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Minnesota Legislature

Office of the Revisor of Statutes

SF 2282

as introduced - 90th Legislature (2017 - 2018) Posted on 03/31/2017 09:21am

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; modifying housing trust fund and family homeless prevention
and assistance program requirements; establishing a rental assistance program for
homeless highly mobile students; appropriating money;amending Minnesota
Statutes 2016, sections 462A.201, subdivision 2; 462A.204, subdivision 8.

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

Section 1.

Minnesota Statutes 2016, section 462A.201, subdivision 2, is amended to read:


Subd. 2.

Low-income housing.

(a) The agency may use money from the housing trust
fund account to provide loans or grants for:

(1) projects for the development, construction, acquisition, preservation, and rehabilitation
of low-income rental and limited equity cooperative housing units, including temporary
and transitional housing;

(2) the costs of operating rental housing, as determined by the agency, that are unique
to the operation of low-income rental housing or supportive housing; deleted text beginand
deleted text end

(3) rental assistance, either project-based or tenant-baseddeleted text begin.deleted text endnew text begin; and
new text end

new text begin (4) rental assistance to secure stable housing for families with children eligible for
enrollment in a prekindergarten through grade 12 academic program.
new text end

For purposes of this section, "transitional housing" has the meaning given by the United
States Department of Housing and Urban Development. Loans or grants for residential
housing for migrant farmworkers may be made under this section.

(b) The housing trust fund account must be used for the benefit of persons and families
whose income, at the time of initial occupancy, does not exceed 60 percent of median income
as determined by the United States Department of Housing and Urban Development for the
metropolitan area. At least 75 percent of the funds in the housing trust fund account must
be used for the benefit of persons and families whose income, at the time of initial occupancy,
does not exceed 30 percent of the median family income for the metropolitan area as defined
in section 473.121, subdivision 2. For purposes of this section, a household with a housing
assistance voucher under Section 8 of the United States Housing Act of 1937, as amended,
is deemed to meet the income requirements of this section.

The median family income may be adjusted for families of five or more.

(c) Rental assistance under this section must be provided by governmental units which
administer housing assistance supplements or by for-profit or nonprofit organizations
experienced in housing management. Rental assistance shall be limited to households whose
income at the time of initial receipt of rental assistance does not exceed 60 percent of median
income, as determined by the United States Department of Housing and Urban Development
for the metropolitan area. Priority among comparable applications for tenant-based rental
assistance will be given to proposals that will serve households whose income at the time
of initial application for rental assistance does not exceed 30 percent of median income, as
determined by the United States Department of Housing and Urban Development for the
metropolitan area. Rental assistance must be terminated when it is determined that 30 percent
of a household's monthly income for four consecutive months equals or exceeds the market
rent for the unit in which the household resides plus utilities for which the tenant is
responsible. Rental assistance may only be used for rental housing units that meet the housing
maintenance code of the local unit of government in which the unit is located, if such a code
has been adopted, or the housing quality standards adopted by the United States Department
of Housing and Urban Development, if no local housing maintenance code has been adopted.

(d) In making the loans or grants, the agency shall determine the terms and conditions
of repayment and the appropriate security, if any, should repayment be required. To promote
the geographic distribution of grants and loans, the agency may designate a portion of the
grant or loan awards to be set aside for projects located in specified congressional districts
or other geographical regions specified by the agency. The agency may adopt rules for
awarding grants and loans under this subdivision.

Sec. 2.

Minnesota Statutes 2016, section 462A.204, subdivision 8, is amended to read:


Subd. 8.

School stability.

(a) The agency in consultation with the Interagency deleted text beginTask
Force
deleted text endnew text begin Councilnew text end on Homelessness may establish a school stability project under the family
homeless prevention and assistance program. The purpose of the project is to secure stable
housing for families with school-age children who have moved frequently and for
unaccompanied youth. For purposes of this subdivision, "unaccompanied youth" are minors
who are leaving foster care or juvenile correctional facilities, or minors who meet the
definition of a child in need of services or protection under section 260C.007, subdivision
6
, but for whom no court finding has been made pursuant to that statute.

(b) The agency shall make grants to family homeless prevention and assistance projects
in communities with a school or schools that have a significant degree of student mobility.

