HF 1607

as introduced - 90th Legislature (2017 - 2018) Posted on 03/03/2017 08:50am

A bill for an act
relating to housing; authorizing the creation of housing trust funds by local
governments; authorizing counties and cities to impose a surcharge on document
recording fees for deposit into a housing trust fund; requiring reports; appropriating
money; amending Minnesota Statutes 2016, sections 357.18, by adding a
subdivision; 357.182, subdivision 2; 508.82, by adding a subdivision; 508A.82,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 462C.

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

Section 1.

Minnesota Statutes 2016, section 357.18, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin County or city; additional fee. new text end

new text begin A county or home rule charter or statutory city
may impose an additional recording fee to fund a local or regional housing trust fund under
section 462C.16.
new text end

Sec. 2.

Minnesota Statutes 2016, section 357.182, subdivision 2, is amended to read:

Subd. 2.

Fee restrictions.

Notwithstanding any local law or ordinance to the contrary,
no county may charge or collect any fee, special or otherwise, or however described, other
than a fee denominated or prescribed by state law, for any service, task, or step performed
by any county officer or employee in connection with the receipt, recording, and return of
any recordable instrument by the county recorder or registrar of titles, whether received by
mail, in person, or by electronic delivery, including, but not limited to, opening mail;
handling, transferring, or transporting the instrument; certifying no-delinquent property
taxes; payment of state deed tax, mortgage registry tax, or conservation fee; recording of
approved plats, subdivision splits, or combinations; or any other prerequisites to recording,
and returning the instrument by regular mail or in person to the person identified in the
instrument for that purpose. new text begin Nothing in this subdivision prevents a county or home rule
charter or statutory city from imposing a fee under section 462C.16.
new text end

Sec. 3.

new text begin [462C.16] HOUSING TRUST FUNDS FOR LOCAL HOUSING
DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given to them.
new text end

new text begin (b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
new text end

new text begin (c) "Fund" means a local housing trust fund or a regional housing trust fund.
new text end

new text begin (d) "Local government" means any statutory or home rule charter city or a county.
new text end

new text begin (e) "Local housing trust fund" means a fund established by a local government with one
or more dedicated sources of public revenue for housing.
new text end

new text begin (f) "Regional housing trust fund" means a fund established and administered under a
joint powers agreement entered into by two or more local governments with one or more
dedicated sources of public revenue for housing.
new text end

new text begin Subd. 2. new text end

new text begin Creation and administration. new text end

new text begin (a) A local government may establish a local
housing trust fund by ordinance or participate in a joint powers agreement to establish a
regional housing trust fund.
new text end

new text begin (b) A local or regional housing trust fund may be administered through a nonprofit
organization and shall encourage private charitable donations to the fund.
new text end

new text begin Subd. 3. new text end

new text begin Authorized expenditures. new text end

new text begin The board of a local or regional housing trust fund
may use money in the fund to:
new text end

new text begin (1) pay for administrative expenses, but not more than ten percent of the balance of the
fund may be spent on administration;
new text end

new text begin (2) make grants, loans, and loan guarantees for the development, rehabilitation, or
financing of housing;
new text end

new text begin (3) match other funds from federal, state, or private resources; and
new text end

new text begin (4) provide down payment assistance, rental assistance, and homebuyer counseling
services.
new text end

new text begin Subd. 4. new text end

new text begin Funding. new text end

new text begin (a) A local government may finance its local or regional housing
trust fund with any money available to the local government, unless expressly prohibited
by state law. Sources of these funds include, but are not limited to:
new text end

new text begin (1) donations;
new text end

new text begin (2) bond proceeds;
new text end

new text begin (3) grants and loans from a state, federal, or private source;
new text end

new text begin (4) appropriations by a local government to the fund;
new text end

new text begin (5) investment earnings of the fund; and
new text end

new text begin (6) housing and redevelopment authority levies.
new text end

new text begin (b) In addition, the local government may impose an additional fee not exceeding $.......,
on any document described in section 357.18, 508.82, or 508A.82, presented to the county
recorder or registrar of titles relating to real property located in the county or city imposing
the fee. A local government must certify to the county recorder or registrar of titles the
amount of the fee imposed and the county recorder or registrar of titles must charge the fee.
The county collecting the fee must transfer to a city imposing the fee an amount equal to
the amount collected for the city. All such fees collected must be deposited in a local or
regional housing trust fund and may be used only for activities serving individuals and
households with incomes at or below 115 percent of the state median income.
new text end

new text begin (c) The local government may alter a source of funding for the local or regional housing
trust fund, but only if, once altered, sufficient funds will exist to cover the projected debts
or expenditures authorized by the fund in its budget.
new text end

