SF 468

as introduced - 89th Legislature (2015 - 2016) Posted on 08/20/2015 10:06am

A bill for an act
relating to workforce housing; establishing a workforce housing grants program;
requiring reports; appropriating money; amending Laws 2014, chapter 308,
article 6, section 14, subdivision 5; proposing coding for new law in Minnesota
Statutes, chapter 116J.

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

Section 1.

new text begin [116J.549] WORKFORCE HOUSING GRANTS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A workforce housing grants program is established
to award grants to qualified cities to be used for qualified expenditures related to the
construction of or financing for market rate residential rental properties.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "commissioner" means the commissioner of employment and economic
development;
new text end

new text begin (2) "local unit of government" means a home rule charter or statutory city or county;
new text end

new text begin (3) "qualified city" means a home rule charter or statutory city located outside the
metropolitan area;
new text end

new text begin (4) "qualified expenditure" means expenditures for the acquisition of property,
construction of improvements, provisions of loans or subsidies, grants, interest rate
subsidies, public infrastructure, and related financing costs for market rate residential
rental properties;
new text end

new text begin (5) "market rate residential rental properties" means properties that are rented at
market value and excludes: (i) properties constructed with financial assistance requiring
the property to be occupied by residents that meet income limits under federal or state
law of initial occupancy; and (ii) properties constructed with federal, state, or local flood
recovery assistance, regardless of whether that assistance imposed income limits as a
condition of receiving assistance; and
new text end

new text begin (6) "metropolitan area" means the area of Minnesota located outside the
seven-county metropolitan area as defined by section 473.121, subdivision 2.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin The commissioner shall develop forms and procedures
for soliciting and reviewing application for grants under this section. At a minimum, a
city must include in its application a resolution of its governing body certifying that the
matching amount as required under this section is available and committed.
new text end

new text begin Subd. 4. new text end

new text begin Program requirements. new text end

new text begin The commissioner must not award a grant to a
city under this section until the following determinations are made:
new text end

new text begin (1) the average vacancy rate for rental housing located in the city, and in any city
located within 15 miles or less of the boundaries of the city, has been three percent or less
for at least the immediately preceding two-year period;
new text end

new text begin (2) one or more businesses located in the city, or within 15 miles of the city, that
employ a minimum of 20 full-time equivalent employees in aggregate have provided
a written statement to the city indicating that the lack of available rental housing has
impeded their ability to recruit and hire employees;
new text end

new text begin (3) the city has a population exceeding 1,500;
new text end

new text begin (4) the city is located outside the metropolitan area; and
new text end

new text begin (5) the city certifies that the grants will be used for qualified expenditures for the
development of rental housing to serve employees of businesses located in the city
or surrounding area.
new text end

new text begin Subd. 5. new text end

new text begin Allocation. new text end

new text begin The amount of a grant may not exceed 25 percent of the rental
housing development project cost. The commissioner shall not award a grant to a city
without certification by the city that the amount of the grant shall be matched by a local
unit of government, business, or nonprofit organization.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin Beginning January 15, 2016, the commissioner must annually
submit a report to the chairs and ranking minority members of the senate and house of
representatives committees having jurisdiction over taxes and workforce development
specifying the projects that received grants under this section and the specific purposes for
which the grant funds were used.
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.

Laws 2014, chapter 308, article 6, section 14, subdivision 5, is amended to read:

Subd. 5.

Allocation.

The amount of a grant may not exceed the lesser of deleted text begin $400,000 deleted text end
new text begin $1,000,000 new text end or deleted text begin ten deleted text end new text begin 25 new text end percent of the rental housing development project cost. The
commissioner shall not award a grant to a city without certification by the city that the
amount of the grant shall be matched by a local unit of government, business, or nonprofit
organization.

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $5,000,000 in fiscal year 2016 and $5,000,000 in fiscal year 2017 are appropriated
from the general fund to the commissioner of employment and economic development to
make grants under the workforce housing grants program in Minnesota Statutes, section
116J.549.
new text end