SF 460

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to housing; allowing nonprofit organizations 
  1.3             to participate directly in the community 
  1.4             rehabilitation program; appropriating money; amending 
  1.5             Minnesota Statutes 1996, section 462A.206, 
  1.6             subdivisions 2 and 4; repealing Minnesota Statutes 
  1.7             1996, section 462A.206, subdivision 5. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 462A.206, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
  1.12  loans to cities or nonprofit organizations for the purposes of 
  1.13  construction, acquisition, rehabilitation, demolition, permanent 
  1.14  financing, refinancing, gap financing of single or multifamily 
  1.15  housing, or full cycle home ownership services, as defined in 
  1.16  section 462A.209, subdivision 2.  Gap financing is financing for 
  1.17  the difference between the cost of the improvement of the 
  1.18  blighted property, including acquisition, demolition, 
  1.19  rehabilitation, and construction, and the market value of the 
  1.20  property upon sale.  The agency shall take into account the 
  1.21  amount of money that the city or nonprofit organization 
  1.22  leverages from other sources in awarding grants and loans.  The 
  1.23  agency shall also consider the extent to which the grant or loan 
  1.24  recipient will coordinate use of the funds with its other 
  1.25  housing-related efforts or other housing-related efforts in the 
  1.26  recipient's geographic area.  Cities and nonprofit organizations 
  2.1   may use the grants and loans to establish revolving loan funds 
  2.2   and to provide grants and loans to eligible mortgagors.  The 
  2.3   city or nonprofit organization may determine the terms and 
  2.4   conditions of the grants and loans.  An agency loan may only be 
  2.5   used by a city or nonprofit organization to make loans. 
  2.6      Sec. 2.  Minnesota Statutes 1996, section 462A.206, 
  2.7   subdivision 4, is amended to read: 
  2.8      Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
  2.9   resources, a city or a nonprofit organization located in a 
  2.10  metropolitan statistical area must designate neighborhoods 
  2.11  within which the grants or loans may be used, and a city or 
  2.12  nonprofit organization located outside of a metropolitan 
  2.13  statistical area must designate a geographic area within which 
  2.14  the grants or loans may be used. 
  2.15     Sec. 3.  [APPROPRIATION.] 
  2.16     $....... is appropriated from the general fund to the 
  2.17  housing development fund for the community rehabilitation 
  2.18  program.  The appropriation is available until June 30, 1999.  
  2.19  This appropriation is for grants to nonprofit organizations 
  2.20  providing deferred loans for housing rehabilitation, 
  2.21  purchase-rehabilitation loans, or gap financing in St. Paul.  
  2.22  The funds must be used in areas including at least one census 
  2.23  tract that meets at least three of the four following criteria:  
  2.24  (1) at least 70 percent of the housing structures were built 
  2.25  before 1960; (2) at least 60 percent of the single-family 
  2.26  housing is owner-occupied; (3) the median value, as recorded in 
  2.27  the 1990 federal decennial census, of the area's owner-occupied 
  2.28  housing is not more than 100 percent of the purchase price limit 
  2.29  for existing homes eligible for purchase in the area under the 
  2.30  agency's home mortgage loan program; and (4) between 1980 and 
  2.31  1990, the rate of owner-occupancy of residential properties in 
  2.32  the area declined by five percent, or at least 80 percent of the 
  2.33  residential properties in the area are rental properties.  The 
  2.34  area includes eight blocks in any direction from the census 
  2.35  tract.  Priority must be given for property located in an area 
  2.36  that meets all four of the criteria. 
  3.1      Sec. 4.  [REPEALER.] 
  3.2      Minnesota Statutes 1996, section 462A.206, subdivision 5, 
  3.3   is repealed.