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HF 2031

as introduced - 88th Legislature (2013 - 2014) Posted on 03/27/2014 03:25pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to capital investment; appropriating money for public housing
rehabilitation and debt service on additional housing infrastructure bonds issued
by the Minnesota Housing Finance Agency; authorizing the sale and issuance of
state bonds; amending Minnesota Statutes 2012, section 462A.37, subdivision 2,
by adding subdivisions.

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

Section 1.

Minnesota Statutes 2012, section 462A.37, subdivision 2, is amended to read:


Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the
payment made under this section may be pledged. The housing infrastructure bonds
authorized in this subdivision may be issued to fund loans, on terms and conditions the
agency deems appropriate, made for one or more of the following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of
supportive housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or
abandoned housing to be used for affordable rental housing and the costs of new
construction of rental housing on abandoned or foreclosed property where the existing
structures will be demolished or removed;

(3) to finance that portion of the costs of acquisition of abandoned or foreclosed
property that is attributable to the land to be leased by community land trusts to low- and
moderate-income homebuyersnew text begin and that portion of the costs of acquisition of property
located in a foreclosure priority area identified by the agency that is attributable to the land
to be leased by community land trusts to low- and moderate-income homebuyers
new text end ; and

(4) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in
part, outstanding bonds previously issued by the agency or another government unit to
finance or refinance such costs.

(b) Among comparable proposals for permanent supportive housing, preference
shall be given to permanent supportive housing for new text begin veterans and other new text end individuals or
families who:

(1) either have been without a permanent residence for at least 12 months or at
least four times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least
four times in the last three years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
bonds authorized in 2014 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2012, section 462A.37, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in
subdivision 2, the agency may issue up to $80,000,000 of housing infrastructure bonds in
one or more series to which the payments made under this section may be pledged.
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

Sec. 3.

Minnesota Statutes 2012, section 462A.37, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Additional appropriation. new text end

new text begin (a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on
each series of bonds issued under subdivision 2a.
new text end

new text begin (b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 32, the amount certified under paragraph (a), not to exceed
$6,400,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.
new text end

new text begin (c) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.
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

Sec. 4. new text begin MINNESOTA HOUSING FINANCE AGENCY; PUBLIC HOUSING.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $20,000,000 is appropriated from the bond proceeds
fund to the to the Minnesota Housing Finance Agency for transfer to the housing
development fund to finance the costs of rehabilitation to preserve public housing under
Minnesota Statutes, section 462A.202, subdivision 3a. For purposes of this section,
"public housing" means housing for low-income persons and households financed by
the federal government and owned and operated by the public housing authorities and
agencies formed by cities and counties. Public housing authorities receiving a public
housing assessment composite score of 80 or above are eligible to receive funding.
Priority must be given to proposals that maximize federal or local resources to finance the
capital costs. The priority in Minnesota Statutes, section 462A.202, subdivision 3a, for
projects to increase the supply of affordable housing and the restrictions of Minnesota
Statutes, section 462A.202, subdivision 7, do not apply to this appropriation.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $20,000,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
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