1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to public finance; changing procedures for 1.3 allocating bonding authority; changing provisions 1.4 relating to housing programs and plans; amending 1.5 Minnesota Statutes 1994, sections 462C.01; 462C.02, 1.6 subdivision 3; 462C.04, subdivisions 2 and 3; 1.7 462C.071, subdivision 2; 474A.03, subdivisions 1 and 1.8 4; 474A.061, subdivisions 2a, 2c, 4, and 6; 474A.091, 1.9 subdivisions 3 and 5; and 474A.131, subdivision 2; 1.10 repealing Minnesota Statutes 1994, sections 462C.02, 1.11 subdivision 2; 462C.03, subdivisions 1 and 5; and 1.12 462C.04, subdivision 1. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. Minnesota Statutes 1994, section 462C.01, is 1.15 amended to read: 1.16 462C.01 [AUTHORIZATION.] 1.17 A city may develop and administer programs of (1) making or 1.18 purchasing mortgage or rehabilitation loans pursuant to section 1.19 462C.03 to finance the acquisition or rehabilitation of single 1.20 family housing by low and moderate income persons and families 1.21 anywhere within its boundaries, or (2) making or purchasing 1.22 loans pursuant to section 462C.05 to finance multifamily housing 1.23 developments or the rehabilitation of multifamily housing 1.24 developments
upon the following conditions:1.25 (a) The city develops a housing plan as required by section1.26 462C.03;1.27 (b) A public hearing is held thereon after one publication1.28 of notice in a newspaper circulating generally in the city, at1.29 least 30 days before the hearing, after which the plan may be2.1 adopted by resolution of the governing body with or without2.2 amendment;2.3 (c) The plan is submitted for review pursuant to section2.4 462C.04, subdivision 1; and2.5 (d) Eachif the program provided for in the planis 2.6 submitted for review pursuant to section 462C.04, subdivision 2. 2.7 Sec. 2. Minnesota Statutes 1994, section 462C.02, 2.8 subdivision 3, is amended to read: 2.9 Subd. 3. "Program" means an individual component of thea 2.10 city's overall program for housing planfor which one or more 2.11 issues of revenue bonds or obligations is proposed. 2.12 Sec. 3. Minnesota Statutes 1994, section 462C.04, 2.13 subdivision 2, is amended to read: 2.14 Subd. 2. [PROGRAM REVIEW.] A public hearing shall be held 2.15 on each program after one publication of notice in a newspaper 2.16 circulating generally in the city, at least 15 days before the 2.17 hearing. On or before the day on which notice of the public 2.18 hearing is published, the city shall submit the program to the 2.19 metropolitan council, if the city is located in the metropolitan 2.20 area as defined in section 473.121, subdivision 2, or to the 2.21 regional development commission for the area in which the city 2.22 is located, if any, for review and comment. The appropriate 2.23 reviewing agency shall comment on: 2.24 (a) whether the program is consistent with the housing plan2.25 of the city; and2.26 (b)whether the program furthers local and regional housing 2.27 policies and is consistent with the metropolitan development 2.28 guide, if the city is located in the metropolitan area, or 2.29 adopted policies of the regional development commission; and 2.30 (b) the compatability of the program with the housing 2.31 portion of the comprehensive plan of the city, if any. 2.32 Review of the program may be conducted either by the board 2.33 of the reviewing agency or by the staff of the agency. Any 2.34 comment submitted by the reviewing agency to the city must be 2.35 presented to the body considering the proposed program at the 2.36 public hearing held on the program. 3.1 A member or employee of the reviewing agency shall be 3.2 permitted to present the comments of the reviewing agency at the 3.3 public hearing. After conducting the public hearing, the 3.4 program may be adopted with or without amendment, provided that 3.5 any amendments must not be inconsistent with the comments, if 3.6 any, of the reviewing agency and must not contain any material 3.7 changes from the program submitted to the reviewing agency other 3.8 than changes in the financial aspects of any proposed issue of 3.9 bonds or obligations. If any material change other than a 3.10 change in the financial aspects of a proposed issue of bonds or 3.11 obligations, or any change which is inconsistent with the 3.12 comments of the reviewing agency is adopted, the amended program 3.13 shall be resubmitted to the appropriate reviewing agency for 3.14 review and comment, and a public hearing shall be held on the 3.15 amended program after one publication of notice in a newspaper 3.16 circulating generally in the city at least 15 days before the 3.17 hearing. The amended program shall be considered after the 3.18 public hearing in the same manner as consideration of the 3.19 initial program. 