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SF 4298

as introduced - 91st Legislature (2019 - 2020) Posted on 03/17/2020 11:51am

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

Current Version - as introduced

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A bill for an act
relating to housing; appropriating money for loans or grants to preserve Naturally
Occurring Affordable Housing.

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

Section 1. new text beginHOUSING FINANCE AGENCY; NOAH APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Naturally Occurring Affordable Housing; appropriation. new text end

new text begin $50,000,000
is appropriated in fiscal year 2021 from the general fund to the Minnesota Housing Finance
Agency (1) to make loans or grants to owners of Naturally Occurring Affordable Housing
(NOAH) preservation properties that have demonstrated experience and capacity in owning
and operating quality and well-managed affordable housing, or (2) to make a grant to a
statewide intermediary to make loans or grants for the same purposes. A loan or grant must
be used to acquire and rehabilitate a NOAH property that the agency or the statewide
intermediary determines is at risk of increased rents and that is occupied by tenants at risk
of involuntary displacement. The agency shall determine how much of the appropriation
may be used for grants and how much for loans. This appropriation is available until June
30, 2023.
new text end

new text begin Subd. 2. new text end

new text begin Requirements; terms. new text end

new text begin (a) A funding applicant must demonstrate that the
applicant will have sufficient capital and capital reserves to improve and maintain the
property for the term of the loan if funding is in the form of a loan, but in all cases for at
least 15 years.
new text end

new text begin (b) A funding recipient must be contractually obligated by means of a deed restriction
to maintain for at least 15 years one of the following three levels of affordability:
new text end

new text begin (1) at least 75 percent of the units must be at rents affordable to households with incomes
at or less than 80 percent of the area median income, and at least 51 percent of units must
be at rents affordable to households with incomes at or less than 60 percent of the area
median income;
new text end

new text begin (2) at least 15 percent of the units, or 15 units, whichever is fewer, must be at rents
affordable to households with incomes at or less than 30 percent of the area median income,
and at least 51 percent of the units must be at rents affordable to households with incomes
at or less than 60 percent of the area median income; or
new text end

new text begin (3) at least 75 percent of the units must be at rents affordable to households with incomes
at 50 percent or less of the area median income, and 100 percent of the units must be at
rents affordable to households with incomes at or less than 80 percent of the area median
income.
new text end

new text begin (c) A funding applicant must provide to the agency or statewide intermediary
administering the grant and loan program the details of the total financing package.
new text end

new text begin (d) Properties that receive funds must accept vouchers under Section 8 of the United
States Housing Act of 1937, as amended, if the subsidy payment standard is no more than
five percent below marketplace rent levels.
new text end

new text begin (e) The agency or statewide intermediary may require other criteria and application
information that will promote NOAH preservation.
new text end

new text begin (f) A loan or grant may be for up to 40 percent of the total acquisition cost of the NOAH
property but no more than $50,000 per individual rental housing unit acquired.
new text end

new text begin (g) The agency, or the statewide intermediary making loans or grants under this section,
may give priority to applications that reserve at least 15 units to provide homes for homeless
households.
new text end

new text begin (h) A loan may have a term of up to 15 years at no- or low-interest rates, at the discretion
of the agency or statewide intermediary.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin A recipient of a grant or loan under this section must report to the
agency or statewide intermediary information required by the agency as a condition of the
loan or grant.
new text end