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Minnesota Legislature

Office of the Revisor of Statutes

HF 2542

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/07/2019 09:06am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/14/2019
1st Engrossment Posted on 05/02/2019
2nd Engrossment Posted on 05/07/2019
Division Engrossments
1st Division Engrossment Posted on 03/29/2019

Current Version - 2nd Engrossment

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A bill for an act
relating to housing; modifying the Minnesota Bond Allocation Act relating to
housing bonds; modifying manufactured home park lot rentals and sales; modifying
Housing Finance Agency tax credit allocations; allowing for expungement of
certain eviction cases; mandating certain terms in residential lease agreements;
classifying certain eviction data; expanding housing improvement areas; amending
Minnesota Statutes 2018, sections 326B.815, subdivision 1; 327.31, by adding a
subdivision; 327B.041; 327C.01, by adding a subdivision; 327C.095, subdivisions
1, 2, 3, 4, 6, 7, 9, 11, 12, 13, by adding a subdivision; 428A.11, subdivisions 4, 6;
462A.05, by adding a subdivision; 462A.2035, subdivisions 1a, 1b; 462A.222,
subdivision 3; 474A.02, by adding subdivisions; 474A.03, subdivision 1; 474A.04,
subdivision 1a; 474A.061, subdivisions 1, 2a, 2b, 2c, 4, by adding subdivisions;
474A.062; 474A.091, subdivisions 1, 2, 3, 5, by adding a subdivision; 474A.131,
subdivisions 1, 1b; 474A.14; 474A.21; 484.014, subdivisions 2, 3; 504B.111;
504B.206, subdivision 3; 504B.321, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapters 327; 504B; repealing Minnesota
Statutes 2018, section 327C.095, subdivision 8.

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

Section 1.

Minnesota Statutes 2018, section 326B.815, subdivision 1, is amended to read:


Subdivision 1.

Fees.

(a) For the purposes of calculating fees under section 326B.092,
an initial or renewed residential contractor, residential remodeler, or residential roofer license
is a business license. Notwithstanding section 326B.092, the licensing fee for manufactured
home installers under section 327B.041 is deleted text begin$300deleted text endnew text begin $180new text end for a three-year period.

(b) All initial and renewal licenses, except for manufactured home installer licenses,
shall be effective for two years and shall expire on March 31 of the year after the year in
which the application is made.

(c) The commissioner shall in a manner determined by the commissioner, without the
need for any rulemaking under chapter 14, phase in the renewal of residential contractor,
residential remodeler, and residential roofer licenses from one year to two years. By June
30, 2011, all renewed residential contractor, residential remodeler, and residential roofer
licenses shall be two-year licenses.

Sec. 2.

Minnesota Statutes 2018, section 327.31, is amended by adding a subdivision to
read:


new text begin Subd. 23. new text end

new text begin Modular home. new text end

new text begin For the purposes of this section, "modular home" means a
single-family dwelling constructed in accordance with applicable standards adopted in
Minnesota Rules, chapter 1360 or 1361, and attached to a foundation designed to the State
Building Code.
new text end

Sec. 3.

new text begin [327.335] PLACEMENT OF MODULAR HOMES.
new text end

new text begin A modular home may be placed in a manufactured home park as defined in section
327.14, subdivision 3. A modular home placed in a manufactured home park is a
manufactured home for purposes of chapters 327C and 504B and all rights, obligations, and
duties under those chapters apply. A modular home may not be placed in a manufactured
home park without prior written approval of the park owner. Nothing in this section shall
be construed to inhibit the application of zoning, subdivision, architectural, or esthetic
requirements pursuant to chapters 394 and 462 that otherwise apply to manufactured homes
and manufactured home parks. A modular home placed in a manufactured home park under
this section shall be assessed and taxed as a manufactured home.
new text end

Sec. 4.

Minnesota Statutes 2018, section 327B.041, is amended to read:


327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the fees in section 326B.092 and
the requirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements
of sections 326B.0981, 326B.099, and 326B.821, but are subject to the continuing education
requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured
home installers shall be satisfied by successful completion of a written examination
administered and developed specifically for the examination of manufactured home installers.
The examination must be administered and developed by the commissioner. The
commissioner and the state building official shall seek advice on the grading, monitoring,
and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not
charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt
from licensure under sections 326B.802 to 326B.885;

(5) the exemption under section 326B.805, subdivision 6, clause (5), does not apply;
and

(6) manufactured home installers are not subject to the contractor recovery fund in
section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a
manufactured home installer for any individual who holds an unexpired license or certificate
issued by any other state or other United States jurisdiction if the licensing requirements of
that jurisdiction meet or exceed the corresponding licensing requirements of the department
and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. deleted text beginFor the
purposes of calculating fees under section 326B.092, licensure as a manufactured home
installer is a business license.
deleted text end

Sec. 5.

Minnesota Statutes 2018, section 327C.01, is amended by adding a subdivision to
read:


new text begin Subd. 8a. new text end

new text begin Representative acting on behalf of residents. new text end

new text begin "Representative acting on
behalf of residents" means a representative who is authorized to represent residents in the
purchase of property for the purposes of this chapter, and has gained that authorization by
obtaining the signature of support from at least one resident who is a signatory to the home's
lot lease agreement as defined by section 327C.01, subdivision 9, from at least 51 percent
of the occupied homes in a manufactured home park. The signature of a resident who is a
signatory to the home's lot lease agreement asserting that they are a resident of that
manufactured home park shall be presumptive evidence of the claim that the representative
is authorized to act on behalf of the resident and shall be exclusive to only one representative
acting on behalf of residents.
new text end

Sec. 6.

Minnesota Statutes 2018, section 327C.095, subdivision 1, is amended to read:


Subdivision 1.

Conversion of use; minimum notice.

new text begin(a) new text endAt least deleted text beginninedeleted text endnew text begin 12new text end months before
the conversion of all or a portion of a manufactured home park to another use, or before
closure of a manufactured home park or cessation of use of the land as a manufactured home
park, the park owner must prepare a closure statement and provide a copy to the
commissioners of health and the housing finance agency, the local planning agency, and a
resident of each manufactured home where the residential use is being converted. The
closure statement must include the following language in a font no smaller than 14 point:
"YOU MAY BE ENTITLED TO COMPENSATION FROM THE MINNESOTA
MANUFACTURED HOME RELOCATION TRUST FUND ADMINISTERED BY THE
MINNESOTA HOUSING FINANCE AGENCY." A resident may not be required to vacate
until deleted text begin60deleted text endnew text begin 90new text end days after the conclusion of the public hearing required under subdivision 4. If
a lot is available in another section of the park that will continue to be operated as a park,
the park owner must allow the resident to relocate the home to that lot unless the home,
because of its size or local ordinance, is not compatible with that lot.

new text begin (b) Closure statements issued more than 24 months prior to the park closure must contain
a closure date. If the closure does not take place within 24 months and the original statement
does not contain a closure date, the statement must be reissued to the commissioners of
health and the Housing Finance Agency, the local planning agency, and a resident of each
manufactured home where the residential use is being converted.
new text end

Sec. 7.

Minnesota Statutes 2018, section 327C.095, subdivision 2, is amended to read:


Subd. 2.

Notice of hearing; proposed change in land use.

If the planned conversion
or cessation of operation requires a variance or zoning change, the deleted text beginmunicipalitydeleted text endnew text begin local
government authority
new text end must mail a notice at least ten days before the hearing to a resident
of each manufactured home in the park stating the time, place, and purpose of the public
hearing. The park owner shall provide the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end with a
list of the names and addresses of at least one resident of each manufactured home in the
park at the time application is made for a variance or zoning change.

Sec. 8.

Minnesota Statutes 2018, section 327C.095, subdivision 3, is amended to read:


Subd. 3.

Closure statement.

Upon receipt of the closure statement from the park owner,
the local planning agency shall submit the closure statement to the governing body of the
deleted text begin municipalitydeleted text endnew text begin local government authoritynew text end and request the governing body to schedule a public
hearing. The deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end must mail a notice at least ten days
before the hearing to a resident of each manufactured home in the park stating the time,
place, and purpose of the public hearing. The park owner shall provide the deleted text beginmunicipalitydeleted text endnew text begin
local government authority
new text end with a list of the names and addresses of at least one resident
of each manufactured home in the park at the time the closure statement is submitted to the
local planning agency.

Sec. 9.

Minnesota Statutes 2018, section 327C.095, subdivision 4, is amended to read:


Subd. 4.

Public hearing; relocation compensation; neutral third party.

new text begin(a) new text endThe
governing body of the affected deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end shall hold a public
hearing to review the closure statement and any impact that the park closing may have on
the displaced residents and the park owner. At the time of, and in the notice for, the public
hearing, displaced residents must be informed that they may be eligible for payments from
the Minnesota manufactured home relocation trust fund under section 462A.35 as
compensation for reasonable relocation costs under subdivision 13, paragraphs (a) and (e).

new text begin (b) new text endThe governing body of the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end may also require
that other parties, including the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end, but excluding the
park owner or its purchaser, involved in the park closing provide additional compensation
to residents to mitigate the adverse financial impact of the park closing upon the residents.

new text begin (c) new text endAt the public hearing, the deleted text beginmunicipalitydeleted text endnew text begin local government authoritynew text end shall appoint a
neutral third party, to be agreed upon by both the manufactured home park owner and
manufactured home owners, whose hourly cost must be reasonable and paid from the
Minnesota manufactured home relocation trust fund. The neutral third party shall act as a
paymaster and arbitrator, with decision-making authority to resolve any questions or disputes
regarding any contributions or disbursements to and from the Minnesota manufactured
home relocation trust fund by either the manufactured home park owner or the manufactured
home owners. If the parties cannot agree on a neutral third party, the deleted text beginmunicipality willdeleted text endnew text begin local
government authority shall
new text end make a determination.

new text begin (d) At the public hearing, the governing body of the local government authority shall
determine if any ordinance was in effect on May 26, 2007, that would provide compensation
to displaced residents and provide this information to the third party neutral to determine
the applicable amount of compensation under subdivision 13, paragraph (f).
new text end

Sec. 10.

Minnesota Statutes 2018, section 327C.095, subdivision 6, is amended to read:


Subd. 6.

