SF 14

as introduced - 91st Legislature, 2020 1st Special Session (2019 - 2020) Posted on 06/16/2020 08:07am

A bill for an act
relating to housing; allowing mortgage financing for manufactured home park
cooperatives; modifying adoption of new model building codes and new energy
codes; exempting single-family homes from window fall prevention device code;
extending the use of rehabilitation loans to manufactured homes; modifying criteria
for housing grants and loans; authorizing the issuance of housing infrastructure
bonds; prescribing penalties for false statements; appropriating money for
emergency housing assistance grants; amending Minnesota Statutes 2018, sections
273.125, subdivision 8; 326B.106, subdivisions 1, 7; 326B.145; 462.352,
subdivision 5; 462A.05, subdivisions 14, 14a; 462A.37, subdivision 1, by adding
a subdivision; 462C.14, by adding a subdivision; Minnesota Statutes 2019
Supplement, sections 462A.24; 462A.37, subdivisions 2, 5; 474A.061, subdivision
2a; 474A.091, subdivision 3; proposing coding for new law in Minnesota Statutes,
chapters 168A; 462.

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

Section 1.

new text begin [168A.1411] MANUFACTURED HOME AFFIXED TO REAL PROPERTY
OWNED BY COOPERATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Certificates surrendered for cancellation; cooperatives. new text end

new text begin (a) When a
manufactured home is to be affixed or is affixed, as defined in section 273.125, subdivision
8, paragraph (b), to real property owned by a Minnesota nonprofit corporation or a Minnesota
cooperative, the owner of the manufactured home may surrender the manufacturer's certificate
of origin or certificate of title to the department for cancellation so that the manufactured
home becomes an improvement to real property and is no longer titled as personal property.
The department must not issue a certificate of title for a manufactured home under chapter
168A if the manufacturer's certificate of origin is or has been surrendered under this
subdivision, except as provided in section 168A.142. Upon surrender of the manufacturer's
certificate of origin or the certificate of title, the department must issue notice of surrender
to the owner, and upon recording an affidavit of affixation, which the county recorder or
registrar of titles, as applicable, must accept, the manufactured home is deemed to be an
improvement to real property. An affidavit of affixation by the owner of the manufactured
home must include the following information:
new text end

new text begin (1) the name, residence address, and mailing address of owner or owners of the
manufactured home;
new text end

new text begin (2) the legal description of the real property in which the manufactured home is, or will
be, located;
new text end

new text begin (3) a copy of the surrendered manufacturer's certificate of origin or certificate of title
and the notice of surrender;
new text end

new text begin (4) a written statement from the county auditor or county treasurer of the county where
the manufactured home is located stating that all property taxes payable in the current year,
as provided under section 273.125, subdivision 8, paragraph (b), have been paid, or are not
applicable; and
new text end

new text begin (5) the signature of the person who executes the affidavit, properly executed before a
person authorized to authenticate an affidavit in this state.
new text end

new text begin (b) A certified copy of the affidavit must be delivered to the county auditor of the county
in which the real property to which the manufactured home was affixed is located.
new text end

new text begin (c) The department is not liable for any errors, omissions, misstatements, or other
deficiencies or inaccuracies in documents presented to the department under this section,
if the documents presented appear to satisfy the requirements of this section. The department
has no obligation to investigate the accuracy of statements contained in the documents.
new text end

new text begin Subd. 2. new text end

new text begin Affidavit form; cooperatives. new text end

new text begin An affidavit of affixation must be in substantially
the following form and must contain the following information.
new text end

new text begin MANUFACTURED HOME AFFIDAVIT OF AFFIXATION IN A COOPERATIVE
new text end

new text begin PURSUANT TO MINNESOTA STATUTES, SECTION 168A.1411
new text end

new text begin Homeowner, being duly sworn, on his or her oath, states as follows:
new text end

new text begin 1. Homeowner owns the manufactured home ("home") described as follows:
new text end

.
new text begin New/Used new text end	new text begin Year new text end	new text begin Manufacturer's Name new text end	new text begin Model Name or Model No. new text end	new text begin Manufacturer's Serial No. new text end	new text begin Length/Width new text end

new text begin 2. A copy of the surrendered manufacturer's certificate of origin or certificate of title is
attached.
new text end

new text begin 3. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
Driver and Vehicle Services is attached.
new text end

new text begin 4. The home is or will be located at the following "Property Address":
new text end

.
new text begin Street or Route . new text end	new text begin City . new text end	new text begin County . new text end	new text begin State . new text end	new text begin Zip Code . new text end

new text begin 5. The legal description of the property address ("land") is as follows or as attached hereto:
new text end

.

.

