HF 3055

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the housing finance agency; making 
  1.3             technical and policy changes to the low-income housing 
  1.4             tax credit program; amending Minnesota Statutes 1994, 
  1.5             sections 462A.222, subdivisions 1, 1a, 3, and 4; 
  1.6             462A.223, subdivision 2; and 462C.05, by adding a 
  1.7             subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 462A.222, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [CREDIT RESERVATIONS.] The agency shall 
  1.12  reserve a portion of the annual state ceiling for low-income 
  1.13  housing credits provided under section 42 of the Internal 
  1.14  Revenue Code of 1986, as amended, to (1) cities with a 
  1.15  population of at least 50,000 that have a housing and 
  1.16  redevelopment authority; (2) cities located in three or more 
  1.17  counties that have a housing and redevelopment authority; and 
  1.18  (3) counties with a population of 100,000 or more that have a 
  1.19  housing and redevelopment authority.  A city or county is 
  1.20  eligible to receive a reserved portion of the state ceiling 
  1.21  under this subdivision if it submits a written request to the 
  1.22  agency within 45 days after June 2, 1987, to act as a designated 
  1.23  housing credit agency as provided in section 42 of the Internal 
  1.24  Revenue Code of 1986, as amended.  A city or county may 
  1.25  designate its housing and redevelopment authority as the agency 
  1.26  to receive reserved low-income housing credits on behalf of the 
  2.1   city or county.  The city of Minneapolis or the city of Saint 
  2.2   Paul may designate the Minneapolis/Saint Paul housing finance 
  2.3   board to receive reserved low-income housing credits on behalf 
  2.4   of each city. 
  2.5      Sec. 2.  Minnesota Statutes 1994, section 462A.222, 
  2.6   subdivision 1a, is amended to read: 
  2.7      Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
  2.8   agency shall divide the annual per capita amount used in 
  2.9   determining the state ceiling for low-income housing tax credits 
  2.10  provided under section 42 of the Internal Revenue Code of 1986, 
  2.11  as amended through December 31, 1989, into a metropolitan pool 
  2.12  and a greater Minnesota pool.  The metropolitan pool shall serve 
  2.13  the metropolitan area as defined in section 473.121, subdivision 
  2.14  2.  The greater Minnesota pool shall serve the remaining 
  2.15  counties of the state.  The percentage of the annual per capita 
  2.16  amount allotted to each pool must be determined as follows: 
  2.17     (a) The percentage set-aside for projects involving a 
  2.18  qualified nonprofit organization as provided in section 42 of 
  2.19  the Internal Revenue Code of 1986, as amended through December 
  2.20  31, 1989, must be deducted from the annual per capita amount 
  2.21  used in determining the state ceiling. 
  2.22     (b) Of the remaining amount, the metropolitan pool must be 
  2.23  allotted a percentage equal to the metropolitan counties' 
  2.24  percentage of the total number of state recipients of:  aid to 
  2.25  families with dependent children, general assistance, Minnesota 
  2.26  supplemental aid, and supplemental security income in the state, 
  2.27  as reported annually by the department of human services.  The 
  2.28  greater Minnesota pool must be allotted the amount remaining 
  2.29  after the metropolitan pool's percentage has been allotted. 
  2.30     The set-aside for qualified nonprofit organizations must be 
  2.31  divided between the two regional pools in the same percentage as 
  2.32  determined for the credit amounts above. 
  2.33     Sec. 3.  Minnesota Statutes 1994, section 462A.222, 
  2.34  subdivision 3, is amended to read: 
  2.35     Subd. 3.  [ALLOCATION PROCEDURE.] (a) Projects will be 
  2.36  awarded tax credits in three competitive rounds on an annual 
  3.1   basis.  The date for applications for each round must be 
  3.2   determined by the agency.  No allocating agency may award tax 
  3.3   credits prior to the application dates established by the agency.
  3.4      (b) Each allocating agency must meet the requirements of 
  3.5   section 42(m) of the Internal Revenue Code of 1986, as amended 
  3.6   through December 31, 1989, for the allocation of tax credits and 
  3.7   the selection of projects. 
  3.8      (c) For projects that are eligible for an allocation of 
  3.9   credits pursuant to section 42(h)(4) of the Internal Revenue 
  3.10  Code of 1986, as amended, tax credits may only be allocated if 
  3.11  the project satisfies the requirements of the allocating 
  3.12  agency's qualified allocation plan.  For projects that are 
  3.13  eligible for an allocation of credits pursuant to section 
  3.14  42(h)(4) of the Internal Revenue Code of 1986, as amended, for 
  3.15  which the agency is the issuer of the bonds for the project, or 
  3.16  the issuer of the bonds for the project is located outside the 
  3.17  jurisdiction of a city or county that has received reserved tax 
  3.18  credits, the applicable allocation plan is the agency's 
  3.19  qualified allocation plan. 
