Minnesota Legislature
HF 4376
1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/08/2022 12:20pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/17/2022 | |
| 1st Engrossment | Posted on 04/08/2022 |
Current Version - 1st Engrossment
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A bill for an act
relating to housing; modifying provisions governing housing finance, housing
policy, and various other housing-related provisions; appropriating money for the
governor's supplemental housing budget; appropriating money for the Minnesota
Housing Finance Agency; appropriating money for the Department of Human
Rights to investigate income discrimination in housing; establishing the community
stabilization housing program; establishing the strengthening supportive housing
model program; establishing the lead-safe homes grant program; establishing the
housing mediation grant program; establishing the first-generation homebuyers
down payment assistance fund pilot project; establishing the manufactured home
park cooperative purchase program; modifying eligible uses for housing trust fund
loans and grants; modifying eligible uses for housing infrastructure bonds;
modifying provisions governing rental covenants and evictions; amending
Minnesota Statutes 2020, sections 363A.09, subdivisions 1, 2, by adding a
subdivision; 462A.03, subdivision 13; 462A.05, by adding subdivisions; 462A.07,
subdivisions 9, 10, 14; 462A.201, subdivision 2; 462A.204, subdivisions 3, 8;
462A.21, subdivision 4a; 462A.22, subdivision 1; 462A.36, subdivision 4, by
adding a subdivision; 462A.37, subdivisions 1, 2, 4, by adding subdivisions;
462A.38, subdivision 1; 462A.39, subdivisions 2, 5; 484.014, subdivisions 2, 3;
500.20, subdivision 2a; 504B.135; 504B.161, subdivision 1; 504B.211, subdivisions
2, 6; 504B.291; 504B.321; 504B.375, subdivision 1; 504B.381, subdivisions 1, 5,
by adding a subdivision; Minnesota Statutes 2021 Supplement, sections 462A.05,
subdivision 14; 462A.37, subdivision 5; Laws 2021, First Special Session chapter
8, article 1, section 3, subdivision 11; proposing coding for new law in Minnesota
Statutes, chapters 462A; 504B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
HOUSING APPROPRIATIONS
Section 1. new text begin APPROPRIATIONS.
|
new text begin
The sums shown in the columns marked "Appropriations" are added to the appropriations
in Laws 2021, First Special Session chapter 8, or other law, to specified agencies. The
appropriations are from the general fund, or another named fund, and are available for the
fiscal years indicated for each purpose. The figures "2022" and "2023" used in this article
mean that the appropriations listed under them are available for the fiscal year ending June
30, 2022, or June 30, 2023, respectively.
new text end
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new text begin
APPROPRIATIONS new text end |
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new text begin
Available for the Year new text end |
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new text begin
Ending June 30 new text end |
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new text begin
2022 new text end |
new text begin
2023 new text end |
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Sec. 2. new text begin HOUSING FINANCE AGENCY
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new text begin Subdivision 1. new text end
new text begin
Total Appropriation
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new text begin
$ new text end |
new text begin
229,617,000 new text end |
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new text begin
The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end
new text begin Subd. 2. new text end
new text begin
Challenge Program
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new text begin
20,000,000 new text end |
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new text begin
(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, sections 462A.07,
subdivision 14, and 462A.33.
new text end
new text begin
(b) In fiscal years 2024 and 2025, $17,117,000
is added to the agency's base.
new text end
new text begin Subd. 3. new text end
new text begin
Housing Trust Fund
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new text begin
10,000,000 new text end |
|||||
new text begin
This appropriation is for deposit in the housing
trust fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section. In
fiscal years 2024 and 2025, $10,000,000 is
added to the agency's base.
new text end
new text begin Subd. 4. new text end
new text begin
Homework Starts with Home
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new text begin
10,000,000 new text end |
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new text begin
(a) This appropriation is for the homework
starts with home program under Minnesota
Statutes, sections 462A.201, subdivision 2,
paragraph (a), clause (4), and 462A.204,
subdivision 8, to provide assistance to
homeless or highly mobile families with minor
children or with adult children eligible for
enrollment in an academic program through
grade 12. Funding must prioritize families
with younger children not yet in school who
are identified as being at risk of homelessness
or experiencing homelessness.
new text end
new text begin
(b) In fiscal years 2024 and 2025, $10,000,000
is added to the agency's base.
new text end
new text begin Subd. 5. new text end
new text begin
Family Homeless Prevention
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new text begin
14,000,000 new text end |
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new text begin
(a) This appropriation is for the family
homeless prevention and assistance programs
under Minnesota Statutes, section 462A.204.
new text end
new text begin
(b) In fiscal years 2024 and 2025, $10,000,000
is added to the agency's base.
new text end
new text begin Subd. 6. new text end
new text begin
Community Stabilization
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new text begin
100,000,000 new text end |
|||||
new text begin
(a) This appropriation is for the community
stabilization program under Minnesota
Statutes, section 462A.41, to finance
improvements for naturally occurring
affordable housing.
new text end
new text begin
(b) In fiscal years 2024 and 2025, $40,000,000
is added to the agency's base.
new text end
new text begin Subd. 7. new text end
new text begin
Flexible Financing for Capital Costs
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new text begin
5,000,000 new text end |
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new text begin
This appropriation is to provide gap financing
to rental housing developments financed by
the agency. This is a onetime appropriation.
new text end
new text begin Subd. 8. new text end
new text begin
Strengthening Supportive Housing
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new text begin
5,000,000 new text end |
|||||
new text begin
This appropriation is for the strengthening
supportive housing model program under
Minnesota Statutes, section 462A.42, to
provide funding to strengthen supportive
housing for individuals and families who are
at risk of homelessness or have experienced
homelessness. In fiscal years 2024 and 2025,
$5,000,000 is added to the agency's base.
new text end
new text begin Subd. 9. new text end
new text begin
Lead-Safe Homes
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new text begin
2,000,000 new text end |
|||||
new text begin
This appropriation is for the lead-safe homes
grant program under Minnesota Statutes,
section 462A.2095. This is a onetime
appropriation.
new text end
new text begin Subd. 10. new text end
new text begin
Stable Housing Mediation
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new text begin
425,000 new text end |
|||||
new text begin
This appropriation is for the housing mediation
grant program for grants to mediation facilities
certified by the state under Minnesota Statutes,
section 494.015. This is a onetime
appropriation.
new text end
new text begin Subd. 11. new text end
new text begin
Homeownership Education,
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new text begin
1,000,000 new text end |
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new text begin
This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.
This is a onetime appropriation.
new text end
new text begin Subd. 12. new text end
new text begin
First-Generation Homebuyers Down
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new text begin
50,000,000 new text end |
|||||
new text begin
This appropriation is for a grant to Midwest
Minnesota Community Development
Corporation (MMCDC) for a first-generation
homebuyers down payment assistance fund.
This is a onetime appropriation and is
available until June 30, 2025.
new text end
new text begin Subd. 13. new text end
new text begin
Local Housing Trust Fund Grants
|
new text begin
7,000,000 new text end |
|||||
new text begin
This appropriation is for the local housing trust
fund grant program. This is a onetime
appropriation.
new text end
new text begin Subd. 14. new text end
new text begin
Manufactured Home Park Cooperative
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new text begin
5,192,000 new text end |
|||||
new text begin
This appropriation is for the manufactured
home park cooperative purchase program. This
is a onetime appropriation.
new text end
Sec. 3. new text begin DEPARTMENT OF HUMAN RIGHTS
|
new text begin
$ new text end |
new text begin
383,000 new text end |
||||
new text begin
(a) $383,000 in fiscal year 2023 is to the
commissioner of human rights for increased
capacity and associated costs to investigate
sources of income discrimination cases in
housing.
new text end
new text begin
(b) In fiscal years 2024 and 2025, $383,000
is added to the department's base.
new text end
ARTICLE 2
HOUSING FINANCE GRANT PROGRAMS AND POLICY
Section 1.
Minnesota Statutes 2020, section 462A.201, subdivision 2, is amended to read:
Subd. 2.
Low-income housing.
(a) The agency may use money from the housing trust
fund account to provide loans or grants for:
(1) projects for the development, construction, acquisition, preservation, and rehabilitation
of low-income rental and limited equity cooperative housing units, including temporary
and transitional housing;
(2) the costs of operating rental housing, as determined by the agency, that are unique
to the operation of low-income rental housing or supportive housing;
(3) rental assistance, either project-based or tenant-based; and
(4) programs to secure stable housing for families withnew text begin minornew text end children deleted text begin eligible for
enrollment in a prekindergarten through grade 12 academic programdeleted text end new text begin or with adult children
eligible for enrollment in an academic program through grade 12new text end .
For purposes of this section, "transitional housing" has the meaning given by the United
States Department of Housing and Urban Development. Loans or grants for residential
housing for migrant farmworkers may be made under this section.
(b) The housing trust fund account must be used for the benefit of persons and families
whose income, at the time of initial occupancy, does not exceed 60 percent of median income
as determined by the United States Department of Housing and Urban Development for the
metropolitan area. At least 75 percent of the funds in the housing trust fund account must
be used for the benefit of persons and families whose income, at the time of initial occupancy,
does not exceed 30 percent of the median family income for the metropolitan area as defined
in section 473.121, subdivision 2. For purposes of this section, a household with a housing
assistance voucher under Section 8 of the United States Housing Act of 1937, as amended,
is deemed to meet the income requirements of this section.
The median family income may be adjusted for families of five or more.
(c) Rental assistance under this section must be provided by governmental units which
administer housing assistance supplements or by for-profit or nonprofit organizations
experienced in housing management. Rental assistance shall be limited to households whose
income at the time of initial receipt of rental assistance does not exceed 60 percent of median
income, as determined by the United States Department of Housing and Urban Development
for the metropolitan area. Priority among comparable applications for tenant-based rental
assistance will be given to proposals that will serve households whose income at the time
of initial application for rental assistance does not exceed 30 percent of median income, as
determined by the United States Department of Housing and Urban Development for the
metropolitan area. Rental assistance must be terminated when it is determined that 30 percent
of a household's monthly income for four consecutive months equals or exceeds the market
rent for the unit in which the household resides plus utilities for which the tenant is
responsible. Rental assistance may only be used for rental housing units that meet the housing
maintenance code of the local unit of government in which the unit is located, if such a code
has been adopted, or the housing quality standards adopted by the United States Department
of Housing and Urban Development, if no local housing maintenance code has been adopted.
(d) In making the loans or grants, the agency shall determine the terms and conditions
of repayment and the appropriate security, if any, should repayment be required. To promote
the geographic distribution of grants and loans, the agency may designate a portion of the
grant or loan awards to be set aside for projects located in specified congressional districts
or other geographical regions specified by the agency. The agency may adopt rules for
awarding grants and loans under this subdivision.
