Minnesota Legislature
HF 2480
as introduced - 94th Legislature (2025 - 2026) Posted on 04/21/2025 01:45pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 03/17/2025 |
Current Version - as introduced
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A bill for an act
relating to housing; authorizing housing and redevelopment authorities to create
public corporations for the purpose of purchasing, owning, and operating properties
converted under the federal Rental Assistance Demonstration program; permitting
corporations of authorities to receive certain funding through the Minnesota
Housing Finance Agency; amending Minnesota Statutes 2024, sections 15.082;
462A.202, subdivision 3a; 462C.02, subdivision 6; 469.012, subdivision 2j;
proposing coding for new law in Minnesota Statutes, chapter 469.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 15.082, is amended to read:
15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.
Notwithstanding any other law, the state is not liable for obligations of a public
corporation created by statute. Upon dissolution of the public corporation, its wholly owned
assets become state property. Partially owned assets become state property to the extent
that state money was used to acquire them.
This section does not apply to a public corporation governed by chapter 119new text begin or section
469.0121new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 2.
Minnesota Statutes 2024, section 462A.202, subdivision 3a, is amended to read:
Subd. 3a.
Permanent rental housing.
The agency may make loans, with or without
interest, to cities and counties to finance the construction, acquisition, or rehabilitation of
affordable, permanent, new text begin and new text end publicly owned rental housingnew text begin , including housing owned by a
public corporation created pursuant to section 469.0121new text end . Loans made under this subdivision
are subject to the restrictions of subdivision 7. In making loans under this subdivision, the
agency shall give priority to projects that increase the supply of affordable family housing.
Sec. 3.
Minnesota Statutes 2024, section 462C.02, subdivision 6, is amended to read:
Subd. 6.
City.
"City" means any statutory or home rule charter city, a county housing
and redevelopment authority created by special law or authorized by its county to exercise
its powers pursuant to section 469.004, or any public body which (a) is the housing and
redevelopment authority in and for a statutory or home rule charter city, the port authority
of a statutory or home rule charter city, deleted text begin ordeleted text end an economic development authority of a city
established under sections 469.090 to 469.108, new text begin or a public corporation created pursuant to
section 469.0121, new text end and (b) is authorized by ordinance to exercise, on behalf of a statutory or
home rule charter city, the powers conferred by sections 462C.01 to 462C.10.
Sec. 4.
Minnesota Statutes 2024, section 469.012, subdivision 2j, is amended to read:
Subd. 2j.
May be in LLP, LLC, or corporation; bound as if HRA.
new text begin (a) new text end An authority
may become a member or shareholder in and enter into or form limited partnerships, limited
liability companies, or corporations for the purpose of developing, constructing, rehabilitating,
managing, supporting, or preserving housing projects and housing development projects,
including low-income housing tax credit projects. These limited partnerships, limited liability
companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
and other laws that apply to housing and redevelopment authorities, as if the limited
partnership, limited liability company, or corporation were a housing and redevelopment
authority.
new text begin
(b) An authority may create a public corporation in accordance with section 469.0121
for the purpose of purchasing, owning, and operating real property converted through the
federal Rental Assistance Demonstration program under Public Law 112-55, as amended.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 5.
new text begin
[469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE
DEMONSTRATION PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Authority" has the meaning given under section 469.002, subdivision 2.
new text end
new text begin
(c) "Board" means the board of directors of a corporation created under this section.
new text end
new text begin
(d) "Corporation" means a public corporation created under this section.
new text end
new text begin
(e) "RAD" means the federal Rental Assistance Demonstration program under Public
Law 112-55, as amended.
new text end
new text begin Subd. 2. new text end
new text begin Public corporation created. new text end
new text begin
An authority may create a public corporation to
purchase, own, and operate real property that has been converted through RAD to preserve
and improve public housing properties. A public corporation created under this section is
also a political subdivision of the state and is limited to the powers in this section.
