1.1 	A bill for an act
1.2 	relating to housing; appropriating money for grants to local housing trust funds.
1.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.4 	Section 1. LOCAL HOUSING TRUST FUND GRANTS; APPROPRIATION.
 1.5 	(a) $2,000,000 in fiscal year 2019 is appropriated from the general fund to the 
1.6 	commissioner of the Housing Finance Agency for grants to housing trust funds established 
1.7 	under Minnesota Statutes, section 462C.16, to incentivize local funding. This is a onetime 
1.8 	appropriation. Grants shall provide matching funds of 100 percent of the amount not 
1.9 	exceeding $150,000 and 50 percent of the amount over $150,000 and not exceeding $300,000 
1.10 	that a housing trust fund receives in fiscal years 2018 and 2019 from (1) a housing and 
1.11 	redevelopment authority levy or special tax pursuant to Minnesota Statutes, sections 469.001 
1.12 	to 469.047, or section 469.033, subdivision 6, or (2) an appropriation by the local government 
1.13 	of a municipality located outside the 11-county metropolitan area, as defined in Minnesota 
1.14 	Statutes, section 200.02, subdivision 24, and with a total population under 40,000.
1.15 	(b) If the amount appropriated to the commissioner under paragraph (a) is insufficient 
1.16 	to fully fund matching grants at this level, the commissioner must proportionately reduce 
1.17 	the amount transferred to each housing trust fund.
1.18 	(c) Recipients must use grant funds under paragraph (a) within eight years of receipt for 
1.19 	purposes (1) authorized under Minnesota Statutes, section 462C.16, subdivision 3, and (2) 
1.20 	benefiting households with incomes at or below 115 percent of the state median income. 
1.21 	Recipients must return any grant funds not used for these purposes within eight years of 
1.22 	receipt to the commissioner of the Housing Finance Agency.