  3.20     (d) For applications submitted for the first round, an 
  3.21  allocating agency may allocate tax credits only to the following 
  3.22  types of projects: 
  3.23     (1) in the metropolitan area: 
  3.24     (i) new construction or substantial rehabilitation of 
  3.25  projects in which, for the term of the extended use period, at 
  3.26  least 75 percent of the total tax credit units are single-room 
  3.27  occupancy, efficiency, or one bedroom units and which are 
  3.28  affordable by households whose income does not exceed 30 percent 
  3.29  of the median income; 
  3.30     (ii) new construction or substantial rehabilitation family 
  3.31  housing projects that are not restricted to persons who are 55 
  3.32  years of age or older and in which, for the term of the extended 
  3.33  use period, at least 75 percent of the tax credit units contain 
  3.34  two or more bedrooms and at least one-third of the 75 percent 
  3.35  contain three or more bedrooms; or 
  3.36     (iii) substantial rehabilitation projects in neighborhoods 
  4.1   targeted by the city for revitalization; 
  4.2      (2) outside the metropolitan area, projects which meet a 
  4.3   locally identified housing need and which are in short supply in 
  4.4   the local housing market as evidenced by credible data submitted 
  4.5   with the application; 
  4.6      (3) projects that are not restricted to persons of a 
  4.7   particular age group and in which, for the term of the extended 
  4.8   use period, a percentage of the units are set aside and rented 
  4.9   to persons: 
  4.10     (i) with a serious and persistent mental illness as defined 
  4.11  in section 245.462, subdivision 20, paragraph (c); 
  4.12     (ii) with a developmental disability as defined in United 
  4.13  States Code, title 42, section 6001, paragraph (5), as amended 
  4.14  through December 31, 1990; 
  4.15     (iii) who have been assessed as drug dependent persons as 
  4.16  defined in section 254A.02, subdivision 5, and are receiving or 
  4.17  will receive care and treatment services provided by an approved 
  4.18  treatment program as defined in section 254A.02, subdivision 2; 
  4.19     (iv) with a brain injury as defined in section 256B.093, 
  4.20  subdivision 4, paragraph (a); or 
  4.21     (v) with permanent physical disabilities that substantially 
  4.22  limit one or more major life activities, if at least 50 percent 
  4.23  of the units in the project are accessible as provided under 
  4.24  Minnesota Rules, chapter 1340; 
  4.25     (4) projects which preserve existing subsidized housing 
  4.26  which is subject to prepayment if the use of tax credits is 
  4.27  necessary to prevent conversion to market rate use; or 
  4.28     (5) projects financed by the Farmers Home Administration, 
  4.29  or its successor agency, which meet statewide distribution goals.
  4.30     (d) (e) Before the date for applications for the second 
  4.31  round, the allocating agencies other than the agency shall 
  4.32  return all uncommitted and unallocated tax credits to the pool 
  4.33  from which they were allocated, along with copies of any 
  4.34  allocation or commitment.  In the second round, the agency shall 
  4.35  allocate the remaining credits from the regional pools to 
  4.36  projects from the respective regions.  
  5.1      (e) (f) In the third round, all unallocated tax credits 
  5.2   must be transferred to a unified pool for allocation by the 
  5.3   agency on a statewide basis. 
  5.4      (f) (g) Unused portions of the state ceiling for low-income 
  5.5   housing tax credits reserved to cities and counties for 
  5.6   allocation may be returned at any time to the agency for 
  5.7   allocation. 
  5.8      (h) If an allocating agency determines, at any time after 
  5.9   the initial commitment or allocation for a specific project, 
  5.10  that a project is no longer eligible for all or a portion of the 
  5.11  low-income housing tax credits committed or allocated to the 
  5.12  project, the credits must be transferred to the agency to be 
  5.13  reallocated pursuant to the procedures established in paragraphs 
  5.14  (e) to (g); provided that if the tax credits for which the 
  5.15  project is no longer eligible are from the current year's annual 
  5.16  ceiling and the allocating agency maintains a waiting list, the 
  5.17  allocating agency may continue to commit or allocate the credits 
  5.18  until not later than October 1, at which time any uncommitted 
  5.19  credits must be transferred to the agency. 
