HF 2281

as introduced - 89th Legislature (2015 - 2016) Posted on 04/30/2015 09:48am

A bill for an act
relating to capital investment; authorizing housing infrastructure bonds to finance
low-income senior housing; appropriating money; authorizing the sale and
issuance of state bonds; amending Minnesota Statutes 2014, section 462A.37,
subdivision 1, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 462A.37, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms
have the meanings given.

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

(d) "Debt service" means the amount payable in any fiscal year of principal,
premium, if any, and interest on housing infrastructure bonds and the fees, charges, and
expenses related to the bonds.

new text begin (e) "Senior" means a person 55 years of age or older with an annual income not
greater than 50 percent of (1) the metropolitan area median income for persons in the
metropolitan area as defined in section 473.121, subdivision 2, or (2) the statewide median
income for persons outside the metropolitan area.
new text end

deleted text begin (e) deleted text end new text begin (f) new text end "Foreclosed property" means residential property where foreclosure
proceedings have been initiated or have been completed and title transferred or where
title is transferred in lieu of foreclosure.

deleted text begin (f) deleted text end new text begin (g) new text end "Housing infrastructure bonds" means bonds issued by the agency under this
chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the
Internal Revenue Code, finance qualified residential rental projects within the meaning of
Section 142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private
activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the
purpose of financing or refinancing affordable housing authorized under this chapter.

deleted text begin (g) deleted text end new text begin (h) new text end "Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended.

new text begin (i) "Senior housing" means housing intended and operated for occupancy by at
least one senior per unit, provided that at least 80 percent of the units are occupied
by at least one senior per unit, and for which there is publication of, and adherence to,
policies and procedures that demonstrate an intent by the owner or manager to provide
housing for seniors.
new text end

deleted text begin (h) deleted text end new text begin (j) new text end "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment. new text begin The scope of services to be
provided must be evaluated and approved by either (1) the jurisdiction allocating any low
income housing tax credits as defined in section 462A.222, subdivision 1, to the project,
or (2) the housing authority, economic development authority, public housing authority,
or community development agency which has an area of operation for the jurisdiction
where the project is located.
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. 2.

Minnesota Statutes 2014, section 462A.37, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin 2016 authorization for senior housing; appropriation. new text end

new text begin (a) In addition to
any other amounts authorized in this section, the agency may issue up to $40,000,000 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 (b) The housing infrastructure bonds authorized in this subdivision may be issued to
fund loans, on terms and conditions the agency deems appropriate, to finance the costs of
acquisition, rehabilitation, adaptive reuse, or new construction of senior housing. Fifty
percent of the money available for projects under this subdivision must be awarded to
projects in the metropolitan area, as defined in section 473.121, subdivision 2, and 50
percent must be awarded to projects outside the metropolitan area. Of the money awarded
to projects outside the metropolitan area, one-half must be awarded to projects in counties
or cities with a population of 20,000 or less, as established by the most recent federal
decennial census. The agency must give priority to funding requests that demonstrate a
commitment to maintaining the housing funded as affordable to seniors, leverage other
sources of funding to finance the project, including the use of low-income housing tax
credits, and provide services to the residents to support independent living.
new text end

new text begin (c) 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 paragraph (a).
new text end

new text begin (d) Each July 15, beginning in 2016 and through 2038, if any housing infrastructure
bonds issued under paragraph (a) remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (b), not to exceed
$....... 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 (e) 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