.

new text begin 6. The owner of the land is a Minnesota nonprofit corporation or Minnesota cooperative
that owns the land and whose membership entitles the homeowner to occupy a specific
portion of the land.
new text end

new text begin 7. The home ....... is, or ....... will be promptly upon delivery, anchored to the land by
attachment to a permanent foundation and connected to appropriate residential utilities (e.g.,
water, gas, electricity, sewer).
new text end

new text begin 8. The homeowner intends that the home be an immovable permanent improvement to the
land, free of any personal property security interest.
new text end

new text begin 9. A copy of the written statement from the county auditor or county treasurer of the county
in which the manufactured home is then located, stating that all property taxes payable in
the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
(b)), have been paid, or are not applicable, is attached.
new text end

new text begin 10. The home is intended to be assessed and taxed as an improvement to the land.
new text end

new text begin Signed and sworn to (or affirmed) before me on ....... (date) by ....... (names of homeowner(s))
new text end

.	.
new text begin Homeowner Signature new text end	new text begin Address new text end
.	.
new text begin Printed Name new text end	new text begin City, State new text end
.
new text begin Homeowner Signature (if applicable) new text end
.
new text begin Printed Name new text end

new text begin This instrument was drafted by, and when recorded return to:
new text end

.
.
.

new text begin Subscribed and sworn to before me this ....... day of ......., .......
new text end

new text begin ...................................................................... new text end
new text begin Signature of Notary Public or Other Official new text end

new text begin Notary Stamp or Seal
new text end

new text begin (optional)
new text end

new text begin Lender's Statement of Intent:
new text end

new text begin The undersigned ("lender") intends that the home be immovable and a permanent
improvement to the land free of any personal property security interest.
new text end

.
new text begin Lender new text end
new text begin By: . new text end
new text begin Authorized Signature new text end
new text begin STATE OF . ) new text end
new text begin . ) ss: new text end
new text begin COUNTY OF . ) new text end

new text begin On the ....... day of ....... in the year ....... before me, the undersigned, a Notary Public in and
for said state, personally appeared
new text end

.

new text begin personally known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of
which the individual(s) acted, executed the instrument.
new text end

.
new text begin Notary Signature new text end
.
new text begin Notary Printed Name new text end
new text begin Notary Public, State of . new text end
new text begin Qualified in the County of . new text end
new text begin My commission expires . new text end

new text begin Official seal:
new text end

new text begin [only if the owner of the land is a Minnesota nonprofit corporation or cooperative]:
new text end

new text begin The undersigned is the .............................. of .................................., a Minnesota [nonprofit
corporation or cooperative], which owns the land described above. I hereby certify that the
homeowner described above is a member of the [nonprofit corporation or cooperative]
whose membership entitles the homeowner to occupy [insert legal description of the
homeowner's lot or, if the corporation or cooperative has filed a scaled drawing as permitted
by subdivision 5, below, Lot ................. shown on such scaled drawing].
new text end

.
new text begin Signature block for nonprofit or cooperative new text end
.
new text begin Acknowledgment of officer of nonprofit or cooperative new text end

new text begin Subd. 3. new text end

new text begin Perfected security interest prevents surrender. new text end

new text begin The department may not
cancel a certificate of title if, under this chapter, a security interest has been perfected on
the manufactured home. If a security interest has been perfected, the department must notify
the owner that each secured party must release or satisfy the security interest prior to
proceeding with surrender of the manufacturer's certificate of origin or certificate of title to
the department for cancellation. Permanent attachment to real property or the recording of
an affidavit of affixation does not extinguish an otherwise valid security interest in or tax
lien on the manufactured home, unless the requirements of subdivisions 1 to 3, including
the release of any security interest, have been satisfied.
new text end

new text begin Subd. 4. new text end

new text begin Notice of security interest. new text end

new text begin When a perfected security interest exists, or will
exist, on the manufactured home at the time the manufactured home is affixed to real
property, and the owner has not satisfied the requirements of subdivision 1, the owner of
the manufactured home, or its secured party, may record a notice with the county recorder,
or with the registrar of titles, if the land is registered, stating that the manufactured home
located on the property is encumbered by a perfected security interest and is not an
improvement to real property. The notice must state the name and address of the secured
party as set forth on the certificate of title, the legal description of the real property, and the
name and address of the record fee owner of the real property on which the manufactured
home is affixed. When the security interest is released or satisfied, the secured party must
attach a copy of the release or satisfaction to a notice executed by the secured party containing
the county recorder or registrar of titles document number of the notice of security interest.
The notice of release or satisfaction must be recorded with the county recorder, or registrar
of titles, if the land is registered. Neither the notice described in this subdivision nor the
security interest on the certificate of title is deemed to be an encumbrance on the real
property. The notices provided for in this subdivision need not be acknowledged.
new text end

new text begin Subd. 5. new text end

new text begin Scaled drawing. new text end

new text begin (a) If the portion of the land occupied by the homeowner has
not been subdivided, the nonprofit or cooperative owner shall have prepared and recorded
against the land a scaled drawing prepared by a licensed professional land surveyor, who
shall certify that:
new text end

new text begin (1) the scaled drawing accurately depicts all information required by this subdivision;
and
new text end

new text begin (2) the work was undertaken by, or reviewed and approved by, the certifying land
surveyor.
new text end

new text begin (b) The scaled drawing shall show:
new text end

new text begin (1) the dimensions and location of all existing material structural improvements and
roadways;
new text end

new text begin (2) the extent of any encroachments by or upon any portion of the land;
new text end

new text begin (3) the location and dimensions of all recorded easements within the land burdening any
portion of the land;
new text end

new text begin (4) the distance and direction between noncontiguous parcels of real estate;
new text end

new text begin (5) the location and dimensions of the front, rear, and side boundaries of each lot that a
member of the cooperative or nonprofit corporation has a right to occupy and that lot's
unique lot number; and
new text end

new text begin (6) the legal description of the land.
new text end

Sec. 2.

Minnesota Statutes 2018, section 273.125, subdivision 8, is amended to read:

Subd. 8.

Manufactured homes; sectional structures.

