SF 2410

as introduced - 89th Legislature (2015 - 2016) Posted on 04/28/2016 08:34am

A bill for an act
relating to capital investment; appropriating money for preservation of public
housing and to support issuance of additional housing infrastructure bonds;
adding senior housing to the allowable uses of housing infrastructure bonds;
authorizing the sale and issuance of state bonds; amending Minnesota Statutes
2014, section 462A.37, subdivisions 1, 2, by adding a subdivision; Minnesota
Statutes 2015 Supplement, section 462A.37, subdivision 5.

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

Section 1.

Minnesota Statutes 2014, section 462A.37, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms
have the meanings given.

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

(d) "Debt service" means the amount payable in any fiscal year of principal,
premium, if any, and interest on housing infrastructure bonds and the fees, charges, and
expenses related to the bonds.

(e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.

(f) "Housing infrastructure bonds" means bonds issued by the agency under this
chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the
Internal Revenue Code, finance qualified residential rental projects within the meaning of
Section 142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private
activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the
purpose of financing or refinancing affordable housing authorized under this chapter.

(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

new text begin (h) "Senior" means a person 55 years of age or older with an annual income not
greater than 50 percent of:
new text end

new text begin (1) the metropolitan area median income for persons in the metropolitan area as
defined in section 473.121, subdivision 2; or
new text end

new text begin (2) the statewide median income for persons outside the metropolitan area.
new text end

new text begin (i) "Senior housing" means housing intended and operated for occupancy by at least
one senior per unit with at least 80 percent of the units occupied by at least one senior per
unit, and for which there is publication of, and adherence to, policies and procedures that
demonstrate an intent by the owner or manager to provide housing for seniors. Senior
housing may be developed in conjunction with and as a distinct portion of mixed-income
housing developments which use a variety of public or private financing sources. The
senior housing units may include efficiency, one, and two bedroom units in combination
as appropriate to meet market needs.
new text end

new text begin (j) "Aging-in-place service" means facilitation service provided to enable residents
with convenient access to service for nonhealthcare related needs. Facilitation service
may include making referrals, assisting residents in contacting a service provider of the
resident's choice, or facilitating contact with a service provider in an emergency. In the
case of senior housing, an aging-in-place service plan must be evaluated and approved
by the housing authority, economic development authority, public housing authority, or
community development agency that operates in the jurisdiction where the project is
located. This service does not qualify as "housing with services" as defined in section
144D.01, subdivision 4.
new text end

deleted text begin (h) deleted text end new text begin (k) new text end "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2014, section 462A.37, subdivision 2, is amended to read:

Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the
payment made under this section may be pledged. The housing infrastructure bonds
authorized in this subdivision may be issued to fund loans, on terms and conditions the
agency deems appropriate, made for one or more of the following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of
supportive housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or
abandoned housing to be used for affordable rental housing and the costs of new
construction of rental housing on abandoned or foreclosed property where the existing
structures will be demolished or removed;

(3) to finance that portion of the costs of acquisition of property that is attributable to
the land to be leased by community land trusts to low- and moderate-income homebuyers;
deleted text begin and
deleted text end

(4) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in
part, outstanding bonds previously issued by the agency or another government unit to
finance or refinance such costs deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new
construction of senior housing.
new text end

(b) Among comparable proposals for permanent supportive housing, preference
shall be given to permanent supportive housing for veterans and other individuals or
families who:

(1) either have been without a permanent residence for at least 12 months or at
least four times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least
four times in the last three years.

new text begin (c) Among comparable proposals for senior housing, the agency must give priority
to requests that:
new text end

new text begin (1) demonstrate a commitment to maintaining the housing financed as affordable;
new text end

new text begin (2) leverage other sources of funding to finance the project, including the use of
low-income housing tax credits; and
new text end

new text begin (3) provide aging-in-place service to the residents to support independent living.
new text end

new text begin To the extent practicable, the agency shall balance the loans made between projects in the
metropolitan area, as defined in section 473.121, subdivision 2, and projects outside the
metropolitan area. Of the loans made to projects outside the metropolitan area, the agency
shall, to the extent practicable, balance the loans made between projects in counties or
cities with a population of 20,000 or less, as established by the most recent decennial
census, and projects in counties or cities with populations in excess of 20,000.
new text end

Sec. 3.

Minnesota Statutes 2014, section 462A.37, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized
in subdivisions 2, 2a, and 2b, the agency may issue up to $110,000,000 of housing
infrastructure bonds for the purposes stated in subdivision 2, in one or more series to
which the payments made under this section may be pledged.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2015 Supplement, section 462A.37, subdivision 5, is
amended to read:

Subd. 5.

Additional appropriation.

(a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on
each series of bonds issued under subdivisions 2a deleted text begin and deleted text end new text begin , new text end 2b new text begin , and 2c new text end .

(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$6,400,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$800,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.

new text begin (d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure
bonds issued under subdivision 2c remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$....... annually. The amounts necessary to make the transfers are appropriated from the
general fund to the commissioner of management and budget.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The agency may pledge to the payment of the housing infrastructure bonds
the payments to be made by the state under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin MINNESOTA HOUSING FINANCE AGENCY; PUBLIC HOUSING.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $20,000,000 is appropriated from the bond proceeds
fund to the Minnesota Housing Finance Agency for transfer to the housing development
fund to finance the costs of rehabilitation to preserve public housing under Minnesota
Statutes, section 462A.202, subdivision 3a. For purposes of this section, "public
housing" means housing for low-income persons and households financed by the federal
government and owned and operated by the public housing authorities and agencies
formed by cities and counties. Public housing authorities receiving a public housing
assessment composite score of 80 or above are eligible to receive funding. Priority must
be given to proposals that maximize federal or local resources to finance the capital costs.
The priority in Minnesota Statutes, section 462A.202, subdivision 3a, for projects to
increase the supply of affordable housing and the restrictions of Minnesota Statutes,
section 462A.202, subdivision 7, do not apply to this appropriation.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $20,000,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end