SF 2619

as introduced - 87th Legislature (2011 - 2012) Posted on 04/28/2012 03:04pm

A bill for an act
relating to jobs; creating jobs through rehabilitation and construction of
affordable housing, green energy investments in public buildings, and capital
improvements at institutions of higher education; authorizing nonprofit housing
bonds; authorizing the sale and issuance of state bonds; appropriating money;
amending Minnesota Statutes 2010, section 462A.36, by adding subdivisions.

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

ARTICLE 1

STATEMENT OF PURPOSE

Section 1. new text begin FINDINGS AND PURPOSE.
new text end

new text begin Investments in Minnesota's public infrastructure have been falling behind the need,
and the state has a large backlog of unmet maintenance and repair of existing facilities. At
the same time, Minnesota has a high unemployment rate, particularly among construction
workers.
new text end

new text begin During the Great Depression, the federal government recognized the wisdom of
addressing public infrastructure needs and high unemployment rates by putting jobless
workers to work building with roads, bridges, schools, parks and recreational facilities,
courthouses, dams, and other public facilities.
new text end

new text begin Learning from history, Minnesota could stimulate the state economy and put
thousands of construction workers back to work building and rehabilitating public
infrastructure. Making these investments at this time of low interest rates and high
unemployment would cost less now than it will in the future, and it would also save the
state money through energy efficiency and renewable energy.
new text end

new text begin In addition, giving Minnesota schools, colleges, and universities first rate facilities
will help Minnesota's education system thrive.
new text end

new text begin Public funds can be used to create construction jobs, but those projects should serve
a public purpose, constructing public facilities, not subsidizing shopping malls or other
private businesses. Certainly there is no shortage of public needs.
new text end

new text begin Currently, there is more than a $350,000,000 backlog of rehabilitation and
maintenance on public housing for seniors and low income Minnesotans. The failure
to properly maintain this housing infrastructure will cost much more in the future if
the buildings deteriorate to the point that they need to be demolished and replaced. In
addition, there is a severe shortage of affordable housing. Consequently this legislation
would provide funding for rehabilitation public housing and assist local governments
and nonprofits in acquiring vacant and foreclosed residential property and constructing
or renovating affordable rental housing.
new text end

new text begin The University of Minnesota currently has a backlog of $949,000,000 in deferred
maintenance and asset preservation projects, and the Minnesota State Colleges and
Universities have a backlog of at least $344,000,000. This legislation would provide the
funds to address those needs now, when the costs are lower and construction workers
are seeking work.
new text end

new text begin For schools and other government facilities, funding would be available not only for
much needed asset preservation, but also to significantly boost initiatives to make energy
efficiency and renewable energy investments in those facilities.
new text end

new text begin Consequently this legislation would put thousands of construction workers to
work, addressing the needs of one of the hardest hit sectors of the economy. And these
jobs would provide several additional benefits: they would improve our school and
educational facilities; they would save money and improve the environment by moving
Minnesota closer to a sustainable energy economy; they would improve neighborhoods
and communities, addressing blight and the problems caused by vacant property; and they
would help address the crisis-level lack of affordable housing.
new text end

ARTICLE 2

AFFORDABLE HOUSING

Section 1.

Minnesota Statutes 2010, section 462A.36, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Authorization for other purposes. new text end

new text begin The agency may issue up to
$190,000,000 of nonprofit housing bonds in one or more series to which the payments
made under this section may be pledged. The nonprofit housing bonds authorized in this
subdivision may be issued for the purpose of making loans, on terms and conditions the
agency deems appropriate, to local governments and 501(c)(3) nonprofit organizations
as follows:
new text end

new text begin (1) up to $100,000,000 to acquire land and to predesign, design, construct, renovate,
furnish, and equip affordable rental housing;
new text end

new text begin (2) up to $50,000,000 for modification of existing low-income rental housing for
compliance with Americans with Disabilities Act requirements; and
new text end

new text begin (3) up to $40,000,000 to acquire vacant or foreclosed residential property, up to
$20,000,000 of which must be used for the purpose of making loans to a neighborhood
land trust authorized under section 462A.31, to acquire land for affordable housing, and
the remainder of which must be used to rehabilitate low-income rental housing.
new text end

Sec. 2.

Minnesota Statutes 2010, section 462A.36, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Appropriation for other purposes; payment. new text end

new text begin (a) The agency must certify
annually to the commissioner of finance the actual amount of annual debt service on each
series of bonds issued under subdivision 2a.
new text end

new text begin (b) Each July 15, beginning in 2013 and through 2032, if any nonprofit housing
bonds issued under subdivision 2a remain outstanding, the commissioner of finance
must transfer to the nonprofit housing bond account established under section 462A.21,
subdivision 32, the amount certified under paragraph (a), not to exceed $16,000,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of finance.
new text end

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

Sec. 3. new text begin ENERGY EFFICIENCY.
new text end

new text begin Projects funded with nonprofit housing bonds under Minnesota Statutes, section
462A.36, and with bonds authorized in section 4, must seek to improve energy efficiency
using current best practices and utilize, to the extent practicable, renewable energy sources
to generate energy used in those buildings.
new text end