(a) In this section, "manufactured
home" means a structure transportable in one or more sections, which is built on a permanent
chassis, and designed to be used as a dwelling with or without a permanent foundation when
connected to the required utilities, and contains the plumbing, heating, air conditioning, and
electrical systems in it. Manufactured home includes any accessory structure that is an
addition or supplement to the manufactured home and, when installed, becomes a part of
the manufactured home.

(b) Except as provided in paragraph (c), a manufactured home that meets each of the
following criteria must be valued and assessed as an improvement to real property, the
appropriate real property classification applies, and the valuation is subject to review and
the taxes payable in the manner provided for real property:

(1) the deleted text begin owner of the unit holds deleted text end title to the land on which it is situated new text begin is held by: (i) the
owner of the unit; or (ii) a Minnesota nonprofit corporation or a Minnesota cooperative to
which the owner is a member new text end ;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34,
and rules adopted under those sections, or is affixed to the land like other real property in
the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(c) A manufactured home that meets each of the following criteria must be assessed at
the rate provided by the appropriate real property classification but must be treated as
personal property, and the valuation is subject to review and the taxes payable in the manner
provided in this section:

(1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is
located in a manufactured home park but is not the homestead of the park owner;

(2) the unit is affixed to the land by a permanent foundation or is installed at its location
in accordance with the Manufactured Home Building Code contained in sections 327.31 to
327.34, and the rules adopted under those sections, or is affixed to the land like other real
property in the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
by water and sewer facilities comparable to other real property in the taxing district.

(d) Sectional structures must be valued and assessed as an improvement to real property
if the owner of the structure holds title to the land on which it is located or is a qualifying
lessee of the land under section 273.19. In this paragraph "sectional structure" means a
building or structural unit that has been in whole or substantial part manufactured or
constructed at an off-site location to be wholly or partially assembled on site alone or with
other units and attached to a permanent foundation.

(e) The commissioner of revenue may adopt rules under the Administrative Procedure
Act to establish additional criteria for the classification of manufactured homes and sectional
structures under this subdivision.

(f) A storage shed, deck, or similar improvement constructed on property that is leased
or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer
is taxable as provided in this section. In the case of property that is leased or rented as a site
for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered
personal property under this paragraph is taxable only if its total estimated market value is
over $10,000. The property is taxable as personal property to the lessee of the site if it is
not owned by the owner of the site. The property is taxable as real estate if it is owned by
the owner of the site. As a condition of permitting the owner of the manufactured home,
sectional structure, park trailer, or travel trailer to construct improvements on the leased or
rented site, the owner of the site must obtain the permanent home address of the lessee or
user of the site. The site owner must provide the name and address to the assessor upon
request.

Sec. 3.

Minnesota Statutes 2018, section 326B.106, subdivision 1, is amended to read:

Subdivision 1.

Adoption of code.

(a) Subject to paragraphs (c) and (d) and sections
326B.101 to 326B.194, the commissioner shall by rule and in consultation with the
Construction Codes Advisory Council establish a code of standards for the construction,
reconstruction, alteration, and repair of buildings, governing matters of structural materials,
design and construction, fire protection, health, sanitation, and safety, including design and
construction standards regarding heat loss control, illumination, and climate control. The
code must also include duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension and revocation of certification.
The code must conform insofar as practicable to model building codes generally accepted
and in use throughout the United States, including a code for building conservation. In the
preparation of the code, consideration must be given to the existing statewide specialty
codes presently in use in the state. Model codes with necessary modifications and statewide
specialty codes may be adopted by reference. The code must be based on the application
of scientific principles, approved tests, and professional judgment. To the extent possible,
the code must be adopted in terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of specifications of particular methods
or materials. To that end the code must encourage the use of new methods and new materials.
Except as otherwise provided in sections 326B.101 to 326B.194, the commissioner shall
administer and enforce the provisions of those sections.

(b) The commissioner shall develop rules addressing the plan review fee assessed to
similar buildings without significant modifications including provisions for use of building
systems as specified in the industrial/modular program specified in section 326B.194.
Additional plan review fees associated with similar plans must be based on costs
commensurate with the direct and indirect costs of the service.

(c) Beginning deleted text begin with the 2018 edition of the model building codes and deleted text end new text begin in 2026 and new text end every
six years thereafter, the commissioner shall review the new model building codes and adopt
the model codes as amended for use in Minnesota, within two years of the published edition
date. The commissioner may new text begin not new text end adopt new text begin new model building codes or new text end amendments to the
building codes prior to deleted text begin the adoption of the new building codes to advance construction
methods, technology, or materials, or, where necessary to protect the health, safety, and
welfare of the public, or to improve the efficiency or the use of a building deleted text end new text begin 2026, unless
approved by law new text end .

(d) Notwithstanding paragraph (c), the commissioner shall act on each new model
residential energy code and the new model commercial energy code in accordance with
federal law for which the United States Department of Energy has issued an affirmative
determination in compliance with United States Code, title 42, section 6833. The
commissioner may new text begin not new text end adopt new text begin new energy codes or new text end amendments deleted text begin prior to adoption of deleted text end new text begin to new text end the
new energy codes, as amended for use in Minnesota, deleted text begin to advance construction methods,
technology, or materials, or, where necessary to protect the health, safety, and welfare of
the public, or to improve the efficiency or use of a building deleted text end new text begin unless the commissioner has
determined that any increased cost to residential construction or remodeling per unit due to
implementation of the proposed changes to the energy codes will be offset within five years
by savings resulting from the change new text end .

new text begin (e) The limitations on adoption of new or amended codes under paragraphs (c) and (d)
do not apply to new or amended code changes necessary to protect the immediate health,
safety, and welfare of the public.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2020, and
applies to rules proposed or adopted but not yet effective as of January 1, 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, section 326B.106, subdivision 7, is amended to read:

Subd. 7.

