SF 3273

as introduced - 86th Legislature (2009 - 2010) Posted on 03/16/2010 09:51am

A bill for an act
relating to housing; authorizing the sale and issuance of challenge program bonds
for affordable housing and permanent supportive housing purposes; amending
Minnesota Statutes 2008, section 462A.21, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 462A.

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

Section 1.

Minnesota Statutes 2008, section 462A.21, is amended by adding a
subdivision to read:

new text begin Subd. 33. new text end

new text begin Challenge program bond account. new text end

new text begin The agency may establish a
challenge program bond account as a separate account within the housing development
fund. Proceeds of challenge program bonds and payments made by the state under
section 462A.40 may be credited to the account. The agency may transfer the proceeds
of challenge program housing bonds to another account within the housing development
fund that it determines appropriate to accomplish the purposes for which the bonds are
authorized under section 462A.40.
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. 2.

new text begin [462A.40] CHALLENGE PROGRAM BONDS; AUTHORIZATION AND
STANDING APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Challenge program bonds" means a bond, note, or other evidence of obligation
of the agency issued and sold for the purposes specified in subdivision 2.
new text end

new text begin (c) "Debt service" means the amount payable in any fiscal year of principal,
premium, if any, and interest on challenge program bonds and the fees, charges, and
expenses related to the bonds.
new text end

new text begin Subd. 2. new text end

new text begin Authority. new text end

new text begin The agency may issue up to $30,000,000 of challenge program
bonds in one or more series to which the payments made under this section may be
pledged. The challenge program bonds authorized in this subdivision must be issued
for the purpose of making grants and loans, on terms and conditions the agency deems
appropriate:
new text end

new text begin (1) to projects meeting the requirements of the economic development and housing
challenge program under section 462A.33; or
new text end

new text begin (2) to neighborhood land trusts authorized under section 46A.31 for land acquisition.
new text end

new text begin Subd. 3. new text end

new text begin No full faith and credit. new text end

new text begin The challenge program bonds are not public debt
of the state, and the full faith, credit, and taxing powers of the state are not pledged to the
payment of the challenge program bonds or to any payment that the state agrees to make
under this section. The bonds must contain a conspicuous statement to that effect.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation; payment to agency or trustee. new text end

new text begin (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 subdivision 2.
new text end

new text begin (b) Each July 15, beginning in 2010 and through 2032, if any challenge program
bonds issued under subdivision 2 remain outstanding, the commissioner of management
and budget must transfer to the challenge program bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$2,400,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.
new text end

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