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HF 1739

as introduced - 87th Legislature (2011 - 2012) Posted on 05/20/2011 08:47am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 05/20/2011

Current Version - as introduced

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A bill for an act
relating to housing; adding definitions; amending Minnesota Housing Finance
Agency provisions; changing eligibility and selection criteria for agency funding;
amending Minnesota Statutes 2010, sections 462A.03, by adding subdivisions;
462A.07, by adding subdivisions; 462A.209, subdivisions 1, 2, 3, 5.

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

Section 1.

Minnesota Statutes 2010, section 462A.03, is amended by adding a
subdivision to read:


new text begin Subd. 24. new text end

new text begin Counseling, education or training certification, or licensing entity.
new text end

new text begin "Counseling, education or training certification, or licensing entity" includes the agency,
the United States Department of Housing and Urban Development (HUD), the Minnesota
Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention Association,
the AARP program, including an organization administering the program under an
agreement with HUD, and NeighborWorks America.
new text end

Sec. 2.

Minnesota Statutes 2010, section 462A.03, is amended by adding a subdivision
to read:


new text begin Subd. 25. new text end

new text begin Authorized counseling agency. new text end

new text begin (a) "Authorized counseling agency"
means:
new text end

new text begin (1) a political subdivision that provides counseling services, education, or training; or
new text end

new text begin (2) a nonprofit organization or nonprofit third-party individual that provides
counseling services, education, or training and is:
new text end

new text begin (i) a HUD-approved housing counseling agency as determined by HUD under Code
of Federal Regulations, title 24, part 214;
new text end

new text begin (ii) a recipient of funds, scholarships, or fee waivers for counseling services,
education, or training from the agency, HUD, NeighborWorks America, or the Minnesota
Mortgage Foreclosure Prevention Association; or
new text end

new text begin (iii) certified, accredited, or licensed through a certification or licensing entity to
provide those specific types of counseling services, education, or training identified in
the certification or accreditation.
new text end

new text begin (b) For purposes of this subdivision, "counseling services, education, or training"
means programs and services, education, or training for an individual or group of
individuals related to housing, including but not limited to topics on homelessness, all
phases of buying a home and homeownership, foreclosure prevention, mortgages and
reverse mortgages, finances, and credit.
new text end

Sec. 3.

Minnesota Statutes 2010, section 462A.03, is amended by adding a subdivision
to read:


new text begin Subd. 26. new text end

new text begin Disadvantaged nonprofit organization. new text end

new text begin "Disadvantaged nonprofit
organization" means a nonprofit organization that:
new text end

new text begin (1) provides services or administers programs related to housing, including but not
limited to matters of homelessness, all phases of buying a home and homeownership,
foreclosure prevention, mortgages and reverse mortgages, finances, and credit;
new text end

new text begin (2) serves disadvantaged, culturally and linguistically specific, unserved, and
underrepresented populations as a primary constituency for the organization's services and
programs, including but not limited to minority populations, refugees, and veterans;
new text end

new text begin (3) is not a HUD-approved housing counseling agency as determined by the
United States Department of Housing and Urban Development under Code of Federal
Regulations, title 24, part 214;
new text end

new text begin (4) has not received sufficient financial assistance for housing-related purposes in
a previous fiscal year from a state or federal agency, including but not limited to the
Minnesota Housing Finance Agency;
new text end

new text begin (5) requires financial assistance from a state agency in order to qualify for federal
housing-related funds identified and sought by the organization; and
new text end

new text begin (6) has an annual operating budget of no more than $3,000,000 as reported in the
organization's most recent financial statements.
new text end

Sec. 4.

Minnesota Statutes 2010, section 462A.07, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Information on Web site. new text end

new text begin The department shall provide on its Internet
Web site a link and contact information for each counseling, education or training
certification, or licensing entity's list of certified or licensed counselors and counseling
agencies with designations for the nonprofit counselors and organizations.
new text end

Sec. 5.

Minnesota Statutes 2010, section 462A.07, is amended by adding a subdivision
to read:


new text begin Subd. 18. new text end

new text begin Capacity-building; education and training opportunities. new text end

new text begin The
agency shall assist disadvantaged nonprofit organizations in developing capacity
to provide housing-related services and programs and achieve eligibility to receive
federal housing-related funds. The agency shall waive fees for disadvantaged nonprofit
organizations to attend education and training opportunities provided or sponsored by
the agency.
new text end

Sec. 6.

Minnesota Statutes 2010, section 462A.209, subdivision 1, is amended to read:


Subdivision 1.

Full cycle homeownership services.

The homeownership education,
counseling, and training program shall be used to provide funding to community-based
nonprofit organizationsnew text begin, authorized counseling agencies,new text end and political subdivisions to
assist them in building the capacity to provide and providing full cycle homeownership
services to low and moderate income home buyers and homeowners, including seniors.
The purpose of the program is to encourage private investment in affordable housing and
collaboration of nonprofit organizationsnew text begin, authorized counseling agencies,new text end and political
subdivisions with each other and private lenders in providing full cycle homeownership
services.

Sec. 7.

