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SF 1497

as introduced - 90th Legislature (2017 - 2018) Posted on 03/08/2017 08:39am

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

Current Version - as introduced

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A bill for an act
relating to housing; appropriating money for the workforce and affordable housing
program; amending Minnesota Statutes 2016, section 462A.38.


Section 1.

Minnesota Statutes 2016, section 462A.38, is amended to read:


Subdivision 1.


A workforce and affordable homeownership development
program is established to award homeownership development grants new text begin and loans new text end to new text begin cities,
tribal governments,
new text end nonprofit organizations, cooperatives created under chapter 308A or
308B, and community land trusts created for the purposes outlined in section 462A.31,
1, for development of workforce and affordable homeownership projects. The
purpose of the program is to increase the supply of workforce and affordable, owner-occupied
multifamily or single-family housing throughout Minnesota.

Subd. 2.

Use of funds.

(a) Grant funds new text begin and loans new text end awarded under this program may be
used for:

(1) development costs;

(2) rehabilitation;

(3) land development; and

(4) residential housing, including storm shelters and related community facilities.

(b) A project funded through deleted text begin the grantdeleted text end new text begin thisnew text end program shall serve households that meet
the income limits as provided in section 462A.33, subdivision 5, unless a project is intended
for the purpose outlined in section 462A.02, subdivision 6.

Subd. 3.


The commissioner shall develop forms and procedures for soliciting
and reviewing applications for grants new text begin and loans new text end under this section. The commissioner shall
consult with interested stakeholders when developing the guidelines and procedures for the
program. In making grantsnew text begin and loansnew text end , the commissioner shall establish semiannual application
deadlines in which grantsnew text begin and loansnew text end will be authorized from all or part of the available

Subd. 4.

Awarding grantsnew text begin and loansnew text end .

Among comparable proposals, preference must
be given to proposals that include contributions from nonstate resources for the greatest
portion of the total development cost.

Subd. 5.

Statewide program.

The agency shall attempt to make grantsnew text begin and loansnew text end in
approximately equal amounts to applicants outside and within the metropolitan area.

Subd. 6.


Beginning January 15, 2018, the commissioner must annually submit
a report to the chairs and ranking minority members of the senate and house of representatives
committees having jurisdiction over housing and workforce development specifying the
projects that received grants new text begin and loans new text end under this section and the specific purposes for which
the grant new text begin or loan new text end funds were used.

new text begin Subd. 7. new text end

new text begin Appropriation; determination of funding amount. new text end

new text begin (a) In fiscal years 2018
to 2026, an amount equal to the increment determined under paragraph (b) is annually
appropriated from the general fund to the commissioner of the Housing Finance Agency
for the workforce and affordable homeownership development program under this section.
The amount appropriated under this subdivision must supplement traditional sources of
funding for this purpose and must not be used as a substitute, or to pay debt service on
new text end

new text begin (b) By September 1, 2017, and each year thereafter through 2026, the commissioner of
revenue must determine the total amount of the proceeds of the mortgage registry tax imposed
under section 287.035 and the deed tax imposed under section 287.21 that was collected
during the fiscal year ending in that calendar year and deposited in the general fund, and
must determine the increment that exceeds the amount collected in the previous tax year.
The increment calculated under this paragraph must not be less than $0.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end