HF 601

as introduced - 91st Legislature (2019 - 2020) Posted on 03/27/2019 01:17pm

A bill for an act
relating to housing; expanding the entities qualified to participate in and the types
of funding available through the workforce and affordable homeownership
development program; creating the workforce and affordable homeownership
account in the housing development fund; appropriating money; amending
Minnesota Statutes 2018, section 462A.38.

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

ARTICLE 1

APPROPRIATIONS

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2020		2021

Sec. 2. HOUSING FINANCE AGENCY.

Subdivision 1. Total Appropriation

$

52,282,000

$

42,092,000

(a) The amounts that may be spent for each
purpose are specified in the following
subdivisions.

(b) Unless otherwise specified, this
appropriation is for transfer to the housing
development fund for the programs specified
in this section. Except as otherwise indicated,
this transfer is part of the agency's permanent
budget base.

Subd. 2. Challenge Program

22,425,000

22,425,000

This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.

Subd. 3. Rental Assistance for Mentally Ill

5,088,000

5,088,000

This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097.

Subd. 4. Family Homeless Prevention and Assistance Program

10,769,000

10,519,000

This appropriation is for the family homeless
prevention and assistance program under
Minnesota Statutes, section 462A.204.

Subd. 5. Homework Starts With Home

4,000,000

4,000,000

(a) Of this appropriation, $1,000,000 each year
is for grants to programs under Minnesota
Statutes, section 462A.204, subdivision 8.

(b) Of this appropriation, $3,000,000 each year
is from the housing trust fund for the rental
assistance to highly mobile students program
under Minnesota Statutes, section 462A.201,
subdivision 2, paragraph (a), clause (4).

Subd. 6. Local Housing Trust Fund Grants

10,000,000

(a) This appropriation is for grants to housing
trust funds established under Minnesota
Statutes, section 462C.16, to incentivize local
funding. This is a onetime appropriation.
Grants shall provide matching funds of 100
percent of the amount not exceeding $150,000
and 50 percent of the amount over $150,000
and not exceeding $300,000 that a housing
trust fund receives in fiscal years 2019 and
2020 from local own-source revenues. For
purposes of this section, "local own-source
revenues" means public revenue from any
source other than the state or federal
government.

(b) Of this appropriation, $100,000 is for
technical assistance grants to local and
regional housing trust funds. A housing trust
fund may apply for a technical assistance grant
at the time and in the manner and form
required by the agency. The agency shall make
grants on a first-come, first-served basis. A
technical assistance grant must not exceed
$5,000.

(c) Grant recipients under this subdivision
must use grant funds within eight years of
receipt for purposes (1) authorized under
Minnesota Statutes, section 462C.16,
subdivision 3, and (2) benefiting households
with incomes at or below 115 percent of the
state median income. Recipients must return
any grant funds not used for these purposes
within eight years of receipt to the
commissioner of the Housing Finance Agency
for deposit into the housing development fund.

Sec. 3. EFFECTIVE DATE.

This article is effective July 1, 2019.

ARTICLE 2

HOUSING POLICY

Section 1.

Minnesota Statutes 2018, section 462A.38, is amended to read:

462A.38 WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
DEVELOPMENT PROGRAM.

Subdivision 1.

Establishment.

A workforce and affordable homeownership development
program is established to award homeownership development grants and loans to cities,
tribal governments, nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
subdivision 1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Subd. 2.

Use of funds.

(a) Grant funds and loans awarded under this program may be
used for:

(1) development costs;

(2) rehabilitation;

(3) land development; and

(4) residential housing, including storm shelters and related community facilities.

(b) A project funded through the grant this program shall serve households that meet
the income limits as provided in section 462A.33, subdivision 5, unless a project is intended
for the purpose outlined in section 462A.02, subdivision 6.

Subd. 3.

Application.

The commissioner shall develop forms and procedures for soliciting
and reviewing applications for grants and loans under this section. The commissioner shall
consult with interested stakeholders when developing the guidelines and procedures for the
program. In making grants and loans, the commissioner shall establish semiannual application
deadlines in which grants and loans will be authorized from all or part of the available
appropriations.

Subd. 4.

Awarding grants and loans.

Among comparable proposals, preference must
be given to proposals that include contributions from nonstate resources for the greatest
portion of the total development cost.

Subd. 5.

Statewide program.

The agency shall attempt to make grants and loans in
approximately equal amounts to applicants outside and within the metropolitan area, as
defined under section 473.121, subdivision 2.

Subd. 6.

Report.

Beginning January 15, 2018 2019, the commissioner must annually
submit a report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over housing and workforce development
specifying the projects that received grants and loans under this section and the specific
purposes for which the grant or loan funds were used.

Subd. 7.

Workforce and affordable homeownership development account.

A
workforce and affordable homeownership development account is established in the housing
development fund. Money in the account, including interest, is appropriated to the
commissioner of the Housing Finance Agency for purposes of this section. The amount
appropriated under this section must supplement traditional sources of funding for this
purpose and must not be used as a substitute or to pay debt service on bonds.

Subd. 8.

Deposits; determination of funding amount.

(a) In fiscal years 2020 to 2029,
the commissioner of revenue shall annually deposit, by September 15, an amount equal to
the increment determined under paragraph (b) into the workforce and affordable
homeownership account in the housing development fund.

(b) By September 1, 2019, and each year thereafter through 2028, the commissioner of
revenue must determine the total amount of the proceeds of the mortgage registry tax imposed
under section 287.035 and the deed tax imposed under section 287.21 that was collected
during the fiscal year ending in that calendar year and must determine the increment that
exceeds the amount collected in the previous fiscal year. The increment calculated under
this paragraph must not be less than $0.

(c) All loan repayments received under this section must be deposited into the workforce
and affordable homeownership development account in the housing development fund.

EFFECTIVE DATE.

This section is effective July 1, 2019.