SF 1644

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/08/2019 02:50pm

A bill for an act
relating to housing; modifying requirement for economic and housing challenge
grants; modifying the Minnesota Bond Allocation Act relating to housing bonds;
amending Minnesota Statutes 2018, sections 462A.22, subdivision 9; 462A.33,
subdivisions 1, 3; 474A.02, by adding subdivisions; 474A.061, subdivisions 1, 2a,
by adding a subdivision; 474A.091, subdivisions 2, 3.

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

Section 1.

Minnesota Statutes 2018, section 462A.22, subdivision 9, is amended to read:

Subd. 9.

Biennial report.

The agency shall also submit a biennial report of its activities
and receipts, and a plan for the next biennium, to the governor and the legislature on or
before February 15 in each odd-numbered year. The report shall include new text begin : (1) new text end the distribution
of money under each agency program by county, except for counties containing a city of
the first class, where the distribution shall be reported by municipality new text begin ; and (2) the cost per
unit of housing and the cost per square foot of housing financed under each agency program new text end .

In addition, the report shall include the cost to the agency of the issuance of its bonds
for each issue in the biennium, along with comparable information for other state housing
finance agencies.

Sec. 2.

Minnesota Statutes 2018, section 462A.33, subdivision 1, is amended to read:

Subdivision 1.

Created.

The economic development and housing challenge program is
created to be administered by the agency. new text begin Notwithstanding section 462A.24, this section
shall be construed based on the specific language within this section and within an
appropriation pursuant to this section.
new text end

(a) The program shall provide grants or loans for the purpose of construction, acquisition,
rehabilitation, demolition or removal of existing structures, construction financing, permanent
financing, interest rate reduction, refinancing, and gap financing of housing to support
economic development and redevelopment activities or job creation or job preservation
within a community or region by meeting locally identified housing needs. new text begin "Locally identified
housing needs" means housing for the area work force supported by the local municipality,
housing redevelopment authority, economic development authority, or other political
subdivision responsible for housing.
new text end

Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,
rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household
can afford for housing, based on industry standards and practices.

(b) Preference for grants and loans shall be given to comparable proposals that include
regulatory changes or waivers that result in identifiable cost avoidance or cost reductions,
such as increased density, flexibility in site development standards, or zoning code
requirements. Preference must also be given among comparable proposals to proposals for
projects that are accessible to transportation systems, jobs, schools, and other services.

(c) If a grant or loan is used for demolition or removal of existing structures, the cleared
land must be used for the construction of housing to be owned or rented by persons who
meet the income limits of this section or for other housing-related purposes that primarily
benefit the persons residing in the adjacent housing. In making selections for grants or loans
for projects that demolish affordable housing units, the agency must review the potential
displacement of residents and consider the extent to which displacement of residents is
minimized.

Sec. 3.

Minnesota Statutes 2018, section 462A.33, subdivision 3, is amended to read:

Subd. 3.

Contribution requirement.

Fifty percent of the funds appropriated for this
section must be used for challenge grants or loans for housing proposals with financial or
in-kind contributions from nonstate resources that reduce the need for deferred loan or grant
funds from state resources. Challenge grants or loans must be used for economically viable
homeownership or rental housing proposals that address the housing needs of the local work
force. new text begin "Housing needs of the local work force" means one or more businesses located in
the project area or within 25 miles of the area that employs a minimum of 20 full-time
equivalent employees in aggregate and have provided a written statement to the local housing
authority indicating that the lack of available housing has impeded their ability to recruit
and hire employees.
new 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.
Comparable proposals with contributions from local units of government or private
philanthropic, religious, or charitable organizations must be given preference in awarding
grants or loans.

For the purpose of this subdivision, a contribution may consist partially or wholly of the
premium paid for federal housing tax credits.

