1.1 	A bill for an act
1.2 	relating to capital investment; authorizing pilot program for grants to certain cities 
1.3 	for facade preservation in historic commercial districts; appropriating money.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. MINNESOTA HISTORICAL SOCIETY; HISTORIC BUILDING 
1.6 	FACADE GRANT PILOT PROGRAM.
 1.7 		Subdivision 1.Establishment. The Minnesota Historical Society shall establish a historic 
1.8 	building facade grant pilot program to provide grants to cities that meet the eligibility criteria 
1.9 	provided under subdivision 2. The initial pilot program shall provide one or more grants to 
1.10 	the cities of Litchfield and Virginia. Each city grantee may receive no more than $2,500,000 
1.11 	in total pilot program grants.
1.12 		Subd. 2.Eligibility. Eligible city grantees must have:
1.13 	(1) a population of less than 15,000; and
1.14 	(2) a commercial historic district listed on the National Register of Historic Places.
1.15 		Subd. 3.Grant agreements. (a) A city grantee under this section must enter into grant 
1.16 	agreements with owners of properties in the city that:
1.17 	(1) are located within the boundaries of the commercial historic district; and
1.18 	(2) have facades that are historic in nature.
1.19 	(b) A property owner grantee under this subdivision must use the money to rehabilitate 
1.20 	the building facade of a property that meets the criteria in paragraph (a). The rehabilitation 
1.21 	must be consistent with the standards for rehabilitation under Code of Federal Regulations, 
2.1 	title 36, section 67.7, and guidance from the Minnesota Historical Society. The rehabilitation 
2.2 	must be completed within two years from the date the property owner grantee received the 
2.3 	grant. Any unused money must be returned to the Minnesota Historical Society for deposit 
2.4 	in the general fund.
2.5 	(c) The Minnesota Historical Society shall prescribe the form of the grant agreement in 
2.6 	paragraph (a).

2.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.8 	Sec. 2. APPROPRIATION; HISTORIC BUILDING FACADE GRANT PILOT 
2.9 	PROGRAM.
 2.10 	$5,000,000 in fiscal year 2022 is appropriated from the general fund to the Minnesota 
2.11 	Historical Society for grants under section 1.

2.12 	EFFECTIVE DATE. This section is effective the day following final enactment.