1.1 	A bill for an act
1.2 	relating to local government aid; dedicating a portion of aid to cities for housing;
1.3 	amending Minnesota Statutes 2016, sections 477A.011, by adding a subdivision; 
1.4 	477A.013, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 477A.011, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 46.Housing need percentage. "Housing need percentage" is equal to the 
1.9 	percentage of a city's city revenue need under subdivision 34 that is due to the following 
1.10 	two factors:
1.11 	(1) its pre-1940 housing percentage under subdivision 30; and
1.12 	(2) its percentage of housing built between 1940 and 1970, as determined under 
1.13 	subdivision 30a.

1.14 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
1.15 	and thereafter.

1.16 	Sec. 2. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 
1.17 	to read:
1.18 		Subd. 14.Dedicated use of city aid. A city receiving aid under subdivision 9 in any 
1.19 	year must dedicate an amount of aid equal to the city's housing need percentage multiplied 
1.20 	by its city formula aid amount to fund housing development, redevelopment, and 
1.21 	rehabilitation programs. If the amount calculated under this subdivision is less than $100, 
1.22 	the minimum dedication amount of aid for these programs is zero. The amount of aid going 
2.1 	to housing programs under this subdivision is in addition to any other money from grants, 
2.2 	fees, or other sources that are dedicated to housing programs.

2.3 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
2.4 	and thereafter.