SF 1488

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/10/2023 08:34am

A bill for an act
relating to housing; establishing a community stabilization program; appropriating
money for loans or grants to preserve naturally occurring affordable housing;
proposing coding for new law in Minnesota Statutes, chapter 462A.

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

Section 1.

new text begin [462A.41] COMMUNITY STABILIZATION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The agency shall establish a community stabilization
program for the purpose of providing grants or loans for the preservation of naturally
occurring affordable housing through acquisition or rehabilitation.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, "naturally occurring affordable
housing" means:
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new text begin (1) multiunit rental housing that:
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new text begin (i) is at least 20 years old; and
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new text begin (ii) has rents in a majority of units that are affordable to households at or below 60
percent of the greater of state or area median income as determined by the United States
Department of Housing and Urban Development; or
new text end

new text begin (2) owner-occupied housing located in communities where market pressures or significant
deferred rehabilitation needs, as defined by the agency, create opportunities for displacement
or the loss of owner-occupied housing affordable to households at or below 115 percent of
the greater of state or area median income as determined by the United States Department
of Housing and Urban Development.
new text end

new text begin Subd. 3. new text end

new text begin Eligible recipients. new text end

new text begin (a) Grants or loans may be made to:
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new text begin (1) a local unit of government;
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new text begin (2) a federally recognized American Indian Tribe located in Minnesota or its Tribally
Designated Housing Entity;
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new text begin (3) a private developer;
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new text begin (4) limited equity cooperatives;
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new text begin (5) cooperatives created under chapter 308A or 308B;
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new text begin (6) community land trusts created for the purposes outlined in section 462A.31,
subdivision 1; or
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new text begin (7) a nonprofit organization.
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new text begin (b) The agency shall make a grant to a statewide intermediary to facilitate the acquisition
and associated rehabilitation of existing multiunit rental housing and may use an intermediary
or intermediaries for the acquisition and associated rehabilitation of owner-occupied housing.
new text end

new text begin Subd. 4. new text end

new text begin Eligible uses. new text end

new text begin The program shall provide grants or loans for the purpose of
acquisition, rehabilitation, interest rate reduction, or gap financing of housing to support
the preservation of naturally occurring affordable housing. Priority in funding shall be given
to proposals that serve lower incomes and maintain longer periods of affordability.
new text end

new text begin Subd. 5. new text end

new text begin Owner-occupied housing income limits. new text end

new text begin Households served through grants
or loans related to owner-occupied housing must have, at initial occupancy, income that is
at or below 115 percent of the greater of state or area median income as determined by the
United States Department of Housing and Urban Development.
new text end

new text begin Subd. 6. new text end

new text begin Multifamily housing rent limits. new text end

new text begin Multifamily housing financed through grants
or loans under this section must remain affordable to low-income or moderate-income
households as defined by the agency.
new text end

new text begin Subd. 7. new text end

new text begin Application. new text end

new text begin (a) The agency shall develop forms and procedures for soliciting
and reviewing applications for grants or loans under this section. The agency shall consult
with interested stakeholders when developing the guidelines and procedures for the program.
new text end

new text begin (b) Notwithstanding any other applicable law, the agency may accept applications on a
noncompetitive, rolling basis in order to provide funds for eligible properties as they become
available.
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new text begin Subd. 8. new text end

new text begin Voucher requirement for multifamily properties. new text end

new text begin Rental properties that
receive funds must accept rental subsidies, including but not limited to vouchers under
Section 8 of the United States Housing Act of 1937, as amended.
new text end

Sec. 2. new text begin APPROPRIATION; COMMUNITY STABILIZATION PROGRAM.
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new text begin $....... in fiscal year 2024 and $....... in fiscal year 2025 are appropriated from the general
fund to the commissioner of the Minnesota Housing Finance Agency for the community
stabilization program under Minnesota Statutes, section 462A.41.
new text end