Sec. 2.
Minnesota Statutes 2020, section 462A.204, subdivision 8, is amended to read:
Subd. 8.
deleted text begin Schooldeleted text end Stabilitynew text begin for learning and developmentnew text end .
(a) The agency in consultation
with the Interagency Council on Homelessness may establish a deleted text begin schooldeleted text end stability new text begin for learning
and developmentnew text end project under the family homeless prevention and assistance program.
The purpose of the project is to secure stable housing for families with deleted text begin school-agedeleted text end new text begin minornew text end
children who have moved frequentlynew text begin , for families with adult children eligible for enrollment
in an academic program through grade 12 who have moved frequently,new text end and for
unaccompanied youth. For purposes of this subdivision, "unaccompanied youth" are minors
who are leaving foster care or juvenile correctional facilities, or minors who meet the
definition of a child in need of services or protection under section 260C.007, subdivision
6, but for whom no court finding has been made pursuant to that statute.
(b) The agency shall make grants to family homeless prevention and assistance projects
in communities with a school or schools that have a significant degree of student mobilitynew text begin
or in communities with a significant degree of homelessness among families with minor
childrennew text end .
(c) Each project must be designed to reduce school absenteeism; stabilize children in
one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each
project must include plans for the following:
(1) targeting of families with new text begin minor new text end children deleted text begin who are eligible for a prekindergarten
through grade 12 academic program anddeleted text end new text begin or with adult children eligible for enrollment in
an academic program through grade 12 if those familiesnew text end are living in overcrowded conditions
in their current housing; are paying more than 50 percent of their income for rent; or deleted text begin whodeleted text end
lack a fixed, regular, and adequate nighttime residence;
(2) targeting of unaccompanied youth in need of an alternative residential setting;
(3) connecting families with the social services necessary to maintain the families'
stability in their home, including but not limited to housing navigation, legal representation,
and family outreach; and
(4) one or more of the following:
(i) provision of rental assistance for a specified period of time, which may exceed 24
months; or
(ii) provision of support and case management services to improve housing stability,
including but not limited to housing navigation and family outreach.
(d) In selecting projects for funding under this subdivision, preference shall be given to
organizations granted funding under section 462A.201, subdivision 2, paragraph (a), clause
(4).
(e) No grantee under this subdivision is required to have an advisory committee as
described in subdivision 6.
Sec. 3.
new text begin
[462A.2095] LEAD-SAFE HOMES GRANT PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
The Housing Finance Agency shall establish a lead-safe
homes grant program to provide grants to increase lead testing and make residential rental
units lead safe. The initial pilot program shall provide one grant to a project serving an area
in a metropolitan county, as defined in section 473.121, subdivision 4, and one grant to a
project serving an area outside a metropolitan county with a priority for targeting grant
resources to landlords and tenants where there are high concentrations of lead poisoning in
children based on information provided by the commissioner of health.
new text end
new text begin Subd. 2. new text end
new text begin Eligibility. new text end
new text begin
(a) Eligible grantees must be a nonprofit or political subdivision
capable of providing funding and services to a defined geographic area. The grant programs
receiving funding under this section must provide lead risk assessments completed by a
lead inspector or a lead risk assessor licensed by the commissioner of health pursuant to
section 144.9505 for properties built before 1978 to determine the presence of lead hazards
and to provide interim controls to reduce lead health hazards. The grant program must
provide funding for testing and lead hazard reduction to:
new text end
new text begin
(1) landlords of residential buildings with 11 units or less where the tenant's income
does not exceed 60 percent of area median income;
new text end
new text begin
(2) landlords of residential buildings with 12 units or more where at least 50 percent of
the tenants are below 60 percent of the median income; and
new text end
new text begin
(3) a tenant with an income that does not exceed 60 percent of area median income.
new text end
new text begin
(b) A landlord or tenant must first access other available state and federal funding related
to lead testing and lead hazard reduction for which they are eligible.
new text end
new text begin
(c) Up to ten percent of a grant award to a nonprofit or political subdivision may be used
to administer the grant and provide education and outreach about lead health hazards.
new text end
new text begin Subd. 3. new text end
new text begin Short title. new text end
new text begin
This section shall be known as the "Dustin Luke Shields Act."
new text end
Sec. 4.
Minnesota Statutes 2020, section 462A.37, subdivision 2, is amended to read:
Subd. 2.
Authorization.
(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of clause (4), on
terms and conditions the agency deems appropriate, made for one or more of the following
purposes:
(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;
(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;
(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income home buyers;
(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;
(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housingnew text begin , with up to 20 percent of the units serving low-income individuals of any
agenew text end ;
(6) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in part,
outstanding bonds previously issued by the agency or another government unit to finance
or refinance such costs; deleted text begin and
deleted text end
(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housingdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(8) to finance the costs of construction, acquisition, and rehabilitation of permanent
housing that is affordable to households with incomes at or below 50 percent of the area
median income for the applicable county or metropolitan area as published by the Department
of Housing and Urban Development, as adjusted for household size.
new text end
(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
who:
(1) either have been without a permanent residence for at least 12 months or at least four
times in the last three years; or
(2) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.
(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:
(1) demonstrate a commitment to maintaining the housing financed as affordable to
seniors;
(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;
(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;
(4) provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and
(5) include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.
new text begin (d) new text end To the extent practicable, the agency shall balance the loans made between projects
in the metropolitan area and projects outside the metropolitan area. Of the loans made to
projects outside the metropolitan area, the agency shall, to the extent practicable, balance
the loans made between projects in counties or cities with a population of 20,000 or less,
as established by the most recent decennial census, and projects in counties or cities with
populations in excess of 20,000.
new text begin
(e) Among comparable proposals for permanent housing, the agency must give preference
to projects that will provide housing that is affordable to households at or below 30 percent
of area median income.
new text end
new text begin
(f) If a loan recipient uses the loan for any of the purposes in paragraph (a) on a building
containing more than four units, the recipient must construct, convert, or otherwise adapt
the building to include:
new text end
new text begin
(1) the greater of at least one unit or at least five percent of units that are accessible units,
as defined by section 1002 of the current State Building Code Accessibility Provisions for
Dwelling Units in Minnesota, and include at least one roll-in shower; and
new text end
new text begin
(2) the greater of at least one unit or at least five percent of units that are
sensory-accessible units that include:
new text end
new text begin
(i) soundproofing between shared walls for first and second floor units;
new text end
new text begin
(ii) no florescent lighting in units and common areas;
new text end
new text begin
(iii) low-fume paint;
new text end
new text begin
(iv) low-chemical carpet; and
new text end
new text begin
(v) low-chemical carpet glue in units and common areas.
new text end
new text begin
Nothing in this paragraph relieves projects being funded by these loans from meeting other
applicable accessibility requirements.
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. 5.
Minnesota Statutes 2020, section 462A.37, is amended by adding a subdivision to
read:
new text begin Subd. 2i. new text end
new text begin Additional authorization. new text end
new text begin
In addition to the amount authorized in subdivisions
2 to 2h, the agency may issue up to $400,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment. If the
authorization in this section is enacted more than once in the 2022 legislative session, the
authorization must be given effect only once.
new text end
Sec. 6.
new text begin
[462A.41] COMMUNITY STABILIZATION PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
The agency shall establish a community stabilization
program for the purpose of providing grants or loans for the preservation of naturally
occurring affordable housing through acquisition or rehabilitation.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section, "naturally occurring affordable
housing" means:
new text end
new text begin
(1) multiunit rental housing that:
new text end
new text begin
(i) is at least 20 years old; and
new text end
new text begin
(ii) has rents in a majority of units that are affordable to households at or below 60
percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development; or
new text end
new text begin
(2) owner-occupied housing located in communities where market pressures or significant
deferred rehabilitation needs, as defined by the agency, are creating opportunities for
displacement or the loss of owner-occupied housing affordable to households at or below
115 percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development.
new text end
new text begin Subd. 3. new text end
new text begin Eligible recipients. new text end
new text begin
(a) Grants or loans may be made to a local unit of
government; a federally recognized American Indian tribe located in Minnesota or its
Tribally Designated Housing Entity; a private developer; limited equity cooperatives;
cooperatives created under chapter 308A or 308B; community land trusts created for the
purposes outlined in section 462A.31, subdivision 1; or a nonprofit organization.
new text end
new text begin
(b) The agency shall make a grant to a statewide intermediary to facilitate the acquisition
and associated rehabilitation of existing multiunit rental housing and may use an intermediary
or intermediaries for the acquisition and associated rehabilitation of owner-occupied housing.
new text end
new text begin Subd. 4. new text end
new text begin Eligible uses. new text end
new text begin
The program shall provide grants or loans for the purpose of
acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support
the preservation of naturally occurring affordable housing. Priority in funding shall be given
to proposals that serve lower incomes and maintain longer periods of affordability.
new text end
new text begin Subd. 5. new text end
new text begin Owner-occupied housing income limits. new text end
new text begin
Households served through grants
or loans related to owner-occupied housing must have, at initial occupancy, income that is
at or below 115 percent of the greater of state or area median income as determined by the
United States Department of Housing and Urban Development.
new text end
new text begin Subd. 6. new text end
new text begin Multifamily housing rent limits. new text end
new text begin
Multifamily housing financed through grants
or loans under this section must remain affordable to low-income or moderate-income
households as defined by the agency.
new text end
new text begin Subd. 7. new text end
new text begin Application. new text end
new text begin
(a) The agency shall develop forms and procedures for soliciting
and reviewing applications for loans or grants under this section. The agency shall consult
with interested stakeholders when developing the guidelines and procedures for the program.
new text end
new text begin
(b) Notwithstanding any other applicable law, the agency may accept applications on a
noncompetitive, rolling basis in order to provide funds for eligible properties as they become
available.
new text end
new text begin Subd. 8. new text end
new text begin Voucher requirement for multifamily properties. new text end
new text begin
Rental properties that
receive funds must accept rental subsidies, including but not limited to vouchers under
Section 8 of the United States Housing Act of 1937, as amended.
new text end
Sec. 7.
new text begin
[462A.42] STRENGTHENING SUPPORTIVE HOUSING MODEL.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
The agency shall establish a strengthening supportive
housing model program for the purpose of providing funding to strengthen supportive
housing for individuals and families who are at risk of homelessness or have experienced
homelessness.
new text end
new text begin Subd. 2. new text end
new text begin Definition. new text end
new text begin
For the purposes of this section, "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 end
new text begin Subd. 3. new text end
new text begin Eligible recipients. new text end
new text begin
Funding may be made to a local unit of government, a
federally recognized American Indian Tribe or its Tribally Designated Housing Entity
located in Minnesota, a private developer, or a nonprofit organization.
new text end
new text begin Subd. 4. new text end
new text begin Eligible uses. new text end
new text begin
(a) Funds shall be used to cover costs needed for supportive
housing to operate effectively that are not covered by other federal or state resources. Costs
may include but are not limited to building operating expenses such as front desk, tenant
service coordination, revenue shortfall, and security costs.
new text end
new text begin
(b) Funds shall be used to create partnerships with the health care sector and other sectors
to demonstrate sustainable ways to provide services for supportive housing residents, improve
access to health care, and reduce the use of expensive emergency and institutional care.