3.20 Sec. 4. Minnesota Statutes 1994, section 462C.04, 3.21 subdivision 3, is amended to read: 3.22 Subd. 3. [CITY REPORT.] Within 30 days after the bonds are 3.23 issued for a housing program, the city shall submit a report to 3.24 the Minnesota housing finance agency, the metropolitan council 3.25 if the city is located within the metropolitan area as defined 3.26 in section 473.121, subdivision 2, or the appropriate regional 3.27 development commission. The report must include a program 3.28 description, the amount of bonds issued, the income limits, and 3.29 the rent levels. 3.30 Sec. 5. Minnesota Statutes 1994, section 462C.071, 3.31 subdivision 2, is amended to read: 3.32 Subd. 2. [LIMITATION; ORIGINATION PERIOD.] During the 3.33 first ten months of an origination period, a city may make loans 3.34 financed with proceeds of mortgage bonds for the purchase of 3.35 existing housing. Loans financed with the proceeds of mortgage 3.36 bonds for new housing in the metropolitan area may be made 4.1 during the first ten months of an origination period only if at 4.2 least one of the following conditions is met: 4.3 (1) the new housing is located in a redevelopment area; 4.4 (2) the new housing is replacing a structurally substandard 4.5 structure or structures; 4.6 (3) the new housing is located on a parcel purchased by the 4.7 city or conveyed to the city under section 282.01, subdivision 4.8 1; or4.9 (4) the new housing is part of a housing affordability 4.10 initiative, other than those financed with the proceeds from the 4.11 sale of bonds, in which federal, state, or local assistance is 4.12 used to substantially improve the terms of the financing or to 4.13 substantially write down the purchase price of the new housing; 4.14 or 4.15 (5) the new housing is located in a city that has entered 4.16 into a housing affordability agreement with the metropolitan 4.17 council. 4.18 Upon expiration of the first ten-month period, a city may 4.19 make loans financed with the proceeds of mortgage bonds for the 4.20 purchase of new and existing housing. 4.21 Sec. 6. Minnesota Statutes 1994, section 474A.03, 4.22 subdivision 1, is amended to read: 4.23 Subdivision 1. [ANNUAL VOLUME CAP UNDER FEDERAL TAX LAW; 4.24 POOL ALLOCATIONS.] At the beginning of each calendar year after 4.25 December 31, 1991, the commissioner shall determine the 4.26 aggregate dollar amount of the annual volume cap under federal 4.27 tax law for the calendar year, and of this amount the 4.28 commissioner shall make the following allocation: 4.29 (1) $65,000,000$55,000,000 to the small issue pool; 4.30 (2) $46,000,000$56,000,000 to the housing pool, 4.31 $37,000,000 of which is reserved until the day after the first 4.32 Monday in February for single-family housing program; 4.33 (3) $10,000,000 to the public facilities pool; and 4.34 (4) amounts to be allocated as provided in subdivision 2a. 4.35 If the annual volume cap is greater or less than the amount 4.36 of bonding authority allocated under clauses (1) to (4) and 5.1 subdivision 2a, paragraph (a), clauses (1) to (4), the 5.2 allocation must be adjusted so that each adjusted allocation is 5.3 the same percentage of the annual volume cap as each original 5.4 allocation is of the total bonding authority originally 5.5 allocated. 5.6 Sec. 7. Minnesota Statutes 1994, section 474A.03, 5.7 subdivision 4, is amended to read: 5.8 Subd. 4. [APPLICATION FEE.] Every entitlement issuer and 5.9 other issuer shall pay to the commissioner a nonrefundable 5.10 application fee to offset the state cost of program 5.11 administration. The application fee is $20 for each $100,000 of 5.12 entitlement or allocation requested, with the request rounded to 5.13 the nearest $100,000. The minimum fee is $20. Fees received by 5.14 the commissioner must be credited to the general 5.15 fund. Application fees for projects of entitlement issuers must 5.16 be submitted to the commissioner with the notice of issuance of 5.17 bonds, notice of use of mortgage credit certificates, and notice 5.18 of carry forward. 