HF 2224

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2021 01:45pm

A bill for an act
relating to housing; establishing a COVID-19 emergency mortgage assistance
program; appropriating money.

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

Section 1. new text begin APPROPRIATION; COVID-19 EMERGENCY MORTGAGE
ASSISTANCE GRANTS.
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.
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new text begin (b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
new text end

new text begin (c) "Public health emergency" means:
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new text begin (1) an illness or economic impact sustained by either an individual or an individual's
relative or household member related to COVID-19 that prevents the individual from meeting
financial obligations temporarily or permanently; or
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new text begin (2) the household is at or below 80 percent of the area median income and has experienced
a reduction in income or temporary or permanent unemployment as a direct or indirect result
of local, state, or federal actions related to COVID-19.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin $....... in fiscal year 2021 is appropriated from the general fund
to the commissioner to establish a COVID-19 emergency mortgage assistance program.
The commissioner may use grantees of the family homeless prevention and assistance
program under Minnesota Statutes, section 462A.204; grantees of the COVID-19 housing
assistance program; or a housing counseling agency approved by the United States
Department of Urban Housing and Development that demonstrates knowledge of
homeownership loss mitigation and foreclosure prevention, and the grantees are preapproved
to distribute funds under this section. Notwithstanding the requirements of Minnesota
Statutes, sections 16C.06 and 462A.204, the commissioner shall allocate these resources to
existing grantees and contract with other entities that are not current grantees based on
foreclosure prevention needs. Entities may include counties, cities, nonprofit organizations,
tribes, or other entities the agency identifies. For purposes of this emergency appropriation,
nonprofits do not need to obtain sponsoring resolutions from counties as required under
Minnesota Statutes, section 462A.204, subdivision 3. This appropriation is onetime and
available until December 31, 2022. Funds not committed or expended by December 31,
2022, shall cancel to the general fund.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility; applications. new text end

new text begin (a) Funding under this section shall be for homeowners
in Minnesota to prevent foreclosure and the cost of expenses associated with the provision
of economic support in connection with the public health emergency consistent with the
requirements of this section. The commissioner may contract with county agencies, local
governments, tribes, or nonprofit organizations to provide funding and support services to
process applications for funding under this program. To be eligible for funding, an applicant
must:
new text end

new text begin (1) have a mortgage payment, homeowner association dues, lot rent due to a manufactured
home park, a contract for deed payment, a homeowner insurance payment, a property tax
payment, or a utility payment with a due date of March 1, 2020, or later that is past due or
coming due within 30 days of the application for funding;
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new text begin (2) be unable to pay the money owed as a direct or indirect result of the public health
emergency; and
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new text begin (3) be a household with a current gross income at or below 80 percent of the area median
income at the time of application or as averaged over the previous 12 months, whichever
is lower.
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new text begin (b) The commissioner may develop applications for the program and a process to oversee
grantees.
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new text begin (c) Data submitted from benefits by an applicant to establish eligibility under this section
is subject to Minnesota Statutes, section 13.462.
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new text begin Subd. 4. new text end

new text begin Notification of other relief. new text end

new text begin If an applicant applies for relief from sources other
than the COVID-19 mortgage emergency assistance grants and receives aid for the purposes
of paying for housing, the applicant must immediately notify the grantee.
new text end

new text begin Subd. 5. new text end

new text begin Eligible use of funds. new text end

new text begin (a) An applicant may use funds for a mortgage payment,
homeowner association dues, a contract for deed payment owed to a seller, a homeowner
insurance or property tax payment owed for the applicant's home, lot rent due for a
manufactured home, or a utility payment owed with a due date of March 1, 2020, or later
or that is due within 30 days of the application.
new text end

new text begin (b) The financial assistance provided for any individual or family must not exceed the
minimum payments owed.
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new text begin Subd. 6. new text end

new text begin Consideration of future assistance. new text end

new text begin Once an application is approved, the
assistance file may remain open to allow for consideration of additional future assistance
needs under the COVID-19 emergency mortgage assistance program.
new text end

new text begin Subd. 7. new text end

new text begin Payment recipients. new text end

new text begin Funding under this section must be paid directly to:
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new text begin (1) the financial service for a mortgage or the entity who owns the mortgage for a
homeowner;
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new text begin (2) the contract for deed vendor or seller;
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new text begin (3) the purchase-money mortgagor;
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new text begin (4) the manufactured home park cooperative, manufactured home owner, or park owner;
new text end

new text begin (5) the utility company; or
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new text begin (6) any other identified entity to whom payment is owed.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin By March 1, 2023, the commissioner must submit a report to the chairs
and ranking minority members of the legislative committees with jurisdiction over housing
finance with a summary of the performance of the COVID-19 emergency mortgage assistance
program. To the extent practicable, the report must contain the following information:
new text end

new text begin (1) the total number of applications received by grantees;
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new text begin (2) the total number of grants awarded to grantees and the number of individuals assisted;
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new text begin (3) the total amount of grant funding awarded to grantees and individuals;
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new text begin (4) the mean and median grant amounts awarded to grantees and individuals;
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new text begin (5) a summary of the geographic distribution of grants awarded; and
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new text begin (6) a list of all entities contracted with to process applications.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin APPROPRIATION; FEDERAL FUNDS.
new text end

new text begin The commissioner of management and budget must determine whether any federal funds
received by the state after the date of enactment of section 1 may be used for eligible uses
under section 1, subdivision 5. If the commissioner of management and budget determines
that such federal funds can be used for eligible uses under section 1, subdivision 5, the
amount for the eligible uses is appropriated from the account where the federal funds have
been deposited and the corresponding amount appropriated under section 1 cancels to the
general fund.
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. new text begin APPROPRIATION; HOUSING COUNSELING.
new text end

new text begin $....... in fiscal year 2022 is appropriated from the general fund to the commissioner of
the Minnesota Housing Finance Agency for grants to support housing counseling. The
commissioner may issue the grants to grantees of the homeownership, education, counseling,
and training program under Minnesota Statutes, section 462A.209, and to housing counseling
agencies approved by the United States Department of Urban Housing and Development.
new text end