Intent to convert use of park at time of purchase.

new text begin(a)new text end Before the execution
of an agreement to purchase a manufactured home park, the purchaser must notify the park
owner, in writing, if the purchaser intends to close the manufactured home park or convert
it to another use within one year of the execution of the agreement.new text begin If so,new text end the park owner
shall provide a resident of each manufactured home with a 45-day written notice of the
purchaser's intent to close the park or convert it to another usenew text begin and may not enter into a
purchase agreement for the sale of the park other than with a representative acting on behalf
of residents, until the 45 days have expired
new text end. The notice must state that the park owner willnew text begin
promptly
new text end provide information on the cash price and the terms and conditions of the
purchaser's offer to residents requesting the information. The notice must be sent by first
class mail to a resident of each manufactured home in the park new text beginand made available in
alternative formats or translations if requested by a resident and the request is a reasonable
accommodation due to a disability of an adult resident or because there is not an adult
resident who is able to speak the language the notice is provided in
new text end. The notice period begins
on the postmark date affixed to the notice and ends 45 days after it begins. During the notice
period required in this subdivision, deleted text beginthe owners of at least 51 percent of the manufactured
homes in the park or a nonprofit organization which has the written permission of the owners
of at least 51 percent of the manufactured homes in the park to represent them in the
acquisition of the park
deleted text endnew text begin a representative acting on behalf of residentsnew text end shall have the right tonew text begin
make an offer to
new text end meet the cash price and deleted text beginexecute an agreement to purchase the park for the
purposes of keeping the park as a manufactured housing community
deleted text endnew text begin to agree to material
terms and conditions set forth in the purchaser's offer
new text endnew text beginand to execute an agreement to purchase
the park for the purposes of keeping the park as a manufactured housing community
new text end. The
park owner must deleted text beginaccept the offer if it meetsdeleted text endnew text begin in good faith negotiate a purchase agreement
meeting
new text end the cash price and the same terms and conditions set forth in the purchaser's offer
except that the seller is not obligated to provide owner financing. For purposes of this
section, cash price means the cash price offer or equivalent cash offer as defined in section
500.245, subdivision 1, paragraph (d).new text begin The purchase agreement must permit the representative
a commercially reasonable due diligence period with access by the representative to all
information reasonably necessary to make an informed decision regarding the purchase.
The representative may be required to enter into a confidentiality agreement regarding the
information.
new text end

new text begin (b) A representative acting on behalf of residents must provide ten percent of the offer
price as earnest money upon gaining the required number of signatures to represent the
residents in the purchase of a manufactured home park. The earnest money is refundable
after six months; however, the earnest money may become nonrefundable if the representative
acting on behalf of residents is unable to complete the purchase, and the original purchaser
withdraws the offer during the 45-day period in paragraph (a), and the manufactured home
park is sold to another purchaser for a lower price within six months of the notice to residents
in paragraph (a), then the park owner will be compensated from the earnest money for the
difference between the offer made by the original purchaser and the actual lower purchase
price.
new text end

new text begin (c) In the event of a sale to a representative acting on behalf of residents, the
representative must certify to the commissioner of commerce that the property will be
preserved as a manufactured home park for ten years from the date of the sale.
new text end

Sec. 11.

Minnesota Statutes 2018, section 327C.095, subdivision 7, is amended to read:


Subd. 7.

deleted text beginIntent to convertdeleted text endnew text begin Conversion ofnew text end use of park after purchase.

If the deleted text beginpurchaserdeleted text end
new text begin residentsnew text end of a manufactured home park deleted text begindecides to convert the park to another use within
one year after the purchase of the park, the purchaser must offer the park for purchase by
the residents of the park
deleted text endnew text begin have not been provided the written notice of intent to close the park
required by subdivision 6, the purchaser may not provide residents with the notice required
by subdivision 1 until 12 months after the date of purchase
new text end. For purposes of this subdivision,
the date of purchase is the date of the transfer of the title to the purchaser. deleted text beginThe purchaser
must provide a resident of each manufactured home with a written notice of the intent to
close the park and all of the owners of at least 51 percent of the manufactured homes in the
park or a nonprofit organization which has the written permission of the owners of at least
51 percent of the manufactured homes in the park to represent them in the acquisition of
the park shall have 45 days to execute an agreement for the purchase of the park at a cash
price equal to the original purchase price paid by the purchaser plus any documented expenses
relating to the acquisition and improvement of the park property, together with any increase
in value due to appreciation of the park. The purchaser must execute the purchase agreement
at the price specified in this subdivision and pay the cash price within 90 days of the date
of the purchase agreement. The notice must be sent by first class mail to a resident of each
manufactured home in the park. The notice period begins on the postmark date affixed to
the notice and ends 45 days after it begins.
deleted text end

Sec. 12.

Minnesota Statutes 2018, section 327C.095, subdivision 9, is amended to read:


Subd. 9.

Effect of noncompliance.

If a manufactured home park is finally sold or
converted to another use in violation of subdivision 6 or 7, the residents deleted text begindo not have any
continuing right to purchase the park as a result of that sale or conversion. A violation of
subdivision 6 or 7 is subject to
deleted text endnew text begin have a right to any remedy provided innew text end section 8.31deleted text begin, exceptdeleted text end
deleted text begin that relief shall be limited so that questions of marketability of title shall not be affecteddeleted text end.

Sec. 13.

Minnesota Statutes 2018, section 327C.095, subdivision 11, is amended to read:


Subd. 11.

Affidavit of compliance.

After a park is sold, a deleted text beginpark owner or other person
with personal knowledge
deleted text endnew text begin bona fide purchaser acting in good faithnew text end may record an affidavit
with the county recorder or registrar of titles in the county in which the park is located
certifying compliance with subdivision 6 deleted text beginor 7deleted text end or that deleted text beginsubdivisionsdeleted text endnew text begin subdivisionnew text end 6 deleted text beginand 7 aredeleted text endnew text begin
is
new text end not applicable. The affidavit may be used as deleted text beginproof of the facts stated in the affidavit. A
person acquiring an interest in a park or a title insurer or attorney who prepares, furnishes,
or examines evidence of title may rely on the truth and accuracy of statements made in the
affidavit and is not required to inquire further as to the park owner's compliance with
subdivisions 6 and 7. When an affidavit is recorded, the right to purchase provided under
subdivisions 6 and 7 terminate, and if registered property, the registrar of titles shall delete
the memorials of the notice and affidavit from future certificates of title
deleted text endnew text begin presumptive evidence
of compliance
new text end.

Sec. 14.

Minnesota Statutes 2018, section 327C.095, subdivision 12, is amended to read:


Subd. 12.

Payment to the Minnesota manufactured home relocation trust fund.

(a)
If a manufactured home owner is required to move due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a park, or cessation of use of
the land as a manufactured home park, the manufactured park owner shall, upon the change
in use, pay to the commissioner of management and budget for deposit in the Minnesota
manufactured home relocation trust fund under section 462A.35, the lesser amount of the
actual costs of moving or purchasing the manufactured home approved by the neutral third
party and paid by the deleted text beginMinnesotadeleted text end Housing Finance Agency under subdivision 13, paragraph
(a) or (e), or $3,250 for each single section manufactured home, and $6,000 for each
multisection manufactured home, for which a manufactured home owner has made
application for payment of relocation costs under subdivision 13, paragraph (c). The
manufactured home park owner shall make payments required under this section to the
Minnesota manufactured home relocation trust fund within 60 days of receipt of invoice
from the neutral third party.

(b) A manufactured home park owner is not required to make the payment prescribed
under paragraph (a), nor is a manufactured home owner entitled to compensation under
subdivision 13, paragraph (a) or (e), if:

(1) the manufactured home park owner relocates the manufactured home owner to
another space in the manufactured home park or to another manufactured home park at the
park owner's expense;

(2) the manufactured home owner is vacating the premises and has informed the
manufactured home park owner or manager of this prior to the mailing date of the closure
statement under subdivision 1;

(3) a manufactured home owner has abandoned the manufactured home, or the
manufactured home owner is not current on the monthly lot rental, personal property taxes;

(4) the manufactured home owner has a pending eviction action for nonpayment of lot
rental amount under section 327C.09, which was filed against the manufactured home owner
prior to the mailing date of the closure statement under subdivision 1, and the writ of recovery
has been ordered by the district court;

(5) the conversion of all or a portion of a manufactured home park to another use, the
closure of a park, or cessation of use of the land as a manufactured home park is the result
of a taking or exercise of the power of eminent domain by a governmental entity or public
utility; or

(6) the owner of the manufactured home is not a resident of the manufactured home
park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home
is a resident, but came to reside in the manufactured home park after the mailing date of
the closure statement under subdivision 1.

(c) If the unencumbered fund balance in the manufactured home relocation trust fund
is less than deleted text begin$1,000,000deleted text endnew text begin $3,000,000new text end as of June 30 of each year, the commissioner of
management and budget shall assess each manufactured home park owner by mail the total
amount of $15 for each licensed lot in their park, payable on or before September 15 of that
year. The commissioner of management and budget shall deposit any payments in the
Minnesota manufactured home relocation trust fund. On or before July 15 of each year, the
commissioner of management and budget shall prepare and distribute to park owners a letter
explaining whether funds are being collected for that year, information about the collection,
an invoice for all licensed lots, and a sample form for the park owners to collect information
on which park residents have been accounted for. If assessed under this paragraph, the park
owner may recoup the cost of the $15 assessment as a lump sum or as a monthly fee of no
more than $1.25 collected from park residents together with monthly lot rent as provided
in section 327C.03, subdivision 6. Park owners may adjust payment for lots in their park
that are vacant or otherwise not eligible for contribution to the trust fund under section
327C.095, subdivision 12, paragraph (b), and deduct from the assessment accordingly.

(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by
the neutral third party, on behalf of the deleted text beginMinnesotadeleted text end Housing Finance Agency, or by action
in a court of appropriate jurisdiction. The court may award a prevailing party reasonable
attorney fees, court costs, and disbursements.

Sec. 15.

Minnesota Statutes 2018, section 327C.095, subdivision 13, is amended to read:


Subd. 13.

Change in use, relocation expenses; payments by park owner.