new text end
new text begin Subd. 3. new text end
new text begin Corporation powers. new text end
new text begin
(a) The corporation has the following general powers:
new text end
new text begin
(1) to have succession until dissolved by law;
new text end
new text begin
(2) to sue and be sued in its corporate name;
new text end
new text begin
(3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
new text end
new text begin
(4) to accept, hold, and administer gifts and bequests of money, securities, or other
personal property of whatsoever character, absolutely or in trust, for the purposes for which
the corporation is created. Unless otherwise restricted by the terms of the gift or bequest,
the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or
reinvest in such investments as the corporation may determine with the money, securities,
or other property given or bequeathed to the corporation. The principal of and income from
the corporate funds and all other revenues received by the corporation from any source
whatsoever shall be placed in such depositories as the board of directors shall determine
and shall be subject to expenditure for corporate purposes;
new text end
new text begin
(5) to enter into contracts generally and to execute all instruments necessary or appropriate
to carry out the corporate purposes;
new text end
new text begin
(6) to appoint and prescribe the duties of officers, agents, and employees as may be
necessary to carry out the work of the corporation and to compensate officers, agents, and
employees;
new text end
new text begin
(7) to purchase all supplies and materials necessary for carrying out the purposes of the
corporation;
new text end
new text begin
(8) to accept from the United States, the state of Minnesota, or any of their agencies
money or other assistance whether by gift, loan, or otherwise to carry out the purposes of
the corporation, and enter into contracts with the United States, the state of Minnesota, any
of the agencies of either, or any of the political subdivisions of the state as it may deem
proper and consistent with the purposes of this section;
new text end
new text begin
(9) to contract and make cooperative agreements with federal, state, and municipal
departments and agencies and private corporations, associations, and individuals for the use
of the corporation property, including but not limited to rental agreements; and
new text end
new text begin
(10) to acquire real or personal property or any interest therein in any manner authorized
under section 469.012, subdivision 1g, including by the exercise of eminent domain.
new text end
new text begin
(b) A corporation may acquire properties converted under RAD, subject to restrictions
and conditions compatible with funding acquisitions of and improvements to real property
with state general obligation bond proceeds. The commissioner of management and budget
must determine the necessary restrictions and conditions under this paragraph.
new text end
new text begin Subd. 4. new text end
new text begin Board of directors. new text end
new text begin
(a) A corporation is governed by a board of directors, with
each commissioner of the authority that created the corporation serving as a member.
new text end
new text begin
(b) The term of a director shall coincide with their term as a commissioner of the authority
that created the corporation, except that a director's term shall continue after their term as
a commissioner is complete until a successor commissioner is duly appointed and qualified.
new text end
new text begin
(c) Board members must not be compensated for their service as board members but
may receive reimbursement for reasonable expenses incurred in connection with their duties
as board members. The state auditor must review the reimbursements to board members
each year.
new text end
new text begin
(d) The board must annually elect from among its members a chair and other officers
necessary for the performance of its duties.
new text end
new text begin Subd. 5. new text end
new text begin Bylaws. new text end
new text begin
The board of directors must adopt bylaws and rules as it deems
necessary for the administration of its functions and the accomplishment of its purpose,
including among other matters the establishment of a business office and the rules, the use
of the project-based rental assistance properties, and the administration of corporation funds.
new text end
new text begin Subd. 6. new text end
new text begin Place of business. new text end
new text begin
The board must locate and maintain the corporation's place
of business in the city in which the authority that created the corporation is located.
new text end
new text begin Subd. 7. new text end
new text begin Open meetings; data practices. new text end
new text begin
Meetings of the board are subject to chapter
13D and meetings of the board conducted by interactive technology are subject to section
13D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act,
and shall protect data classified as not public from unlawful disclosure.
new text end
new text begin Subd. 8. new text end
new text begin Compliance. new text end
new text begin
The corporation must comply with all federal, state, and local
laws, rules, ordinances, and other regulations required to own and operate properties as
project-based rental assistance properties.
new text end
new text begin Subd. 9. new text end
new text begin Dissolution. new text end
new text begin
Upon dissolution of the corporation for any reason, its wholly
owned assets become property of the authority that created the corporation.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end