1.1 	A bill for an act
1.2 	relating to housing finance; establishing a grant program for landlord risk 
1.3 	mitigation; appropriating money; amending Minnesota Statutes 2014, section 
1.4 	462A.07, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2014, section 462A.07, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 17.Landlord risk mitigation grants. It may make grants to local units of 
1.9 	government or nonprofit organizations to establish landlord risk mitigation programs that 
1.10 	reduce landlord financial risks of renting to individuals or families who are homeless 
1.11 	or at imminent risk of homelessness, or who do not qualify for rental housing under 
1.12 	standard screening criteria. Eligible programs reimburse landlords for costs including 
1.13 	nonpayment of rent or building or room damage costs above those costs covered by 
1.14 	security deposits. The commissioner shall give higher priority to applicants who can 
1.15 	certify a matching amount of money by a local unit of government, business, or nonprofit 
1.16 	organization. The commissioner shall establish a procedure to review and validate claims 
1.17 	and reimbursements under this grant program.

1.18 	Sec. 2. APPROPRIATION.
 1.19 	$250,000 in fiscal year 2017 is appropriated from the general fund to the 
1.20 	commissioner of housing finance for landlord risk mitigation grants under Minnesota 
1.21 	Statutes, section 462A.07, subdivision 17. Grants must be targeted for communities and 
1.22 	regions that have low rental housing vacancy rates and have cooperatively developed a 
2.1 	plan that identifies current and future housing needs, including placing individuals and 
2.2 	families who do not qualify for affordable rental housing under standard screening criteria.