This may be done in partnership with other state agencies, including the Department of
Health and the Department of Human Services.
new text end
new text begin Subd. 5. new text end
new text begin Application. new text end
new text begin
The commissioner shall develop forms and procedures for soliciting
and reviewing applications for funding under this section. The commissioner shall consult
with interested stakeholders when developing the guidelines and procedures for the program.
new text end
Sec. 8.
Minnesota Statutes 2020, section 500.20, subdivision 2a, is amended to read:
Subd. 2a.
Restriction of duration of condition.
Except for any right to reenter or to
repossess as provided in subdivision 3, all private covenants, conditions, or restrictions
created by which the title or use of real property is affected, cease to be valid and operative
30 years after the date of the deed, or other instrument, or the date of the probate of the will,
creating them, and may be disregarded.
This subdivision does not apply to covenants, conditions, or restrictions:
(1) that were created before August 1, 1959, under which a person who owns or has an
interest in real property against which the covenants, conditions, or restrictions have been
filed claims a benefit of the covenant, condition, or restriction if the person records in the
office of the county recorder or files in the office of the registrar of titles in the county in
which the real estate affected is located, on or before March 30, 1989, a notice sworn to by
the claimant or the claimant's agent or attorney: setting forth the name of the claimant;
describing the real estate affected; describing the deed, instrument, or will creating the
covenant, condition, or restriction; and stating that the covenant, condition, or restriction is
not nominal and may not be disregarded under subdivision 1;
(2) that are created by the declaration, bylaws, floor plans, or condominium plat of a
condominium created before August 1, 1980, under chapter 515, or created on or after
August 1, 1980, under chapter 515A or 515B, or by any amendments of the declaration,
bylaws, floor plans, or condominium plat;
(3) that are created by the articles of incorporation, bylaws, or proprietary leases of a
cooperative association formed under chapter 308A;
(4) that are created by a declaration or other instrument that authorizes and empowers
a corporation of which the qualification for being a stockholder or member is ownership of
certain parcels of real estate, to hold title to common real estate for the benefit of the parcels;
(5) that are created by a deed, declaration, reservation, or other instrument by which one
or more portions of a building, set of connecting or adjacent buildings, or complex or project
of related buildings and structures share support, structural components, ingress and egress,
or utility access with another portion or portions;
(6) that were created after July 31, 1959, under which a person who owns or has an
interest in real estate against which covenants, conditions, or restrictions have been filed
claims a benefit of the covenants, conditions, or restrictions if the person records in the
office of the county recorder or files in the office of the registrar of titles in the county in
which the real estate affected is located during the period commencing on the 28th
anniversary of the date of the deed or instrument, or the date of the probate of the will,
creating them and ending on the 30th anniversary, a notice as described in clause (1); deleted text begin or
deleted text end
(7) that are created by a declaration or bylaws of a common interest community created
under or governed by chapter 515B, or by any amendments theretodeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(8) that are created by a declaration or other instrument required by a government entity
related to affordable housing.
new text end
A notice filed in accordance with clause (1) or (6) delays application of this subdivision
to the covenants, conditions, or restrictions for a period ending on the later of seven years
after the date of filing of the notice, or until final judgment is entered in an action to determine
the validity of the covenants, conditions, or restrictions, provided in the case of an action
the summons and complaint must be served and a notice of lis pendens must be recorded
in the office of the county recorder or filed in the office of the registrar of titles in each
county in which the real estate affected is located within seven years after the date of
recording or filing of the notice under clause (1) or (6).
County recorders and registrars of titles shall accept for recording or filing a notice
conforming with this subdivision and charge a fee corresponding with the fee charged for
filing a notice of lis pendens of similar length. The notice may be discharged in the same
manner as a notice of lis pendens and when discharged, together with the information
included with it, ceases to constitute either actual or constructive notice.
Sec. 9. new text begin MINNESOTA STABLE HOUSING MEDIATION GRANT PROGRAM.
new text end
new text begin
The commissioner of the Housing Finance Agency shall establish a housing mediation
grant program to increase access to voluntary housing mediation services for renters and
homeowners. The grant program shall provide funding to mediation facilities certified by
the state under Minnesota Statutes, section 494.015, that can increase access to housing
mediation throughout the state, increase the availability of culturally specific dispute
resolution programs, reduce the need for court actions, and bring stability in housing. The
grant funding must be used to:
new text end
new text begin
(1) provide mediation services to benefit renters, property owners, households, utility
providers, and homeowners statewide and increase awareness of access to mediation services
and expand statewide mediation services;
new text end
new text begin
(2) provide eviction prevention services including access to mediation services that
prevent eviction court costs and reduce negative consequences to families, schools,
employers, neighborhoods, and communities;
new text end
new text begin
(3) partner with culturally specific dispute resolution programs to provide training and
assist in providing mediation services virtually and in person;
new text end
new text begin
(4) increase mediation services for seniors and tenants with disabilities and illnesses
who face housing instability;
new text end
new text begin
(5) increase the diversity of the housing mediator roster;
new text end
new text begin
(6) integrate existing and future housing mediation services with legal assistance and
court services programs; and
new text end
new text begin
(7) develop and administer evaluation tools in order to design, modify, and replicate
effective program outcomes.
new text end
Sec. 10. new text begin FIRST-GENERATION HOMEBUYERS DOWN PAYMENT ASSISTANCE
FUND.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
A first-generation homebuyers down payment assistance
fund is established as a pilot project under the administration of the Midwest Minnesota
Community Development Corporation (MMCDC), a community development financial
institution (CDFI) as defined under the Riegle Community Development and Regulatory
Improvement Act of 1994, to provide targeted assistance to eligible first-generation
homebuyers.
new text end
new text begin Subd. 2. new text end
new text begin Eligible homebuyer. new text end
new text begin
For purposes of this section, "eligible first-generation
homebuyer" means an individual:
new text end
new text begin
(1) whose income is at or below 100 percent of the area median income at the time of
purchase;
new text end
new text begin
(2) who is a first-time homebuyer as defined under Code of Federal Regulations, title
24, section 92.2;
new text end
new text begin
(3) who is preapproved for a first mortgage loan; and
new text end
new text begin
(4) whose parent or prior legal guardian does not, or did not at the time of their death,
own a home.
new text end
new text begin
An eligible homebuyer must complete an approved homebuyer education course prior to
signing a purchase agreement and, following the purchase of the home, must occupy it as
the homebuyer's primary residence. The home must be purchased within the maximum loan
amount established by the federal Housing Finance Agency, and the eligible homebuyer
must contribute a minimum of $1,000 to down payment or closing costs.
new text end
new text begin Subd. 3. new text end
new text begin Use of funds. new text end
new text begin
Assistance under this section is limited to ten percent of the
purchase price of a home, not to exceed $30,000 per eligible first-generation homebuyer.
The assistance must be provided in the form of a loan that is forgivable at a rate of 20 percent
per year on the day after the anniversary date of the note. The prorated balance due is
repayable if the property converts to nonowner occupancy, is sold, is subjected to an ineligible
refinance, is subjected to an unauthorized transfer of title, or is subjected to a completed
foreclosure action within the five-year loan term. Recapture can be waived in the event of
financial or personal hardship. The loan may be reserved and used for closing costs, down
payment, or principal reduction. The loan must be used in conjunction with a conforming
first mortgage loan that is fully amortizing and meets the standards of a qualified mortgage
or meets the minimum standards for exemption under Code of Federal Regulations, title
12, section 1026.43. The loan may be used in conjunction with funds from other programs
for which the eligible homebuyer may qualify and the loan may be placed in any priority
position.
new text end
new text begin Subd. 4. new text end
new text begin Administration. new text end
new text begin
The first-generation homebuyers down payment assistance
fund is available statewide and shall be administered by MMCDC, the designated central
CDFI. MMCDC may originate and service funds and authorize other CDFIs, Tribal entities,
and nonprofit organizations administering down payment assistance to reserve, originate,
fund, and service funds for eligible first-generation homebuyers. Administrative costs must
not exceed $3,000 per loan. Any funds made available due to early resale of a home must
be returned to MMCDC for redistribution to eligible first-generation homebuyers.
new text end
new text begin Subd. 5. new text end
new text begin Legislative auditor. new text end
new text begin
The first-generation homebuyers down payment assistance
fund is subject to audit by the legislative auditor. MMCDC and participating CDFIs must
cooperate with the audit.
new text end
new text begin Subd. 6. new text end
new text begin Creditor immunity for reliance on borrower self-attestations. new text end
new text begin
No creditor
shall be subject to liability, including monetary penalties or requirements to indemnify a
federal or state agency or repurchase a loan that has been sold or securitized, for the provision
of down payment assistance under this section to a borrower who does not meet the eligibility
requirements if the creditor does so in good faith reliance on borrower attestations of
eligibility required by this section or regulation.
new text end
new text begin Subd. 7. new text end
new text begin Report to legislature. new text end
new text begin
By January 15 each year, the fund administrator,
MMCDC, must report to the chairs and ranking minority members of the legislative
committees with jurisdiction over housing with the following information:
new text end
new text begin
(1) the number and amount of loans closed;
new text end
new text begin
(2) the median loan amount;
new text end
new text begin
(3) the number and amount of loans issued by race or ethnic categories;
new text end
new text begin
(4) the median home purchase price;
new text end
new text begin
(5) the type of mortgage;
new text end
new text begin
(6) the total amount returned to the fund; and
new text end
new text begin
(7) the number and amount of loans issued by county.
new text end
new text begin Subd. 8. new text end
new text begin Sunset. new text end
new text begin
This section sunsets June 30, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2022.
new text end
Sec. 11. new text begin MANUFACTURED HOME PARK COOPERATIVE PURCHASE
PROGRAM.
new text end
new text begin
(a) The Housing Finance Agency shall establish a manufactured home park cooperative
purchase program for grants to nonprofit organizations to assist manufactured home park
residents in organizing and purchasing manufactured home parks, and for grants to provide
down payment assistance to residents to purchase manufactured home parks.
new text end
new text begin
(b) The agency may develop criteria for grant requests under this section. Within 90
days of final enactment, the commissioner shall develop the forms, applications, and reporting
requirements for use by eligible organizations. In developing these materials, the
commissioner shall consult with manufactured housing cooperatives, resident-owned
manufactured home communities, and nonprofit organizations working with manufactured
housing cooperatives and resident-owned communities.
new text end
new text begin
(c) Grantees must use funds to assist in the creation and preservation of housing that is
affordable to households with incomes at or below 80 percent of the greater of state or area
median income.
new text end
new text begin
(d) A deed purchased with a grant under this section must contain a covenant running
with the land requiring that the land be used as a manufactured home park for 30 years from
the date of purchase.
new text end
new text begin
(e) For purposes of this section, "manufactured home," "manufactured home park," "park
owner," "representative acting on behalf of residents," "resident," and "resident association"
have the meanings given in Minnesota Statutes, section 327C.01.