5.19 Sec. 8. Minnesota Statutes 1994, section 474A.061, 5.20 subdivision 2a, is amended to read: 5.21 Subd. 2a. [HOUSING POOL ALLOCATION.] (a) On the first 5.22 business day that falls on a Monday of the calendar year ,and 5.23 the first Monday in February, the first Monday in March, and the5.24 first Monday in April,the commissioner shall allocate available 5.25 bonding authority in the housing pool to applications received 5.26 by the Monday of the previous week for residential rental 5.27 projects that are not restricted to persons who are 55 years of 5.28 age or older and that meet the eligibility criteria under 5.29 section 474A.047. If an issuer that receives an allocation 5.30 under this paragraph does not issue obligations equal to all or 5.31 a portion of the allocation received within 120 days of the 5.32 allocation or returns the allocation to the commissioner, the 5.33 amount of the allocation is canceled and returned for 5.34 reallocation through the housing pool. 5.35 (b) After AprilFebruary 1, and through AprilFebruary 5.36 15, the Minnesota housing finance agency may accept applications 6.1 from cities for single-family housing programs which meet 6.2 program requirements as follows: 6.3 (1) the housing program must meet a locally identified 6.4 housing need and be economically viable; 6.5 (2) the adjusted income of home buyers may not exceed the 6.6 greater of the agency's income limits or 80 percent of the area 6.7 median income as published by the Department of Housing and 6.8 Urban Development; 6.9 (3) house price limits may not exceed: 6.10 (i) the greater of agency house price limits or the federal 6.11 price limits for housing up to a maximum of $95,000; or 6.12 (ii) for a new construction affordability initiative, the 6.13 greater of 115 percent of agency house price limits or 90 6.14 percent of the median purchase price in the city for which the 6.15 bonds are to be sold up to a maximum of $95,000. 6.16 Data establishing the median purchase price in the city 6.17 must be included in the application by a city requesting house 6.18 price limits higher than the housing finance agency's house 6.19 price limits; 6.20 (4) the housing program meets the requirements of section 6.21 474A.048; and 6.22 (5) an application deposit equal to one percent of the 6.23 requested allocation must be submitted with the city's signed 6.24 allocation agreement. The agency shall submit the city's 6.25 application and application deposit to the commissioner when 6.26 requesting an allocation from the housing pool. 6.27 Applications by a consortium shall include the name of each 6.28 member of the consortium and the amount of allocation requested 6.29 by each member. 6.30 The Minnesota housing finance agency may accept 6.31 applications from July 1June 15 through July 15June 30 from 6.32 cities for single-family housing programs which meet program 6.33 requirements specified under clauses (1) to (5) if bonding 6.34 authority is available in the housing pool. The agency and a6.35 representative for each applicant shall negotiate the terms of6.36 an agreement regarding the allocation of available authority7.1 among the applicants.The agreementagency must allot available 7.2 bonding authority among the applicants. For purposes of 7.3 paragraphs (a) to (d), "city" means a county or a consortium of 7.4 local government units that agree through a joint powers 7.5 agreement to apply together for single-family housing programs, 7.6 and has the meaning given it in section 462C.02, subdivision 6 ,7.7 and. "Agency" means the Minnesota housing finance agency. 