HF 3678

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:29pm

1.1A bill for an act

1.2relating to housing; authorizing the sale and issuance of challenge program bonds
1.3for affordable housing and permanent supportive housing purposes; appropriating
1.4money;amending Minnesota Statutes 2008, section 462A.21, by adding a
1.5subdivision; proposing coding for new law in Minnesota Statutes, chapter 462A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7ARTICLE 1

1.8APPROPRIATIONS

1.9	Section 1. SUMMARY OF APPROPRIATIONS.

1.10The amounts shown in this section summarize direct appropriations, by fund, made
1.11in this article.

1.12			2010		2011		Total
1.13	General	$	-0-	$	(2,400,000)	$	(2,400,000)
1.14	Total	$	-0-	$	(2,400,000)	$	(2,400,000)

1.15	Sec. 2.APPROPRIATIONS.

1.16The sums shown in the columns marked "Appropriations" are added to or, if shown
1.17in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1,
1.18to the agencies and for the purposes specified in this article. The appropriations and
1.19subtractions are from the general fund or another named fund, and are available for the
1.20fiscal years indicated for each purpose. The figures "2010" and "2011" used in this
1.21article mean that the addition to or subtraction from the appropriation listed under them
1.22is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
2.1Supplemental appropriations and reductions to appropriations for the fiscal year ending
2.2June 30, 2010, are effective the day following final enactment.

2.3				APPROPRIATIONS
2.4				Available for the Year
2.5				Ending June 30
2.6					2010		2011

2.7	Sec. 3.Challenge Program			$	-0-	$	(2,400,000)

2.8This reduction is from the appropriation
2.9for the economic development and housing
2.10challenge program under Minnesota Statutes,
2.11section 462A.33.
2.12In fiscal year 2011, the Housing Finance
2.13Agency shall transfer $2,400,000 from
2.14the economic development and housing
2.15challenge program in the housing
2.16development fund to the general fund.
2.17The base appropriation for the economic
2.18development and housing challenge program
2.19for fiscal years 2012 and 2013 is $6,993,000
2.20for each year.

2.21ARTICLE 2

2.22CHALLENGE BONDS

2.23    Section 1. Minnesota Statutes 2008, section 462A.21, is amended by adding a
2.24subdivision to read:
2.25    Subd. 33. Challenge program bond account. The agency may establish a
2.26challenge program bond account as a separate account within the housing development
2.27fund. Proceeds of challenge program bonds under section 462A.40 may be credited to the
2.28account. Money in the account is appropriated to the agency for the purposes for which
2.29the bonds are authorized under section 462A.40. The agency may transfer the proceeds
2.30of challenge program housing bonds to another account within the housing development
2.31fund that it determines appropriate to accomplish the purposes for which the bonds are
2.32authorized under section 462A.40.
2.33EFFECTIVE DATE.This section is effective the day following final enactment.

3.1    Sec. 2. [462A.40] CHALLENGE PROGRAM BONDS; AUTHORIZATION AND
3.2STANDING APPROPRIATION.
3.3    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
3.4have the meanings given them.
3.5(b) "Challenge program bonds" means a bond, note, or other evidence of obligation
3.6of the agency issued and sold for the purposes specified in subdivision 2.
3.7(c) "Debt service" means the amount payable in any fiscal year of principal,
3.8premium, if any, and interest on challenge program bonds and the fees, charges, and
3.9expenses related to the bonds.
3.10    Subd. 2. Authority. The agency may issue up to $30,000,000 of challenge program
3.11bonds in one or more series to which the payments made under this section may be
3.12pledged. The challenge program bonds authorized in this subdivision must be issued
3.13for the purpose of making grants and loans, on terms and conditions the agency deems
3.14appropriate:
3.15(1) to projects meeting the requirements of the economic development and housing
3.16challenge program under section 462A.33; or
3.17(2) to neighborhood land trusts authorized under section 46A.31 for land acquisition.
3.18    Subd. 3. No full faith and credit. The challenge program bonds are not public debt
3.19of the state, and the full faith, credit, and taxing powers of the state are not pledged to the
3.20payment of the challenge program bonds or to any payment that the state agrees to make
3.21under this section. The bonds must contain a conspicuous statement to that effect.
3.22    Subd. 4. Appropriation; payment to agency or trustee. (a) The agency must
3.23certify annually to the commissioner of management and budget the actual amount of
3.24annual debt service on each series of bonds issued under subdivision 2.
3.25(b) Each July 15, beginning in 2010 and through 2032, if any challenge program
3.26bonds issued under subdivision 2 remain outstanding, the commissioner of management
3.27and budget must transfer to the challenge program bond account established under
3.28section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
3.29$2,400,000 annually. The amounts necessary to make the transfers are appropriated from
3.30the general fund to the commissioner of management and budget.
3.31(c) The agency may pledge to the payment of the challenge program bonds the
3.32payments to be made by the state under this section.
3.33(d) In each fiscal year for fiscal years 2010 through 2023, $2,400,000, less the
3.34amount transferred by the commissioner of management and budget under paragraph (b)
3.35for that fiscal year, is appropriated to the agency from the general fund for the purposes of
3.36the economic development and housing challenge program under section 462A.33.
4.1(e) Annually by August 1, the agency shall submit a statement to the chairs and
4.2ranking minority members of the house of representatives and senate committees with
4.3jurisdiction over housing policy and finance that identifies the amount of debt service as
4.4certified under paragraph (a), the transfer under paragraph (b), and the appropriation under
4.5paragraph (d). The statement may be submitted electronically, and is subject to section
4.63.195, subdivision 1.
4.7EFFECTIVE DATE.This section is effective the day following final enactment.