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. 12. new text begin LOCAL HOUSING TRUST FUND GRANTS.
new text end
new text begin
(a) As provided in this section, the Housing Finance Agency shall award grants to local
housing trust funds established under Minnesota Statutes, section 462C.16, to incentivize
local funding.
new text end
new text begin
(b) A grantee is eligible to receive a grant amount equal to 100 percent of the public
revenue committed to the local housing trust fund from any source other than the state or
federal government, up to $150,000, and in addition, an amount equal to 50 percent of the
public revenue committed to the local housing trust fund from any source other than the
state or federal government that is more than $150,000 but not more than $300,000.
new text end
new text begin
(c) $100,000 of the appropriation in paragraph (b) is for technical assistance grants to
local and regional housing trust funds. A housing trust fund may apply for a technical
assistance grant at the time and in the manner and form required by the agency. The agency
shall make grants on a first-come, first-served basis. A technical assistance grant must not
exceed $5,000.
new text end
new text begin
(d) A grantee must use grant funds within eight years of receipt for purposes (1)
authorized under Minnesota Statutes, section 462C.16, subdivision 3, and (2) benefiting
households with incomes at or below 115 percent of the state median income. A grantee
must return any grant funds not used for these purposes within eight years of receipt to the
commissioner of the Housing Finance Agency for deposit into the housing development
fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2022.
new text end
ARTICLE 3
HOUSING FINANCE TECHNICAL CHANGES
Section 1.
Minnesota Statutes 2020, section 462A.03, subdivision 13, is amended to read:
Subd. 13.
Eligible mortgagor.
"Eligible mortgagor" means a nonprofit or cooperative
housing corporation; the Department of Administration for the purpose of developing
community-based programs as defined in section 252.50; a limited profit entity or a builder
as defined by the agency in its rules, which sponsors or constructs residential housing as
defined in subdivision 7; or a natural person of low or moderate income, except that the
return to a limited dividend entity shall not exceed 15 percent of the capital contribution of
the investors or such lesser percentage as the agency shall establish in its rules, provided
that residual receipts funds of a limited dividend entity may be used for agency-approved,
housing-related investments owned by the limited dividend entity without regard to the
limitation on returns. Owners of existing residential housing occupied by renters shall be
eligible for rehabilitation loans, only if, as a condition to the issuance of the loan, the owner
agrees to conditions established by the agency in its rules relating to rental or other matters
that will deleted text begin insuredeleted text end new text begin ensurenew text end that the housing will be occupied by persons and families of low or
moderate income. The agency shall require by rules that the owner give preference to those
persons of low or moderate income who occupied the residential housing at the time of
application for the loan.
Sec. 2.
Minnesota Statutes 2021 Supplement, section 462A.05, subdivision 14, is amended
to read:
Subd. 14.
Rehabilitation loans.
It may agree to purchase, make, or otherwise participate
in the making, and may enter into commitments for the purchase, making, or participation
in the making, of eligible loans for rehabilitation, with terms and conditions as the agency
deems advisable, to persons and families of low and moderate income, and to owners of
existing residential housing for occupancy by such persons and families, for the rehabilitation
of existing residential housing owned by them. new text begin Rehabilitation may include the addition or
rehabilitation of a detached accessory dwelling unit. new text end The loans may be insured or uninsured
and may be made with security, or may be unsecured, as the agency deems advisable. The
loans may be in addition to or in combination with long-term eligible mortgage loans under
subdivision 3. They may be made in amounts sufficient to refinance existing indebtedness
secured by the property, if refinancing is determined by the agency to be necessary to permit
the owner to meet the owner's housing cost without expending an unreasonable portion of
the owner's income thereon. No loan for rehabilitation shall be made unless the agency
determines that the loan will be used primarily to make the housing more desirable to live
in, to increase the market value of the housing, for compliance with state, county or municipal
building, housing maintenance, fire, health or similar codes and standards applicable to
housing, or to accomplish energy conservation related improvements. In unincorporated
areas and municipalities not having codes and standards, the agency may, solely for the
purpose of administering the provisions of this chapter, establish codes and standards. No
loan under this subdivision for the rehabilitation of owner-occupied housing shall be denied
solely because the loan will not be used for placing the owner-occupied residential housing
in full compliance with all state, county, or municipal building, housing maintenance, fire,
health, or similar codes and standards applicable to housing. Rehabilitation loans shall be
made only when the agency determines that financing is not otherwise available, in whole
or in part, from private lenders upon equivalent terms and conditions. Accessibility
rehabilitation loans authorized under this subdivision may be made to eligible persons and
families without limitations relating to the maximum incomes of the borrowers if:
(1) the borrower or a member of the borrower's family requires a level of care provided
in a hospital, skilled nursing facility, or intermediate care facility for persons with
developmental disabilities;
(2) home care is appropriate; and
(3) the improvement will enable the borrower or a member of the borrower's family to
reside in the housing.
The agency may waive any requirement that the housing units in a residential housing
development be rented to persons of low and moderate income if the development consists
of four or less dwelling units, one of which is occupied by the owner.
Sec. 3.
Minnesota Statutes 2020, section 462A.05, is amended by adding a subdivision to
read:
new text begin Subd. 42. new text end
new text begin Indian Tribes. new text end
new text begin
Notwithstanding any other provision in this chapter, at its
discretion the agency may make any federally recognized Indian Tribe in Minnesota, or
their associated Tribally Designated Housing Entity (TDHE) as defined by United States
Code, title 25, section 4103(22), eligible for funding authorized under this chapter.
new text end
Sec. 4.
Minnesota Statutes 2020, section 462A.05, is amended by adding a subdivision to
read:
new text begin Subd. 43. new text end
new text begin Housing disparities. new text end
new text begin
The agency must prioritize its use of appropriations for
any program under this chapter to serve households most affected by housing disparities.
new text end
Sec. 5.
Minnesota Statutes 2020, section 462A.07, subdivision 9, is amended to read:
Subd. 9.
Priority where State Building Code is adopted.
It may establish such rules
as may be necessary to deleted text begin insuredeleted text end new text begin ensurenew text end that priority for assistance by the agency will be given
to projects located in municipal jurisdictions or counties, which have adopted the uniform
State Building Code.
Sec. 6.
Minnesota Statutes 2020, section 462A.07, subdivision 10, is amended to read:
Subd. 10.
Human rights.
It may establish and enforce such rules as may be necessary
to deleted text begin insuredeleted text end new text begin ensurenew text end compliance with chapter 363A, and to deleted text begin insuredeleted text end new text begin ensurenew text end that occupancy of
housing assisted under this chapter shall be open to all persons, and that contractors and
subcontractors engaged in the construction of such housing shall provide an equal opportunity
for employment to all persons, without discrimination as to race, color, creed, religion,
national origin, sex, marital status, age, and status with regard to public assistance or
disability.
Sec. 7.
Minnesota Statutes 2020, section 462A.07, subdivision 14, is amended to read:
Subd. 14.
American Indians.
(a) It may engage in housing programs for low- and
moderate-income American Indians developed and administered separately or in combination
by the Minnesota Chippewa tribe, the Red Lake band of Chippewa Indians, and the Sioux
communities as determined by such tribe, band, or communities. In furtherance of the policy
of economic integration stated in section 462A.02, subdivision 6, it may engage in housing
programs for American Indians who intend to reside on reservations and who are not persons
of low and moderate income, provided that the aggregate dollar amount of the loans for
persons who are not of low- or moderate-income closed in each lender's fiscal year shall
not exceed an amount equal to 25 percent of the total dollar amount of all loans closed by
that lender during the same fiscal year. In developing such housing programs, the tribe,
band, or communities shall take into account the housing needs of all American Indians
residing both on and off reservations within the state. A plan for each such program, which
specifically describes the program content, utilization of funds, administration, operation,
implementation and other matter, as determined by the agency, must be submitted to the
agency for its review and approval prior to the making of eligible loans pursuant to section
462A.21. All such programs must conform to rules promulgated by the agency concerning
program administration, including but not limited to rules concerning costs of administration;
the quality of housing; interest rates, fees, and charges in connection with making eligible
loans; and other matters determined by the agency to be necessary in order to effectuate the
purposes of this subdivision and section 462A.21, subdivisions 4b and 4c. All such programs
must provide for a reasonable balance in the distribution of funds appropriated for the
purpose of this section between American Indians residing on and off reservations within
the state. Nothing in this section shall preclude such tribe, band, or communities from
requesting and receiving cooperation, advice, and assistance from the agency as regards
program development, operation, delivery, financing, or administration. As a condition to
the making of such eligible loans, the Minnesota Chippewa tribe, the Red Lake band of
Chippewa Indians, and the Sioux communities shall:
(1) enter into a loan agreement and other contractual arrangements with the agency for
the purpose of transferring the allocated portion of loan funds and to deleted text begin insuredeleted text end new text begin ensurenew text end compliance
with the provisions of this section and this chapter; and
(2) agree that all of their official books and records related to such housing programs
shall be subjected to audit by the legislative auditor in the manner prescribed for agencies
of state government.
The agency shall submit a biennial report concerning the various housing programs for
American Indians, and related receipts and expenditures as provided in section 462A.22,
subdivision 9, and such tribe, band, or communities to the extent that they administer such
programs, shall be responsible for any costs and expenses related to such administration
provided, however, they shall be eligible for payment for costs, expenses, and services
pursuant to subdivision 12 and section 462A.21. The agency may provide or cause to be
provided essential general technical services as set forth in subdivision 2, and general
consultative project assistance services, including, but not limited to, management training,
and home ownership counseling as set forth in subdivision 3. Members of boards,
committees, or other governing bodies of the tribe, band, and communities administering
the programs authorized by this subdivision must be compensated for those services as
provided in section 15.0575.
(b) The agency may engage in demonstration projects to encourage the participation of
financial institutions or other leveraging sources in providing housing opportunities for
American Indians. The agency shall consult with the Minnesota Chippewa tribe, the Red
Lake band of Chippewa Indians, and the Sioux communities in developing the demonstration
projects. The income limits specified in paragraph (a) do not apply to the demonstration
projects.
(c) The agency may make home improvement loans under this subdivision without
regard to household income.
