HF 7

as introduced - 91st Legislature, 2020 7th Special Session (2020 - 2020) Posted on 12/15/2020 02:38am

A bill for an act
relating to housing; appropriating funding for emergency housing assistance grants
during the peacetime emergency related to COVID-19.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin APPROPRIATION; 2021 EMERGENCY HOUSING ASSISTANCE
GRANTS.
new text end

new text begin (a) $50,000,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of the Minnesota Housing Finance Agency for transfer to the housing
development fund for emergency housing assistance grants. Notwithstanding the requirements
of Minnesota Statutes, sections 16B.98 and 16C.06, and applicable policies, the agency
may use grantees of the COVID Housing Assistance Program that were funded with federal
CARES Act resources, and those grantees are approved to distribute money under this
section. If necessary, the commissioner of the Minnesota Housing Finance Agency may
distribute money to other entities including counties, cities, nonprofit organizations, tribes,
or other entities the agency identifies to fulfill the purposes of this section. This is a onetime
appropriation and available until March 31, 2021. Grants not obligated by March 31, 2021,
shall cancel to the general fund.
new text end

new text begin (b) Grants under this section shall be for individuals, families, and homeowners in
Minnesota to prevent homelessness and help maintain homeownership during the peacetime
emergency declared by the governor in an executive order that relates to the infectious
disease known as COVID-19. To be eligible for funding, applicants must:
new text end

new text begin (1) have a rent payment, mortgage payment, homeowner association dues, lot rent due
to a manufactured home park, contract for deed payment, homeowner insurance payment,
property tax payment, or utility payment with a due date of March 1, 2020, or later, that is
past due, or have another expense that is needed to maintain housing as determined by the
agency;
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new text begin (2) be unable to pay the money owed as a direct or indirect result of the public health
emergency; and
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new text begin (3) be a household, with a current gross income at or below 300 percent of the federal
poverty guidelines.
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new text begin (c) The financial assistance provided for any individual or family must not exceed the
minimum payments owed.
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new text begin (d) Grants under this section must be paid directly to:
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new text begin (1) the landlord or leasing agent for a rental unit;
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new text begin (2) the financial service company for a mortgage or the entity who owns the mortgage
for a homeowner;
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new text begin (3) the contract for deed vendor or seller;
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new text begin (4) the purchase-money mortgagor;
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new text begin (5) the manufactured home park cooperative, manufactured home owner, or park owner;
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new text begin (6) the utility company; or
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new text begin (7) any other identified entity to whom payment is owed.
new text end

new text begin (e) In addition to the grants to individuals and families provided under paragraph (b),
grants under this section may also be used to provide assistance to housing providers who
have lost rental income due to their low-income or moderate-income tenants being impacted
by COVID-19. Eligible expenses include unpaid rents, rental unit utility costs, and other
housing expenses as determined by the agency, incurred on or after March 1, 2020. For the
purposes of this paragraph, low-income or moderate-income tenants has the meaning given
in Minnesota Statutes, section 462A.03, subdivision 10.
new text end

new text begin (f) Notwithstanding any other provision of law or policy, the commissioner may develop
and administer an application, award, and disbursement process for the program that takes
into account the emergency state of the needs these funds are intended to address and a
procedure to oversee and monitor grantees.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end