(c) Each project must be designed to reduce school absenteeism; stabilize children in
one home setting or, at a minimum, in one school setting; and reduce shelter usage. Each
project must include plans for the following:

(1) targeting of families with children deleted text beginunder age 12 who, in the last 12 months have
either: changed schools or homes at least once or been absent from school at least 15 percent
of the school year and who have either been evicted from their housing;
deleted text endnew text begin who are eligible
for a prekindergarten through grade 12 academic program and
new text end are living in overcrowded
conditions in their current housing; deleted text beginordeleted text endnew text begin whonew text end are paying more than 50 percent of their income
for rent;new text begin or who lack a fixed, regular, and adequate nighttime residence;
new text end

(2) targeting of unaccompanied youth in need of an alternative residential setting;

(3) connecting families with the social services necessary to maintain the families'
stability in their home; and

(4) one or more of the following:

(i) provision of rental assistance for a specified period of time, which may exceed 24
months; or

(ii) deleted text begindevelopment of permanent supportive housing or transitional housingdeleted text endnew text begin provision of
support and case management services to improve housing stability, including but not limited
to housing navigation and family outreach
new text end.

(d) deleted text beginNotwithstanding subdivision 2, grants under this section may be used to acquire,
rehabilitate, or construct transitional or permanent housing
deleted text endnew text begin In selecting projects for funding
under this subdivision, preference shall be given to organizations granted funding under
section 462A.201, subdivision 2, paragraph (a), clause (4), and groups working in
collaboration with such organizations
new text end.

(e) deleted text beginEach grantee under the project must include representatives of the local school district
or targeted schools, or both, and of the local community correction agencies on its advisory
committee
deleted text endnew text begin No grantee under this subdivision is required to have an advisory committee as
described in subdivision 6
new text end.

Sec. 3. new text beginAPPROPRIATIONS.
new text end

new text begin (a) $16,471,000 in fiscal year 2018 and $16,471,000 in fiscal year 2019 are appropriated
from the general fund to the commissioner of the Housing Finance Agency for transfer to
the housing trust fund for the purposes provided under Minnesota Statutes, section 462A.201.
Of the amount appropriated, $4,000,000 in fiscal year 2018 and $4,000,000 in fiscal year
2019 are for the rental assistance to highly mobile students program under Minnesota
Statutes, section 462A.201, subdivision 2, paragraph (a), clause (4).
new text end

new text begin (b) $10,019,000 in fiscal year 2018 and $10,019,000 in fiscal year 2019 are appropriated
from the general fund to the commissioner of the Housing Finance Agency for the family
homeless prevention and assistance programs under Minnesota Statutes, section 462A.204.
Of the amount appropriated, $1,000,000 in fiscal year 2018 and $1,000,000 in fiscal year
2019 are for grants to programs under Minnesota Statutes, section 462A.204, subdivision
8.
new text end

new text begin (c) $500,000 in fiscal year 2018 and $500,000 in fiscal year 2019 are appropriated from
the general fund to the commissioner of the Housing Finance Agency for competitive grants
to nonprofit housing organizations, housing and redevelopment authorities, or other political
subdivisions to provide intensive financial education and coaching services to individuals
or families who have the goal of homeownership. Financial education and coaching services
include but are not limited to asset building, development of spending plans, credit report
education, repair and rebuilding, consumer protection training, and debt reduction. Priority
must be given to organizations that have experience serving underserved populations.
new text end

new text begin (d) $5,088,000 in fiscal year 2018 and $5,088,000 in fiscal year 2019 are appropriated
from the general fund to the commissioner of the Housing Finance Agency for the rental
housing assistance program for persons with a mental illness or families with an adult
member with a mental illness under Minnesota Statutes, section 462A.2097.
new text end

new text begin (e) $3,385,000 in fiscal year 2018 and $3,385,000 in fiscal year 2019 are appropriated
from the general fund to the commissioner of the Housing Finance Agency for the home
ownership assistance program under Minnesota Statutes, section 462A.21, subdivision 8.
new text end

new text begin (f) $15,925,000 in fiscal year 2018 and $15,925,000 in fiscal year 2019 are appropriated
from the general fund to the commissioner of the Housing Finance Agency for the economic
development and housing challenge program under Minnesota Statutes, section 462A.33.
new text end