SF 1273

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to housing; establishing an affordable home 
  1.3             ownership funding program; appropriating money; 
  1.4             amending Minnesota Statutes 1994, section 462A.21, 
  1.5             subdivision 8, and by adding a subdivision; and 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 462A. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [462A.209] [AFFORDABLE HOME OWNERSHIP 
  1.10  INVESTMENT ACCOUNT.] 
  1.11     Subdivision 1.  [CREATION.] The affordable home ownership 
  1.12  investment account is established as a separate account in the 
  1.13  housing development fund.  The investment account consists of 
  1.14  money appropriated to it, money directed to it by the agency, 
  1.15  and money received by the agency from other sources for the 
  1.16  purposes of this section. 
  1.17     Subd. 2.  [PURPOSE.] The account shall be used to fund 
  1.18  nonprofit organizations and political subdivisions providing, 
  1.19  building capacity to provide, or supporting full cycle lending 
  1.20  for home ownership to eligible home buyers.  The purpose of the 
  1.21  affordable home ownership investment program is to encourage 
  1.22  private investment in affordable housing and collaboration of 
  1.23  nonprofit organizations and political subdivisions with each 
  1.24  other and private lenders in providing full cycle lending 
  1.25  services.  
  1.26     Subd. 3.  [DEFINITIONS.] (a) For the purposes of this 
  2.1   section, the terms in this subdivision have the meanings given 
  2.2   them.  
  2.3      (b) "Eligible home buyers" means persons and families of 
  2.4   low and moderate income, as defined in section 462A.03, 
  2.5   subdivision 10. 
  2.6      (c) "Full cycle lending" means supporting eligible home 
  2.7   buyers and owners through all phases of purchasing and keeping a 
  2.8   home, by providing prepurchase home buyer education, prepurchase 
  2.9   counseling and credit repair, prepurchase property inspection 
  2.10  and technical assistance to buyers in rehabilitating the home, 
  2.11  postpurchase and mortgage default counseling, postpurchase 
  2.12  assistance with home maintenance, entry cost assistance, and 
  2.13  access to flexible loan products. 
  2.14     Subd. 4.  [ELIGIBILITY.] The agency shall establish 
  2.15  eligibility criteria for nonprofit organizations and political 
  2.16  subdivisions to receive funding under this section.  The 
  2.17  eligibility criteria must require the nonprofit organization or 
  2.18  political subdivision to provide, be building capacity to 
  2.19  provide, or support full cycle lending to eligible home buyers.  
  2.20  If there are more applicants requesting funding than there are 
  2.21  funds available, the agency shall award the funds on a 
  2.22  competitive basis and also assure an equitable geographic 
  2.23  distribution of the available funds.  The eligibility criteria 
  2.24  must require the nonprofit organization or political subdivision 
  2.25  to have a demonstrated involvement in the local community and to 
  2.26  target the housing affordability needs of the local community.  
  2.27  Partnerships and collaboration with innovative, grass roots or 
  2.28  community-based initiatives shall be encouraged.  The agency may 
  2.29  fund a nonprofit organization or political subdivision that will 
  2.30  provide, build capacity to provide, or support full cycle 
  2.31  lending by coordinating with one or more other organizations 
  2.32  that will provide specific components of full cycle lending.  
  2.33  The agency may fund a nonprofit organization or political 
  2.34  subdivision that will not provide, build capacity to provide, or 
  2.35  support all components of full cycle lending services if the 
  2.36  agency determines that the applicant has justified not including 
  3.1   the missing components of full cycle lending.  The agency shall 
  3.2   give priority to nonprofit organizations and political 
  3.3   subdivisions that provide matching funds.  Applicants for funds 
  3.4   under section 462A.057 may also apply for funds under this 
  3.5   program. 
  3.6      Sec. 2.  Minnesota Statutes 1994, section 462A.21, 
  3.7   subdivision 8, is amended to read: 
  3.8      Subd. 8.  [HOME OWNERSHIP ASSISTANCE FUND.] It may 
  3.9   establish a home ownership assistance fund, on terms and 
  3.10  conditions it deems advisable, to assist persons and families of 
  3.11  low and moderate income in the purchase of affordable 
  3.12  residential housing and may use the funds to provide additional 
  3.13  security for eligible loans or to pay costs associated with or 
  3.14  provide additional security for bonds issued by the agency.  It 
  3.15  may use the funds to provide assistance to nonprofit 
  3.16  organizations and political subdivisions that received funding 
  3.17  under section 462A.209. 
  3.18     Sec. 3.  Minnesota Statutes 1994, section 462A.21, is 
  3.19  amended by adding a subdivision to read: 
  3.20     Subd. 22.  [AFFORDABLE HOME OWNERSHIP INVESTMENT 
  3.21  PROGRAM.] The agency may spend money for the purposes of section 
  3.22  462A.209 and may pay the costs and expenses necessary and 
  3.23  incidental to the development and operation of the program. 
  3.24     Sec. 4.  [APPROPRIATION.] 
  3.25     $....... is appropriated from the general fund to the 
  3.26  commissioner of the housing finance agency for transfer to the 
  3.27  affordable home ownership investment account in the housing 
  3.28  development fund.