Minnesota Statutes 2010, section 462A.209, subdivision 2, is amended to read:


Subd. 2.

deleted text beginDefinitiondeleted text endnew text begin Definitionsnew text end.

new text begin For purposes of this section, the following terms
have the meanings given:
new text end

new text begin (1) "Eligible organization" means a community-based nonprofit organization, an
authorized counseling agency, or a political subdivision; and
new text end

new text begin (2) new text end"Full cycle homeownership services" means supporting eligible home buyers
and home owners through all phases of purchasing and keeping a home, by providing
prepurchase home buyer education; prepurchase counseling and credit repair; prepurchase
and postpurchase property inspection and technical and financial assistance to buyers in
rehabilitating the home; postpurchase counseling, including home equity conversion loan
counseling, mortgage default counseling, postpurchase assistance with home maintenance,
entry cost assistance; foreclosure prevention and assistance; and access to flexible loan
products.

Sec. 8.

Minnesota Statutes 2010, section 462A.209, subdivision 3, is amended to read:


Subd. 3.

Eligibility.

new text begin(a) new text endThe agency shall establish eligibility criteria for deleted text beginnonprofit
organizations and political subdivisions
deleted text endnew text begin an eligible organization new text end to receive funding under
this section.

new text begin (b) new text endThe eligibility criteria must require the deleted text beginnonprofit organization or political
subdivision
deleted text endnew text begin eligible organization new text end to provide, to build capacity to provide, or support full
cycle homeownership services for eligible home buyers. The agency may fund deleted text begina nonprofit
organization or political subdivision
deleted text endnew text begin an eligible organization new text end that will provide full cycle
homeownership services by coordinating with one or more other organizations that
will provide specific components of full cycle homeownership services. The agency
may make exceptions to providing all components of full cycle lending if justified by
the application. If there are more applicants requesting funding than there are funds
available, the agency deleted text beginshall award the funds on a competitive basisdeleted text end new text beginshall prioritize funding
to first provide assistance to disadvantaged housing service organizations
new text endand also
assure an equitable geographic distribution of the available fundsdeleted text begin.deleted text end new text beginbased on the needs of
the population. The agency shall consider the service area of an organization applying
for funding and the ability of the organization to serve disadvantaged, culturally and
linguistically specific, unserved, and underrepresented populations including but not
limited to minority populations, refugees, and veterans.
new text endThe eligibility criteria must
require the deleted text beginnonprofit organization or political subdivisiondeleted text endnew text begin eligible organization new text end to have a
demonstrated involvement in the local community and to target the housing affordability
needs of the local community or to have demonstrated experience with counseling older
persons on housing, or both.

new text begin (c) new text endThe eligibility criteria may includenew text begin:
new text end

new text begin (1) new text enda requirement for specific training provided by designated state or national
entitiesdeleted text begin. The agency may also include an eligibility criteria that requiresdeleted text endnew text begin; and
new text end

new text begin (2) a requirement for new text end counselor certification or organizational accreditation by
specified organizations which provide certification or accreditation services. new text beginThe agency
may not impose the eligibility criteria under this paragraph for an authorized counseling
agency that is certified through a counseling certification entity for the specific type of
counseling services for which funding under this section is requested, and authorized
counseling agencies may not require certification from a particular or specified counseling
certification entity.
new text end

new text begin (d) new text endPartnerships and collaboration with innovative, grass roots, or community-based
initiatives shall be encouraged. deleted text beginThe agency shall give priority to nonprofit organizations
and political subdivisions that have funding from other sources for full cycle
homeownership services.
deleted text end Applicants for funds under section 462A.057 may also apply
funds under this program.

Sec. 9.

Minnesota Statutes 2010, section 462A.209, subdivision 5, is amended to read:


Subd. 5.

Selection new text beginand prioritization new text endcriteria.

new text begin (a) If there are more applicants
requesting funding than there are funds available, the agency must prioritize funding to
first provide assistance to disadvantaged housing services organizations.
new text end

new text begin (b) new text endThe agency shall take the following criteria into consideration when determining
whether to award funds to an eligible organization:

(1) the extent to which there is an equitable geographic distribution of funds among
program applicantsnew text begin based on the needs of the populationnew text end;

(2) the prior experience and documented familiarity of the organization, as may be
applicable, deleted text beginin establishing, administering, and maintaining some or all of the components
of full cycle homeownership services
deleted text endnew text begin in providing services to disadvantaged, culturally
and linguistically specific, unserved, and underrepresented populations including but not
limited to minority populations, refugees, and veterans
new text end;

(3) the reasonableness of the proposed budget in meeting the program objectives, a
demonstrated ability to leverage program money with other sources of funding, and the
extent of the leveraging of other sources of funding;

(4) the extent to which efforts are targeted towards households with incomes that
do not exceed 80 percent of the state or area median income or underserved segments of
the local population; and

(5) the extent to which program funding does not duplicate other efforts currently
available in the local area and will enable, expand, or enhance existing activitiesdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) the extent to which program funding provides services to disadvantaged,
culturally and linguistically specific, unserved, and underrepresented populations
including but not limited to minority populations, refugees, and veterans.
new text end