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SF 2558

as introduced - 88th Legislature (2013 - 2014) Posted on 08/29/2014 10:24am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to housing finance; changing nonprofit eligibility for funding; amending
Minnesota Statutes 2012, sections 462A.03, by adding a subdivision; 462A.209,
subdivisions 1, 2, 3, by adding a subdivision; 462A.29.

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

Section 1.

Minnesota Statutes 2012, section 462A.03, is amended by adding a
subdivision to read:


new text begin Subd. 24. new text end

new text begin Disadvantaged nonprofit housing organization. new text end

new text begin "Disadvantaged
nonprofit housing organization" means a nonprofit organization that:
new text end

new text begin (1) provides services or administers programs related to housing, homelessness,
homeownership, or tenancy;
new text end

new text begin (2) serves disadvantaged, culturally and linguistically specific, unserved, and
underrepresented populations as a primary constituency for the organization's services and
programs, including but not limited to individuals and families of minority populations,
refugees, and veterans; and
new text end

new text begin (3) has not received equitable, sustainable, or other financial assistance for housing
development or programs and services in a previous fiscal year from a state or federal
agency, including but not limited to the Minnesota Housing Finance Agency.
new text end

Sec. 2.

Minnesota Statutes 2012, section 462A.209, subdivision 1, is amended to read:


Subdivision 1.

Full cycle homeownership services.

The homeownership education,
counseling, and training program shall be used to provide funding to community-based
nonprofit organizationsnew text begin , disadvantaged nonprofit housing organizations,new text end and political
subdivisions to assist them in building the capacity to provide and providing full cycle
homeownership services to low and moderate income home buyers and homeowners,
including seniors. The purpose of the program is to encourage private investment in
affordable housing and collaboration of nonprofit organizations and political subdivisions
with each other and private lenders in providing full cycle homeownership services.

Sec. 3.

Minnesota Statutes 2012, section 462A.209, subdivision 2, is amended to read:


Subd. 2.

deleted text begin Definitiondeleted text end new text begin Definitionsnew text end .

new text begin For purposes of this section, the following terms
have the meanings given:
new text end

new text begin (1) "eligible organization" means a community-based nonprofit organization, a
disadvantaged nonprofit housing organization, or a political subdivision; and
new text end

new text begin (2) new text end "full cycle homeownership services" means supporting eligible home buyers
and home owners through all phases of purchasing and keeping a home, by providing
prepurchase home buyer education; prepurchase counseling and credit repair; prepurchase
and postpurchase property inspection and technical and financial assistance to buyers in
rehabilitating the home; postpurchase counseling, including home equity conversion loan
counseling, mortgage default counseling, postpurchase assistance with home maintenance,
entry cost assistance; foreclosure prevention and assistance; and access to flexible loan
products.

Sec. 4.

Minnesota Statutes 2012, section 462A.209, subdivision 3, is amended to read:


Subd. 3.

Eligibility.

new text begin (a) new text end The agency shall establish eligibility criteria for nonprofit
organizations and political subdivisions to receive funding under this section. The
eligibility criteria must require the nonprofit organization or political subdivision to
provide, to build capacity to provide, or support full cycle homeownership services for
eligible home buyers.

new text begin (b)new text end The agency may fund a nonprofit organization or political subdivision that will
provide full cycle homeownership services by coordinating with one or more other
organizations that will provide specific components of full cycle homeownership services.
The agency may make exceptions to providing all components of full cycle lending if
justified by the application. If there are more applicants requesting funding than there are
funds available, new text begin except for disadvantaged nonprofit housing organizations, new text end the agency
shall award the funds on a competitive basis and also assure an equitable geographic
distribution of the available funds.

new text begin (c)new text end The eligibility criteria must require the nonprofit organization or political
subdivision to have a demonstrated involvement in the local community and to target the
housing affordability needs of the local community or to have demonstrated experience
with counseling older persons on housing, or both.

new text begin (d)new text end The eligibility criteria may include a requirement for specific training provided
by designated state or national entitiesnew text begin who provide certification or accreditation
services
new text end . The agency deleted text begin maydeleted text end new text begin shallnew text end also include an eligibility criteria that requiresnew text begin uniform
application of the same
new text end counselor certification or organizational accreditation deleted text begin by specified
organizations which provide certification or accreditation services
deleted text end new text begin provided by a state or
national entity, and shall not require an additional state entity course, certification, or
accreditation to replace or be added onto a designated national entity certification. The
agency shall administer the training requirements and certification requirements in this
paragraph equally and make them accessible to all nonprofits and political subdivisions
new text end .