7.8 (b) Upon reaching agreement with participating cities, the7.9 agency shall forward the agreement and application deposit7.10 checks to the commissioner. The agreement must specify the7.11 amounts allotted to each applicant.7.12 (c) The total amount of allocation for mortgage bonds for 7.13 one city is limited to the lesser of: (i) the amount requested, 7.14 or (ii) the product of the total amount available for mortgage 7.15 bonds from the housing pool, multiplied by the ratio of each 7.16 applicant's population as determined by the most recent estimate 7.17 of the city's population released by the state demographer's 7.18 office to the total of all the applicants' population, except 7.19 that each applicant shall be allocated a minimum of $100,000 7.20 regardless of the amount requested or the amount determined 7.21 under the formula in clause (ii). If a city applying for an 7.22 allocation is located within a county that has also applied for 7.23 an allocation, the city's population will be deducted from the 7.24 county's population in calculating the amount of allocations 7.25 under this paragraph. 7.26 Upon determining the amount of each applicant's allocation, 7.27 the agency shall forward a list specifying the amounts allotted 7.28 to each application and application deposit checks to the 7.29 commissioner. 7.30 (d) The agency may issue bonds on behalf of participating 7.31 cities. The agency shall request an allocation from the 7.32 commissioner for all applicants who choose to have the agency 7.33 issue bonds on their behalf and the commissioner shall allocate 7.34 the requested amount to the agency. The agency may request an 7.35 allocation at any time after the first Monday in AprilFebruary 7.36 and through the last Monday in July, but may request an 8.1 allocation no later than the last Monday in July. The 8.2 commissioner shall return any application deposit to a city that 8.3 paid an application deposit under paragraph (a), clause (5), but 8.4 was not part of the agreement forwarded to the commissioner 8.5 under this paragraph. 8.6 (c)(e) A city may choose to issue bonds on its own behalf 8.7 or through a joint powers agreement or may use bonding authority 8.8 for mortgage credit certificates and may request an allocation 8.9 from the commissioner. If the total amount requested by all 8.10 applicants exceeds the amount available in the pool, the city 8.11 may not receive a greater allocation than the amount it would 8.12 have received under the agreement forwarded by the Minnesota 8.13 housing finance agency to the commissioner. No city may request 8.14 or receive an allocation from the commissioner until the 8.15 agreementlist under paragraph (b)(c) has been forwarded to the 8.16 commissioner. On and after the first Monday in AprilFebruary 8.17 and through the last Monday in July, no city may receive an 8.18 allocation from the housing pool which has not first applied to 8.19 the Minnesota housing finance agency. The commissioner shall 8.20 allocate the requested amount to the city or cities subject to 8.21 the limitations under this paragraph. 8.22 (d)If a city issues mortgage bonds from an allocation 8.23 received under paragraph (c)(d), the issuer must provide for 8.24 the recycling of funds into new loans. If the issuer is not 8.25 able to provide for recycling, the issuer must notify the 8.26 commissioner in writing of the reason that recycling was not 8.27 possible and the reason the issuer elected not to have the 8.28 Minnesota housing finance agency issue the bonds. "Recycling" 8.29 means the use of money generated from the repayment and 8.30 prepayment of loans for further eligible loans or for the 8.31 redemption of bonds and the issuance of current refunding bonds. 8.32 (e) The total amount of allocation for mortgage bonds or8.33 mortgage credit certificates for one city is limited to the8.34 lesser of (i) $4,000,000 or (ii) 20 percent of the total amount8.35 available for allocation for mortgage bonds from the housing8.36 pool on the first Tuesday after the first Monday in April.9.1 (f) No city in an entitlement county may apply for or be 9.2 allocated authority to issue bonds or use mortgage credit 9.3 certificates from the housing pool. 9.4 (g) A city that does not use at least 50 percent of their 9.5 allotment by April 15 and at least $200,000 of their allotment9.6 in the calendar year in which the allotment is made available9.7 under paragraph (b),the date applications are due for the first 9.8 allocation that is made from the housing pool for single-family 9.9 housing programs in the immediately succeeding calendar year may 9.10 not apply to the housing pool for a single-family mortgage bond 9.11 or mortgage credit certificate program allocation or receive an 9.12 allotment underfrom the housing pool agreementin the 9.13 succeeding two calendar yearyears. Each local government unit 9.14 in a consortium must meet the requirements of this paragraph. 