Window fall prevention device code.

The commissioner of labor and industry
shall adopt rules for window fall prevention devices as part of the State Building Code.
Window fall prevention devices include, but are not limited to, safety screens, hardware,
guards, and other devices that comply with the standards established by the commissioner
of labor and industry. The rules shall require compliance with standards for window fall
prevention devices developed by ASTM International, contained in the International Building
Code as the model language with amendments deemed necessary to coordinate with the
other adopted building codes in Minnesota. The rules shall establish a scope that includes
the applicable building occupancies, new text begin excluding single-family homes, new text end and the types, locations,
and sizes of windows that will require the installation of fall devices.

Sec. 5.

Minnesota Statutes 2018, section 326B.145, is amended to read:

326B.145 ANNUAL REPORT.

new text begin (a) new text end Each municipality shall annually report by June 30 to the department, in a format
prescribed by the department, all construction and development-related fees collected by
the municipality from developers, builders, and subcontractors if the cumulative fees collected
exceeded deleted text begin $5,000 deleted text end new text begin $7,000 new text end in the reporting year deleted text begin , except that, for reports due June 30, 2009,
to June 30, 2013, the reporting threshold is $10,000 deleted text end .

new text begin (b) new text end The report must include:

(1) the number and valuation of units for which fees were paid;

(2) the amount of building permit fees, plan review fees, administrative fees, engineering
fees, infrastructure fees, and other construction and development-related fees; and

(3) the expenses associated with the municipal activities for which fees were collected deleted text begin . deleted text end new text begin ,
including a separate listing of costs associated with conducting inspections for each of the
following categories:
new text end

new text begin (i) labor;
new text end

new text begin (ii) transportation;
new text end

new text begin (iii) office space; and
new text end

new text begin (iv) any other expenses incurred by the municipality as a result of conducting inspections.
new text end

new text begin (c) A municipality that collects $7,000 or less in a reporting year from all construction
and development-related fees shall report that the municipality collected $7,000 or less in
the reporting year by indicating as such on a form provided by the department.
new text end

new text begin (d) In developing the form for reporting, the department must include a list of common
definitions for all categories of construction and development-related fees collected by
municipalities and a summary of penalties that may result from annual report noncompliance
as allowed by section 326B.082. A municipality that collects a fee not included in the
common list of definitions must report the fee as "other" and provide an explanation of the
fee.
new text end

new text begin (e) new text end A municipality that fails to report to the department in accordance with this section
is subject to the remedies provided by section 326B.082.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 6.

Minnesota Statutes 2018, section 462.352, subdivision 5, is amended to read:

Subd. 5.

Comprehensive municipal plan.

new text begin (a) new text end "Comprehensive municipal plan" means
a compilation of policy statements, goals, standards, and maps for guiding the physical,
social and economic development, both private and public, of the municipality and its
environs, and may include, but is not limited to, the following: statements of policies, goals,
standards, a land use plan, including proposed densities for development, a community
facilities plan, a transportation plan, and recommendations for plan execution. A
comprehensive plan represents the planning agency's recommendations for the future
development of the community.

new text begin (b) As part of the comprehensive municipal plan, municipalities are encouraged to enact
public policy to facilitate the development of unsubsidized affordable housing. These policies
may include but are not limited to the municipal plan authorizing smaller lot sizes for
single-family homes, allowing the construction of duplexes through fourplexes on lots that
would otherwise be zoned exclusively for single-family houses, and allowing for mixed-use
development.
new text end

Sec. 7.

new text begin [462.3575] LIMITING REGULATIONS ON RESIDENTIAL
DEVELOPMENT.
new text end

new text begin A municipality shall not condition approval of a residential building permit, subdivision
development, or planned unit development on the use of specific materials, design, amenities,
or other aesthetic conditions that are not required by the State Building Code under chapter
326B.
new text end

Sec. 8.

Minnesota Statutes 2018, 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. 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. deleted text begin Except
for accessibility improvements under this subdivision and subdivisions 14a and 24, clause
(1), no secured loan for rehabilitation of any owner-occupied property shall be made in an
amount which, with all other existing indebtedness secured by the property, would exceed
110 percent of its market value, as determined by the agency. deleted text end 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. 9.

Minnesota Statutes 2018, section 462A.05, subdivision 14a, is amended to read:

Subd. 14a.

Rehabilitation loans; existing owner-occupied residential housing.