Sec. 8.
Minnesota Statutes 2020, section 462A.204, subdivision 3, is amended to read:
Subd. 3.
Set aside.
At least one grant must be awarded in an area located outside of the
metropolitan area. A county, a group of contiguous counties jointly acting together, a Tribe,
a group of Tribes, or a community-based nonprofit organization deleted text begin with a sponsoring resolution
from each of the county boards of the counties located within its operating jurisdictiondeleted text end may
apply for and receive grants deleted text begin for areas located outside the metropolitan areadeleted text end .
Sec. 9.
Minnesota Statutes 2020, section 462A.21, subdivision 4a, is amended to read:
Subd. 4a.
Correction of housing defects.
It may make rehabilitation grants and
expenditures for correction of residential housing defects as provided in section 462A.05,
subdivisions 15 and 16. In order to deleted text begin insuredeleted text end new text begin ensurenew text end the preservation of the maximum number
of housing units with the money appropriated by the legislature, grants shall be recovered
by the agency to the extent provided in this section to be used for future grants. Grants made
under the terms of this subdivision shall contain a requirement that the grant be recovered
by the agency in accordance with the following schedule:
(1) if the property is sold, transferred, or otherwise conveyed within the first three years
after the date of a grant, the recipient shall repay the full amount of the grant;
(2) if the property is sold, transferred, or otherwise conveyed within the fourth year after
the date of a grant, the recipient shall repay 75 percent of the amount of the grant;
(3) if the property is sold, transferred, or otherwise conveyed within the fifth year after
the date of a grant, the recipient shall repay 50 percent of the amount of the grant;
(4) if the property is sold, transferred, or otherwise conveyed within the sixth year after
the date of a grant, the recipient shall repay 25 percent of the amount of the grant;
(5) if the property is sold, transferred, or otherwise conveyed within the seventh year
after the date of the grant, or thereafter, there is no repayment requirement; provided that
no repayment is required to the extent that the grants are made to improve the accessibility
of residential housing to a disabled occupant.
Sec. 10.
Minnesota Statutes 2020, section 462A.22, subdivision 1, is amended to read:
Subdivision 1.
Debt ceiling.
The aggregate principal amount of new text begin general obligation new text end bonds
and notes which are outstanding at any time, excluding the principal amount of any bonds
and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of
$5,000,000,000.
Sec. 11.
Minnesota Statutes 2020, section 462A.36, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Refunding bonds. new text end
new text begin
(a) The agency may issue nonprofit housing bonds in one
or more series to refund bonds authorized in subdivision 2. The amount of refunding nonprofit
housing bonds that may be issued from time to time will not be subject to the dollar limitation
contained in subdivision 2 nor will those bonds be included in computing the amount of
bonds that may be issued within that dollar limitation.
new text end
new text begin
(b) In the refunding of nonprofit housing bonds, each bond must be called for redemption
prior to its maturity in accordance with its terms no later than the earliest date on which it
may be redeemed. No refunding bonds may be issued unless as of the date of the refunding
bonds the present value of the dollar amount of the debt service on the refunding bonds,
computed to their stated maturity dates, is lower than the present value of the dollar amount
of debt service on all nonprofit housing bonds refunded computed to their stated maturity
dates. For purposes of this subdivision, "present value of the dollar amount of debt service"
means the dollar amount of debt service to be paid, discounted to the nominal date of the
refunding bonds at a rate equal to the yield on the refunding bonds.
new text end
new text begin
(c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end
Sec. 12.
Minnesota Statutes 2020, section 462A.36, subdivision 4, is amended to read:
Subd. 4.
Appropriation; payment to agency or trustee.
(a) 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 subdivision 2.
(b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing bonds
issued under subdivision 2new text begin , or nonprofit housing bonds issued to refund those bonds,new text end remain
outstanding, the commissioner of management and budget must transfer to the nonprofit
housing bond account established under section 462A.21, subdivision 32, the amount
certified under paragraph (a), not to exceed $2,400,000 annually. The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.
(c) The agency may pledge to the payment of the nonprofit housing bonds the payments
to be made by the state under this section.
Sec. 13.
Minnesota Statutes 2020, 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.
(e) "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.
(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter
that:
(1) are qualified 501(c)(3) bonds, within the meaning of section 145(a) of the Internal
Revenue Code;
(2) finance qualified residential rental projects within the meaning of section 142(d) of
the Internal Revenue Code;new text begin or
new text end
deleted text begin
(3) finance the construction or rehabilitation of single-family houses that qualify for
mortgage financing within the meaning of section 143 of the Internal Revenue Code; or
deleted text end
deleted text begin (4)deleted text end new text begin (3)new text end 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.
(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
(h) "Senior" means a person 55 years of age or older deleted text begin with an annual income not greater
than 50 percent of:deleted text end new text begin .
new text end
deleted text begin
(1) the metropolitan area median income for persons in the metropolitan area; or
deleted text end
deleted text begin
(2) the statewide median income for persons outside the metropolitan area.
deleted text end
new text begin
(i) "Senior household" means a household with one or more senior members and with
an annual combined income not greater than 50 percent of:
new text end
new text begin
(1) the metropolitan area median income for persons in the metropolitan area; or
new text end
new text begin
(2) the statewide median income for persons outside the metropolitan area.
new text end
deleted text begin (i)deleted text end new text begin (j)new text end "Senior housing" means housing intended and operated for occupancy by deleted text begin at least
one senior per unitdeleted text end new text begin senior householdsnew text end with at least 80 percent of the units occupied by deleted text begin at
least one senior per unitdeleted text end new text begin senior householdsnew text end , 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. Senior housing may be developed in conjunction with and
as a distinct portion of mixed-income senior housing developments that use a variety of
public or private financing sources.
deleted text begin (j)deleted text end new text begin (k)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.
Sec. 14.
Minnesota Statutes 2020, section 462A.37, subdivision 2, is amended to read:
Subd. 2.
Authorization.
(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of clause (4), on
terms and conditions the agency deems appropriate, made for one or more of the following
purposes:
(1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
housing for individuals and families who are without a permanent residence;
(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housing and the costs of new construction of rental
housing on abandoned or foreclosed property where the existing structures will be demolished
or removed;
(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income home buyers;
(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;
(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing;
(6) to finance the costs of acquisition deleted text begin anddeleted text end new text begin ,new text end rehabilitationnew text begin , and replacementnew text end of federally
assisted rental housing and for the refinancing of costs of the construction, acquisition, and
rehabilitation of federally assisted rental housing, including providing funds to refund, in
whole or in part, outstanding bonds previously issued by the agency or another government
unit to finance or refinance such costs; and
(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housing.
(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
who:
(1) either have been without a permanent residence for at least 12 months or at least four
times in the last three years; or
(2) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.
(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:
(1) demonstrate a commitment to maintaining the housing financed as affordable to
deleted text begin seniorsdeleted text end new text begin senior householdsnew text end ;
(2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits;
(3) provide access to services to residents and demonstrate the ability to increase physical
supports and support services as residents age and experience increasing levels of disability;new text begin
and
new text end
deleted text begin
(4) provide a service plan containing the elements of clause (3) reviewed by the housing
authority, economic development authority, public housing authority, or community
development agency that has an area of operation for the jurisdiction in which the project
is located; and
deleted text end
deleted text begin (5)deleted text end new text begin (4)new text end include households with incomes that do not exceed 30 percent of the median
household income for the metropolitan area.
To the extent practicable, the agency shall balance the loans made between projects in the
metropolitan area and projects outside the metropolitan area. Of the loans made to projects
outside the metropolitan area, the agency shall, to the extent practicable, balance the loans
made between projects in counties or cities with a population of 20,000 or less, as established
by the most recent decennial census, and projects in counties or cities with populations in
excess of 20,000.
Sec. 15.
Minnesota Statutes 2020, section 462A.37, is amended by adding a subdivision
to read:
new text begin Subd. 2j. new text end
new text begin Refunding bonds. new text end
new text begin
(a) The agency may issue housing infrastructure bonds in
one or more series to refund bonds authorized in this section. The amount of refunding
housing infrastructure bonds that may be issued from time to time will not be subject to the
dollar limitation contained in any of the authorizations in this section nor will those bonds
be included in computing the amount of bonds that may be issued within those dollar
limitations.
new text end
new text begin
(b) In the refunding of housing infrastructure bonds, each bond must be called for
redemption prior to its maturity in accordance with its terms no later than the earliest date
on which it may be redeemed. No refunding bonds may be issued unless as of the date of
the refunding bonds the present value of the dollar amount of the debt service on the
refunding bonds, computed to their stated maturity dates, is lower than the present value of
the dollar amount of debt service on all housing infrastructure bonds refunded computed to
their stated maturity dates. For purposes of this subdivision, "present value of the dollar
amount of debt service" means the dollar amount of debt service to be paid, discounted to
the nominal date of the refunding bonds at a rate equal to the yield on the refunding bonds.
new text end
new text begin
(c) If as a result of the issuance of refunding bonds the amount of debt service for an
annual period is less than the amount transferred by the commissioner of management and
budget to pay debt service for that annual period, the agency must deduct the excess amount
from the actual amount of debt service on those bonds certified for the next subsequent
annual period.
new text end
Sec. 16.
Minnesota Statutes 2020, section 462A.37, subdivision 4, is amended to read:
Subd. 4.
Appropriation; payment to agency or trustee.
(a) 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 subdivision 2.
(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure
bonds issued under subdivision 2new text begin , or housing infrastructure bonds issued to refund those
bonds,new text end remain outstanding, the commissioner of management and budget must transfer to
the deleted text begin affordabledeleted text end housing new text begin infrastructure new text end bond account established under section 462A.21,
subdivision 33, the amount certified under paragraph (a), not to exceed $2,200,000 annually.
The amounts necessary to make the transfers are appropriated from the general fund to the
commissioner of management and budget.
(c) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.
Sec. 17.
Minnesota Statutes 2021 Supplement, section 462A.37, subdivision 5, is amended
to read:
Subd. 5.
Additional appropriation.
(a) 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 this section.
(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2anew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a), not to exceed $6,400,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.
(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2bnew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a), not to exceed $800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.
(d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
bonds issued under subdivision 2cnew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a), not to exceed $2,800,000 annually. The amounts
necessary to make the transfers are appropriated from the general fund to the commissioner
of management and budget.
(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2dnew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
(f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2enew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
(g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2fnew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
(h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
bonds issued under subdivision 2gnew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
(i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2hnew text begin , or housing infrastructure bonds issued to refund those
bonds,new text end 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 (a). The amounts necessary to make the transfers are
appropriated from the general fund to the commissioner of management and budget.
(j) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.
Sec. 18.
Minnesota Statutes 2020, section 462A.38, subdivision 1, is amended to read:
Subdivision 1.