(a) If a
manufactured home owner is required to relocate due to the conversion of all or a portion
of a manufactured home park to another use, the closure of a manufactured home park, or
cessation of use of the land as a manufactured home park under subdivision 1, and the
manufactured home owner complies with the requirements of this section, the manufactured
home owner is entitled to payment from the Minnesota manufactured home relocation trust
fund equal to the manufactured home owner's actual relocation costs for relocating the
manufactured home to a new location within a deleted text begin25-miledeleted text endnew text begin 50-milenew text end radius of the park that is
being closed, up to a maximum of $7,000 for a single-section and $12,500 for a multisection
manufactured home. The actual relocation costs must include the reasonable cost of taking
down, moving, and setting up the manufactured home, including equipment rental, utility
connection and disconnection charges, minor repairs, modifications necessary for
transportation of the home, necessary moving permits and insurance, moving costs for any
appurtenances, which meet applicable local, state, and federal building and construction
codes.

(b) A manufactured home owner is not entitled to compensation under paragraph (a) if
the manufactured home park owner is not required to make a payment to the Minnesota
manufactured home relocation trust fund under subdivision 12, paragraph (b).

(c) Except as provided in paragraph (e), in order to obtain payment from the Minnesota
manufactured home relocation trust fund, the manufactured home owner shall submit to the
neutral third party and the deleted text beginMinnesotadeleted text end Housing Finance Agency, with a copy to the park
owner, an application for payment, which includes:

(1) a copy of the closure statement under subdivision 1;

(2) a copy of the contract with a moving or towing contractor, which includes the
relocation costs for relocating the manufactured home;

(3) a statement with supporting materials of any additional relocation costs as outlined
in subdivision 1;

(4) a statement certifying that none of the exceptions to receipt of compensation under
subdivision 12, paragraph (b), apply to the manufactured home owner;

(5) a statement from the manufactured park owner that the lot rental is current deleted text beginand that
the annual $15 payments to the Minnesota manufactured home relocation trust fund have
been paid when due
deleted text end; and

(6) a statement from the county where the manufactured home is located certifying that
personal property taxes for the manufactured home are paid through the end of that year.

(d) If the neutral third party has acted reasonably and does not approve or deny payment
within 45 days after receipt of the information set forth in paragraph (c), the payment is
deemed approved. Upon approval and request by the neutral third party, the deleted text beginMinnesotadeleted text end
Housing Finance Agency shall issue two checks in equal amount for 50 percent of the
contract price payable to the mover and towing contractor for relocating the manufactured
home in the amount of the actual relocation cost, plus a check to the home owner for
additional certified costs associated with third-party vendors, that were necessary in relocating
the manufactured home. The moving or towing contractor shall receive 50 percent upon
execution of the contract and 50 percent upon completion of the relocation and approval
by the manufactured home owner. The moving or towing contractor may not apply the funds
to any other purpose other than relocation of the manufactured home as provided in the
contract. A copy of the approval must be forwarded by the neutral third party to the park
owner with an invoice for payment of the amount specified in subdivision 12, paragraph
(a).

(e) In lieu of collecting a relocation payment from the Minnesota manufactured home
relocation trust fund under paragraph (a), the manufactured home owner may collect an
amount from the fund after reasonable efforts to relocate the manufactured home have failed
due to the age or condition of the manufactured home, or because there are no manufactured
home parks willing or able to accept the manufactured home within a 25-mile radius. A
manufactured home owner may tender title of the manufactured home in the manufactured
home park to the manufactured home park owner, and collect an amount to be determined
by an independent appraisal. The appraiser must be agreed to by both the manufactured
home park owner and the manufactured home owner. If the appraised market value cannot
be determined, the tax market value, averaged over a period of five years, can be used as a
substitute. The maximum amount that may be reimbursed under the fund is $8,000 for a
single-section and $14,500 for a multisection manufactured home. The minimum amount
that may be reimbursed under the fund is $2,000 for a single section and $4,000 for a
multisection manufactured home. The manufactured home owner shall deliver to the
manufactured home park owner the current certificate of title to the manufactured home
duly endorsed by the owner of record, and valid releases of all liens shown on the certificate
of title, and a statement from the county where the manufactured home is located evidencing
that the personal property taxes have been paid. The manufactured home owner's application
for funds under this paragraph must include a document certifying that the manufactured
home cannot be relocated, that the lot rental is current, that the annual $15 payments to the
Minnesota manufactured home relocation trust fund have been paid when due, that the
manufactured home owner has chosen to tender title under this section, and that the park
owner agrees to make a payment to the commissioner of management and budget in the
amount established in subdivision 12, paragraph (a), less any documented costs submitted
to the neutral third party, required for demolition and removal of the home, and any debris
or refuse left on the lot, not to exceed $1,000. The manufactured home owner must also
provide a copy of the certificate of title endorsed by the owner of record, and certify to the
neutral third party, with a copy to the park owner, that none of the exceptions to receipt of
compensation under subdivision 12, paragraph (b), clauses (1) to (6), apply to the
manufactured home owner, and that the home owner will vacate the home within 60 days
after receipt of payment or the date of park closure, whichever is earlier, provided that the
monthly lot rent is kept current.

(f) deleted text beginThe Minnesota Housing Finance Agency must make a determination of the amount
of payment a manufactured home owner would have been entitled to under a local ordinance
in effect on May 26, 2007.
deleted text end Notwithstanding paragraph (a), the manufactured home owner's
compensation for relocation costs from the fund under section 462A.35, is the greater of
the amount provided under this subdivision, or the amount under the local ordinance in
effect on May 26, 2007, that is applicable to the manufactured home owner. Nothing in this
paragraph is intended to increase the liability of the park owner.

(g) Neither the neutral third party nor the deleted text beginMinnesotadeleted text end Housing Finance Agency shall be
liable to any person for recovery if the funds in the Minnesota manufactured home relocation
trust fund are insufficient to pay the amounts claimed. The deleted text beginMinnesotadeleted text end Housing Finance
Agency shall keep a record of the time and date of its approval of payment to a claimant.

(h) The agency shall report to the chairs of the senate Finance Committee and house of
representatives Ways and Means Committee by January 15 of each year on the Minnesota
manufactured home relocation trust fund, including the account balance, payments to
claimants, the amount of any advances to the fund, the amount of any insufficiencies
encountered during the previous calendar year, and any administrative charges or expenses
deducted from the trust fund balance. If sufficient funds become available, the deleted text beginMinnesotadeleted text end
Housing Finance Agency shall pay the manufactured home owner whose unpaid claim is
the earliest by time and date of approval.

Sec. 16.

Minnesota Statutes 2018, section 327C.095, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Reporting of licensed manufactured home parks. new text end

new text begin The Department of Health
or, if applicable, local units of government that have entered into a delegation of authority
agreement with the Department of Health as provided in section 145A.07 shall provide, by
March 31 of each year, a list of names and addresses of the manufactured home parks
licensed in the previous year, and for each manufactured home park, the current licensed
owner, the owner's address, the number of licensed manufactured home lots, and other data
as they may request for the Department of Management and Budget to invoice each licensed
manufactured home park in Minnesota.
new text end

Sec. 17.

Minnesota Statutes 2018, section 428A.11, subdivision 4, is amended to read:


Subd. 4.

Housing improvements.

"Housing improvements" has the meaning given in
the city's enabling ordinance. Housing improvements may include improvements to common
elements of a condominium or other common interest communitynew text begin or to a manufactured
home park
new text end.

Sec. 18.

Minnesota Statutes 2018, section 428A.11, subdivision 6, is amended to read:


Subd. 6.

Housing unit.

"Housing unit" means real property and improvements thereon
consisting of a one-dwelling unit, or an apartment or unit as described in chapter 515, 515A,
or 515B, respectively, new text beginor a manufactured home in a manufactured home park new text endthat is occupied
by a person or family for use as a residence.

Sec. 19.

Minnesota Statutes 2018, section 462A.05, is amended by adding a subdivision
to read:


new text begin Subd. 42. new text end

new text begin 30-year affordability covenants. new text end

new text begin The agency may impose rent, income, or
rent and income restrictions on a multifamily rental housing development as a condition of
agency loans as required in this chapter, or as a condition of an allocation or award of federal
low-income housing tax credits. If the agency imposes rent, income, or rent and income
restrictions on a multifamily rental housing development, the rent, income, or rent and
income restrictions must be contained and maintained in a covenant running with the land
for at least 30 years. The agency may waive this requirement if it determines a waiver is
necessary to finance an affordable multifamily rental housing development that furthers the
policies in this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and applies on or after that
date to any multifamily rental housing development for which the agency makes a loan or
allocates or awards low-income housing tax credits.
new text end

Sec. 20.

Minnesota Statutes 2018, section 462A.2035, subdivision 1a, is amended to read:


Subd. 1a.

Individual assistance grants.

Eligible recipients may use individual assistance
grants and loans under this program to:

(1) provide current residents of manufactured home parks with buy-out assistance not
to exceed $4,000 per home with preference given to older manufactured homes; and

(2) provide down-payment assistance for the purchase of new and preowned manufactured
homes that comply with the current version of the deleted text beginState Buildingdeleted text endnew text begin United States Department
of Housing and Urban Development's Manufactured Housing
new text end Code in effect at the time of
the sale, not to exceed $10,000 per home.

Sec. 21.

Minnesota Statutes 2018, section 462A.2035, subdivision 1b, is amended to read:


Subd. 1b.

Manufactured home park infrastructure grants.

Eligible recipients may
use manufactured home park infrastructure grants under this program for:

(1) new text beginacquisition of and new text endimprovements in manufactured home parks; and

(2) infrastructure, including storm shelters and community facilities.

Sec. 22.

Minnesota Statutes 2018, section 462A.222, subdivision 3, is amended to read:


Subd. 3.

Allocation procedure.

(a) Projects will be awarded tax credits in two
competitive rounds on an annual basis. The date for applications for each round must be
determined by the agency. No allocating agency may award tax credits prior to the application
dates established by the agency.

(b) Each allocating agency must meet the requirements of section 42(m) of the Internal
Revenue Code of 1986, as amended through December 31, 1989, for the allocation of tax
credits and the selection of projects.

(c) For projects that are eligible for an allocation of credits pursuant to section 42(h)(4)
of the Internal Revenue Code of 1986, as amended, tax credits may only be allocated if the
project satisfies the requirements of the allocating agency's qualified allocation plan. For
projects that are eligible for an allocation of credits pursuant to section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, for which the agency is the issuer of the bonds
for the project, or the issuer of the bonds for the project is located outside the jurisdiction
of a city or county that has received reserved tax credits, the applicable allocation plan is
the agency's qualified allocation plan.