Sec. 4.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Aggregate bond limitation. new text end

new text begin "Aggregate bond limitation" means up to 55
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located.
new text end

Sec. 5.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin AMI. new text end

new text begin "AMI" means the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size.
new text end

Sec. 6.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision to
read:

new text begin Subd. 12a. new text end

new text begin LIHTC. new text end

new text begin "LIHTC" means low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended.
new text end

Sec. 7.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision to
read:

new text begin Subd. 21a. new text end

new text begin Preservation project. new text end

new text begin "Preservation project" means any residential rental
project, regardless of whether or not such project is restricted to persons of a certain age or
older, that is expected to generate low-income housing tax credits under section 42 of the
Internal Revenue Code of 1986, as amended, and (1) receives federal project-based rental
assistance, or (2) is funded through a loan from or guaranteed by the United States
Department of Agriculture's Rural Development Program. In addition, to qualify as a
preservation project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

Sec. 8.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision to
read:

new text begin Subd. 30. new text end

new text begin 30 percent AMI residential rental project. new text end

new text begin "30 percent AMI residential
rental project" means a residential rental project that does not otherwise qualify as a
preservation project, is expected to generate low-income housing tax credits under section
42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential
units, and in which:
new text end

new text begin (1) all the residential units of the project:
new text end

new text begin (i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
new text end

new text begin (ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (iii) are subject to rent and income restrictions for a period of not less than 30 years; or
new text end

new text begin (2)(i) is located outside of the metropolitan area as defined in section 473.121, subdivision
2, and within a county or metropolitan area that has a current median area gross income
that is less than the statewide area median income for Minnesota;
new text end

new text begin (ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2)
of the Internal Revenue Code of 1986, as amended; and
new text end

new text begin (iii) all of the units of the project are subject to the applicable rent and income restrictions
for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 30 percent AMI residential project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

Sec. 9.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision to
read:

new text begin Subd. 31. new text end

new text begin 50 percent AMI residential rental project. new text end

new text begin "50 percent AMI residential
rental project" means a residential rental project that does not qualify as a preservation
project or 30 percent AMI residential rental project, is expected to generate low-income
housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended,
from 100 percent of its residential units, and in which all the residential units of the project:
new text end

new text begin (1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
new text end

new text begin (2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (3) are subject to rent and income restrictions for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

Sec. 10.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 32. new text end

new text begin 100 percent LIHTC project. new text end

new text begin "100 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units
and does not otherwise qualify as a preservation project, 30 percent AMI residential rental
project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent
LIHTC project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

Sec. 11.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:

new text begin Subd. 33. new text end

new text begin 20 percent LIHTC project. new text end

new text begin "20 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential
units and does not otherwise qualify as a preservation project, 30 percent AMI residential
rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In
addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the
application must not exceed the aggregate bond limitation.
new text end

Sec. 12.

Minnesota Statutes 2018, section 474A.061, subdivision 1, is amended to read:

Subdivision 1.

Allocation application new text begin ; small issue pool and public facilities pool new text end .

(a)
new text begin For any requested allocations from the small issue pool and the public facilities pool, new text end an
issuer may apply for an allocation under this section by submitting to the department an
application on forms provided by the department, accompanied by (1) a preliminary
resolution, (2) a statement of bond counsel that the proposed issue of obligations requires
an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified
bonds to be issued, (4) an application deposit in the amount of one percent of the requested
allocation before the last Monday in July, or in the amount of two percent of the requested
allocation on or after the last Monday in July, new text begin and new text end (5) a public purpose scoring worksheet
for manufacturing project and enterprise zone facility project applications deleted text begin , and (6) for
residential rental projects, a statement from the applicant or bond counsel as to whether the
project preserves existing federally subsidized housing for residential rental project
applications and whether the project is restricted to persons who are 55 years of age or older deleted text end .
The issuer must pay the application deposit deleted text begin by a check made payable deleted text end to the Department of
Management and Budget. The Minnesota Housing Finance Agency, the Minnesota Rural
Finance Authority, and the Minnesota Office of Higher Education may apply for and receive
an allocation under this section without submitting an application deposit.

(b) An entitlement issuer may not apply for an allocation deleted text begin from the public facilities pool deleted text end new text begin
under this subdivision new text end unless it has either permanently issued bonds equal to the amount of
its entitlement allocation for the current year plus any amount of bonding authority carried
forward from previous years or returned for reallocation all of its unused entitlement
allocation. deleted text begin An entitlement issuer may not apply for an allocation from the housing pool
unless it either has permanently issued bonds equal to any amount of bonding authority
carried forward from a previous year or has returned for reallocation any unused bonding
authority carried forward from a previous year. deleted text end For purposes of this subdivision, its
entitlement allocation includes an amount obtained under section 474A.04, subdivision 6.
deleted text begin This paragraph does not apply to an application from the Minnesota Housing Finance Agency
for an allocation under subdivision 2a for cities who choose to have the agency issue bonds
on their behalf.
deleted text end

(c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.

