HF 2448

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to metropolitan government; modifying the 
  1.3             method for determining each municipality's affordable 
  1.4             and life-cycle housing opportunities amount; modifying 
  1.5             the basis on which nonparticipating municipalities may 
  1.6             elect to participate; providing that waivers of 
  1.7             service availability charges are not eligible as 
  1.8             incentives to inclusionary housing developments; 
  1.9             making conforming changes; amending Minnesota Statutes 
  1.10            2002, sections 473.254, subdivisions 2, 3, 4, 6, 7, 8, 
  1.11            by adding a subdivision; 473.255, subdivision 3. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2002, section 473.254, 
  1.14  subdivision 2, is amended to read: 
  1.15     Subd. 2.  [AFFORDABLE, LIFE-CYCLE GOALS.] The council shall 
  1.16  negotiate with each municipality to establish affordable and 
  1.17  life-cycle housing goals for that municipality that are 
  1.18  consistent with and promote the policies of the Metropolitan 
  1.19  Council as provided in the adopted metropolitan development 
  1.20  guide.  The council shall adopt, by resolution after a public 
  1.21  hearing, the negotiated affordable and life-cycle housing goals 
  1.22  for each municipality by January 15, 1996, and by January 15 in 
  1.23  each succeeding year for each municipality newly electing to 
  1.24  participate in the program or for each municipality with which 
  1.25  new housing goals have been negotiated.  By June 30, 1996, and 
  1.26  by June 30 in each succeeding year for each municipality newly 
  1.27  electing to participate in the program or for each municipality 
  1.28  with which new housing goals have been negotiated, each 
  2.1   municipality shall identify to the council the actions it plans 
  2.2   to take to meet the established housing goals. 
  2.3      Sec. 2.  Minnesota Statutes 2002, section 473.254, 
  2.4   subdivision 3, is amended to read: 
  2.5      Subd. 3.  [AFFORDABLE, LIFE-CYCLE OPPORTUNITIES AMOUNT 
  2.6   THROUGH CALENDAR YEAR 2002.] (1) By July 1, 1996, each county 
  2.7   assessor shall certify each municipality's average residential 
  2.8   homestead limited market value for the 1994 assessment year, 
  2.9   including the value of the farm house, garage, and one acre only 
  2.10  in the case of farm homesteads, multiplied by a factor of two, 
  2.11  as the municipality's "market value base amount."  For 1997 and 
  2.12  thereafter through 2001, the "market value base amount" shall be 
  2.13  equal to the product of (i) the market value base amount for the 
  2.14  previous year multiplied by (ii) the annual average United 
  2.15  States Consumer Price Index for all urban consumers, United 
  2.16  States average, as determined by the United States Department of 
  2.17  Labor, for the previous year divided by that annual average for 
  2.18  the year before the previous year.  
  2.19     (2) By July 1, 1996, and each succeeding year through 2001, 
  2.20  the county assessor shall determine which homesteads have market 
  2.21  values in excess of the municipality's market value base amount 
  2.22  and the county auditor shall certify the aggregate net tax 
  2.23  capacity corresponding to the amount by which those homesteads' 
  2.24  market values exceed the municipality's market value base amount 
  2.25  as the "net tax capacity excess amount" for the assessment year 
  2.26  corresponding to the current taxes payable year.  By July 1, 
  2.27  1996, the county auditor shall also certify the net tax capacity 
  2.28  excess amount for taxes payable in 1995. 
  2.29     (3) By July 1, 1996, and each succeeding year through 2001, 
  2.30  the county auditor shall also certify each municipality's local 
  2.31  tax rate for the current taxes payable year. 
  2.32     (4) By July 1, 1996, and each succeeding year through 2001, 
  2.33  the county auditor shall certify for each municipality the 
  2.34  amount equal to four percent of the municipality's current year 
  2.35  total residential homestead tax capacity multiplied by the local 
  2.36  tax rate. 
  3.1      (5) By August 1, 1996, and each succeeding year through 
  3.2   2001, the Metropolitan Council shall notify each municipality of 
  3.3   its "affordable and life-cycle housing opportunities amount" for 
  3.4   the following calendar year equal to the lesser of the amount 
  3.5   certified under clause (4) or the amount, if any, by which the 
  3.6   net tax capacity excess amount for the current year exceeds the 
  3.7   amount for taxes payable in 1995, multiplied by the 
  3.8   municipality's local tax rate certified in clause (3). 
  3.9      Sec. 3.  Minnesota Statutes 2002, section 473.254, is 
  3.10  amended by adding a subdivision to read: 
  3.11     Subd. 3a.  [AFFORDABLE AND LIFE-CYCLE HOUSING OPPORTUNITIES 
  3.12  AMOUNT AFTER CALENDAR YEAR 2002.] (1) Notwithstanding any other 
  3.13  provisions of this section, commencing for calendar year 2003 
  3.14  and each succeeding calendar year, each municipality's 
  3.15  "affordable and life-cycle housing opportunities amount" for 
  3.16  that year must be determined by the council using the method in 
  3.17  this subdivision.  The affordable and life-cycle housing 
  3.18  opportunities amount must be determined for each calendar year 
  3.19  for all municipalities in the metropolitan area. 