(d)deleted text begin(1)deleted text end To maximize the resources available for and increase the supply of affordable
housing in Minnesota by leveraging the benefits to Minnesota from the use of tax-exempt
bonds to finance multifamily housing and to allow local units of government more flexibility
to address specific affordable housing needs in their communities, the agency shall make
residential rental housing projects financed with an allocation of tax-exempt bonds under
chapter 474A the highest strategic priority for tax credits under the agency's qualified
allocation plan under section 42(m)(1)(D) of the Internal Revenue Code of 1986, as amended.

deleted text begin (2) For projects eligible for an allocation of tax credits under section 42(h)(4) of the
Internal Revenue Code of 1986, as amended, the agency's qualified allocation plan and
other related agency guidance and requirements:
deleted text end

deleted text begin (i) shall not include any selection criteria other than (A) the criteria of section 42(m)(1)(C)
of the Internal Revenue Code of 1986, as amended, and (B) whether the project has received
an allocation of tax-exempt bonds under chapter 474A, with subitem (B) as the most
important criteria;
deleted text end

deleted text begin (ii) shall grant projects receiving an allocation of tax-exempt bonds under chapter 474A
the highest possible preference and, to the extent applicable, ahead of any preference
described in section 42(m)(1)(B) of the Internal Revenue Code of 1986, as amended;
deleted text end

deleted text begin (iii) shall exclude any per-unit cost limitations, cost reasonableness, or other similar
restrictions for residential rental housing projects financed with an allocation of tax-exempt
bonds under chapter 474A; and
deleted text end

deleted text begin (iv) shall not adopt or impose any additional rules, requirements, regulations, or
restrictions other than those required by section 42 of the Internal Revenue Code of 1986,
as amended, regarding the allocation of credits.
deleted text end

deleted text begin Each developer of a residential rental housing project that has received an allocation of
tax-exempt bonds under chapter 474A and the proposed issuer of such tax-exempt bonds
shall have standing to challenge the agency's qualified allocation plan for failure to comply
with this clause.
deleted text end

deleted text begin In the event of any conflict or inconsistency between this paragraph and section 462A.04,
the provisions of this paragraph shall govern and control. The provisions of paragraph (d)
shall not apply to any allocating agency other than the agency.
deleted text end

(e) For applications submitted for the first round, an allocating agency may allocate tax
credits only to the following types of projects:

(1) in the metropolitan area:

(i) new construction or substantial rehabilitation of projects in which, for the term of the
extended use period, at least 75 percent of the total tax credit units are single-room
occupancy, efficiency, or one bedroom units and which are affordable by households whose
income does not exceed 30 percent of the median income;

(ii) new construction or substantial rehabilitation family housing projects that are not
restricted to persons who are 55 years of age or older and in which, for the term of the
extended use period, at least 75 percent of the tax credit units contain two or more bedrooms
and at least one-third of the 75 percent contain three or more bedrooms; or

(iii) substantial rehabilitation projects in neighborhoods targeted by the city for
revitalization;

(2) outside the metropolitan area, projects which meet a locally identified housing need
and which are in short supply in the local housing market as evidenced by credible data
submitted with the application;

(3) projects that are not restricted to persons of a particular age group and in which, for
the term of the extended use period, a percentage of the units are set aside and rented to
persons:

(i) with a serious and persistent mental illness as defined in section 245.462, subdivision
20
, paragraph (c);

(ii) with a developmental disability as defined in United States Code, title 42, section
6001, paragraph (5), as amended through December 31, 1990;

(iii) who have been assessed as drug dependent persons as defined in section 254A.02,
subdivision 5
, and are receiving or will receive care and treatment services provided by an
approved treatment program as defined in section 254A.02, subdivision 2;

(iv) with a brain injury as defined in section 256B.093, subdivision 4, paragraph (a); or

(v) with permanent physical disabilities that substantially limit one or more major life
activities, if at least 50 percent of the units in the project are accessible as provided under
Minnesota Rules, chapter 1340;

(4) projects, whether or not restricted to persons of a particular age group, which preserve
existing subsidized housing, if the use of tax credits is necessary to prevent conversion to
market rate use or to remedy physical deterioration of the project which would result in loss
of existing federal subsidies; or

(5) projects financed by the Farmers Home Administration, or its successor agency,
which meet statewide distribution goals.

(f) Before the date for applications for the final round, the allocating agencies other than
the agency shall return all uncommitted and unallocated tax credits to a unified pool for
allocation by the agency on a statewide basis.

(g) Unused portions of the state ceiling for low-income housing tax credits reserved to
cities and counties for allocation may be returned at any time to the agency for allocation.

(h) If an allocating agency determines, at any time after the initial commitment or
allocation for a specific project, that a project is no longer eligible for all or a portion of the
low-income housing tax credits committed or allocated to the project, the credits must be
transferred to the agency to be reallocated pursuant to the procedures established in
paragraphs (f) to (h); provided that if the tax credits for which the project is no longer eligible
are from the current year's annual ceiling and the allocating agency maintains a waiting list,
the allocating agency may continue to commit or allocate the credits until not later than the
date of applications for the final round, at which time any uncommitted credits must be
transferred to the agency.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Aggregate bond limitation. new text end

new text begin "Aggregate bond limitation" means up to 55
percent of the reasonably expected aggregate basis of a residential rental project and the
land on which the project is or will be located.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 24.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin AMI. new text end

new text begin "AMI" means the area median income for the applicable county or
metropolitan area as published by the Department of Housing and Urban Development, as
adjusted for household size.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 25.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 12a. new text end

new text begin LIHTC. new text end

new text begin "LIHTC" means low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 26.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 21a. new text end

new text begin Preservation project. new text end

new text begin "Preservation project" means any residential rental
project, regardless of whether or not the project is restricted to persons of a certain age or
older, that is expected to generate low-income housing tax credits under section 42 of the
Internal Revenue Code of 1986, as amended, and (1) receives federal project-based rental
assistance, or (2) is funded through a loan from or guaranteed by the United States
Department of Agriculture's Rural Development Program. In addition, to qualify as a
preservation project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 27.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 30. new text end

new text begin 30 percent AMI residential rental project. new text end

new text begin "30 percent AMI residential
rental project" means a residential rental project that does not otherwise qualify as a
preservation project, is expected to generate low-income housing tax credits under section
42 of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential
units, and in which:
new text end

new text begin (1) all the residential units of the project:
new text end

new text begin (i) are reserved for tenants whose income, on average, is 30 percent of AMI or less;
new text end

new text begin (ii) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (iii) are subject to rent and income restrictions for a period of not less than 30 years; or
new text end

new text begin (2)(i) is located outside of the metropolitan area as defined in section 473.121, subdivision
2, and within a county or metropolitan area that has a current median area gross income
that is less than the statewide area median income for Minnesota;
new text end

new text begin (ii) all of the units of the project are rent-restricted in accordance with section 42(g)(2)
of the Internal Revenue Code of 1986, as amended; and
new text end

new text begin (iii) all of the units of the project are subject to the applicable rent and income restrictions
for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 30 percent AMI residential project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

new text begin For purposes of this subdivision, "on average" means the average of the applicable
income limitation level for a project determined on a unit-by-unit basis for example, a project
with one-half of its units subject to income limitations of not greater than 20 percent AMI
and one-half subject to income limitations of not greater than 40 percent AMI would be
subject to an income limitation on average of not greater than 30 percent AMI.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 28.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 31. new text end

new text begin 50 percent AMI residential rental project. new text end

new text begin "50 percent AMI residential
rental project" means a residential rental project that does not qualify as a preservation
project or 30 percent AMI residential rental project, is expected to generate low-income
housing tax credits under section 42 of the Internal Revenue Code of 1986, as amended,
from 100 percent of its residential units, and in which all the residential units of the project:
new text end

new text begin (1) are reserved for tenants whose income, on average, is 50 percent of AMI or less;
new text end

new text begin (2) are rent-restricted in accordance with section 42(g)(2) of the Internal Revenue Code
of 1986, as amended; and
new text end

new text begin (3) are subject to rent and income restrictions for a period of not less than 30 years.
new text end

new text begin In addition, to qualify as a 50 percent AMI residential rental project, the amount of bonds
requested in the application must not exceed the aggregate bond limitation.
new text end

new text begin For purposes of this subdivision, "on average" means the average of the applicable
income limitation level for a project determined on a unit-by-unit basis for example, a project
with one-half of its units subject to income limitations of not greater than 40 percent AMI
and one-half subject to income limitations of not greater than 60 percent AMI would be
subject to an income limitation on average of not greater than 50 percent AMI.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 29.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 32. new text end

new text begin 100 percent LIHTC project. new text end

new text begin "100 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from 100 percent of its residential units
and does not otherwise qualify as a preservation project, 30 percent AMI residential rental
project, or 50 percent AMI residential rental project. In addition, to qualify as a 100 percent
LIHTC project, the amount of bonds requested in the application must not exceed the
aggregate bond limitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 30.

Minnesota Statutes 2018, section 474A.02, is amended by adding a subdivision
to read:


new text begin Subd. 33. new text end

new text begin 20 percent LIHTC project. new text end

new text begin "20 percent LIHTC project" means a residential
rental project that is expected to generate low-income housing tax credits under section 42
of the Internal Revenue Code of 1986, as amended, from at least 20 percent of its residential
units and does not otherwise qualify as a preservation project, 30 percent AMI residential
rental project, 50 percent AMI residential rental project, or 100 percent LIHTC project. In
addition, to qualify as a 20 percent LIHTC project, the amount of bonds requested in the
application must not exceed the aggregate bond limitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 31.

Minnesota Statutes 2018, section 474A.03, subdivision 1, is amended to read:


Subdivision 1.

Under federal tax law; allocations.

At the beginning of each calendar
year after December 31, 2001, the commissioner shall determine the aggregate dollar amount
of the annual volume cap under federal tax law for the calendar year, and of this amount
the commissioner shall make the following allocation:

(1) $74,530,000 to the small issue pool;

(2) $122,060,000 to the housing pool, of which 31 percent of the adjusted allocation is
reserved until the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end for single-family housing programs;

(3) $12,750,000 to the public facilities pool; and

(4) amounts to be allocated as provided in subdivision 2a.