Sec. 13.

Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Allocation application; housing pool. new text end

new text begin (a) For any requested allocations from
the housing pool, an issuer may apply for an allocation under this section by submitting to
the department an application on forms provided by the department, accompanied by (1) a
preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations
requires an allocation under this chapter and the Internal Revenue Code, (3) an application
deposit in the amount of two percent of the requested allocation, (4) a sworn statement from
the applicant identifying the project as either a preservation project, 30 percent AMI
residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC
project, 20 percent LIHTC project, or any other residential rental project, and (5) a
certification from the applicant or its accountant stating whether the requested allocation
exceeds the aggregate bond limitation. The issuer must pay the application deposit to the
Department of Management and Budget. The Minnesota Housing Finance Agency may
apply for and receive an allocation under this section without submitting an application
deposit.
new text end

new text begin (b) An entitlement issuer may not apply for an allocation from the housing pool unless
it either has permanently issued bonds equal to any amount of bonding authority carried
forward from a previous year or has returned for reallocation any unused bonding authority
carried forward from a previous year. For purposes of this subdivision, its entitlement
allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph
does not apply to an application from the Minnesota Housing Finance Agency for an
allocation under subdivision 2a for cities who choose to have the agency issue bonds on the
city's behalf.
new text end

new text begin (c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.
new text end

Sec. 14.

Minnesota Statutes 2018, section 474A.061, subdivision 2a, is amended to read:

Subd. 2a.

Housing pool allocation.

(a) Commencing on the second Tuesday in January
and continuing on each Monday through July 15, the commissioner shall allocate available
bonding authority from the housing pool to applications received on or before the Monday
of the preceding week for residential rental projects that meet the eligibility criteria under
section 474A.047. Allocations of available bonding authority from the housing pool for
eligible residential rental projects shall be awarded in the following order of priority: deleted text begin (1)
projects that preserve existing federally subsidized housing; (2) projects that are not restricted
to persons who are 55 years of age or older; and (3) other residential rental projects. Prior
to May 15, no allocation shall be made to a project restricted to persons who are 55 years
of age or older
deleted text end

new text begin (1) preservation projects;
new text end

new text begin (2) 30 percent AMI residential rental projects;
new text end

new text begin (3) 50 percent AMI residential rental projects;
new text end

new text begin (4) 100 percent LIHTC projects;
new text end

new text begin (5) 20 percent LIHTC projects; and
new text end

new text begin (6) other residential rental projects for which the amount of bonds requested in their
respective applications do not exceed the aggregate bond limitation new text end .

If an issuer that receives an allocation under this paragraph does not issue obligations equal
to all or a portion of the allocation received within 120 days of the allocation or returns the
allocation to the commissioner, the amount of the allocation is canceled and returned for
reallocation through the housing pool or to the unified pool after July 15.

(b) After January 1, and through January 15, The Minnesota Housing Finance Agency
may accept applications from cities for single-family housing programs which meet program
requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically
viable;

(2) the adjusted income of home buyers may not exceed 80 percent of the greater of
statewide or area median income as published by the Department of Housing and Urban
Development, adjusted for household size;

(3) house price limits may not exceed the federal price limits established for mortgage
revenue bond programs. Data on the home purchase price amount, mortgage amount, income,
household size, and race of the households served in the previous year's single-family
housing program, if any, must be included in each application; and

(4) for applicants who choose to have the agency issue bonds on their behalf, an
application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal
to one percent of the requested allocation must be submitted to the Minnesota Housing
Finance Agency before the agency forwards the list specifying the amounts allocated to the
commissioner under paragraph (d). The agency shall submit the city's application fee and
application deposit to the commissioner when requesting an allocation from the housing
pool.

Applications by a consortium shall include the name of each member of the consortium
and the amount of allocation requested by each member.

(c) Any amounts remaining in the housing pool after July 15 are available for
single-family housing programs for cities that applied in January and received an allocation
under this section in the same calendar year. For a city that chooses to issue bonds on its
own behalf or pursuant to a joint powers agreement, the agency must allot available bonding
authority based on the formula in paragraphs (d) and (f). Allocations will be made loan by
loan, on a first-come, first-served basis among cities on whose behalf the Minnesota Housing
Finance Agency issues bonds.