new text begin (e) The agency shall engage in new text end partnerships and deleted text begin collaborationdeleted text end new text begin collaborations, and
development of policies and rules
new text end with innovative, grass roots, deleted text begin ordeleted text end community-based
initiatives deleted text begin shall be encourageddeleted text end new text begin and organizations, including but not limited to
disadvantaged nonprofit service providers and related stakeholders
new text end . The agency shall give
priority to nonprofit organizations and political subdivisions that have funding from other
sources for full cycle homeownership servicesnew text begin , except that funding requirements are
waived for disadvantaged nonprofit service providers
new text end . Applicants for funds under section
462A.057 may also apply funds under this program.

new text begin (f) The agency shall prioritize disadvantaged nonprofit service providers when
determining funding and capacity-building for housing development, programs, and
services under this section. A disadvantaged nonprofit service provider means a nonprofit
organization that:
new text end

new text begin (1) provides programs and services that are supportive of or related to housing,
homelessness, homeownership, or tenancy and is in capacity-building in full-cycle
homeownership services or housing development;
new text end

new text begin (2) as a primary constituency for the organization's services and programs,
serves the unserved and underrepresented populations, including but not limited to the
disadvantaged, minority populations, victims of war, new Americans, those with culturally
and linguistically specific needs, and veterans, including veterans with minority special
forces and others facing disparities; and
new text end

new text begin (3) has not received equitable, sustainable, or other financial assistance for housing
development or programs and services in a previous fiscal year from a state or federal
agency, including but not limited to the Minnesota Housing Finance Agency.
new text end

new text begin The agency shall provide assistance to disadvantaged nonprofit service providers that
seek to apply for funds under this section, including: technical assistance and training in
the application process and requirements; assistance in development of the necessary
plans and programming; capacity-building for acquiring applicable funds from other
sources, including but not limited to becoming a federally approved agency, such as
a HUD-approved agency for HUD funds; and waiver of any education, training, or
participant fees.
new text end

Sec. 5.

Minnesota Statutes 2012, section 462A.209, is amended by adding a
subdivision to read:


new text begin Subd. 5a. new text end

new text begin Grant awards. new text end

new text begin Notwithstanding subdivision 3, paragraph (d), of the
funds available under this section the agency shall designate and provide a portion to
disadvantaged nonprofit housing organizations for capacity building and assistance
in obtaining specific training, counselor certification, or organizational accreditation
necessary for the organization to apply for funds under this chapter.
new text end

Sec. 6.

Minnesota Statutes 2012, section 462A.29, is amended to read:


462A.29 INTERAGENCY COORDINATION ON HOMELESSNESS.

new text begin (a) new text end The agency shall coordinate services and activities of all state agencies new text begin and
minority nonprofits
new text end relating to homelessness. The agency shall coordinate an investigation
and review of the current system of service delivery to the homeless. The agency
may request assistance from other agencies of state governmentnew text begin , including culturally
appropriate nonprofit service providers,
new text end as needed for the execution of the responsibilities
under this section and the other agencies shall furnish the assistance upon request.

new text begin (b) The Interagency Council on Homelessness established to assist with the execution
of the duties of this section shall give priority to reducing disparities and barriers and
improving the coordination of services and activities that reduce the number of children
and military veterans, including Asian and Pacific Americans and Asian American special
forces veterans, who experience homelessness or are at risk of homelessness. The council
shall also prioritize improving the economic, housing, health, social, and education
outcomes for children and military veterans, including Asian American special forces
veterans, who experience homelessness or are at risk of homelessness.
new text end

new text begin (c) For the purposes of this section, "Asian American special forces veteran" means
person who is an American citizen from Southeast Asia including Hmong or Lao who was
recruited, trained, directed, supported, and paid by the United States Central Intelligence
Agency (CIA) or other government at any time during the period of the Vietnam War, as a
soldier or other paramilitary agent of the CIA's Asian special forces or units including
the Air Force, Army, or Navy armed forces and special guerilla units, as verified in any
reasonable manner by the appropriate state or federal authorities.
new text end