If the annual volume cap is greater or less than the amount of bonding authority allocated
under clauses (1) to (4) and subdivision 2a, paragraph (a), clauses (1) to (4), the allocation
must be adjusted so that each adjusted allocation is the same percentage of the annual volume
cap as each original allocation is of the total bonding authority originally allocated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 32.

Minnesota Statutes 2018, section 474A.04, subdivision 1a, is amended to read:


Subd. 1a.

Entitlement reservations.

Any amount returned by an entitlement issuer
before deleted text beginJuly 15deleted text endnew text begin the third Monday in Junenew text end shall be reallocated through the housing pool. Any
amount returned on or after deleted text beginJuly 15deleted text endnew text begin the third Monday in Junenew text end shall be reallocated through
the unified pool. An amount returned after the last Monday in November shall be reallocated
to the Minnesota Housing Finance Agency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 33.

Minnesota Statutes 2018, section 474A.061, subdivision 1, is amended to read:


Subdivision 1.

Allocation applicationnew text begin; small issue pool and public facilities poolnew text end.

(a)
new text begin For any requested allocations from the small issue pool and the public facilities pool, new text endan
issuer may apply for an allocation under this section by submitting to the department an
application on forms provided by the department, accompanied by (1) a preliminary
resolution, (2) a statement of bond counsel that the proposed issue of obligations requires
an allocation under this chapter and the Internal Revenue Code, (3) the type of qualified
bonds to be issued, (4) an application deposit in the amount of one percent of the requested
allocation before the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end, or in the amount of two percent of the
requested allocation on or after the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end,new text begin andnew text end (5) a public purpose
scoring worksheet for manufacturing project and enterprise zone facility project applicationsdeleted text begin,
and (6) for residential rental projects, a statement from the applicant or bond counsel as to
whether the project preserves existing federally subsidized housing for residential rental
project applications and whether the project is restricted to persons who are 55 years of age
or older
deleted text end. The issuer must pay the application deposit deleted text beginby a check made payabledeleted text end to the
Department of Management and Budget. The Minnesota Housing Finance Agency, the
Minnesota Rural Finance Authority, and the Minnesota Office of Higher Education may
apply for and receive an allocation under this section without submitting an application
deposit.

(b) An entitlement issuer may not apply for an allocation deleted text beginfrom the public facilities pooldeleted text endnew text begin
under this subdivision
new text end unless it has either permanently issued bonds equal to the amount of
its entitlement allocation for the current year plus any amount of bonding authority carried
forward from previous years or returned for reallocation all of its unused entitlement
allocation. deleted text beginAn entitlement issuer may not apply for an allocation from the housing pool
unless it either has permanently issued bonds equal to any amount of bonding authority
carried forward from a previous year or has returned for reallocation any unused bonding
authority carried forward from a previous year.
deleted text end For purposes of this subdivision, its
entitlement allocation includes an amount obtained under section 474A.04, subdivision 6.
deleted text begin This paragraph does not apply to an application from the Minnesota Housing Finance Agency
for an allocation under subdivision 2a for cities who choose to have the agency issue bonds
on their behalf.
deleted text end

(c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 34.

Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Allocation application; housing pool. new text end

new text begin (a) For any requested allocations from
the housing pool, an issuer may apply for an allocation under this section by submitting to
the department an application on forms provided by the department, accompanied by (1) a
preliminary resolution, (2) a statement of bond counsel that the proposed issue of obligations
requires an allocation under this chapter and the Internal Revenue Code, (3) an application
deposit in the amount of two percent of the requested allocation, (4) a sworn statement from
the applicant identifying the project as either a preservation project, 30 percent AMI
residential rental project, 50 percent AMI residential rental project, 100 percent LIHTC
project, 20 percent LIHTC project, or any other residential rental project, and (5) a
certification from the applicant or its accountant stating that the requested allocation does
not exceed the aggregate bond limitation. The issuer must pay the application deposit to the
Department of Management and Budget. The Minnesota Housing Finance Agency may
apply for and receive an allocation under this section without submitting an application
deposit.
new text end

new text begin (b) An entitlement issuer may not apply for an allocation from the housing pool unless
it either has permanently issued bonds equal to any amount of bonding authority carried
forward from a previous year or has returned for reallocation any unused bonding authority
carried forward from a previous year. For purposes of this subdivision, its entitlement
allocation includes an amount obtained under section 474A.04, subdivision 6. This paragraph
does not apply to an application from the Minnesota Housing Finance Agency for an
allocation under subdivision 2a for cities who choose to have the agency issue bonds on the
city's behalf.
new text end

new text begin (c) If an application is rejected under this section, the commissioner must notify the
applicant and return the application deposit to the applicant within 30 days unless the
applicant requests in writing that the application be resubmitted. The granting of an allocation
of bonding authority under this section must be evidenced by a certificate of allocation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 35.

Minnesota Statutes 2018, section 474A.061, subdivision 2a, is amended to read:


Subd. 2a.

Housing pool allocation.

(a) Commencing on the second Tuesday in January
and continuing on each Monday through deleted text beginJuly 15deleted text endnew text begin the third Monday in Junenew text end, the commissioner
shall allocate available bonding authority from the housing pool to applications received
on or before the Monday of the preceding week for residential rental projects that meet the
eligibility criteria under section 474A.047. Allocations of available bonding authority from
the housing pool for eligible residential rental projects shall be awarded in the following
order of priority: deleted text begin(1) projects that preserve existing federally subsidized housing; (2) projects
that are not restricted to persons who are 55 years of age or older; and (3) other residential
rental projects. Prior to May 15, no allocation shall be made to a project restricted to persons
who are 55 years of age or older.
deleted text end

new text begin (1) preservation projects;
new text end

new text begin (2) 30 percent AMI residential rental projects;
new text end

new text begin (3) 50 percent AMI residential rental projects;
new text end

new text begin (4) 100 percent LIHTC projects;
new text end

new text begin (5) 20 percent LIHTC projects; and
new text end

new text begin (6) other residential rental projects for which the amount of bonds requested in their
respective applications do not exceed the aggregate bond limitation.
new text end

deleted text begin If an issuer that receives an allocation under this paragraph does not issue obligations equal
deleted text enddeleted text begin to all or a portion of the allocation received within 120 days of the allocation or returns the
deleted text enddeleted text begin allocation to the commissioner, the amount of the allocation is canceled and returned for
deleted text enddeleted text begin reallocation through the housing pool or to the unified pool after July 15.deleted text endnew text begin If there are two
or more applications for residential rental projects at the same priority level and there is
insufficient bonding authority to provide allocations for all the projects in any one allocation
period, available bonding authority shall be randomly awarded by lot but only for projects
that can receive the full amount of their respective requested allocations. If a residential
rental project does not receive any of its requested allocation pursuant to this paragraph and
the project applies for an allocation of bonds again in the same calendar year or to the next
successive housing pool, the project shall be fully funded up to its original application
request for bonding authority before any new project, applying in the same allocation period,
that has an equal priority shall receive bonding authority. An issuer that receives an allocation
under this paragraph must issue obligations equal to all or a portion of the allocation received
on or before 180 days of the allocation. If an issuer that receives an allocation under this
paragraph does not issue obligations equal to all or a portion of the allocation received
within the time period provided in this paragraph or returns the allocation to the
commissioner, the amount of the allocation is canceled and returned for reallocation through
the housing pool or to the unified pool after July 1.
new text end

(b) After January 1, and through January 15, The Minnesota Housing Finance Agency
may accept applications from cities for single-family housing programs which meet program
requirements as follows:

(1) the housing program must meet a locally identified housing need and be economically
viable;

(2) the adjusted income of home buyers may not exceed 80 percent of the greater of
statewide or area median income as published by the Department of Housing and Urban
Development, adjusted for household size;

(3) house price limits may not exceed the federal price limits established for mortgage
revenue bond programs. Data on the home purchase price amount, mortgage amount, income,
household size, and race of the households served in the previous year's single-family
housing program, if any, must be included in each application; and

(4) for applicants who choose to have the agency issue bonds on their behalf, an
application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal
to one percent of the requested allocation must be submitted to the Minnesota Housing
Finance Agency before the agency forwards the list specifying the amounts allocated to the
commissioner under paragraph (d). The agency shall submit the city's application fee and
application deposit to the commissioner when requesting an allocation from the housing
pool.

Applications by a consortium shall include the name of each member of the consortium
and the amount of allocation requested by each member.

deleted text begin (c) Any amounts remaining in the housing pool after July 15 are available for
single-family housing programs for cities that applied in January and received an allocation
under this section in the same calendar year. For a city that chooses to issue bonds on its
own behalf or pursuant to a joint powers agreement, the agency must allot available bonding
authority based on the formula in paragraphs (d) and (f). Allocations will be made loan by
loan, on a first-come, first-served basis among cities on whose behalf the Minnesota Housing
Finance Agency issues bonds.
deleted text end

deleted text begin Any city that received an allocation pursuant to paragraph (f) in the same calendar year
that wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an
amount becoming available for single-family housing programs after July 15 shall notify
the Minnesota Housing Finance Agency by July 15. The Minnesota Housing Finance Agency
shall notify each city making a request of the amount of its allocation within three business
days after July 15. The city must comply with paragraph (f).
deleted text end

new text begin (c) new text endFor purposes of paragraphs (a) to (h), "city" means a county or a consortium of local
government units that agree through a joint powers agreement to apply together for
single-family housing programs, and has the meaning given it in section 462C.02, subdivision
6
. "Agency" means the Minnesota Housing Finance Agency.

(d) The total amount of allocation for mortgage bonds for one city is limited to the lesser
of: (i) the amount requested, or (ii) the product of the total amount available for mortgage
bonds from the housing pool, multiplied by the ratio of each applicant's population as
determined by the most recent estimate of the city's population released by the state
demographer's office to the total of all the applicants' population, except that each applicant
shall be allocated a minimum of $100,000 regardless of the amount requested or the amount
determined under the formula in clause (ii). If a city applying for an allocation is located
within a county that has also applied for an allocation, the city's population will be deducted
from the county's population in calculating the amount of allocations under this paragraph.