It may
make loans to persons and families of low and moderate income to rehabilitate or to assist
in rehabilitating existing residential housing owned and occupied by those persons or
families. new text begin Rehabilitation may include the replacement of manufactured homes. new text end No loan shall
be made unless the agency determines that the loan will be used primarily for rehabilitation
work necessary for health or safety, essential accessibility improvements, or to improve the
energy efficiency of the dwelling. No loan for rehabilitation of owner-occupied residential
housing shall be denied solely because the loan will not be used for placing the residential
housing in full compliance with all state, county or municipal building, housing maintenance,
fire, health or similar codes and standards applicable to housing. The amount of any loan
shall not exceed the lesser of (a) a maximum loan amount determined under rules adopted
by the agency not to exceed $27,000, or (b) the actual cost of the work performed, or (c)
that portion of the cost of rehabilitation which the agency determines cannot otherwise be
paid by the person or family without the expenditure of an unreasonable portion of the
income of the person or family. Loans made in whole or in part with federal funds may
exceed the maximum loan amount to the extent necessary to comply with federal lead
abatement requirements prescribed by the funding source. In making loans, the agency shall
determine the circumstances under which and the terms and conditions under which all or
any portion of the loan will be repaid and shall determine the appropriate security for the
repayment of the loan. Loans pursuant to this subdivision may be made with or without
interest or periodic payments.

Sec. 10.

Minnesota Statutes 2019 Supplement, section 462A.24, is amended to read:

462A.24 CONSTRUCTION; GRANTS AND LOANS; PRIORITIES.

(a) This chapter is necessary for the welfare of the state of Minnesota and its inhabitants;
therefore, it shall be liberally construed to effect its purpose.

(b) To the extent practicable, the agency shall award grant and loan amounts with a
reasonable balance between nonmetropolitan and metropolitan areas of the state.

(c) Beginning with applications made in response to requests for proposals issued after
July 1, 2020, after final decisions are made on applications for programs of the agency, the
results of any quantitative scoring system used to rank applications shall be posted on the
agency website.

new text begin (d) The agency shall award points in the agency's decision-making criteria for all
programs of the agency based on how quickly a project can be constructed.
new text end

new text begin (e) To the extent practicable, the agency shall enter into individual grant contracts for
each single-family home that is constructed with grant financing by the agency.
new text end

Sec. 11.

Minnesota Statutes 2018, 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 new text begin :
new text end

new text begin (1) new text end are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the Internal
Revenue Code deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end finance qualified residential rental projects within the meaning of Section 142(d) of
the Internal Revenue Code deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) finance the acquisition, rehabilitation, or adaptive use of single family houses that
qualify for mortgage financing within the meaning of Section 143 of the Internal Revenue
Code; new text end or

new text begin (4) 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) new text begin "Naturally occurring affordable housing" or "NOAH" means multiunit rental housing
where the majority of the units are affordable to individuals and families with incomes at
or below 60 percent of the area median income, that otherwise does not receive place-based
state or federal governmental subsidies.
new text end

new text begin (i) new text end "Senior" means a person 55 years of age or older with an annual income not greater
than 50 percent of:

(1) the metropolitan area median income for persons in the metropolitan area; or

(2) the statewide median income for persons outside the metropolitan area.

deleted text begin (i) deleted text end new text begin (j) new text end "Senior housing" means housing intended and operated for occupancy by at least
one senior per unit with at least 80 percent of the units occupied by at least one senior per
unit, 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. 12.

Minnesota Statutes 2019 Supplement, 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 homebuyers;

(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; deleted text begin and
deleted 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 new text begin ;
new text end

new text begin (7) to finance the costs of rehabilitation of naturally occurring affordable housing in
order to preserve a long-term source of affordable housing; and
new text end

new text begin (8) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single family housing 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.

Sec. 13.

Minnesota Statutes 2018, section 462A.37, is amended by adding a subdivision
to read:

new text begin Subd. 2g. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in subdivisions
2 to 2f, the agency may issue up to $100,000,000 in housing infrastructure bonds in one or
more series to which the payments under this section may be pledged.
new text end

Sec. 14.

Minnesota Statutes 2019 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 subdivisions 2a to deleted text begin 2f deleted text end new text begin 2g new text end .

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a 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 2b 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 2c 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 2d 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 2e 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 2f 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) new text begin Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
bonds issued under subdivision 2g 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.
new text end

new text begin (i) new text end The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 15.

Minnesota Statutes 2018, section 462C.14, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Late fines prohibited. new text end

new text begin A city, as defined in section 462C.02, subdivision 6,
shall not fine a nonprofit that receives city money for low-income housing for turning in a
late application.
new text end

Sec. 16.

Minnesota Statutes 2019 Supplement, section 474A.061, subdivision 2a, is
amended to read:

Subd. 2a.

Housing pool allocation.

(a) Commencing on the second Tuesday in January
and continuing on each Monday through the last Monday in June, the commissioner shall
allocate available bonding authority from the housing pool to applications received on or
before the Monday of the preceding week for residential rental projects that meet the
eligibility criteria under section 474A.047. Allocations of available bonding authority from
the housing pool for eligible residential rental projects shall be awarded in the following
order of priority:

(1) preservation projects;

(2) 30 percent AMI residential rental projects;

(3) 50 percent AMI residential rental projects;

(4) 100 percent LIHTC projects;

(5) 20 percent LIHTC projects; and

(6) other residential rental projects for which the amount of bonds requested in their
respective applications do not exceed the aggregate bond limitation.

If there are two or more applications for residential rental projects at the same priority level
and there is insufficient bonding authority to provide allocations for all the projects in any
one allocation period, available bonding authority shall be deleted text begin randomly deleted text end awarded by deleted text begin lot deleted text end new text begin giving
preference for projects with a lower cost-per-unit of housing new text end but only for projects that can
receive the full amount of their respective requested allocations. If a residential rental project
does not receive any of its requested allocation pursuant to this paragraph and the project
applies for an allocation of bonds again in the same calendar year or to the next successive
housing pool, the project shall be fully funded up to its original application request for
bonding authority before any new project, applying in the same allocation period, that has
an equal priority shall receive bonding authority. An issuer that receives an allocation under
this paragraph must issue obligations equal to all or a portion of the allocation received on
or before 180 days of the allocation. If an issuer that receives an allocation under this
paragraph does not issue obligations equal to all or a portion of the allocation received
within the time period provided in this paragraph or returns the allocation to the
commissioner, the amount of the allocation is canceled and returned for reallocation through
the housing pool or to the unified pool after July 1.