Establishment.
A workforce and affordable homeownership development
program is established to award homeownership development grants to cities, new text begin counties,
new text end Tribal governments, nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
subdivision 1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.
Sec. 19.
Minnesota Statutes 2020, section 462A.39, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this section, the following terms have the
meanings given.
(b) "Eligible project area" means a home rule charter or statutory city located outside
of deleted text begin thedeleted text end new text begin anew text end metropolitan deleted text begin areadeleted text end new text begin countynew text end as defined in section 473.121, subdivision deleted text begin 2deleted text end new text begin 4new text end , with a
population exceeding 500; a community that has a combined population of 1,500 residents
located within 15 miles of a home rule charter or statutory city located outside deleted text begin thedeleted text end new text begin anew text end
metropolitan deleted text begin areadeleted text end new text begin countynew text end as defined in section 473.121, subdivision deleted text begin 2deleted text end new text begin 4new text end ; new text begin federally recognized
Tribal reservations; new text end or an area served by a joint county-city economic development authority.
(c) "Joint county-city economic development authority" means an economic development
authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between
a city and county and excluding those established by the county only.
(d) "Market rate residential rental properties" means properties that are rented at market
value, including new modular homes, new manufactured homes, and new manufactured
homes on leased land or in a manufactured home park, and may include rental developments
that have a portion of income-restricted units.
(e) "Qualified expenditure" means expenditures for market rate residential rental
properties including acquisition of property; construction of improvements; and provisions
of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing
costs.
Sec. 20.
Minnesota Statutes 2020, section 462A.39, subdivision 5, is amended to read:
Subd. 5.
Allocation.
The amount of a grant or deferred loans may not exceed 25 percent
of the rental housing development project cost. The commissioner shall not award a grant
or deferred loans to deleted text begin a citydeleted text end new text begin an eligible project areanew text end without certification by the deleted text begin citydeleted text end new text begin eligible
project areanew text end that the amount of the grant or deferred loans shall be matched by a local unit
of government, business, deleted text begin ordeleted text end nonprofit organizationnew text begin , or federally recognized Tribe,new text end with $1
for every $2 provided in grant or deferred loans funds.
Sec. 21.
Laws 2021, First Special Session chapter 8, article 1, section 3, subdivision 11,
is amended to read:
Subd. 11.Affordable Rental Investment Fund
|
4,218,000 |
4,218,000 |
||||
(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, new text begin replacement, new text end and debt
restructuring of federally assisted rental
property and for making equity take-out loans
under Minnesota Statutes, section 462A.05,
subdivision 39.
(b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted.
(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.
ARTICLE 4
LANDLORD TENANT LAW
Section 1.
Minnesota Statutes 2020, section 363A.09, subdivision 1, is amended to read:
Subdivision 1.
Real property interest; action by owner, lessee, and others.
It is an
unfair discriminatory practice for an owner, lessee, sublessee, assignee, or managing agent
of, or other person having the right to sell, rent or lease any real property, or any agent of
any of these:
(1) to refuse to sell, rent, or lease or otherwise deny to or withhold from any person or
group of persons any real property because of race, color, creed, religion, national origin,
sex, marital status, status with regard to public assistance,new text begin participation in or requirements
of a public assistance program,new text end disability, sexual orientation, or familial status; or
(2) to discriminate against any person or group of persons because of race, color, creed,
religion, national origin, sex, marital status, status with regard to public assistance,new text begin
participation in or requirements of a public assistance program,new text end disability, sexual orientation,
or familial status in the terms, conditions or privileges of the sale, rental or lease of any real
property or in the furnishing of facilities or services in connection therewith, except that
nothing in this clause shall be construed to prohibit the adoption of reasonable rules intended
to protect the safety of minors in their use of the real property or any facilities or services
furnished in connection therewith; or
(3) in any transaction involving real property, to print, circulate or post or cause to be
printed, circulated, or posted any advertisement or sign, or use any form of application for
the purchase, rental or lease of real property, or make any record or inquiry in connection
with the prospective purchase, rental, or lease of real property which expresses, directly or
indirectly, any limitation, specification, or discrimination as to race, color, creed, religion,
national origin, sex, marital status, status with regard to public assistance,new text begin participation in
or requirements of a public assistance program,new text end disability, sexual orientation, or familial
status, or any intent to make any such limitation, specification, or discrimination except that
nothing in this clause shall be construed to prohibit the advertisement of a dwelling unit as
available to adults-only if the person placing the advertisement reasonably believes that the
provisions of this section prohibiting discrimination because of familial status do not apply
to the dwelling unit.
Sec. 2.
Minnesota Statutes 2020, section 363A.09, subdivision 2, is amended to read:
Subd. 2.
Real property interest; action by brokers, agents, and others.
It is an unfair
discriminatory practice for a real estate broker, real estate salesperson, or employee, or agent
thereof:
(1) to refuse to sell, rent, or lease or to offer for sale, rental, or lease any real property
to any person or group of persons or to negotiate for the sale, rental, or lease of any real
property to any person or group of persons because of race, color, creed, religion, national
origin, sex, marital status, status with regard to public assistance,new text begin participation in or
requirements of a public assistance program,new text end disability, sexual orientation, or familial status
or represent that real property is not available for inspection, sale, rental, or lease when in
fact it is so available, or otherwise deny or withhold any real property or any facilities of
real property to or from any person or group of persons because of race, color, creed, religion,
national origin, sex, marital status, status with regard to public assistance,new text begin participation in
or requirements of a public assistance program,new text end disability, sexual orientation, or familial
status; or
(2) to discriminate against any person because of race, color, creed, religion, national
origin, sex, marital status, status with regard to public assistance,new text begin participation in or
requirements of a public assistance program,new text end disability, sexual orientation, or familial status
in the terms, conditions or privileges of the sale, rental or lease of real property or in the
furnishing of facilities or services in connection therewith; or
(3) to print, circulate, or post or cause to be printed, circulated, or posted any
advertisement or sign, or use any form of application for the purchase, rental, or lease of
any real property or make any record or inquiry in connection with the prospective purchase,
rental or lease of any real property, which expresses directly or indirectly, any limitation,
specification or discrimination as to race, color, creed, religion, national origin, sex, marital
status, status with regard to public assistance,new text begin participation in or requirements of a public
assistance program,new text end disability, sexual orientation, or familial status or any intent to make
any such limitation, specification, or discrimination except that nothing in this clause shall
be construed to prohibit the advertisement of a dwelling unit as available to adults-only if
the person placing the advertisement reasonably believes that the provisions of this section
prohibiting discrimination because of familial status do not apply to the dwelling unit.
Sec. 3.
Minnesota Statutes 2020, section 363A.09, is amended by adding a subdivision to
read:
new text begin Subd. 2a. new text end
new text begin Definition; public assistance program. new text end
new text begin
For purposes of this section, "public
assistance program" means federal, state, or local assistance, including but not limited to
rental assistance, rent supplements, and housing choice vouchers.
new text end
Sec. 4.
Minnesota Statutes 2020, section 484.014, subdivision 2, is amended to read:
Subd. 2.
Discretionary expungement.
The court may order expungement of an eviction
case court file deleted text begin only upon motion of a defendant and decision by the court, if the court finds
that the plaintiff's case is sufficiently without basis in fact or law, which may include lack
of jurisdiction over the case, thatdeleted text end new text begin if the court makes the following findings: (1) the eviction
case court file is no longer a reasonable predictor of future tenant behavior; and (2) thenew text end
expungement is clearly in the interests of justice and those interests are not outweighed by
the public's interest in knowing about the record.
Sec. 5.
Minnesota Statutes 2020, section 484.014, subdivision 3, is amended to read:
Subd. 3.
Mandatory expungement.
The court shall order expungement of an eviction
casenew text begin :
new text end
new text begin (1)new text end commenced solely on the grounds provided in section 504B.285, subdivision 1,
clause (1), if the court finds that the defendant occupied real property that was subject to
contract for deed cancellation or mortgage foreclosure and:
deleted text begin (1)deleted text end new text begin (i)new text end the time for contract cancellation or foreclosure redemption has expired and the
defendant vacated the property prior to commencement of the eviction action; or
deleted text begin (2)deleted text end new text begin (ii)new text end the defendant was a tenant during the contract cancellation or foreclosure
redemption period and did not receive a notice under section 504B.285, subdivision 1a, 1b,
or 1c, to vacate on a date prior to commencement of the eviction casedeleted text begin .deleted text end new text begin ;
new text end
new text begin
(2) if the defendant prevailed on the merits;
new text end
new text begin
(3) if the court dismissed the plaintiff's complaint for any reason;
new text end
new text begin
(4) if the parties to the action have agreed to an expungement;
new text end
new text begin
(5) if the court finds an eviction was ordered at least three years before the date the
expungement was filed; or
new text end
new text begin
(6) upon motion of a defendant, if the case is settled and the defendant fulfills the terms
of the settlement.
new text end
Sec. 6.
new text begin
[504B.120] PROHIBITED FEES.
new text end
new text begin Subdivision 1. new text end
new text begin Prohibited fees. new text end
new text begin
Except for actual services rendered for an optional
service offered by the landlord, a landlord shall not charge a tenant any nonrefundable fee
in relation to a residential tenancy.
new text end
new text begin Subd. 2. new text end
new text begin Penalties. new text end
new text begin
A landlord who violates this section is liable to the residential tenant
for each unenforceable fee for three times the amount of each fee imposed that was not for
an actual optional service or $500, whichever is greater, and the court may award the tenant
reasonable attorney fees.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section applies to leases signed before, on, or after August
1, 2022.
new text end
Sec. 7.
Minnesota Statutes 2020, section 504B.135, is amended to read:
504B.135 TERMINATING TENANCY AT WILL.
deleted text begin (a)deleted text end A tenancy at will may be terminated by either party by giving notice in writing. The
time of the notice must be at least as long as the interval between the time rent is due or
three months, whichever is less.
deleted text begin
(b) If a tenant neglects or refuses to pay rent due on a tenancy at will, the landlord may
terminate the tenancy by giving the tenant 14 days notice to quit in writing.
deleted text end
Sec. 8.
Minnesota Statutes 2020, section 504B.161, subdivision 1, is amended to read:
Subdivision 1.
Requirements.