Upon determining the amount of each applicant's allocation, the agency shall forward
to the commissioner a list specifying the amounts allotted to each application with all
application fees and deposits from applicants who choose to have the agency issue bonds
on their behalf.

deleted text begin Total allocations from the housing pool for single-family housing programs may not
deleted text end deleted text begin exceed 31 percent of the adjusted allocation to the housing pool until after July 15.
deleted text end

(e) The agency may issue bonds on behalf of participating cities. The agency shall request
an allocation from the commissioner for all applicants who choose to have the agency issue
bonds on their behalf and the commissioner shall allocate the requested amount to the
agency. The agency may request an allocation at any time after the second Tuesday in
January and through the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end. After awarding an allocation and receiving
a notice of issuance for the mortgage bonds issued on behalf of the participating cities, the
commissioner shall transfer the application deposits to the Minnesota Housing Finance
Agency to be returned to the participating cities. The Minnesota Housing Finance Agency
shall return any application deposit to a city that paid an application deposit under paragraph
(b), clause (4), but was not part of the list forwarded to the commissioner under paragraph
(d).

(f) A city may choose to issue bonds on its own behalf or through a joint powers
agreement and may request an allocation from the commissioner by forwarding an application
with an application fee pursuant to section 474A.03, subdivision 4, and a one percent
application deposit to the commissioner no later than the Monday of the week preceding
an allocation. If the total amount requested by all applicants exceeds the amount available
in the pool, the city may not receive a greater allocation than the amount it would have
received under the list forwarded by the Minnesota Housing Finance Agency to the
commissioner. No city may request or receive an allocation from the commissioner until
the list under paragraph (d) has been forwarded to the commissioner. A city must request
an allocation from the commissioner no later than the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end. No city
may receive an allocation from the housing pool for mortgage bonds which has not first
applied to the Minnesota Housing Finance Agency. The commissioner shall allocate the
requested amount to the city or cities subject to the limitations under this paragraph.

If a city issues mortgage bonds from an allocation received under this paragraph, the
issuer must provide for the recycling of funds into new loans. If the issuer is not able to
provide for recycling, the issuer must notify the commissioner in writing of the reason that
recycling was not possible and the reason the issuer elected not to have the Minnesota
Housing Finance Agency issue the bonds. "Recycling" means the use of money generated
from the repayment and prepayment of loans for further eligible loans or for the redemption
of bonds and the issuance of current refunding bonds.

(g) No entitlement city or county or city in an entitlement county may apply for or be
allocated authority to issue mortgage bonds or use mortgage credit certificates from the
housing pool. No city in an entitlement county may apply for or be allocated authority to
issue residential rental bonds from the housing pool or the unified pool.

(h) A city that does not use at least 50 percent of its allotment by the date applications
are due for the first allocation that is made from the housing pool for single-family housing
programs in the immediately succeeding calendar year may not apply to the housing pool
for a single-family mortgage bond or mortgage credit certificate program allocation that
exceeds the amount of its allotment for the preceding year that was used by the city in the
immediately preceding year or receive an allotment from the housing pool in the succeeding
calendar year that exceeds the amount of its allotment for the preceding year that was used
in the preceding year. The minimum allotment is $100,000 for an allocation made prior to
July deleted text begin15deleted text endnew text begin 1new text end, regardless of the amount used in the preceding calendar year, except that a city
whose allocation in the preceding year was the minimum amount of $100,000 and who did
not use at least 50 percent of its allocation from the preceding year is ineligible for an
allocation in the immediate succeeding calendar year. Each local government unit in a
consortium must meet the requirements of this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 36.

Minnesota Statutes 2018, section 474A.061, subdivision 2b, is amended to read:


Subd. 2b.

Small issue pool allocation.

Commencing on the second Tuesday in January
and continuing on each Monday through the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end, the commissioner
shall allocate available bonding authority from the small issue pool to applications received
on or before the Monday of the preceding week for manufacturing projects and enterprise
zone facility projects. From the second Tuesday in January through the last Monday in deleted text beginJulydeleted text endnew text begin
June
new text end, the commissioner shall reserve $5,000,000 of the available bonding authority from
the small issue pool for applications for agricultural development bond loan projects of the
Minnesota Rural Finance Authority.

Beginning in calendar year 2002, on the second Tuesday in January through the last
Monday in deleted text beginJulydeleted text endnew text begin Junenew text end, the commissioner shall reserve $10,000,000 of available bonding
authority in the small issue pool for applications for student loan bonds of or on behalf of
the Minnesota Office of Higher Education. The total amount of allocations for student loan
bonds from the small issue pool may not exceed $10,000,000 per year.

The commissioner shall reserve $10,000,000 until the day after the last Monday in
February, $10,000,000 until the day after the last Monday in April, and $10,000,000 until
the day after the last Monday in June in the small issue pool for enterprise zone facility
projects and manufacturing projects. The amount of allocation provided to an issuer for a
specific enterprise zone facility project or manufacturing project will be based on the number
of points received for the proposed project under the scoring system under section 474A.045.

If there are two or more applications for manufacturing and enterprise zone facility
projects from the small issue pool and there is insufficient bonding authority to provide
allocations for all projects in any one week, the available bonding authority shall be awarded
based on the number of points awarded a project under section 474A.045, with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
receive an equal number of points, available bonding authority shall be awarded by lot
unless otherwise agreed to by the respective issuers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 37.

Minnesota Statutes 2018, section 474A.061, subdivision 2c, is amended to read:


Subd. 2c.

Public facilities pool allocation.

From the beginning of the calendar year and
continuing for a period of 120 days, the commissioner shall reserve $5,000,000 of the
available bonding authority from the public facilities pool for applications for public facilities
projects to be financed by the Western Lake Superior Sanitary District. Commencing on
the second Tuesday in January and continuing on each Monday through the last Monday
in deleted text beginJulydeleted text endnew text begin Junenew text end, the commissioner shall allocate available bonding authority from the public
facilities pool to applications for eligible public facilities projects received on or before the
Monday of the preceding week. If there are two or more applications for public facilities
projects from the pool and there is insufficient available bonding authority to provide
allocations for all projects in any one week, the available bonding authority shall be awarded
by lot unless otherwise agreed to by the respective issuers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 38.

Minnesota Statutes 2018, section 474A.061, subdivision 4, is amended to read:


Subd. 4.

Return of allocation; deposit refundnew text begin for small issue pool or public facilities
pool
new text end.

(a) new text beginFor any requested allocations from the small issue pool or the public facilities
pool,
new text endif an issuer that receives an allocation under this section determines that it will not
issue obligations equal to all or a portion of the allocation received under this section within
120 days of allocation or within the time period permitted by federal tax law, whichever is
less, the issuer must notify the department. If the issuer notifies the department or the 120-day
period since allocation has expired prior to the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end, the amount of
allocation is canceled and returned for reallocation through the pool from which it was
originally allocated. If the issuer notifies the department or the 120-day period since allocation
has expired on or after the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end, the amount of allocation is canceled
and returned for reallocation through the unified pool. If the issuer notifies the department
after the last Monday in November, the amount of allocation is canceled and returned for
reallocation to the Minnesota Housing Finance Agency. To encourage a competitive
application process, the commissioner shall reserve, for new applications, the amount of
allocation that is canceled and returned for reallocation under this section for a minimum
of seven calendar days.

(b) An issuer that returns for reallocation all or a portion of an allocation received under
this deleted text beginsectiondeleted text endnew text begin subdivisionnew text end within 120 days of allocation shall receive within 30 days a refund
equal to:

(1) one-half of the application deposit for the amount of bonding authority returned
within 30 days of receiving allocation;

(2) one-fourth of the application deposit for the amount of bonding authority returned
between 31 and 60 days of receiving allocation; and

(3) one-eighth of the application deposit for the amount of bonding authority returned
between 61 and 120 days of receiving allocation.

(c) No refund shall be available for allocations returned 120 or more days after receiving
the allocation or beyond the last Monday in November.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 39.

Minnesota Statutes 2018, section 474A.061, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Return of allocation; deposit refund for housing pool. new text end

new text begin (a) For any requested
allocations from the housing pool, if an issuer that receives an allocation under this section
determines that it will not permanently issue obligations equal to all or a portion of the
allocation received under this section within the time period provided under section
474A.061, subdivision 2a, paragraph (a), or within the time period permitted by federal tax
law, whichever is less, the issuer must notify the department. If the issuer notifies the
department or the time period provided under section 474A.061, subdivision 2a, paragraph
(a), has expired prior to the last Monday in June, the amount of allocation is canceled and
returned for reallocation through the housing pool. If the issuer notifies the department or
the time period provided under section 474A.061, subdivision 2a, paragraph (a), has expired
on or after the last Monday in June, the amount of allocation is canceled and returned for
reallocation through the unified pool. If the issuer notifies the department after the last
Monday in November, the amount of allocation is canceled and returned for reallocation
to the Minnesota Housing Finance Agency. To encourage a competitive application process,
the commissioner shall reserve, for new applications, the amount of allocation that is canceled
and returned for reallocation under this section for a minimum of seven calendar days.
new text end

new text begin (b) An issuer that returns for reallocation all or a portion of an allocation received under
this subdivision within 180 days of allocation shall receive within 30 days a refund equal
to:
new text end

new text begin (1) one-half of the application deposit for the amount of bonding authority returned
within 45 days of receiving allocation;
new text end

new text begin (2) one-fourth of the application deposit for the amount of bonding authority returned
between 46 and 90 days of receiving allocation; and
new text end

new text begin (3) one-eighth of the application deposit for the amount of bonding authority returned
between 91 and 180 days of receiving allocation.
new text end

new text begin (c) No refund shall be available for allocations returned 180 or more days after receiving
the allocation or beyond the last Monday in November.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 40.

Minnesota Statutes 2018, section 474A.062, is amended to read:


474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION deleted text begin120-DAYdeleted text end ISSUANCE
EXEMPTION.

The Minnesota Office of Higher Education is exempt from deleted text beginthe 120-daydeleted text endnew text begin any time
limitation on
new text end issuance deleted text beginrequirementsdeleted text endnew text begin of bonds set forthnew text end in this chapter and may carry forward
allocations for student loan bonds, subject to carryforward notice requirements of section
474A.131, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 41.

Minnesota Statutes 2018, section 474A.091, subdivision 1, is amended to read:


Subdivision 1.

Unified pool amount.