9.15 Sec. 9. Minnesota Statutes 1994, section 474A.061, 9.16 subdivision 2c, is amended to read: 9.17 Subd. 2c. [PUBLIC FACILITIES POOL ALLOCATION.] From the 9.18 beginning of the calendar year and continuing for a period of 9.19 120 days, the commissioner shall reserve $5,000,000 of the 9.20 available bonding authority from the public facilities pool for 9.21 applications for public facilities projects to be financed by 9.22 the Western Lake Superior Sanitary District. From the beginning 9.23 of the calendar year through the last Monday in July, the 9.24 commissioner shall allocate available bonding authority from the 9.25 public facilities pool on Monday of each week to applications 9.26 for eligible public facilities projects received on or before 9.27 the Monday of the preceding week. If there are two or more 9.28 applications for public facilities projects from the pool and 9.29 there is insufficient available bonding authority to provide 9.30 allocations for all projects in any one week, the available 9.31 bonding authority shall be awarded by lot unless otherwise 9.32 agreed to by the respective issuers. 9.33 Sec. 10. Minnesota Statutes 1994, section 474A.061, 9.34 subdivision 4, is amended to read: 9.35 Subd. 4. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 9.36 issuer that receives an allocation under this section determines 10.1 that it will not issue obligations equal to all or a portion of 10.2 the allocation received under this section within 90120 days of 10.3 allocation or within the time period permitted by federal tax 10.4 law, whichever is less, the issuer must notify the department. 10.5 If the issuer notifies the department or the 90-day120-day 10.6 period since allocation has expired prior to the last Monday in 10.7 July, the amount of allocation is canceled and returned for 10.8 reallocation through the pool from which it was originally 10.9 allocated. If the issuer notifies the department or the 90-day10.10 120-day period since allocation has expired on or after the last 10.11 Monday in July, the amount of allocation is canceled and 10.12 returned for reallocation through the unified pool. If the 10.13 issuer notifies the department after the last Monday in 10.14 November, the amount of allocation is canceled and returned for 10.15 reallocation to the Minnesota housing finance agency. 10.16 (b) An issuer that returns for reallocation all or a 10.17 portion of an allocation received under this section within 9010.18 120 days of allocation shall receive within 30 days a refund 10.19 equal to: 10.20 (1) one-half of the application deposit for the amount of 10.21 bonding authority returned within 30 days of receiving 10.22 allocation; 10.23 (2) one-fourth of the application deposit for the amount of 10.24 bonding authority returned between 31 and 60 days of receiving 10.25 allocation; and 10.26 (3) one-eighth of the application deposit for the amount of 10.27 bonding authority returned between 61 and 90120 days of 10.28 receiving allocation. 10.29 (c) No refund shall be available for allocations returned 10.30 90120 or more days after receiving the allocation or beyond the 10.31 last Monday in November. This subdivision does not apply to the 10.32 Minnesota housing finance agency or the Minnesota rural finance 10.33 authority. 10.34 (d) Notwithstanding paragraph (a), the commissioner shall10.35 extend the 90-day allocation period for an additional 30 days if10.36 the issuer applies for an extension and submits an amount equal11.1 to one-quarter of one percent of the allocation with the11.2 application for an allocation, provided that the 30 days does11.3 not extend the allocation period beyond the last Monday in11.4 November.11.5 Sec. 11. Minnesota Statutes 1994, section 474A.061, 11.6 subdivision 6, is amended to read: 11.7 Subd. 6. [DEADLINE FOR ISSUANCE OF SMALL ISSUE BONDS.] If 11.8 an issuer fails to notify the department before the last Monday 11.9 in December of issuance of obligations pursuant to an allocation 11.10 received for a manufacturingsmall issue bond project, the 11.11 allocation is canceled and the bonding authority is allocated to 11.12 the department of finance for reallocation under section 11.13 474A.091, subdivision 6. 