Any city that received an allocation pursuant to paragraph (f) in the same calendar year
that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an
amount becoming available for single-family housing programs after July 15 shall notify
the Minnesota Housing Finance Agency by July 15. The Minnesota Housing Finance Agency
shall notify each city making a request of the amount of its allocation within three business
days after July 15. The city must comply with paragraph (f).

For purposes of paragraphs (a) to (h), "city" means a county or a consortium of local
government units that agree through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in section 462C.02, subdivision
6. "Agency" means the Minnesota Housing Finance Agency.

(d) The total amount of allocation for mortgage bonds for one city is limited to the lesser
of: (i) the amount requested, or (ii) the product of the total amount available for mortgage
bonds from the housing pool, multiplied by the ratio of each applicant's population as
determined by the most recent estimate of the city's population released by the state
demographer's office to the total of all the applicants' population, except that each applicant
shall be allocated a minimum of $100,000 regardless of the amount requested or the amount
determined under the formula in clause (ii). If a city applying for an allocation is located
within a county that has also applied for an allocation, the city's population will be deducted
from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward
to the commissioner a list specifying the amounts allotted to each application with all
application fees and deposits from applicants who choose to have the agency issue bonds
on their behalf.

Total allocations from the housing pool for single-family housing programs may not
exceed 31 percent of the adjusted allocation to the housing pool until after July 15.

(e) The agency may issue bonds on behalf of participating cities. The agency shall request
an allocation from the commissioner for all applicants who choose to have the agency issue
bonds on their behalf and the commissioner shall allocate the requested amount to the
agency. The agency may request an allocation at any time after the second Tuesday in
January and through the last Monday in July. After awarding an allocation and receiving a
notice of issuance for the mortgage bonds issued on behalf of the participating cities, the
commissioner shall transfer the application deposits to the Minnesota Housing Finance
Agency to be returned to the participating cities. The Minnesota Housing Finance Agency
shall return any application deposit to a city that paid an application deposit under paragraph
(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph
(d).

(f) A city may choose to issue bonds on its own behalf or through a joint powers
agreement and may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and a one percent
application deposit to the commissioner no later than the Monday of the week preceding
an allocation. If the total amount requested by all applicants exceeds the amount available
in the pool, the city may not receive a greater allocation than the amount it would have
received under the list forwarded by the Minnesota Housing Finance Agency to the
commissioner. No city may request or receive an allocation from the commissioner until
the list under paragraph (d) has been forwarded to the commissioner. A city must request
an allocation from the commissioner no later than the last Monday in July. No city may
receive an allocation from the housing pool for mortgage bonds which has not first applied
to the Minnesota Housing Finance Agency. The commissioner shall allocate the requested
amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the
issuer must provide for the recycling of funds into new loans. If the issuer is not able to
provide for recycling, the issuer must notify the commissioner in writing of the reason that
recycling was not possible and the reason the issuer elected not to have the Minnesota
Housing Finance Agency issue the bonds. "Recycling" means the use of money generated
from the repayment and prepayment of loans for further eligible loans or for the redemption
of bonds and the issuance of current refunding bonds.

(g) No entitlement city or county or city in an entitlement county may apply for or be
allocated authority to issue mortgage bonds or use mortgage credit certificates from the
housing pool. No city in an entitlement county may apply for or be allocated authority to
issue residential rental bonds from the housing pool or the unified pool.

(h) A city that does not use at least 50 percent of its allotment by the date applications
are due for the first allocation that is made from the housing pool for single-family housing
programs in the immediately succeeding calendar year may not apply to the housing pool
for a single-family mortgage bond or mortgage credit certificate program allocation that
exceeds the amount of its allotment for the preceding year that was used by the city in the
immediately preceding year or receive an allotment from the housing pool in the succeeding
calendar year that exceeds the amount of its allotment for the preceding year that was used
in the preceding year. The minimum allotment is $100,000 for an allocation made prior to
July 15, regardless of the amount used in the preceding calendar year, except that a city
whose allocation in the preceding year was the minimum amount of $100,000 and who did
not use at least 50 percent of its allocation from the preceding year is ineligible for an
allocation in the immediate succeeding calendar year. Each local government unit in a
consortium must meet the requirements of this paragraph.

Sec. 15.

Minnesota Statutes 2018, section 474A.091, subdivision 2, is amended to read:

Subd. 2.