(b) After January 1, and through January 15, The Minnesota Housing Finance Agency
may accept applications from cities for single-family housing programs which meet program
requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically
viable;

(2) the adjusted income of home buyers may not exceed 80 percent of the greater of
statewide or area median income as published by the Department of Housing and Urban
Development, adjusted for household size;

(3) house price limits may not exceed the federal price limits established for mortgage
revenue bond programs. Data on the home purchase price amount, mortgage amount, income,
household size, and race of the households served in the previous year's single-family
housing program, if any, must be included in each application; and

(4) for applicants who choose to have the agency issue bonds on their behalf, an
application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal
to one percent of the requested allocation must be submitted to the Minnesota Housing
Finance Agency before the agency forwards the list specifying the amounts allocated to the
commissioner under paragraph (d). The agency shall submit the city's application fee and
application deposit to the commissioner when requesting an allocation from the housing
pool.

Applications by a consortium shall include the name of each member of the consortium
and the amount of allocation requested by each member.

(c) Any amounts remaining in the housing pool after June 15 are available for
single-family housing programs for cities that applied in January and received an allocation
under this section in the same calendar year. For a city that chooses to issue bonds on its
own behalf or pursuant to a joint powers agreement, the agency must allot available bonding
authority based on the formula in paragraphs (d) and (f). Allocations will be made loan by
loan, on a first-come, first-served basis among cities on whose behalf the Minnesota Housing
Finance Agency issues bonds.

Any city that received an allocation pursuant to paragraph (f) in the same calendar year
that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an
amount becoming available for single-family housing programs after June 15 shall notify
the Minnesota Housing Finance Agency by June 15. The Minnesota Housing Finance
Agency shall notify each city making a request of the amount of its allocation within three
business days after June 15. The city must comply with paragraph (f).

For purposes of paragraphs (a) to (h), "city" means a county or a consortium of local
government units that agree through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in section 462C.02, subdivision
6. "Agency" means the Minnesota Housing Finance Agency.

(d) The total amount of allocation for mortgage bonds for one city is limited to the lesser
of: (i) the amount requested, or (ii) the product of the total amount available for mortgage
bonds from the housing pool, multiplied by the ratio of each applicant's population as
determined by the most recent estimate of the city's population released by the state
demographer's office to the total of all the applicants' population, except that each applicant
shall be allocated a minimum of $100,000 regardless of the amount requested or the amount
determined under the formula in clause (ii). If a city applying for an allocation is located
within a county that has also applied for an allocation, the city's population will be deducted
from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward
to the commissioner a list specifying the amounts allotted to each application with all
application fees and deposits from applicants who choose to have the agency issue bonds
on their behalf.

Total allocations from the housing pool for single-family housing programs may not
exceed 27 percent of the adjusted allocation to the housing pool until after June 15 in 2020
and 2021, after which the allocations may not exceed 31 percent of the adjusted allocation
to the housing pool until after June 15.

(e) The agency may issue bonds on behalf of participating cities. The agency shall request
an allocation from the commissioner for all applicants who choose to have the agency issue
bonds on their behalf and the commissioner shall allocate the requested amount to the
agency. The agency may request an allocation at any time after the second Tuesday in
January and through the last Monday in June. After awarding an allocation and receiving
a notice of issuance for the mortgage bonds issued on behalf of the participating cities, the
commissioner shall transfer the application deposits to the Minnesota Housing Finance
Agency to be returned to the participating cities. The Minnesota Housing Finance Agency
shall return any application deposit to a city that paid an application deposit under paragraph
(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph
(d).

(f) A city may choose to issue bonds on its own behalf or through a joint powers
agreement and may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and a one percent
application deposit to the commissioner no later than the Monday of the week preceding
an allocation. If the total amount requested by all applicants exceeds the amount available
in the pool, the city may not receive a greater allocation than the amount it would have
received under the list forwarded by the Minnesota Housing Finance Agency to the
commissioner. No city may request or receive an allocation from the commissioner until
the list under paragraph (d) has been forwarded to the commissioner. A city must request
an allocation from the commissioner no later than the last Monday in June. No city may
receive an allocation from the housing pool for mortgage bonds which has not first applied
to the Minnesota Housing Finance Agency. The commissioner shall allocate the requested
amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the
issuer must provide for the recycling of funds into new loans. If the issuer is not able to
provide for recycling, the issuer must notify the commissioner in writing of the reason that
recycling was not possible and the reason the issuer elected not to have the Minnesota
Housing Finance Agency issue the bonds. "Recycling" means the use of money generated
from the repayment and prepayment of loans for further eligible loans or for the redemption
of bonds and the issuance of current refunding bonds.

(g) No entitlement city or county or city in an entitlement county may apply for or be
allocated authority to issue mortgage bonds or use mortgage credit certificates from the
housing pool. No city in an entitlement county may apply for or be allocated authority to
issue residential rental bonds from the housing pool or the unified pool.