11.14 Sec. 12. Minnesota Statutes 1994, section 474A.091, 11.15 subdivision 3, is amended to read: 11.16 Subd. 3. [ALLOCATION PROCEDURE.] (a) The commissioner 11.17 shall allocate available bonding authority under this section on 11.18 the Monday of every other week beginning with the first Monday 11.19 in August through and on the last Monday in November. 11.20 Applications for allocations must be received by the department 11.21 by the Monday preceding the Monday on which allocations are to 11.22 be made. If a Monday falls on a holiday, the allocation will be 11.23 made or the applications must be received by the next business 11.24 day after the holiday. 11.25 (b) On or before September 1, allocations shall be awarded 11.26 from the unified pool in the following order of priority: 11.27 (1) applications for enterprise zone facility bonds; 11.28 (2) applications for small issue bonds; 11.29 (3) applications for residential rental project bonds11.30 mortgage bonds; 11.31 (4) applications for public facility projects funded by 11.32 public facility bonds; 11.33 (5) applications for redevelopment bonds; 11.34 (6) applications for mortgage bondsresidential rental 11.35 project bonds; and 11.36 (7) applications for governmental bonds. 12.1 Allocations for residential rental projects may only be 12.2 made during the first allocation in August. The amount of 12.3 allocation provided to an issuer for a specific manufacturing 12.4 project will be based on the number of points received for the 12.5 proposed project under the scoring system under section 474A.045. 12.6 Proposed manufacturing projects that receive 50 points or more 12.7 are eligible for all of the proposed allocation. Proposed 12.8 manufacturing projects that receive less than 50 points under 12.9 section 474A.045 are only eligible to receive a proportionally 12.10 reduced share of the proposed authority, based upon the number 12.11 of points received. If there are two or more applications for 12.12 manufacturing projects from the unified pool and there is 12.13 insufficient bonding authority to provide allocations for all 12.14 manufacturing projects in any one allocation period, the 12.15 available bonding authority shall be awarded based on the number 12.16 of points awarded a project under section 474A.045 with those 12.17 projects receiving the greatest number of points receiving 12.18 allocation first. 12.19 (c)(1) On the first Monday in August, $5,000,000 of bonding 12.20 authority is reserved within the unified pool for agricultural 12.21 development bond loan projects of the Minnesota rural finance 12.22 authority and $20,000,000 of bonding authority or an amount 12.23 equal to the total annual amount of bonding authority allocated 12.24 to the small issue pool under section 474A.03, subdivision 1, 12.25 less the amount allocated to issuers from the small issue pool 12.26 for that year, whichever is less, is reserved within the unified 12.27 pool for small issue bonds. On the first Monday in September, 12.28 $2,500,000 of bonding authority or an amount equal to the total 12.29 annual amount of bonding authority allocated to the public 12.30 facilities pool under section 474A.03, subdivision 1, less the 12.31 amount allocated to issuers from the public facilities pool for 12.32 that year, whichever is less, is reserved within the unified 12.33 pool for public facility bonds. If sufficient bonding authority 12.34 is not available to reserve the required amounts for 12.35 manufacturing projects and agricultural development bond loan 12.36 projects, the remaining available bonding authority must be 13.1 distributed between the two reservations on a pro rata basis, 13.2 based upon the amounts each would have received if sufficient 13.3 authority was available. 13.4 (2) The total amount of allocations for mortgage bonds from 13.5 the housing pool and the unified pool may not exceed: 13.6 (i) $10,000,000 for any one city; or 13.7 (ii) $20,000,000 for any number of cities in any one county. 13.8 An allocation for mortgage bonds may be used for mortgage 13.9 credit certificates. 13.10 After September 1, allocations shall be awarded from the 13.11 unified pool only for the following types of qualified bonds: 13.12 small issue bonds, public facility bonds to finance publicly 13.13 owned facility projects, and enterprise zone facility bonds. 