  5.20     Sec. 4.  Minnesota Statutes 1994, section 462A.222, 
  5.21  subdivision 4, is amended to read: 
  5.22     Subd. 4.  [DISTRIBUTION PLAN.] (a) By October 1, 1990, the 
  5.23  metropolitan council, in consultation with the agency and 
  5.24  representatives of local government and housing and 
  5.25  redevelopment authorities, shall develop and submit to the 
  5.26  agency a plan for allocating tax credits in 1991 and thereafter 
  5.27  in the metropolitan area, based on regional housing needs and 
  5.28  priorities.  The agency may amend the distribution plan after 
  5.29  consultation with the metropolitan council, representatives of 
  5.30  local governments, and housing and redevelopment authorities. 
  5.31     (b) By October 1, 1990, the agency, in consultation with 
  5.32  representatives of local government and housing and 
  5.33  redevelopment authorities, shall develop a plan for allocating 
  5.34  tax credits in 1991 and thereafter in greater Minnesota, based 
  5.35  on regional housing needs and priorities.  The agency may amend 
  5.36  the distribution plan after consultation with representatives of 
  6.1   local governments and housing and redevelopment authorities. 
  6.2      (c) In preparing the distribution plans, the metropolitan 
  6.3   council and the agency shall estimate the number of households 
  6.4   in the metropolitan area and in greater Minnesota, respectively, 
  6.5   who are paying more than 50 percent of their income for rent and 
  6.6   the cost of providing sufficient rental or other assistance so 
  6.7   that no household pays more than 50 percent of its income for 
  6.8   rent.  In addition, the metropolitan council and the agency 
  6.9   shall identify the nature and scope of existing programs which 
  6.10  primarily serve families at 60 percent of the median income and 
  6.11  individuals at 30 percent of the median income.  In preparing 
  6.12  the estimate, the metropolitan council and the agency shall rely 
  6.13  on existing and available data and shall report the results to 
  6.14  the legislature no later than January 31, 1991. 
  6.15     Sec. 5.  Minnesota Statutes 1994, section 462A.223, 
  6.16  subdivision 2, is amended to read: 
  6.17     Subd. 2.  [DESIGNATED AGENCY.] The agency is designated as 
  6.18  a housing credit agency to allocate the portion of the state 
  6.19  ceiling for low-income housing tax credits (1) not reserved to 
  6.20  cities and counties under section 462A.222; (2) not accepted for 
  6.21  allocation by eligible cities and counties; (3) returned to the 
  6.22  agency for allocation; and (4) not otherwise reserved to the 
  6.23  agency for allocation under subdivision 1.  Low-income housing 
  6.24  tax credits shall be allocated by the agency as provided in 
  6.25  section 462A.222.  The agency shall make no allocation for 
  6.26  projects located within the jurisdiction of the cities or 
  6.27  counties that have received tax credits under section 462A.222, 
  6.28  subdivision 1, except from the percentage set-aside for projects 
  6.29  involving a qualified nonprofit organization as provided under 
  6.30  section 42 of the Internal Revenue Code of 1986, as amended 
  6.31  through December 31, 1989, until the amounts reserved to the 
  6.32  cities and counties for allocation have been allocated or 
  6.33  committed or returned to the agency for allocation.  In order 
  6.34  that all of a project's credits are allocated by a single 
  6.35  allocating agency, the agency may reserve additional tax credits 
  6.36  to a city or county that has received tax credits under section 
  7.1   462A.222, subdivision 1, for a project that has already received 
  7.2   a commitment or allocation of tax credits from an eligible city 
  7.3   or county, if all of the tax credits reserved to the eligible 
  7.4   city or county have been committed or allocated. 
  7.5      Sec. 6.  Minnesota Statutes 1994, section 462C.05, is 
  7.6   amended by adding a subdivision to read: 
  7.7      Subd. 6a.  [QUALIFIED ALLOCATION PLAN 
  7.8   REQUIREMENT.] Multifamily housing developments described in 
  7.9   subdivision 1 for which an application is submitted for 
  7.10  low-income housing tax credits provided under section 42 of the 
  7.11  Internal Revenue Code of 1986, as amended, must also satisfy the 
  7.12  qualified allocation plan applicable to the area in which the 
  7.13  project is located. 
  7.14     Sec. 7.  [EFFECTIVE DATE.] 
  7.15     Sections 1 to 6 are effective the day following final 
  7.16  enactment.