On the day after the last Monday in deleted text beginJulydeleted text endnew text begin Junenew text end any
bonding authority remaining unallocated from the small issue pool, the housing pool, and
the public facilities pool is transferred to the unified pool and must be reallocated as provided
in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 42.

Minnesota Statutes 2018, section 474A.091, subdivision 2, is amended to read:


Subd. 2.

Application new text beginfor residential rental projectsnew text end.

new text begin(a) new text endIssuers may apply for an
allocation new text beginfor residential rental bonds new text end under this section by submitting to the department
an application on forms provided by the department accompanied bynew text begin:
new text end

(1) a preliminary resolutiondeleted text begin,deleted text endnew text begin;
new text end

(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Codedeleted text begin,deleted text endnew text begin;
new text end

(3) deleted text beginthe type of qualified bonds to be issued, (4)deleted text end an application deposit in the amount of
two percent of the requested allocationdeleted text begin, (5) a public purpose scoring worksheet for
manufacturing and enterprise zone applications, and (6) for residential rental projects, a
statement from the applicant or bond counsel as to whether the project preserves existing
federally subsidized housing and whether the project is restricted to persons who are 55
years of age or older.
deleted text endnew text begin;
new text end

new text begin (4) a sworn statement from the applicant identifying the project as a preservation project,
30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
and
new text end

new text begin (5) a certification from the applicant or its accountant stating that the requested allocation
does not exceed the aggregate bond limitation.
new text end

The issuer must pay the application deposit deleted text beginby checkdeleted text endnew text begin to the Department of Management
and Budget
new text end. An entitlement issuer may not apply for an allocation for deleted text beginpublic facility bonds,deleted text end
residential rental project bondsdeleted text begin, or mortgage bondsdeleted text end under this section unless it has either
permanently issued bonds equal to the amount of its entitlement allocation for the current
year plus any amount carried forward from previous years or returned for reallocation all
of its unused entitlement allocation. For purposes of this subdivision, its entitlement allocation
includes an amount obtained under section 474A.04, subdivision 6.

new text begin (b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or before 180 days of the
allocation. If an issuer that receives an allocation under this subdivision does not permanently
issue obligations equal to all or a portion of the allocation received within the time period
provided in this paragraph or returns the allocation to the commissioner, the amount of the
allocation is canceled and returned for reallocation through the unified pool.
new text end

new text begin (c) new text enddeleted text beginNotwithstanding the restrictions imposed on entitlement issuers under this subdivision,
deleted text enddeleted text begin the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
deleted text enddeleted text begin under this section prior to the first Monday in October, but may be awarded allocations for
deleted text enddeleted text begin mortgage bonds from the unified pool on or after the first Monday in October.deleted text end The Minnesota
Housing Finance Agencydeleted text begin, the Minnesota Office of Higher Education, and the Minnesota
deleted text enddeleted text begin Rural Finance Authoritydeleted text end may apply for and receive an allocation under this section without
submitting an application deposit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 43.

Minnesota Statutes 2018, section 474A.091, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Application for all other types of qualified bonds. new text end

new text begin (a) Issuers may apply
for an allocation for all types of qualified bonds other than residential rental bonds under
this section by submitting to the department an application on forms provided by the
department accompanied by:
new text end

new text begin (1) a preliminary resolution;
new text end

new text begin (2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;
new text end

new text begin (3) the type of qualified bonds to be issued;
new text end

new text begin (4) an application deposit in the amount of two percent of the requested allocation; and
new text end

new text begin (5) a public purpose scoring worksheet for manufacturing and enterprise zone
applications.
new text end

new text begin The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for public facility bonds or mortgage
bonds under this section unless it has either permanently issued bonds equal to the amount
of its entitlement allocation for the current year plus any amount carried forward from
previous years or returned for reallocation all of its unused entitlement allocation. For
purposes of this subdivision, an entitlement allocation includes an amount obtained under
section 474A.04, subdivision 6.
new text end

new text begin (b) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 44.

Minnesota Statutes 2018, section 474A.091, subdivision 3, is amended to read:


Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available bonding
authority under this section on the Monday of every other week beginning with the first
Monday in deleted text beginAugustdeleted text end new text beginJulynew text end through and on the last Monday in November. Applications for
allocations must be received by the department by 4:30 p.m. on the Monday preceding the
Monday on which allocations are to be made. If a Monday falls on a holiday, the allocation
will be made or the applications must be received by the next business day after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations from
the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan projects.

(c) On the first Monday in October through the last Monday in November, allocations
shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota Office
of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the unified
pool and there is insufficient bonding authority to provide allocations for all manufacturing
projects in any one allocation period, the available bonding authority shall be awarded based
on the number of points awarded a project under section 474A.045 with those projects
receiving the greatest number of points receiving allocation first. If two or more applications
for manufacturing projects receive an equal amount of points, available bonding authority
shall be awarded by lot unless otherwise agreed to by the respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from the
unified pool and there is insufficient bonding authority to provide allocations for all enterprise
zone facility projects in any one allocation period, the available bonding authority shall be
awarded based on the number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving allocation first. If two or
more applications for enterprise zone facility projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(f) If there are two or more applications for residential rental projects from the unified
pool and there is insufficient bonding authority to provide allocations for all residential
rental projects in any one allocation period, the available bonding authority shall be awarded
in the following order of priority: (1) deleted text beginprojects that preserve existing federally subsidized
housing; (2) projects that are not restricted to persons who are 55 years of age or older; and
(3)
deleted text endnew text begin preservation projects; (2) 30 percent AMI residential rental projects; (3) 50 percent AMI
residential rental projects for which the amount of bonds requested in their respective
applications do not exceed the aggregate bond limitations; (4) 100 percent LIHTC projects;
(5) 20 percent LIHTC projects; and (6)
new text end other residential rental projects.new text begin If there are two or
more applications for residential rental projects at the same priority level and there is
insufficient bonding authority to provide allocations for all the projects in any one allocation
period, available bonding authority shall be randomly awarded by lot but only for projects
that received the full amount of their respective requested allocations. If a residential rental
project does not receive any of its requested allocation pursuant to this paragraph and the
project applies in the next successive housing pool or the next successive unified pool for
an allocation of bonds, the project shall be fully funded up to its original application request
for bonding authority before any new project, applying in the same allocation period, that
has an equal priority shall receive bonding authority.
new text end

(g) From the first Monday in deleted text beginAugustdeleted text end new text beginJulynew text end through the last Monday in November,
$20,000,000 of bonding authority or an amount equal to the total annual amount of bonding
authority allocated to the small issue pool under section 474A.03, subdivision 1, less the
amount allocated to issuers from the small issue pool for that year, whichever is less, is
reserved within the unified pool for small issue bonds to the extent deleted text beginsuchdeleted text endnew text begin thenew text end amounts are
available within the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and the
unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may not
exceed $25,000,000 per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified bond
category other than enterprise zone facility projects, manufacturing projects, and residential
rental projects, allocations shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and return
the application deposit to the applicant within 30 days unless the applicant requests in writing
that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be evidenced
by issuance of a certificate of allocation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 45.

Minnesota Statutes 2018, section 474A.091, subdivision 5, is amended to read:


Subd. 5.

Return of allocation; deposit refund.

(a) If an issuer that receives an allocation
under this section determines that it will not new text beginpermanentlynew text end issue obligations equal to all or a
portion of the allocation received under this section within deleted text begin120deleted text endnew text begin the applicable number ofnew text end
days deleted text beginofdeleted text endnew text begin afternew text end the allocation new text beginrequired in this chapter new text endor within the time period permitted by
federal tax law, whichever is less, the issuer must notify the department. If the issuer notifies
the department or the deleted text begin120-daydeleted text end new text beginapplicablenew text end period since allocation has expired prior to the
last Monday in November, the amount of allocation is canceled and returned for reallocation
through the unified pool. If the issuer notifies the department on or after the last Monday
in November, the amount of allocation is canceled and returned for reallocation to the
Minnesota Housing Finance Agency. To encourage a competitive application process, the
commissioner shall reserve, for new applications, the amount of allocation that is canceled
and returned for reallocation under this section for a minimum of seven calendar days.

(b) An issuer that returns for reallocation all or a portion of an allocation new text beginfor all types
of bonds other than residential rental project bonds
new text endreceived under this section within 120
days of the allocation shall receive within 30 days a refund equal to:

(1) one-half of the application deposit for the amount of bonding authority returned
within 30 days of receiving the allocation;

(2) one-fourth of the application deposit for the amount of bonding authority returned
between 31 and 60 days of receiving the allocation; and

(3) one-eighth of the application deposit for the amount of bonding authority returned
between 61 and 120 days of receiving the allocation.

new text begin (c) An issuer that returns for reallocation all or a portion of an allocation for residential
rental project bonds received under this section within 180 days of the allocation shall
receive within 30 days a refund equal to:
new text end

new text begin (1) one-half of the application deposit for the amount of bonding authority returned
within 45 days of receiving the allocation;
new text end

new text begin (2) one-fourth of the application deposit for the amount of bonding authority returned
between 46 and 90 days of receiving the allocation; and
new text end

new text begin (3) one-eighth of the application deposit for the amount of bonding authority returned
between 91 and 180 days of receiving the allocation.
new text end

deleted text begin (c)deleted text endnew text begin (d)new text end No refund of the application deposit shall be available for allocations returned
on or after the last Monday in November.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 46.

Minnesota Statutes 2018, section 474A.131, subdivision 1, is amended to read:


Subdivision 1.

Notice of issue.

new text begin(a) new text endEach issuer deleted text beginthat issues bondsdeleted text end with an allocation
received under this chapter shall provide a notice of issue to the department on forms
provided by the department stating:

(1) the date of issuance of the bonds;

(2) the title of the issue;

(3) the principal amount of the bonds;

(4) the type of qualified bonds under federal tax law;

(5) the dollar amount of the bonds issued that were subject to the annual volume cap;
and

(6) for entitlement issuers, whether the allocation is from current year entitlement
authority or is from carryforward authority.