Sec. 4. new text begin PUBLIC HOUSING.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $350,000,000 is appropriated from the bond
proceeds fund to the Housing Finance Agency for loans or grants for publicly owned
permanent rental housing under Minnesota Statutes, section 462A.202, subdivision 3a.
Eligible public housing authorities or agencies must have a public housing assessment
system rating of standard or above. Priority must be given to proposals that maximize
federal or local resources to finance the capital costs. Minnesota Statutes, section 16A.642,
applies to the amounts transferred from the date of the original 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 subdivision 1 from
the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $350,000,000 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

Sec. 5. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 3

GREEN ENERGY INVESTMENTS

Section 1. new text begin RESIDENTIAL ENERGY-EFFICIENCY PROGRAMS;
APPROPRIATION.
new text end

new text begin $10,000,000 in fiscal year 2013 is appropriated from the general fund to
the Minnesota Housing Finance Agency to continue and enhance the residential
energy-efficiency programs and activities for Minnesota homeowners and renters.
new text end

Sec. 2. new text begin LOCAL GOVERNMENT ENERGY IMPROVEMENTS.
new text end

new text begin $10,000,000 in fiscal year 2013 is appropriated to the Department of Commerce to
be deposited into an escrow account to be used as a loan-loss reserve pool supporting
energy improvement finance programs as defined in Minnesota Statutes, section 216C.436.
new text end

Sec. 3. new text begin LOCAL GOVERNMENT AND SCHOOL DISTRICT RENOVATIONS;
APPROPRIATION.
new text end

new text begin (a) $25,000,000 in fiscal year 2013 is appropriated from the general fund to the
commissioner of commerce for grants to local governments and school districts to make
energy efficiency improvements in existing local government and school district facilities
through the public building enhanced energy efficiency program under Minnesota Statutes,
section 216C.43. These grants must be coordinated with other available financing
programs.
new text end

new text begin (b) The commissioner shall prioritize lighting upgrades, energy-efficient windows,
energy recommissioning, and other cost-effective energy projects that are ready for
immediate implementation.
new text end

new text begin (c) The commissioner may require a local government or school district, as a
condition of receiving a grant, to commit to implement future activities, including but not
limited to staff training, that are designed to create additional energy or operating savings
to the local government.
new text end

new text begin (d) The commissioner shall coordinate with the Department of Education to
prioritize school district projects for funding under this section, consistent with the
principles of statewide geographic distribution of projects, optimized energy savings, and
an improved learning environment for schoolchildren.
new text end

new text begin (e) As an incentive to promote energy efficiency and renewable energy the
commissioner shall forgive ten percent of loans made under this section.
new text end

Sec. 4. new text begin RENEWABLE ENERGY GRANT PROGRAM; APPROPRIATION.
new text end

new text begin $100,000,000 in fiscal year 2013 is appropriated from the general fund to the
commissioner of commerce for grants to local units of government to finance the purchase
and installation of renewable energy systems and geothermal heating and cooling systems
under the terms spelled out in Laws 2009, chapter 138, article 3, section 5, provided all
cost-effective energy efficiency measures are planned or already implemented.
new text end

Sec. 5. new text begin STATE GOVERNMENT BUILDING RENOVATIONS;
APPROPRIATION.
new text end

new text begin (a) $15,000,000 in fiscal year 2013 is appropriated from the general fund to the
commissioner of administration to continue and enhance state government building
energy-efficiency improvement programs and activities. $500,000 of this amount is
for energy-efficiency improvements to the State Capitol and State Office Building.
Energy-efficiency improvements to the State Capitol and State Office Building shall
include, but are not limited to, motion sensor detection devices for lighting, simple,
low-cost components, and communication of energy-saving strategies to building
tenants. Priority must be given to lighting upgrades, window repair and replacement
with energy-efficient windows, energy recommissioning, and other cost-effective energy
projects that are ready for immediate implementation.
new text end

new text begin (b) In addition to other uses, funds may be used to advance public building enhanced
energy efficiency program projects under Minnesota Statutes, section 16B.322, and for
grants for a portion of costs incurred by state agencies in implementing energy efficiency
improvements not part of that program.
new text end

new text begin (c) Funds may be used to develop a system and procedures to set energy-reduction
goals for state buildings, to automate utility bill data and analysis, to develop a system for
reporting monthly energy use relative to these state building energy-reduction goals, and
to install individual metering devices for separate buildings.
new text end

new text begin (d) The commissioner of administration may require a state agency, as a condition
of receiving funds under this section, to commit to implement future energy-savings
activities, including but not limited to staff training, that are designed to create additional
energy or operating savings to the state agency.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 4

HIGHER EDUCATION

Section 1. new text begin APPROPRIATION; MINNESOTA STATE COLLEGES AND
UNIVERSITIES.
new text end

new text begin $344,000,000 is appropriated to the board of trustees of the Minnesota State Colleges
and Universities for the purposes specified in Minnesota Statutes, section 135A.046.
new text end

Sec. 2. new text begin APPROPRIATION; UNIVERSITY OF MINNESOTA.
new text end

new text begin $949,000,000 is appropriated from the bond proceeds fund to the board of regents of
the University of Minnesota to be spent in accordance with Minnesota Statutes, section
135A.046.
new text end

Sec. 3. new text begin BOND SALE.
new text end

new text begin To provide the money appropriated in sections 1 and 2 from the bond proceeds
fund, the commissioner of management and budget shall sell and issue bonds of the state
in an amount up to $1,293,000,000 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

Sec. 4. new text begin EFFECTIVE DATE.
new text end

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