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Minnesota Legislature

Office of the Revisor of Statutes

SF 469

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/10/2019 09:20am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to manufactured home parks; clarifying the eligibility of manufactured
home parks as housing improvement areas; allowing housing infrastructure bonds
to be used for manufactured home parks; amending Minnesota Statutes 2018,
sections 428A.11, subdivisions 4, 6; 462A.2035, subdivisions 1a, 1b; 462A.33,
subdivisions 1, 2; 462A.37, subdivision 2.

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

Section 1.

Minnesota Statutes 2018, section 428A.11, subdivision 4, is amended to read:


Subd. 4.

Housing improvements.

"Housing improvements" has the meaning given in
the city's enabling ordinance. Housing improvements may include improvements to common
elements of a condominium or other common interest communitynew text begin, or to a manufactured
home park
new text end.

Sec. 2.

Minnesota Statutes 2018, section 428A.11, subdivision 6, is amended to read:


Subd. 6.

Housing unit.

"Housing unit" means real property and improvements thereon
consisting of a one-dwelling unit, or an apartment or unit as described in chapter 515, 515A,
or 515B, respectively,new text begin or a manufactured home in a manufactured home parknew text end that is occupied
by a person or family for use as a residence.

Sec. 3.

Minnesota Statutes 2018, section 462A.2035, subdivision 1a, is amended to read:


Subd. 1a.

Individual assistance grants.

Eligible recipients may use individual assistance
grants and loans under this program to:

(1) provide current residents of manufactured home parks with buy-out assistance not
to exceed $4,000 per home with preference given to older manufactured homes; and

(2) provide down-payment assistance for the purchase of new and preowned manufactured
homes that comply with the current version of the deleted text beginState Buildingdeleted text endnew text begin United States Department
of Housing and Urban Development's Manufactured Housing
new text end Code in effect at the time of
the sale, not to exceed $10,000 per home.

Sec. 4.

Minnesota Statutes 2018, section 462A.2035, subdivision 1b, is amended to read:


Subd. 1b.

Manufactured home park infrastructure grants.

Eligible recipients may
use manufactured home park infrastructure grants under this program for:

(1) new text beginacquisition of and new text endimprovements in manufactured home parks; and

(2) infrastructure, including storm shelters and community facilities.

Sec. 5.

Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:


Subdivision 1.

Created.

The economic development and housing challenge program is
created to be administered by the agency.

(a) The program shall provide grants or loans for the purpose of construction, acquisition,
rehabilitation, demolition or removal of existing structures, construction financing, permanent
financing, interest rate reduction, refinancing, and gap financing of housing new text beginor manufactured
home parks, as defined in section 327C.01,
new text endto support economic development and
redevelopment activities or job creation or job preservation within a community or region
by meeting locally identified housing needs.

Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(b) Preference for grants and loans shall be given to comparable proposals that include
regulatory changes or waivers that result in identifiable cost avoidance or cost reductions,
such as increased density, flexibility in site development standards, or zoning code
requirements. Preference must also be given among comparable proposals to proposals for
projects that are accessible to transportation systems, jobs, schools, and other services.

(c) If a grant or loan is used for demolition or removal of existing structures, the cleared
land must be used for the construction of housing to be owned or rented by persons who
meet the income limits of this section or for other housing-related purposes that primarily
benefit the persons residing in the adjacent housing. In making selections for grants or loans
for projects that demolish affordable housing units, the agency must review the potential
displacement of residents and consider the extent to which displacement of residents is
minimized.

Sec. 6.

Minnesota Statutes 2018, section 462A.33, subdivision 2, is amended to read:


Subd. 2.

Eligible recipients.

Challenge grants or loans may be made to a city, a federally
recognized American Indian tribe or subdivision located in Minnesota, a tribal housing
corporation, a private developer, a nonprofit organization, or the owner of the housingnew text begin or
the manufactured home park
new text end, including individuals. For the purpose of this section, "city"
has the meaning given it in section 462A.03, subdivision 21. To the extent practicable,
grants and loans shall be made so that an approximately equal number of housing units are
financed in the metropolitan area and in the nonmetropolitan area.

Sec. 7.

Minnesota Statutes 2018, 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 deleted text beginthat portion ofdeleted text end the new text beginacquisition, new text endimprovementnew text begin,new text end and infrastructure of
manufactured home parks under section 462A.2035, subdivision 1bdeleted text begin, that is attributable to
land to be leased to low- and moderate-income manufactured home owners
deleted text end;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing; and

(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.

(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.

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.