For obligations that are issued as a part of a series of obligations, a notice must be
provided for each series. A penalty of one-half of the amount of the application deposit not
to exceed $5,000 shall apply to any issue of obligations for which a notice of issue is not
provided to the department within five business days after issuance or before 4:30 p.m. on
the last business day in December, whichever occurs first. Within 30 days after receipt of
a notice of issue the department shall refund a portion of the application deposit equal to
one percent of the amount of the bonding authority actually issued if a one percent application
deposit was made, or equal to two percent of the amount of the bonding authority actually
issued if a two percent application deposit was made, less any penalty amount.

new text begin (b) If an issuer that receives an allocation under this chapter for a residential rental project
issues obligations as provided in this chapter, the commissioner shall refund 50 percent of
any application deposit previously paid within 30 days of the issuance of the obligations
and the remaining 50 percent will be refunded within 30 days after the date on which:
new text end

new text begin (1) final Internal Revenue Service Forms 8609 are provided to the commissioner with
respect to preservation projects, 30 percent AMI residential rental projects, 50 percent AMI
residential rental projects, 100 percent LIHTC projects, or 20 percent LIHTC projects, or
new text end

new text begin (2) the issuer provides a certification and any other reasonable documentation requested
by the commissioner evidencing that construction of the project has been completed.
new text end

new text begin If the issuer receives an allocation under this chapter for a residential rental project and
fails to issue the bonds within the time permitted by federal law, the application deposit
shall be forfeited.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 47.

Minnesota Statutes 2018, section 474A.131, subdivision 1b, is amended to read:


Subd. 1b.

Deadline for issuance of qualified bonds.

If an issuer fails to notify the
department before 4:30 p.m. on the last business day in December of new text beginthe permanentnew text end issuance
of obligations pursuant to an allocation received for any qualified bond project or issuance
of an entitlement allocation, the allocation is canceled and the bonding authority is allocated
to the Minnesota Housing Finance Agency for carryforward by the commissioner under
section 474A.091, subdivision 6.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 48.

Minnesota Statutes 2018, section 474A.14, is amended to read:


474A.14 NOTICE OF AVAILABLE AUTHORITY.

The department shall provide at its official website a written notice of the amount of
bonding authority in the housing, small issue, and public facilities pools as soon after January
1 as possible. The department shall provide at its official website a written notice of the
amount of bonding authority available for allocation in the unified pool as soon after deleted text beginAugustdeleted text endnew text begin
July
new text end 1 as possible.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 49.

Minnesota Statutes 2018, section 474A.21, is amended to read:


474A.21 APPROPRIATION; RECEIPTS.

Any fees collected by the department under sections 474A.01 to 474A.21 must be
deposited in a separate account in the general fund. The amount necessary to refund
application deposits is appropriated to the department from the separate account in the
general fund for that purpose. The interest accruing on application deposits and any
application deposit not refunded as provided under section 474A.061, subdivision 4new text begin or 7new text end,
or 474A.091, subdivision 5, or forfeited as provided under section 474A.131, new text beginsubdivision
1, paragraph (b), or
new text endsubdivision 2
, must be deposited in the housing trust fund account under
section 462A.201.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 50.

Minnesota Statutes 2018, section 484.014, subdivision 2, is amended to read:


Subd. 2.

Discretionary expungement.

The court may order expungement of an eviction
case court file deleted text beginonly upon motion of a defendant and decision by the court, if the court finds
that the plaintiff's case is sufficiently without basis in fact or law, which may include lack
of jurisdiction over the case, that
deleted text endnew text begin if the court makes the following findings: (1) the eviction
case court file is no longer a reasonable predictor of future tenant behavior; and (2) the
new text end
expungement is clearly in the interests of justice and those interests are not outweighed by
the public's interest in knowing about the record.

Sec. 51.

Minnesota Statutes 2018, section 484.014, subdivision 3, is amended to read:


Subd. 3.

Mandatory expungement.

The court shall order expungement of an eviction
casenew text begin:
new text end

new text begin (1)new text end commenced solely on the grounds provided in section 504B.285, subdivision 1,
clause (1), if the court finds that the defendant occupied real property that was subject to
contract for deed cancellation or mortgage foreclosure and:

deleted text begin (1)deleted text endnew text begin (i)new text end the time for contract cancellation or foreclosure redemption has expired and the
defendant vacated the property prior to commencement of the eviction action; or

deleted text begin (2)deleted text endnew text begin (ii)new text end the defendant was a tenant during the contract cancellation or foreclosure
redemption period and did not receive a notice under section 504B.285, subdivision 1a, 1b,
or 1c
, to vacate on a date prior to commencement of the eviction casedeleted text begin.deleted text endnew text begin;
new text end

new text begin (2) if the defendant prevailed on the merits;
new text end

new text begin (3) if the court dismissed the plaintiff's complaint for any reason;
new text end

new text begin (4) if the parties to the action have agreed to an expungement;
new text end

new text begin (5) if the court finds an eviction was ordered at least three years prior to the date the
expungement was filed; or
new text end

new text begin (6) upon motion of a defendant, if the case is settled and the defendant fulfills the terms
of the settlement.
new text end

Sec. 52.

Minnesota Statutes 2018, section 504B.111, is amended to read:


504B.111 WRITTEN LEASE REQUIRED; PENALTY.

A landlord of a residential building with 12 or more residential units must have a written
lease for each unit rented to a residential tenant.new text begin The written lease must identify the specific
unit the residential tenant will occupy before the residential tenant signs the lease.
new text end
Notwithstanding any other state law or city ordinance to the contrary, a landlord may ask
for the tenant's full name and date of birth on the lease and application. A landlord who fails
to provide a lease, as required under this section, is guilty of a petty misdemeanor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to leases entered into or renewed on or after that date.
new text end

Sec. 53.

new text begin [504B.146] LEASE DURATION NOTICE.
new text end

new text begin A written lease for a residential unit must identify the lease start date and lease end date.
If the lease requires the tenant to move in or out of the residential unit on a date other than
the first or last day of the month, the lease must indicate the amount of the prorated rent, if
applicable. The information required by this section must be provided on the first page of
the lease.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to leases entered into or renewed on or after that date.
new text end

Sec. 54.

new text begin [504B.147] TIME PERIOD FOR NOTICE TO QUIT OR RENT INCREASE.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin This section applies to a residential lease that provides a
time period for the landlord to give notice to quit the premises or notice of a rent increase
that is different than the time period the tenant is required to give for notice of intention to
quit the premises. For purposes of this section, "notice to quit" includes a notice of
nonrenewal of a lease.
new text end

new text begin Subd. 2. new text end

new text begin Tenant option to choose notice period. new text end

new text begin The tenant may give notice of an
intention to quit the premises using either:
new text end

new text begin (1) the time period provided in the lease for the tenant to give a notice of intention to
quit the premises; or
new text end

new text begin (2) the time period provided in the lease for the landlord to give a notice to quit the
premises or notice of a rent increase.
new text end

new text begin Subd. 3. new text end

new text begin Landlord notice requirements. new text end

new text begin The landlord may not give a notice to quit the
premises or notice of a rent increase that is shorter than the time period the lease provides
for the tenant to give notice of an intention to quit the premises.
new text end

new text begin Subd. 4. new text end

new text begin No waiver. new text end

new text begin The requirements of this section may not be waived or modified
by the parties to a residential lease. Any provision, whether oral or written, of a lease or
other agreement by which any provision of this section is waived by a tenant is contrary to
public policy and void.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to leases entered into or renewed on or after that date.
new text end

Sec. 55.

Minnesota Statutes 2018, section 504B.206, subdivision 3, is amended to read:


Subd. 3.

Liability for rent; termination of tenancy.

(a) A tenant who is a sole tenant
and is terminating a lease under subdivision 1 is responsible for the rent payment for the
full month in which the tenancy terminates. The tenant forfeits all claims for the return of
the security deposit under section 504B.178 and is relieved of any other contractual obligation
for payment of rent or any other charges for the remaining term of the lease, except as
provided in this section. In a sole tenancy, the tenancy terminates on the date specified in
the notice provided to the landlord as required under subdivision 1.

(b) In a tenancy with multiple tenants, one of whom is terminating the lease under
subdivision 1, any lease governing all tenants is terminated at the deleted text beginlatterdeleted text endnew text begin laternew text end of the end of
the month or the end of the rent interval in which one tenant terminates the lease under
subdivision 1. All tenants are responsible for the rent payment for the full month in which
the tenancy terminates. Upon termination, all tenants forfeit all claims for the return of the
security deposit under section 504B.178 and are relieved of any other contractual obligation
for payment of rent or any other charges for the remaining term of the lease, except as
provided in this section. Any tenant whose tenancy was terminated under this paragraph
may reapply to enter into a new lease with the landlord.

(c) This section does not affect a tenant's liability for delinquent, unpaid rent or other
amounts owed to the landlord before the lease was terminated by the tenant under this
section.

Sec. 56.

Minnesota Statutes 2018, section 504B.321, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Nonpublic record. new text end

new text begin An eviction action is not accessible to the public until the
court enters a final judgment.
new text end

Sec. 57. new text beginADVANCES TO MINNESOTA MANUFACTURED HOME RELOCATION
TRUST FUND.
new text end

new text begin (a) The Minnesota Housing Finance Agency or Department of Management and Budget
as determined by the commissioner of management and budget, is authorized to advance
up to $400,000 from state appropriations or other resources to the Minnesota manufactured
home relocation trust fund established under Minnesota Statutes, section 462A.35, if the
account balance in the Minnesota manufactured home relocation trust fund is insufficient
to pay the amounts claimed under Minnesota Statutes, section 327C.095, subdivision 13.
new text end

new text begin (b) The Minnesota Housing Finance Agency or Department of Management and Budget
shall be reimbursed from the Minnesota manufactured home relocation trust fund for any
money advanced by the agency under paragraph (a) to the fund. Approved claims for payment
to manufactured home owners shall be paid prior to the money being advanced by the agency
or the department to the fund.
new text end

Sec. 58. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 327C.095, subdivision 8, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H2542-2

327C.095 PARK CLOSINGS.

Subd. 8.

Required filing of notice.

Subdivisions 6 and 7 apply to manufactured home parks upon which notice has been recorded with the county recorder or registrar of titles in the county where the manufactured home park is located. Any person may file the notice required under this subdivision with the county recorder or registrar of titles. The notice must be in the following form:

"MANUFACTURED HOME PARK NOTICE

THIS PROPERTY IS USED AS A MANUFACTURED HOME PARK

.......................................

PARK OWNER

.......................................

.......................................

.......................................

LEGAL DESCRIPTION OF PARK

.......................................

COOPERATIVE ASSOCIATION (IF APPLICABLE)"