13.14 (d) If there is insufficient bonding authority to fund all 13.15 projects within any qualified bond category, allocations shall 13.16 be awarded by lot unless otherwise agreed to by the respective 13.17 issuers. If an application is rejected, the commissioner must 13.18 notify the applicant and return the application deposit to the 13.19 applicant within 30 days unless the applicant requests in 13.20 writing that the application be resubmitted. The granting of an 13.21 allocation of bonding authority under this section must be 13.22 evidenced by issuance of a certificate of allocation. 13.23 Sec. 13. Minnesota Statutes 1994, section 474A.091, 13.24 subdivision 5, is amended to read: 13.25 Subd. 5. [RETURN OF ALLOCATION; DEPOSIT REFUND.] (a) If an 13.26 issuer that receives an allocation under this section determines 13.27 that it will not issue obligations equal to all or a portion of 13.28 the allocation received under this section within 90120 days of 13.29 the allocation or within the time period permitted by federal 13.30 tax law, whichever is less, the issuer must notify the 13.31 department. If the issuer notifies the department or the 90-day13.32 120-day period since allocation has expired prior to the last 13.33 Monday in November, the amount of allocation is canceled and 13.34 returned for reallocation through the unified pool. If the 13.35 issuer notifies the department on or after the last Monday in 13.36 November, the amount of allocation is canceled and returned for 14.1 reallocation to the Minnesota housing finance agency. 14.2 (b) An issuer that returns for reallocation all or a 14.3 portion of an allocation received under this section within 9014.4 120 days of the allocation shall receive within 30 days a refund 14.5 equal to: 14.6 (1) one-half of the application deposit for the amount of 14.7 bonding authority returned within 30 days of receiving the 14.8 allocation; 14.9 (2) one-fourth of the application deposit for the amount of 14.10 bonding authority returned between 31 and 60 days of receiving 14.11 the allocation; and 14.12 (3) one-eighth of the application deposit for the amount of 14.13 bonding authority returned between 61 and 90120 days of 14.14 receiving the allocation. 14.15 (c) No refund of the application deposit shall be available 14.16 for allocations returned on or after the last Monday in November. 14.17 This subdivision does not apply to the Minnesota housing finance 14.18 agency, or the Minnesota rural finance authority. 14.19 (d) Notwithstanding paragraph (a), the commissioner shall14.20 extend the 90-day allocation period for an additional 30 days if14.21 the issuer applies for an extension and submits an amount equal14.22 to one-quarter of one percent of the allocation with the14.23 application for an allocation, provided that the 30 days does14.24 not extend the allocation period beyond the last Monday in14.25 November.14.26 Sec. 14. Minnesota Statutes 1994, section 474A.131, 14.27 subdivision 2, is amended to read: 14.28 Subd. 2. [CARRYFORWARD NOTICE.] If an issuer intends to 14.29 carry forward an allocation received under this chapter, it must 14.30 notify the department in writing before the last Monday of 14.31 December. If the written notice of carryforward is not provided14.32 within the time required, one-quarter of the amount of the14.33 application deposit eligible for refund upon filing of the14.34 notice of issue under this section is forfeited.14.35 Sec. 15. [TRANSFER.] 14.36 Any remaining balance of bonding authority in the small 15.1 issue pool on the effective date of this section, up to and 15.2 including $20,000,000 of bonding authority, is transferred from 15.3 the small issue pool to the housing pool for use pursuant to 15.4 Minnesota Statutes, section 474A.061, subdivision 2a, except 15.5 that the Minnesota housing finance agency may accept 15.6 applications between June 1, 1995, and June 7, 1995. 15.7 Sec. 16. [REPEALER.] 15.8 Minnesota Statutes 1994, sections 462C.02, subdivision 2; 15.9 462C.03, subdivisions 1 and 5; and 462C.04, subdivision 1, are 15.10 repealed. 15.11 Sec. 17. [EFFECTIVE DATE.] 15.12 Sections 8 and 15 are effective the day following final 15.13 enactment, provided that section 8, paragraph (g), applies to 15.14 allocations made on or after the day following final enactment. 15.15 Section 12 is effective January 1, 1996.