SF 1493

as introduced - 92nd Legislature (2021 - 2022) Posted on 08/18/2021 02:41pm

A bill for an act
relating to housing; extending the use of rehabilitation loans to manufactured
homes; amending Minnesota Statutes 2020, section 462A.05, subdivisions 14,
14a.

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

Section 1.

Minnesota Statutes 2020, 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. 2.

Minnesota Statutes 2020, 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.