new text begin (d) Amounts raised under this subdivision must be expended on authorized expenditures
listed in subdivision 3 within four years of being collected. Amounts not expended within
this time period must be transferred to the Minnesota Housing Finance Agency.
new text end

new text begin Subd. 5. new text end

new text begin Matching contributions. new text end

new text begin (a) In fiscal year 2018 and fiscal year 2019 only, the
commissioner must transfer the following amounts to any local housing trust fund that is
funded with contributions from the additional fee authorized under subdivision 4, paragraph
(b):
new text end

new text begin (1) if the amount of the fee is not over $......., the amount transferred is equal to 25 percent
of the total amount collected from the additional fee;
new text end

new text begin (2) if the amount of the fee is over $....... but not over $......., the amount transferred is
equal to 50 percent of the total amount collected from the additional fee;
new text end

new text begin (3) if the amount of the fee is over $....... but not over $......., the amount transferred is
equal to 75 percent of the total amount collected from the additional fee; and
new text end

new text begin (4) if the amount of the fee is over $....... the amount transferred is equal to 100 percent
of the total amount collected from the additional fee.
new text end

new text begin (b) For a regional housing trust fund, the commissioner must transfer an amount equal
to the sum of the amounts of the matching contributions that each local government subject
to the joint powers agreement would be eligible for under paragraph (a).
new text end

new text begin (c) In fiscal year 2018 and fiscal year 2019 only, if a local or regional housing trust fund
receives funds from a housing and redevelopment authority levy or special tax pursuant to
sections 469.001 to 469.047 or section 469.033, subdivision 6, the commissioner must
transfer to the trust:
new text end

new text begin (1) 100 percent of the amount not exceeding $100,000 that the trust receives in a fiscal
year under this paragraph; and
new text end

new text begin (2) 50 percent of the amount over $100,000 and not exceeding $500,000 that the trust
receives in a fiscal year under this paragraph.
new text end

new text begin Subd. 6. new text end

new text begin Local housing trust funds account. new text end

new text begin (a) The local housing trust funds account
is hereby created in the special revenue fund.
new text end

new text begin (b) Beginning in fiscal year 2020:
new text end

new text begin (1) a local government collecting an additional fee under subdivision 4, paragraph (b),
or an additional levy or special tax under subdivision 5, paragraph (c), must transfer 15
percent of the amount collected to the commissioner for deposit in the local housing trust
funds account; and
new text end

new text begin (2) the commissioner must annually transfer an amount from the local housing trust
funds account to each contributing local or regional housing trust fund in the manner provided
under subdivision 5.
new text end

new text begin (c) If the local housing trust funds account ever lacks sufficient funds to make all of the
required transfers, the commissioner must proportionately reduce the amount transferred
to each fund.
new text end

new text begin Subd. 7. new text end

new text begin Reports. new text end

new text begin (a) A local or regional housing trust fund established under this section
must report annually to the local government that created the fund. The local government
or governments must post this report on its public Web site.
new text end

new text begin (b) A local or regional housing fund that imposes an additional fee under subdivision
4, paragraph (b), must report annually to the commissioner its compliance with the income
restrictions in that paragraph.
new text end

new text begin Subd. 8. new text end

new text begin Effect of legislation on existing local or regional housing trust funds. new text end

new text begin A
local or regional housing trust fund existing on the effective date of this section is not
required to alter the existing terms of its governing documents, but any alteration or
amendment to its governing documents must conform to the provisions of this section.
new text end

Sec. 4.

Minnesota Statutes 2016, section 508.82, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin County or city; additional fee. new text end

new text begin A county or home rule charter or statutory city
may impose an additional registrar of titles fee to fund a local or regional housing trust fund
under section 462C.16.
new text end

Sec. 5.

Minnesota Statutes 2016, section 508A.82, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin County or city; additional fee. new text end

new text begin A county or home rule charter or statutory city
may impose an additional registrar of titles fee to fund a local or regional housing trust fund
under section 462C.16.
new text end

Sec. 6. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2018 and $....... in fiscal year 2019 are appropriated from the general
fund to the commissioner of the Housing Finance Agency for transfers required under
Minnesota Statutes, section 462C.16, subdivision 5. If the amount appropriated under this
section is not sufficient to make all of the required transfers, the commissioner must
proportionately reduce the amount transferred to each fund. If the amount appropriated
under this subdivision exceeds the amount required to make the transfers, the excess amount
must be transferred to the local housing trust funds account established under Minnesota
Statutes, section 462C.16, subdivision 6. This is a onetime appropriation.
new text end