Application.

new text begin (a) new text end Issuers may apply for an allocation under this section by
submitting to the department an application on forms provided by the department
accompanied by new text begin :
new text end

(1) a preliminary resolution deleted text begin , deleted text end new text begin ;
new text end

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code deleted text begin , deleted text end new text begin ;
new text end

(3) deleted text begin the type of qualified bonds to be issued, (4) deleted text end an application deposit in the amount of
two percent of the requested allocation deleted text begin ,(5) a public purpose scoring worksheet for
manufacturing and enterprise zone applications, and (6) for residential rental projects, a
statement from the applicant or bond counsel as to whether the project preserves existing
federally subsidized housing and whether the project is restricted to persons who are 55
years of age or older. deleted text end new text begin ; and
new text end

new text begin (4) a sworn statement from the applicant identifying the project as either a preservation
project, 30 percent AMI residential rental project, 50 percent AMI residential rental project,
100 percent LIHTC project, 20 percent LIHTC project, or any other residential rental project.
new text end

The issuer must pay the application deposit deleted text begin by check deleted text end new text begin to the Department of Management
and Budget new text end . An entitlement issuer may not apply for an allocation for public facility bonds,
residential rental project bonds, or mortgage bonds under this section unless it has either
permanently issued bonds equal to the amount of its entitlement allocation for the current
year plus any amount carried forward from previous years or returned for reallocation all
of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation
includes an amount obtained under section 474A.04, subdivision 6.

new text begin (b) new text end Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.

Sec. 16.

Minnesota Statutes 2018, section 474A.091, subdivision 3, is amended to read:

Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available bonding
authority under this section on the Monday of every other week beginning with the first
Monday in August through and on the last Monday in November. Applications for allocations
must be received by the department by 4:30 p.m. on the Monday preceding the Monday on
which allocations are to be made. If a Monday falls on a holiday, the allocation will be made
or the applications must be received by the next business day after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations from
the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan projects.

(c) On the first Monday in October through the last Monday in November, allocations
shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota Office
of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the unified
pool and there is insufficient bonding authority to provide allocations for all manufacturing
projects in any one allocation period, the available bonding authority shall be awarded based
on the number of points awarded a project under section 474A.045 with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
for manufacturing projects receive an equal amount of points, available bonding authority
shall be awarded by lot unless otherwise agreed to by the respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from the
unified pool and there is insufficient bonding authority to provide allocations for all enterprise
zone facility projects in any one allocation period, the available bonding authority shall be
awarded based on the number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving allocation first. If two or
more applications for enterprise zone facility projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(f) If there are two or more applications for residential rental projects from the unified
pool and there is insufficient bonding authority to provide allocations for all residential
rental projects in any one allocation period, the available bonding authority shall be awarded
in the following order of priority: (1) deleted text begin projects that preserve existing federally subsidized
housing; (2) projects that are not restricted to persons who are 55 years of age or older; and
(3) deleted text end new text begin preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI
residential rental projects; (4) 100 percent LIHTC projects; (5) 20 percent LIHTC projects;
and (6) new text end other residential rental projects. new text begin If there are two or more applications for residential
rental projects at the same priority level and there is insufficient bonding authority to provide
allocations for all the projects in any one allocation period, available bonding authority shall
be randomly awarded by lot but only for projects that received the full amount of their
respective requested allocations. If a residential rental project does not receive any of its
requested allocation pursuant to this paragraph and the project applies in the future to the
housing pool or the unified pool for additional allocation of bonds, the project shall be fully
funded up to its original application request for bonding authority before any new project,
applying in the same allocation period, that has an equal priority shall receive bonding
authority.
new text end

(g) From the first Monday in August through the last Monday in November, $20,000,000
of bonding authority or an amount equal to the total annual amount of bonding authority
allocated to the small issue pool under section 474A.03, subdivision 1, less the amount
allocated to issuers from the small issue pool for that year, whichever is less, is reserved
within the unified pool for small issue bonds to the extent deleted text begin such deleted text end new text begin the new text end amounts are available
within the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and the
unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may not
exceed $25,000,000 per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified bond
category other than enterprise zone facility projects, manufacturing projects, and residential
rental projects, allocations shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and return
the application deposit to the applicant within 30 days unless the applicant requests in writing
that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be evidenced
by issuance of a certificate of allocation.