(a) In every lease or license of residential premises, the
landlord or licensor covenants:
(1) that the premises and all common areas are fit for the use intended by the parties;
(2) to keep the premises in reasonable repair during the term of the lease or license,
except when the disrepair has been caused by the willful, malicious, or irresponsible conduct
of the tenant or licensee or a person under the direction or control of the tenant or licensee;
(3) to make the premises reasonably energy efficient by installing weatherstripping,
caulking, storm windows, and storm doors when any such measure will result in energy
procurement cost savings, based on current and projected average residential energy costs
in Minnesota, that will exceed the cost of implementing that measure, including interest,
amortized over the ten-year period following the incurring of the cost; deleted text begin and
deleted text end
(4) to maintain the premises in compliance with the applicable health and safety laws
of the state, and of the local units of government where the premises are located during the
term of the lease or license, except when violation of the health and safety laws has been
caused by the willful, malicious, or irresponsible conduct of the tenant or licensee or a
person under the direction or control of the tenant or licenseedeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(5) to supply or furnish heat at a minimum temperature of at least 68 degrees Fahrenheit,
measured at a distance of 36 inches above floor level, and not closer than 36 inches from
any wall, from October 1 through April 30.
new text end
(b) The parties to a lease or license of residential premises may not waive or modify the
covenants imposed by this section.
Sec. 9.
Minnesota Statutes 2020, section 504B.211, subdivision 2, is amended to read:
Subd. 2.
Entry by landlord.
Except as provided in subdivision 4, a landlord may enter
the premises rented by a residential tenant new text begin without the residential tenant's permissionnew text end only
for a reasonable business purpose and after making a good faith effort to give the residential
tenant reasonable notice under the circumstances of new text begin not less than 24 hours in advance of
new text end the intent to enter. new text begin The notice must specify a time of entry that does not exceed four hours
and the landlord may only enter between the hours of 8:00 a.m. and 8:00 p.m. A tenant may
withdraw the tenant's permission at any time.new text end A residential tenant may not waive and the
landlord may not require the residential tenant to waive the residential tenant's right to prior
notice of entry under this section as a condition of entering into or maintaining the lease.
Sec. 10.
Minnesota Statutes 2020, section 504B.211, subdivision 6, is amended to read:
Subd. 6.
Penalty.
If a landlord deleted text begin substantiallydeleted text end violates deleted text begin subdivision 2deleted text end new text begin this sectionnew text end , the
residential tenant is entitled to a penalty which may include a rent reduction up to full
rescission of the lease, recovery of any damage deposit less any amount retained under
section 504B.178, and deleted text begin up to a $100 civil penalty for each violation. If a landlord violates
subdivision 5, the residential tenant is entitled to up to a $100 civil penalty for each violationdeleted text end new text begin
damages not less than an amount equal to one month's rent and reasonable attorney feesnew text end . A
residential tenant deleted text begin shalldeleted text end new text begin maynew text end follow the procedures in sections 504B.381, 504B.385, and
504B.395 to 504B.471 to enforce the provisions of this section.new text begin A violation of this section
by the landlord is a violation of section 504B.161.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section applies to matters commenced on or after August
1, 2022.
new text end
Sec. 11.
new text begin
[504B.266] TERMINATION OF LEASE UPON INFIRMITY OF TENANT.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given them.
new text end
new text begin
(b) "Authorized representative" means a person acting as an attorney-in-fact under a
power of attorney under section 523.24 or a court-appointed conservator or guardian under
chapter 524.
new text end
new text begin
(c) "Disability" means any condition or characteristic that is a physical, sensory, or
mental impairment that materially limits one or more major life activity.
new text end
new text begin
(d) "Medical care facility" means:
new text end
new text begin
(1) a nursing home, as defined in section 144A.01, subdivision 5;
new text end
new text begin
(2) hospice care, as defined in section 144A.75, subdivision 8;
new text end
new text begin
(3) a residential hospice facility, as defined in section 144A.75, subdivision 13;
new text end
new text begin
(4) a boarding care home, as licensed under chapter 144 and regulated by the Department
of Health under Minnesota Rules, chapter 4655;
new text end
new text begin
(5) a supervised living facility, as licensed under chapter 144;
new text end
new text begin
(6) a facility providing assisted living, as defined in section 144G.08, subdivision 7;
new text end
new text begin
(7) an accessible unit, as defined in section 363A.40, subdivision 1, paragraph (b);
new text end
new text begin
(8) a state facility, as defined in section 246.50, subdivision 3;
new text end
new text begin
(9) a facility providing a foster care for adults program, as defined in section 245A.02,
subdivision 6c; or
new text end
new text begin
(10) a facility providing intensive residential treatment services, as defined in section
245I.23.
new text end
new text begin
(e) "Medical professional" means:
new text end
new text begin
(1) a physician who is currently licensed to practice medicine under section 147.02,
subdivision 1;
new text end
new text begin
(2) an advanced practice registered nurse, as defined in section 148.171, subdivision 3;
or
new text end
new text begin
(3) a mental health professional, as defined in section 245I.04, subdivision 2.
new text end
new text begin Subd. 2. new text end
new text begin Termination of lease upon infirmity of tenant. new text end
new text begin
(a) A tenant or the authorized
representative of the tenant may terminate the lease before the expiration of the lease in the
manner provided in subdivision 3 if the tenant has, or if there is more than one tenant, all
the tenants have, been found by a medical professional to need to move into a medical care
facility and:
new text end
new text begin
(1) require assistance with instrumental activities of daily living or personal activities
of daily living due to medical reasons or a disability;
new text end
new text begin
(2) meet one of the nursing facility level of care criteria under section 144.0724,
subdivision 11; or
new text end
new text begin
(3) have a disability or functional impairment in three or more of the areas listed in
section 245.462, subdivision 11a, so that self-sufficiency is markedly reduced because of
a mental illness.
new text end
new text begin
(b) If a tenant requires an accessible unit as defined in section 363A.40, subdivision 1,
and the landlord can provide an accessible unit in the same complex where the tenant
currently resides that is available within two months of the request, then the provisions of
this section do not apply and the tenant may not terminate the lease.
new text end
new text begin Subd. 3. new text end
new text begin Notice. new text end
new text begin
If the conditions in subdivision 2 have been met, the tenant or the
tenant's authorized representative may terminate the lease by providing at least two months'
written notice to be effective on the last day of a calendar month. The notice must be either
hand delivered or mailed by postage prepaid, first class United States mail. The notice must
include: (1) a copy of the medical professional's written documentation of the infirmity;
and (2) documentation showing that the tenant has been accepted as a resident or has a
pending application at a location where the medical professional has indicated that the tenant
needs to move. The termination of a lease under this section shall not relieve the eligible
tenant from liability either for the payment of rent or other sums owed prior to or during
the notice period, or for the payment of amounts necessary to restore the premises to the
condition at the beginning of the tenancy, ordinary wear and tear excepted.
new text end
new text begin Subd. 4. new text end
new text begin Waiver prohibited. new text end
new text begin
Any waiver of the rights of termination provided by this
section, including lease provisions or other agreements that require a longer notice period
than those provided for in this section, shall be void and unenforceable.
new text end
new text begin Subd. 5. new text end
new text begin Other laws. new text end
new text begin
Nothing in this section affects the rights or remedies available in
this chapter or other law, including but not limited to chapter 363A.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2023, and applies to leases
entered into or renewed on or after January 1, 2023. For purposes of this section, estates at
will shall be deemed to be renewed at the beginning of each rental period.
new text end
Sec. 12.
Minnesota Statutes 2020, section 504B.291, is amended to read:
504B.291 EVICTION ACTION FOR NONPAYMENT; REDEMPTION; OTHER
RIGHTS.
Subdivision 1.
Action to recover.
(a)new text begin Subject to subdivision 1a,new text end a landlord may bring
an eviction action for nonpayment of rent irrespective of whether the lease contains a right
of reentry clause. Such an eviction action is equivalent to a demand for the rent. There is a
rebuttable presumption that the rent has been paid if the tenant produces a copy or copies
of one or more money orders or produces one or more original receipt stubs evidencing the
purchase of a money order, if the documents: (i) total the amount of the rent; (ii) include a
date or dates approximately corresponding with the date rent was due; and (iii) in the case
of copies of money orders, are made payable to the landlord. This presumption is rebutted
if the landlord produces a business record that shows that the tenant has not paid the rent.
The landlord is not precluded from introducing other evidence that rebuts this presumption.
In such an action, unless the landlord has also sought to evict the tenant by alleging a material
violation of the lease under section 504B.285, subdivision 5, the tenant may, at any time
before possession has been delivered, redeem the tenancy and be restored to possession by
paying to the landlord or bringing to court the amount of the rent that is in arrears, with
interest, costs of the action, and an attorney's fee not to exceed $5, and by performing any
other covenants of the lease.
(b) If the tenant has paid to the landlord or brought into court the amount of rent in
arrears but is unable to pay the interest, costs of the action, and attorney's fees required by
paragraph (a), the court may permit the tenant to pay these amounts into court and be restored
to possession within the same period of time, if any, for which the court stays the issuance
of the order to vacate under section 504B.345.
(c) Prior to or after commencement of an action to recover possession for nonpayment
of rent, the parties may agree only in writing that partial payment of rent in arrears which
is accepted by the landlord prior to issuance of the order granting restitution of the premises
pursuant to section 504B.345 may be applied to the balance due and does not waive the
landlord's action to recover possession of the premises for nonpayment of rent.
(d) Rental payments under this subdivision must first be applied to rent claimed as due
in the complaint from prior rental periods before applying any payment toward rent claimed
in the complaint for the current rental period, unless the court finds that under the
circumstances the claim for rent from prior rental periods has been waived.
new text begin Subd. 1a. new text end
new text begin Eviction prohibited pending rental assistance application determination. new text end
new text begin
A
landlord may not bring an eviction action for the nonpayment of rent against a tenant, or
proceed with an eviction action for nonpayment of rent if one has already been filed, if the
tenant demonstrates the tenant has a pending application for rental assistance with a federal
agency, state agency, local unit of government, or nonprofit corporation incorporated under
chapter 317A. A landlord may bring an eviction action or proceed on a previously filed
eviction action if the tenant has been denied rental assistance, or within 45 days of notice
by the tenant of a pending application for rental assistance, whichever comes first. A landlord
who is notified that rental assistance for the tenant has been approved shall not file or proceed
with an eviction action for 15 business days pending distribution of the funds awarded. For
purposes of this section, "rental assistance" means funds distributed to provide direct
assistance for the payment of rent:
new text end
new text begin
(1) under chapters 256D, 256I, and 256J;
new text end
new text begin
(2) under sections 116L.17, 245.99, 256.484, 256K.45, 462A.204, 462C.16, and 477A.30;
new text end
new text begin
(3) distributed by or through a county or municipal government;
new text end
new text begin
(4) provided by a federal agency to be administered and distributed by the state or local
government; or
new text end
new text begin
(5) distributed by a nonprofit that has been funded by the federal, state, or local
government when the funding was provided for the purpose of providing rental assistance.
new text end
Subd. 2.
Lease greater than 20 years.