  3.20     (2) The council must allocate to each municipality its 
  3.21  portion of the $1,000,000 of the revenue generated by the levy 
  3.22  authorized in section 473.249 which is credited to the local 
  3.23  housing incentives account pursuant to subdivision 5, paragraph 
  3.24  (b).  The allocation must be made by determining the amount 
  3.25  levied for and payable in each municipality in the previous 
  3.26  calendar year pursuant to the council levy in section 473.249 
  3.27  divided by the total amount levied for and payable in the 
  3.28  metropolitan area in the previous calendar year pursuant to such 
  3.29  levy and multiplying that result by $1,000,000. 
  3.30     (3) The council must also determine the amount levied for 
  3.31  and payable in each municipality in the previous calendar year 
  3.32  pursuant to the council levy in section 473.253, subdivision 1.  
  3.33     (4) A municipality's affordable and life-cycle housing 
  3.34  opportunities amount for the calendar year is the sum of the 
  3.35  amounts determined under clauses (2) and (3).  
  3.36     (5) Within 90 days after the effective date of this act, 
  4.1   the council must notify each municipality of its affordable and 
  4.2   life-cycle housing opportunities amount for calendar years 2003 
  4.3   and 2004 as determined by the method in this subdivision.  These 
  4.4   amounts replace the affordable and life-cycle housing 
  4.5   opportunities amount for each municipality for calendar years 
  4.6   2003 and 2004 as previously determined by the method in 
  4.7   subdivision 3. 
  4.8      (6) By August 1, 2004, and by August 1 of each succeeding 
  4.9   year, the council must notify each municipality of its 
  4.10  affordable and life-cycle housing opportunities amount for the 
  4.11  following calendar year determined by the method in this 
  4.12  subdivision. 
  4.13     Sec. 4.  Minnesota Statutes 2002, section 473.254, 
  4.14  subdivision 4, is amended to read: 
  4.15     Subd. 4.  [AFFORDABLE AND LIFE-CYCLE HOUSING REQUIREMENT.] 
  4.16  (a) A municipality that is determined by the council to have met 
  4.17  its affordable and life-cycle housing goals in the previous 
  4.18  calendar year may retain the amount calculated under subdivision 
  4.19  3 to maintain existing affordable and life-cycle housing. 
  4.20     (b) In 1998, and thereafter, a municipality that is 
  4.21  determined by the council not to have met the affordable and 
  4.22  life-cycle housing goals in the previous calendar year, as 
  4.23  negotiated and agreed to with the council, and not to have spent 
  4.24  does not spend 85 percent of its affordable and life-cycle 
  4.25  housing opportunities amount to create affordable and life-cycle 
  4.26  housing opportunities in the previous calendar year must do one 
  4.27  of the following with the affordable and life-cycle housing 
  4.28  opportunities amount for the previous year as determined under 
  4.29  subdivision 3 or 3a, as applicable: 
  4.30     (1) distribute it to the local housing incentives account; 
  4.31  or 
  4.32     (2) distribute it to the housing and redevelopment 
  4.33  authority of the city or county in which the municipality is 
  4.34  located to create affordable and life-cycle housing 
  4.35  opportunities in the municipality. 
  4.36     A municipality may enter into agreements with adjacent 
  5.1   municipalities to cooperatively provide affordable and 
  5.2   life-cycle housing.  The housing may be provided in any of the 
  5.3   cooperating municipalities, but must meet the combined housing 
  5.4   goals of each participating municipality. 
  5.5      Sec. 5.  Minnesota Statutes 2002, section 473.254, 
  5.6   subdivision 6, is amended to read: 
  5.7      Subd. 6.  [DISTRIBUTION OF FUNDS.] The funds in the account 
  5.8   must be distributed annually by the council to municipalities 
  5.9   that: 
  5.10     (1) have not met their affordable and life-cycle housing 
  5.11  goals as determined by the council; and 
  5.12     (2) are actively funding projects designed to help meet the 
  5.13  goals.  
  5.14     Funds may also be distributed to a development authority 
  5.15  for a project in an eligible municipality.  The funds 
  5.16  distributed by the council must be matched on a 
  5.17  dollar-for-dollar basis by the municipality or development 
  5.18  authority receiving the funds.  When distributing funds in the 
  5.19  account, the council must give priority to projects that (1) are 
  5.20  in municipalities that have contribution net tax capacities that 
  5.21  exceed their distribution net tax capacities by more than $200 
  5.22  per household, (2) demonstrate the proposed project will link 
  5.23  employment opportunities with affordable and life-cycle housing, 
  5.24  and (3) provide matching funds from a source other than the 
  5.25  required affordable and life-cycle housing opportunities amount 
  5.26  under subdivision 3 or 3a, as applicable.  For the purposes of 
  5.27  this subdivision, "municipality" means a statutory or home rule 
  5.28  charter city or town in the metropolitan area and "development 
  5.29  authority" means a housing and redevelopment authority, economic 
  5.30  development authority, or port authority. 
