALLENGE PROGRAM BONDS; AUTHORIZATION AND </b><br/>
<a id="pl.3.2"></a><var>3.2</var><b>STANDING APPROPRIATION.</b><br/>
<a id="pl.3.3"></a><var>3.3</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.3.4"></a><var>3.4</var>have the meanings given them.<br/>
<a id="pl.3.5"></a><var>3.5</var>(b) "Challenge program bonds" means a bond, note, or other evidence of obligation <br/>
<a id="pl.3.6"></a><var>3.6</var>of the agency issued and sold for the purposes specified in subdivision 2.<br/>
<a id="pl.3.7"></a><var>3.7</var>(c) "Debt service" means the amount payable in any fiscal year of principal, <br/>
<a id="pl.3.8"></a><var>3.8</var>premium, if any, and interest on challenge program bonds and the fees, charges, and <br/>
<a id="pl.3.9"></a><var>3.9</var>expenses related to the bonds.<br/>
<a id="pl.3.10"></a><var>3.10</var>    Subd. 2. <b>Authority.</b> The agency may issue up to $30,000,000 of challenge program <br/>
<a id="pl.3.11"></a><var>3.11</var>bonds in one or more series to which the payments made under this section may be <br/>
<a id="pl.3.12"></a><var>3.12</var>pledged. The challenge program bonds authorized in this subdivision must be issued <br/>
<a id="pl.3.13"></a><var>3.13</var>for the purpose of making grants and loans, on terms and conditions the agency deems <br/>
<a id="pl.3.14"></a><var>3.14</var>appropriate:<br/>
<a id="pl.3.15"></a><var>3.15</var>(1) to projects meeting the requirements of the economic development and housing <br/>
<a id="pl.3.16"></a><var>3.16</var>challenge program under section 462A.33; or<br/>
<a id="pl.3.17"></a><var>3.17</var>(2) to neighborhood land trusts authorized under section 46A.31 for land acquisition.<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 3. <b>No full faith and credit.</b> The challenge program bonds are not public debt <br/>
<a id="pl.3.19"></a><var>3.19</var>of the state, and the full faith, credit, and taxing powers of the state are not pledged to the <br/>
<a id="pl.3.20"></a><var>3.20</var>payment of the challenge program bonds or to any payment that the state agrees to make <br/>
<a id="pl.3.21"></a><var>3.21</var>under this section. The bonds must contain a conspicuous statement to that effect. <br/>
<a id="pl.3.22"></a><var>3.22</var>    Subd. 4. <b>Appropriation; payment to agency or trustee.</b> (a) The agency must <br/>
<a id="pl.3.23"></a><var>3.23</var>certify annually to the commissioner of management and budget the actual amount of <br/>
<a id="pl.3.24"></a><var>3.24</var>annual debt service on each series of bonds issued under subdivision 2.<br/>
<a id="pl.3.25"></a><var>3.25</var>(b) Each July 15, beginning in 2010 and through 2032, if any challenge program <br/>
<a id="pl.3.26"></a><var>3.26</var>bonds issued under subdivision 2 remain outstanding, the commissioner of management <br/>
<a id="pl.3.27"></a><var>3.27</var>and budget must transfer to the challenge program bond account established under <br/>
<a id="pl.3.28"></a><var>3.28</var>section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed <br/>
<a id="pl.3.29"></a><var>3.29</var>$2,400,000 annually. The amounts necessary to make the transfers are appropriated from <br/>
<a id="pl.3.30"></a><var>3.30</var>the general fund to the commissioner of management and budget.<br/>
<a id="pl.3.31"></a><var>3.31</var>(c) The agency may pledge to the payment of the challenge program bonds the <br/>
<a id="pl.3.32"></a><var>3.32</var>payments to be made by the state under this section.<br/>
<a id="pl.3.33"></a><var>3.33</var>(d) In each fiscal year for fiscal years 2010 through 2023, $2,400,000, less the <br/>
<a id="pl.3.34"></a><var>3.34</var>amount transferred by the commissioner of management and budget under paragraph (b) <br/>
<a id="pl.3.35"></a><var>3.35</var>for that fiscal year, is appropriated to the agency from the general fund for the purposes of <br/>
<a id="pl.3.36"></a><var>3.36</var>the economic development and housing challenge program under section 462A.33.<br/>
<a id="pl.4.1"></a><var>4.1</var>(e) Annually by August 1, the agency shall submit a statement to the chairs and <br/>
<a id="pl.4.2"></a><var>4.2</var>ranking minority members of the house of representatives and senate committees with <br/>
<a id="pl.4.3"></a><var>4.3</var>jurisdiction over housing policy and finance that identifies the amount of debt service as <br/>
<a id="pl.4.4"></a><var>4.4</var>certified under paragraph (a), the transfer under paragraph (b), and the appropriation under <br/>
<a id="pl.4.5"></a><var>4.5</var>paragraph (d). The statement may be submitted electronically, and is subject to section <br/>
<a id="pl.4.6"></a><var>4.6</var>3.195, subdivision 1.<br/>
<a id="pl.4.7"></a><var>4.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>