HF 2112

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/28/2014 12:26pm

A bill for an act
relating to housing; creating the Housing Opportunities Made Equitable (HOME)
pilot project; requiring reports; modifying prior appropriations; appropriating
money; amending Laws 2013, chapter 85, article 1, section 4, subdivisions 1, 2.

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

Section 1.

Laws 2013, chapter 85, article 1, section 4, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$

58,748,000

$

42,748,000

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

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.

new text begin The Housing Finance Agency will make
continuous improvements to its ongoing
efforts to reduce the racial and ethnic
inequalities in homeownership rates and
will seek opportunities to deploy increasing
levels of resources toward these efforts.
new text end

Sec. 2.

Laws 2013, chapter 85, article 1, section 4, subdivision 2, is amended to read:

Subd. 2. Challenge Program

19,203,000

9,203,000

(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.
The agency must continue to strengthen its
efforts to address the disparity rate between
white households and indigenous American
Indians and communities of color. Of this
amount, $1,208,000 each year shall be made
available during the first 11 months of the
fiscal year exclusively for housing projects
for American Indians. Any funds not
committed to housing projects for American
Indians in the first 11 months of the fiscal year
shall be available for any eligible activity
under Minnesota Statues, section 462A.33.

(b) Of this amount, $10,000,000 is a onetime
appropriation and is targeted for housing in
communities and regions that have:

(1)(i) low housing vacancy rates; and

(ii) cooperatively developed a plan that
identifies current and future housing needs;
and

(2)(i) experienced job growth since 2005 and
have at least 2,000 jobs within the commuter
shed;

(ii) evidence of anticipated job expansion; or

(iii) a significant portion of area employees
who commute more than 30 miles between
their residence and their employment.

(c) Priority shall be given to programs and
projects that are land trust programs and
programs that work in coordination with a
land trust program.

new text begin (d) Of this amount, $500,000 is for
homeownership opportunities for families
who have been evicted or been given
notice of an eviction due to a disabled
child in the home, including adjustments
for the incremental increase in costs of
addressing the unique housing needs of those
households. Any funds not expended for this
purpose may be returned to the challenge
fund after October 31, 2014.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The base funding for this program in
the 2016-2017 biennium is $12,925,000 each
year.

Sec. 3. new text begin AFFORDABLE HOUSING PLAN; DISPARITIES REPORT.
new text end

new text begin (a) The Housing Finance Agency shall provide the chairs and ranking minority
members of the house of representatives and senate committees with jurisdiction over the
agency with the draft and final versions of its affordable housing plan before and after it
has been submitted to the agency board for consideration.
new text end

new text begin (b) The Housing Finance Agency shall annually report to the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over the agency on the progress, if any, the agency has made in closing the racial disparity
gap and low-income concentrated housing disparities.
new text end

Sec. 4. new text begin HOUSING OPPORTUNITIES MADE EQUITABLE (HOME) PILOT
PROJECT.
new text end

new text begin (a) The Minnesota Housing Finance Agency in collaboration with the Chicano Latino
Affairs Council, Council on Asian-Pacific Minnesotans, Council on Black Minnesotans,
and Minnesota Indian Affairs Council shall establish the Housing Opportunities Made
Equitable (HOME) pilot project to support closing the disparity gap in affordable
homeownership for all communities of color and American Indians in Minnesota and
increase housing opportunities for specific groups while closing the disparity gap that
exists in Minnesota. Nothing in this section shall interfere with the agency's ability to meet
obligations to bondholders or violate Minnesota Statutes, section 462A.15.
new text end

new text begin (b) With the funds available to the Minnesota Housing Finance Agency, the
commissioner may support the capacity of several local community nonprofit housing and
service providers to administer the HOME pilot project under this section. The Minnesota
Housing Finance Agency shall choose providers that have proven track records of assisting
culturally diverse groups of people with long-term education services and wraparound
services that have historically resulted in sustainable affordable housing opportunities for
culturally diverse groups. The pilot project may also support the redevelopment and
rebuilding of challenged neighborhoods affected by foreclosure crisis.
new text end

new text begin (c) A portion of funds must be awarded to providers to assist families to attain
sustainable affordable homeownership. Assistance may include long-term financial
education, training, case management, credit mending, homebuyer education, foreclosure
prevention mitigation services, and supporting wraparound services.
new text end

new text begin (d) A portion of funds must be used to develop and administer loans to assist families
with credit financing who cannot use conventional financing due to cultural or religious
beliefs that will be originated by the qualified providers. A qualified provider is a provider
that has a proven track record of assisting culturally diverse groups of people in obtaining
sustainable affordable homeownership and that, at a minimum, is in good standing with
the Minnesota Department of Commerce, is licensed to originate mortgage loans, and has
demonstrated an ability to underwrite to HFA or conventional underwriting guidelines.
Qualified providers may be paid an origination fee, service release premium and a standard
fee set in order to expand capacity to assist more families with purchasing a home.
new text end