(a) If the lease under which an action is brought
under subdivision 1 is for a term of more than 20 years, the action may not begin until the
landlord serves a written notice on the tenant and on all creditors with legal or equitable
recorded liens on the property. The notice must state: (1) the lease will be canceled unless
the amounts, agreements, and legal obligations in default are paid or performed within 30
days, or a longer specified period; and (2) if the amounts, agreements, and legal obligations
are not paid or performed within that period, then the landlord may evict the tenant at the
expiration of the period.
(b) If the lease provides that the landlord must give more than the 30 days' notice provided
in paragraph (a), then notice must be the same as that provided in the lease.
(c) The tenant may be restored to possession of the property under the terms of the
original lease if, before the expiration of six months after the landlord obtains possession
due to the tenant's abandonment or surrender of the property or the landlord prevails in the
action, the tenant or a creditor holding a legal or equitable lien on the property: (1) pays to
the landlord or brings into court the amount of rent then in arrears, with interest and the
costs of the action; and (2) performs the other agreements or legal obligations that are in
default.
Subd. 3.
Recording of eviction or ejectment actions.
Upon recovery of possession by
the landlord in the action, a certified copy of the judgment shall, upon presentation, be
recorded in the office of the county recorder of the county where the land is situated if
unregistered land or in the office of the registrar of titles of the county if registered land and
upon recovery of possession by the landlord by abandonment or surrender by the tenant an
affidavit by the landlord or the landlord's attorney setting forth the fact shall be recorded in
a like manner and the recorded certified copy of the judgment or the recorded affidavit shall
be prima facie evidence of the facts stated therein in reference to the recovery of possession
by the landlord.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment and
applies to evictions filed on or after that date and evictions pending but not yet adjudicated
on the date of final enactment.
new text end
Sec. 13.
Minnesota Statutes 2020, section 504B.321, is amended to read:
504B.321 COMPLAINT AND SUMMONS.
Subdivision 1.
Procedure.
(a) To bring an eviction action, the person complaining shall
file a complaint with the court, stating the full name and date of birth of the person against
whom the complaint is made, unless it is not known, describing the premises of which
possession is claimed, stating the facts which authorize the recovery of possession, and
asking for recovery thereof.
(b) The lack of the full name and date of birth of the person against whom the complaint
is made does not deprive the court of jurisdiction or make the complaint invalid.
(c) The court shall issue a summons, commanding the person against whom the complaint
is made to appear before the court on a day and at a place stated in the summons.
(d) The appearance shall be not less than seven nor more than 14 days from the day of
issuing the summons, except as provided by subdivision 2.
(e) A copy of the complaint shall be attached to the summons, which shall state that the
copy is attached and that the original has been filed.
new text begin
(f) If applicable, the person filing a complaint must attach a copy of the written notice
described in subdivision 1a. The court shall dismiss an action without prejudice for failure
to provide a notice as described in subdivision 1a and grant an expungement of the eviction
case court file.
new text end
new text begin Subd. 1a. new text end
new text begin Written notice. new text end
new text begin
(a) Before bringing an eviction action alleging nonpayment
of rent, a landlord must provide written notice to the residential tenant specifying the basis
for a future eviction action.
new text end
new text begin
(b) For an allegation of nonpayment of rent or other unpaid financial obligations in
violation of the lease, the landlord must include the following in a written notice:
new text end
new text begin
(1) the total amount due;
new text end
new text begin
(2) a specific accounting of the amount of the total due that is comprised of unpaid rents,
late fees, or other charges under the lease; and
new text end
new text begin
(3) the name and address of the person authorized to receive rent and fees on behalf of
the landlord.
new text end
new text begin
(c) A notice provided under this section must:
new text end
new text begin
(1) provide a disclaimer that a low-income tenant may be eligible for financial assistance
from the county;
new text end
new text begin
(2) provide a description on how to access legal and financial assistance through the
"Law Help" website at www.lawhelpmn.org and "Minnesota 211" through its website
www.211unitedway.org or by calling 211; and
new text end
new text begin
(3) state that the landlord may bring an eviction action following expiration of the 14-day
notice period if the tenant fails to pay the total amount due or fails to vacate.
new text end
new text begin
(d) The landlord or an agent of the landlord must deliver the notice personally or by first
class mail to the residential tenant at the address of the leased premises.
new text end
new text begin
(e) If the tenant fails to correct the rent delinquency within 14 days of the delivery or
mailing of the notice or fails to vacate, the landlord may bring an eviction action under
subdivision 1 based on the nonpayment of rent.
new text end
new text begin
(f) Receipt of a notice under this section is an emergency situation under section 256D.06,
subdivision 2, and Minnesota Rules, chapter 9500. For purposes of chapter 256J and
Minnesota Rules, chapter 9500, a county agency verifies an emergency situation by receiving
and reviewing a notice under this section. If a residential tenant applies for financial
assistance from the county, the landlord must cooperate with the application process by:
new text end
new text begin
(1) supplying all information and documentation requested by the tenant or the county;
and
new text end
new text begin
(2) accepting or placing into escrow partial rent payments where necessary to establish
a tenant's eligibility for assistance.
new text end
Subd. 2.
Expedited procedure.
(a) In an eviction action brought under section 504B.171
or on the basis that the new text begin residentialnew text end tenant is causing a nuisance or other illegal behavior that
seriously endangers the safety of other residents, their property, or the landlord's property,
the person filing the complaint shall file an affidavit stating specific facts and instances in
support of why an expedited hearing is required.
(b) The complaint and affidavit shall be reviewed by a referee or judge and scheduled
for an expedited hearing only if sufficient supporting facts are stated and they meet the
requirements of this paragraph.
(c) The appearance in an expedited hearing shall be not less than five days nor more
than seven days from the date the summons is issued. The summons, in an expedited hearing,
shall be served upon the new text begin residentialnew text end tenant within 24 hours of issuance unless the court
orders otherwise for good cause shown.
(d) If the court determines that the person seeking an expedited hearing did so without
sufficient basis under the requirements of this subdivision, the court shall impose a civil
penalty of up to $500 for abuse of the expedited hearing process.
new text begin Subd. 3. new text end
new text begin Nonpublic record. new text end
new text begin
An eviction action is not accessible to the public until the
court enters a final judgment.
new text end
Sec. 14.
Minnesota Statutes 2020, section 504B.375, subdivision 1, is amended to read:
Subdivision 1.
Unlawful exclusion or removal.
(a) This section applies to actual or
constructive removal or exclusion of a residential tenant which may include the termination
of utilities or the removal of doors, windows, or locks. A residential tenant to whom this
section applies may recover possession of the premises as described in paragraphs (b) to
(e).
(b) The residential tenant shall present a verified petition to the district court of the
judicial district of the county in which the premises are located that:
(1) describes the premises and the landlord;
(2) specifically states the facts and grounds that demonstrate that the exclusion or removal
was unlawful, including a statement that no writ of recovery of the premises and order to
vacate has been issued under section 504B.345 in favor of the landlord and against the
residential tenant and executed in accordance with section 504B.365; and
(3) asks for possession.
(c) If it clearly appears from the specific grounds and facts stated in the verified petition
or by separate affidavit of the residential tenant or the residential tenant's attorney or agent
that the exclusion or removal was unlawful, the court shall immediately order that the
residential tenant have possession of the premises.
(d) The residential tenant shall furnish security, if any, that the court finds is appropriate
under the circumstances for payment of all costs and damages the landlord may sustain if
the order is subsequently found to have been obtained wrongfully. In determining the
appropriateness of security, the court shall consider the residential tenant's ability to afford
monetary security.
(e) The court shall direct the order to the sheriff of the county in which the premises are
located and the sheriff shall execute the order immediately by making a demand for
possession on the landlord, if found, or the landlord's agent or other person in charge of the
premises. If the landlord fails to comply with the demand, the officer shall take whatever
assistance may be necessary and immediately place the residential tenant in possession of
the premises. If the landlord, the landlord's agent, or other person in control of the premises
cannot be found and if there is no person in charge, the officer shall immediately enter into
and place the residential tenant in possession of the premises. The officer shall also serve
the order and verified petition or affidavit immediately upon the landlord or agent, in the
same manner as a summons is required to be served in a civil action in district court.
new text begin
(f) The court administrator may charge a filing fee in the amount set for complaints and
counterclaims in conciliation court, subject to the filing of an inability to pay affidavit.
new text end
Sec. 15.
Minnesota Statutes 2020, section 504B.381, subdivision 1, is amended to read:
Subdivision 1.
Petition.
A person authorized to bring an action under section 504B.395,
subdivision 1, may petition the court for relief deleted text begin in cases of emergency involving the loss of
running water, hot water, heat, electricity, sanitary facilities, or other essential services or
facilities that the landlord is responsible for providing.deleted text end new text begin :
new text end
new text begin
(1) when a unit of government has issued a condemnation order or a notice of intent to
condemn; or
new text end
new text begin
(2) in cases of emergency involving the following services and facilities when the landlord
is responsible for providing them:
new text end
new text begin
(i) a serious infestation;
new text end
new text begin
(ii) the loss of running water;
new text end
new text begin
(iii) the loss of hot water;
new text end
new text begin
(iv) the loss of heat;
new text end
new text begin
(v) the loss of electricity;
new text end
new text begin
(vi) the loss of sanitary facilities;
new text end
new text begin
(vii) a nonfunctioning refrigerator;
new text end
new text begin
(viii) if included in the lease, a nonfunctioning air conditioner;
new text end
new text begin
(iv) if included in the lease, no functioning elevator;
new text end
new text begin
(x) any conditions, services, or facilities that pose a serious and negative impact on
health or safety; or
new text end
new text begin
(xi) other essential services or facilities.
new text end
Sec. 16.
Minnesota Statutes 2020, section 504B.381, subdivision 5, is amended to read:
Subd. 5.
Relief; service of new text begin petition andnew text end order.
new text begin Provided proof that the petitioner has
given the notice required in subdivision 4 to the landlord, if the court finds based on the
petitioner's emergency ex parte motion for relief, affidavit, and other evidence presented
that the landlord violated subdivision 1, then new text end the courtnew text begin shall order that the landlord
immediately begin to remedy the violation andnew text end may order relief as provided in section
504B.425. The new text begin court and new text end petitioner shall serve the new text begin petition andnew text end order on the landlord
personally or by mail as soon as practicable.new text begin The court shall include notice of a hearing and,
at the hearing, shall consider evidence of alleged violations, defenses, compliance with the
order, and any additional relief available under section 504B.425. The court and petitioner
shall serve the notice of hearing on the ex parte petition and emergency order personally or
by mail as soon as practicable.
new text end
Sec. 17.
Minnesota Statutes 2020, section 504B.381, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Filing fee. new text end
new text begin
The court administrator may charge a filing fee in the amount set
for complaints and counterclaims in conciliation court, subject to the filing of an inability
to pay affidavit.
new text end