(h) A city that does not use at least 50 percent of its allotment by the date applications
are due for the first allocation that is made from the housing pool for single-family housing
programs in the immediately succeeding calendar year may not apply to the housing pool
for a single-family mortgage bond or mortgage credit certificate program allocation that
exceeds the amount of its allotment for the preceding year that was used by the city in the
immediately preceding year or receive an allotment from the housing pool in the succeeding
calendar year that exceeds the amount of its allotment for the preceding year that was used
in the preceding year. The minimum allotment is $100,000 for an allocation made prior to
June 15, regardless of the amount used in the preceding calendar year, except that a city
whose allocation in the preceding year was the minimum amount of $100,000 and who did
not use at least 50 percent of its allocation from the preceding year is ineligible for an
allocation in the immediate succeeding calendar year. Each local government unit in a
consortium must meet the requirements of this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 17.

Minnesota Statutes 2019 Supplement, section 474A.091, subdivision 3, is amended
to read:

Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available bonding
authority under this section on the Monday of every other week beginning with the first
Monday in July through and on the last Monday in November. Applications for allocations
must be received by the department by 4:30 p.m. on the Monday preceding the Monday on
which allocations are to be made. If a Monday falls on a holiday, the allocation will be made
or the applications must be received by the next business day after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations from
the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan projects.

(c) On the first Monday in October through the last Monday in November, allocations
shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota Office
of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the unified
pool and there is insufficient bonding authority to provide allocations for all manufacturing
projects in any one allocation period, the available bonding authority shall be awarded based
on the number of points awarded a project under section 474A.045 with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
for manufacturing projects receive an equal amount of points, available bonding authority
shall be awarded by lot unless otherwise agreed to by the respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from the
unified pool and there is insufficient bonding authority to provide allocations for all enterprise
zone facility projects in any one allocation period, the available bonding authority shall be
awarded based on the number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving allocation first. If two or
more applications for enterprise zone facility projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(f) If there are two or more applications for residential rental projects from the unified
pool and there is insufficient bonding authority to provide allocations for all residential
rental projects in any one allocation period, the available bonding authority shall be awarded
in the following order of priority: (1) preservation projects; (2) 30 percent AMI residential
rental projects; (3) 50 percent AMI residential rental projects for which the amount of bonds
requested in their respective applications do not exceed the aggregate bond limitations; (4)
100 percent LIHTC projects; (5) 20 percent LIHTC projects; and (6) other residential rental
projects. If there are two or more applications for residential rental projects at the same
priority level and there is insufficient bonding authority to provide allocations for all the
projects in any one allocation period, available bonding authority shall be deleted text begin randomly deleted text end awarded
by deleted text begin lot deleted text end new text begin giving preference for projects with a lower cost-per-unit of housing new text end but only for
projects that can receive the full amount of their respective requested allocations. If a
residential rental project does not receive any of its requested allocation pursuant to this
paragraph and the project applies in the next successive housing pool or the next successive
unified pool for an allocation of bonds, the project shall be fully funded up to its original
application request for bonding authority before any new project, applying in the same
allocation period, that has an equal priority shall receive bonding authority.

(g) From the first Monday in July through the last Monday in November, $20,000,000
of bonding authority or an amount equal to the total annual amount of bonding authority
allocated to the small issue pool under section 474A.03, subdivision 1, less the amount
allocated to issuers from the small issue pool for that year, whichever is less, is reserved
within the unified pool for small issue bonds to the extent the amounts are available within
the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and the
unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may not
exceed $25,000,000 per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified bond
category other than enterprise zone facility projects, manufacturing projects, and residential
rental projects, allocations shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and return
the application deposit to the applicant within 30 days unless the applicant requests in writing
that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be evidenced
by issuance of a certificate of allocation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2021.
new text end

Sec. 18. new text begin HOUSING BOND ISSUE EXTENSION.
new text end

new text begin Notwithstanding the requirement in Minnesota Statutes, section 474A.061, subdivision
2a, that an issuer must issue obligations equal to all or a portion of an allocation received
from the housing pool on or before 180 days of the allocation, for allocations made between
January 1, 2020, and the last Monday in June 2020, an issuer will have until December 1,
2020, to issue obligations equal to all or a portion of the allocation.
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. 19. new text begin ASSISTANCE FRAUD.
new text end

new text begin Any person who, with the intent to defraud, presents a claim under section 20 which is
false in whole or in part, is guilty of an attempt to commit theft of public funds and may be
sentenced accordingly.
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. 20. new text begin APPROPRIATION; 2020 EMERGENCY HOUSING ASSISTANCE
GRANTS.
new text end

new text begin (a) $100,000,000 in fiscal year 2020 is appropriated from the coronavirus relief federal
fund to the commissioner of the Minnesota Housing Finance Agency for transfer to the
housing development fund for the family homeless prevention and assistance program under
Minnesota Statutes, section 462A.204. The agency may use grantees of the family homeless
prevention and assistance program under Minnesota Statutes, section 462A.204, and the
grantees are preapproved to distribute money under this section. Notwithstanding the
requirements of Minnesota Statutes, sections 16C.06 and 462A.204, the commissioner of
the Minnesota Housing Finance Agency shall allocate these resources to existing grantees
and contract with other entities that are not current grantees based on homelessness prevention
needs. Entities may include counties, cities, nonprofit organizations, tribes, or other entities
identified by the agency. For purposes of this emergency appropriation, nonprofits do not
need to obtain sponsoring resolutions from counties as required under Minnesota Statutes,
section 462A.204, subdivision 3. This appropriation is onetime and available until December
1, 2020, or 30 days before the time limit for expending money under the Coronavirus Aid,
Relief, and Economic Security (CARES) Act, Public Law 116-136, title V, if extended in
federal law. Funds not committed or expended by the final availability date shall cancel to
the fund from which the appropriation was made. To the extent practicable, the Minnesota
Housing Finance Agency shall notify the media, landlords, chambers of commerce, and
other interested parties of the availability of the assistance program.
new text end

