HF 2869

as introduced - 91st Legislature (2019 - 2020) Posted on 05/06/2019 10:54am

A bill for an act
relating to housing; appropriating money for a grant to an organization to preserve
naturally occurring affordable housing.

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

Section 1. new text begin HOUSING FINANCE AGENCY; NOAH APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Naturally occurring affordable housing; appropriation. new text end

new text begin $....... in 2020
is appropriated from the general fund to the Housing Finance Agency for a grant to the
greater Minnesota housing fund to make loans to the NOAH impact fund and other
organizations, whether nonprofit or for-profit, with demonstrated experience and capacity
in owning and operating high-quality and well-managed affordable housing. A loan must
be used to acquire and rehabilitate NOAH property that is of good quality without significant
deferred maintenance needs that the lending organization determines is at risk of increased
rents and that is occupied by tenants at risk of involuntary displacement.
new text end

new text begin Subd. 2. new text end

new text begin Loans. new text end

new text begin (a) A loan applicant must demonstrate that its plan for the NOAH
property includes establishing a sufficient capital reserve to maintain and improve the
property over the term of the loan.
new text end

new text begin (b) A loan applicant must agree to maintain at least 75 percent of the units in the property
acquired with the loan at rents affordable to households at 80 percent or less of the area
median income for at least 15 years.
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new text begin (c) A loan applicant must provide the details of the total financing package.
new text end

new text begin (d) The greater Minnesota housing fund may require other criteria and application
information that will promote preserving NOAH properties.
new text end

new text begin (e) A loan may be for up to 40 percent of the total acquisition cost of the NOAH property
but no more than $40,000 per individual rental housing unit acquired. A loan may be for
up to 15 years at no- or low-interest rates, at the discretion of the lending organization.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The greater Minnesota housing fund must report to the Housing Finance
Agency information required by the agency as a condition of the grant.
new text end