  5.31     Sec. 6.  Minnesota Statutes 2002, section 473.254, 
  5.32  subdivision 7, is amended to read: 
  5.33     Subd. 7.  [REPORT TO COUNCIL.] Beginning January 15, 1998, 
  5.34  and annually thereafter, each municipality must report to the 
  5.35  council the following: 
  5.36     (1) the tax revenues defined in subdivision 3 that were 
  6.1   levied in the prior year; 
  6.2      (2) the portion of the revenues that were spent on meeting 
  6.3   the municipality's affordable and life-cycle housing goals; and 
  6.4      (3) information on how the expenditures directly support 
  6.5   the municipality's efforts to meet its affordable and life-cycle 
  6.6   housing goals. 
  6.7      The council shall verify each municipality's compliance 
  6.8   with this subdivision.  By July 1, 2004, and by July 1 in each 
  6.9   succeeding year, each municipality must certify to the council 
  6.10  whether or not it has spent 85 percent of its affordable and 
  6.11  life-cycle housing opportunities amount, as determined under 
  6.12  subdivision 3a, in the previous calendar year to create 
  6.13  affordable and life-cycle housing opportunities.  The council 
  6.14  may verify each municipality's certification. 
  6.15     Sec. 7.  Minnesota Statutes 2002, section 473.254, 
  6.16  subdivision 8, is amended to read: 
  6.17     Subd. 8.  [LATER ELECTION TO PARTICIPATE.] If a 
  6.18  municipality did not participate for one or more years and 
  6.19  elects later to participate, the municipality must, with respect 
  6.20  to its affordable and life-cycle housing opportunities amount 
  6.21  for the calendar year preceding the participating calendar year; 
  6.22     (1)  establish that it has spent or agrees to spend such 
  6.23  amount on affordable and life-cycle housing during that 
  6.24  preceding calendar year, or agrees 
  6.25     (2) agree to spend such amount from the preceding calendar 
  6.26  year on affordable and life-cycle housing in the participating 
  6.27  calendar year, in addition to its affordable and life-cycle 
  6.28  housing opportunities amount for the participating calendar 
  6.29  year, or 
  6.30     (3)  distribute such amount to the local housing incentives 
  6.31  account, an amount equivalent to what it would have spent on 
  6.32  affordable and life-cycle housing had goals been established 
  6.33  under this section for the period in which it was not 
  6.34  participating.  
  6.35     The council will determine which investments count toward 
  6.36  the required cumulative investment affordable and life-cycle 
  7.1   housing opportunities amount by comparing the municipality to 
  7.2   participating municipalities similar in terms of stage of 
  7.3   development and demographics.  If it determines it to be in the 
  7.4   best interests of the region, the council may waive a reasonable 
  7.5   portion of the cumulative investment amount.  
  7.6      Sec. 8.  Minnesota Statutes 2002, section 473.255, 
  7.7   subdivision 3, is amended to read: 
  7.8      Subd. 3.  [INCLUSIONARY HOUSING INCENTIVES.] The 
  7.9   Metropolitan Council may work with municipalities and developers 
  7.10  to provide incentives to inclusionary housing developments such 
  7.11  as waiver of service availability charges and other regulatory 
  7.12  incentives that would result in identifiable cost avoidance or 
  7.13  reductions for an inclusionary housing development.  Waivers of 
  7.14  service availability charges are not eligible as incentives. 
  7.15     Sec. 9.  [TRANSITION PROVISIONS.] 
  7.16     If a municipality's affordable and life-cycle housing 
  7.17  opportunities amount for 2002 as determined under Minnesota 
  7.18  Statutes 2002, section 473.254, subdivision 3, is less than the 
  7.19  municipality's affordable and life-cycle housing opportunities 
  7.20  amount for 2004 as determined under section 3, then increases in 
  7.21  the municipality's affordable and life-cycle housing 
  7.22  opportunities amounts are limited as provided in this section.  
  7.23  Then, a municipality's affordable and life-cycle housing 
  7.24  opportunities amount for each of calendar years 2003, 2004, 
  7.25  2005, 2006, and 2007 is the lesser of: 
  7.26     (1) the amount determined under section 3 for the calendar 
  7.27  year in question; or 
  7.28     (2) the amount of the municipality's affordable and 
  7.29  life-cycle housing opportunities amount for the preceding 
  7.30  calendar year plus an amount equal to 20 percent of the 
  7.31  difference between the municipality's affordable and life-cycle 
  7.32  housing opportunities amount for 2004 as determined under 
  7.33  section 3 and the municipality's affordable and life-cycle 
  7.34  housing opportunities amount for 2002 as determined under 
  7.35  Minnesota Statutes 2002, section 473.254, subdivision 3.  
  7.36     Beginning in 2008, the affordable and life-cycle housing 
  8.1   opportunities amount for each municipality subject to this 
  8.2   section must be determined as provided in section 3, without 
  8.3   further limit. 
  8.4      Sec. 10.  [APPLICATION.] 
  8.5      This act applies to the counties of Anoka, Carver, Dakota, 
  8.6   Hennepin, Ramsey, Scott, and Washington. 
  8.7      Sec. 11.  [EFFECTIVE DATE.] 
  8.8      This act is effective the day following final enactment.