new text begin (b) Funding under this section shall be for individuals, families, and homeowners in
Minnesota to prevent homelessness and help maintain homeownership during
public-health-related emergencies consistent with the requirements of this section. The
commissioner may contract with county agencies, local governments, tribes, or nonprofit
organizations to provide funding and support services to process applications for funding
under this program. To be eligible for funding, applicants must:
new text end

new text begin (1) have a public-health-related emergency as defined in this section;
new text end

new text begin (2) have a rent payment, mortgage payment, homeowner association dues, lot rent due
to a manufactured home park, contract for deed payment, homeowner insurance payment,
property tax payment, or utility payment with a due date of March 1, 2020, or later, that is
past due;
new text end

new text begin (3) be unable to pay the money owed because of the public health emergency; and
new text end

new text begin (4) be a household, with a current gross income under 300 percent of the federal poverty
guidelines at the time of application or as averaged over the previous 12 months, whichever
is lower.
new text end

new text begin (c) If an applicant applies for relief from sources other than the 2020 emergency housing
assistance grants and receives aid for the purposes of paying for housing, the applicant must
immediately notify the granting agency. Applicants may receive funding for rent, a mortgage
payment, homeowner association dues, rent due for a manufactured home, contract for deed
payment owed to a seller, homeowner insurance or property tax payment owed for a home,
or utility payment owed with a due date of March 1, 2020, or later, that is due within 14
days of the application or that is up to 45 days past due at the time of application. Entities
receiving grants under this section must provide written notification of legal duties that are
taken on by aid recipients, including but not limited to informing the granting agency if a
recipient receives aid for the purposes of paying for housing.
new text end

new text begin (d) Once an application is approved, the assistance file may remain open to allow for
consideration of additional future assistance needs under this funding program resulting
from the public health emergency. The financial assistance provided for any individual or
family must not exceed the minimum rent due, contract for deed payment, or mortgage
payment owed, plus the homeowner association dues and utility payments owed, for a period
of 90 days, except those at risk of experiencing homelessness.
new text end

new text begin (e) Funding under this section must be paid directly to:
new text end

new text begin (1) the landlord or leasing agent for a rental unit;
new text end

new text begin (2) the financial service for a mortgage or the entity who owns the mortgage for a
homeowner;
new text end

new text begin (3) the contract for deed vendor or seller;
new text end

new text begin (4) the purchase-money mortgagor;
new text end

new text begin (5) the manufactured home park cooperative, manufactured home owner, or park owner;
new text end

new text begin (6) the utility company; or
new text end

new text begin (7) any other identified entity to whom payment is owed.
new text end

new text begin (f) The commissioner may develop applications for the program and a process to oversee
grantees.
new text end

new text begin (g) Data submitted from benefits by an applicant to establish eligibility under this section
is subject to Minnesota Statutes, section 13.462.
new text end

new text begin (h) By February 8, 2021, the Minnesota Housing Finance Agency must submit a report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over housing finance with a summary of the performance of this program. The report must
contain the following information:
new text end

new text begin (1) the total number of grants awarded to grantees and the number of households assisted
under this program;
new text end

new text begin (2) the total amount of grant funding awarded to grantees and households assisted under
this program;
new text end

new text begin (3) the mean and median grant amounts awarded to grantees and households assisted
under this program;
new text end

new text begin (4) a summary of the geographic distribution of grants awarded under this program,
including a list of the number of households awarded grants by county and the total dollar
amount in assistance provided to all households by county; and
new text end

new text begin (5) a list of all entities contracted with to process applications under this program.
new text end

new text begin (i) For the purposes of this section, "public-health-related emergency" means:
new text end

new text begin (1) an illness, either of an individual or an individual's relative or household member,
related to COVID-19 that prevents the individual from maintaining employment temporarily
or permanently and the individual's income is reduced by 15 percent or more; or
new text end

new text begin (2) a reduction in income by 15 percent or more, or temporary or permanent
unemployment as a result of COVID-19, or due to the peacetime emergency declared by
the governor on March 13, 2020, in Executive Order 20-01 in response to COVID-19 or
any other peacetime emergency declared by the governor by an executive order issued on
or before September 30, 2020, that relates to COVID-19.
new text end

new text begin (j) The commissioner of management and budget, in consultation with the commissioner
of housing finance, must determine whether any of the expenditures an appropriation is
made for under this act is an eligible use of federal funding received under the Coronavirus
Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136, title V. If the
commissioner of management and budget determines an expenditure is eligible for funding
under title V of the CARES Act, the amount for the eligible expenditure is appropriated
from the fund or account where CARES Act money has been deposited.
new text end

new text begin (k) No money in this section may be spent until the commissioner of management and
budget determines that the appropriation in this section is an eligible use of the coronavirus
relief federal fund.
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