HF 2485

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 01:53pm

A bill for an act
relating to capital investment; appropriating money for housing; authorizing
the Minnesota Housing Finance Agency to issue housing infrastructure bonds;
authorizing the sale and issuance of state bonds; amending Minnesota Statutes
2010, section 462A.21, by adding a subdivision; proposing coding for new law
in Minnesota Statutes, chapter 462A.

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

Section 1. new text begin HOUSING.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $10,000,000 is appropriated from the bond proceeds
fund to the Housing Finance Agency to finance the rehabilitation of public housing under
Minnesota Statutes, section 462A.202, subdivision 3a. For purposes of this section,
"public housing" means housing for low-income persons and households financed by
the federal government and owned and operated by public housing authorities and
agencies formed by cities and counties. Eligible public housing authorities must have a
public housing assessment system rating of standard or above. Priority must be given to
proposals that maximize federal or local resources to finance the capital costs. The priority
in Minnesota Statutes, section 462A.202, subdivision 3a, for projects to increase the
supply of affordable housing and the restrictions of Minnesota Statutes, section 462A.202,
subdivision 7, do not apply to this appropriation.
new text end

new text begin Subd. 2. new text end

new text begin Bond sale. new text end

new text begin To provide the money appropriated in this section from the
bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $10,000,000 in the manner, upon the terms, and with
the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 462A.21, is amended by adding a subdivision
to read:

new text begin Subd. 33. new text end

new text begin Housing infrastructure bonds account. new text end

new text begin The agency may establish a
housing infrastructure bond account as a separate account within the housing development
fund. Proceeds of housing infrastructure bonds and payments made by the state under
section 462A.37 may be credited to the account. The agency may transfer the proceeds of
housing infrastructure bonds to other accounts within the housing development fund that it
determines appropriate to accomplish the purposes for which the bonds are authorized
under section 462A.37.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [462A.37] HOUSING INFRASTRUCTURE BONDS; AUTHORIZATION;
STANDING APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.
new text end

new text begin (c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.
new text end

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

new text begin (e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.
new text end

new text begin (f) "Housing infrastructure bonds" means bonds issued by the agency under his
chapter that are qualified 501(c)(3) bonds, within the meaning of section 145(a) of the
Internal Revenue Code, or are tax-exempt bonds that are not private activity bonds, within
the meaning of section 141(a) of the Internal Revenue Code, for the purpose of financing
or refinancing affordable housing authorized under this chapter.
new text end

new text begin (g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
new text end

new text begin (h) "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.
new text end

new text begin Subd. 2. new text end

new text begin Authorization. new text end

new text begin (a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the
payment made under this section may be pledged. The housing infrastructure bonds
authorized in this subdivision may be issued to fund loans, on terms and conditions the
agency deems appropriate, made for one or more of the following purposes:
new text end

new text begin (1) to finance the costs of the construction, acquisition, and rehabilitation of
supportive housing for individuals and families who are without a permanent residence;
new text end

new text begin (2) to finance the costs of the acquisition and rehabilitation of foreclosed or
abandoned housing to be used for affordable rental housing and the costs of new
construction of rental housing on abandoned or foreclosed property where the existing
structures will be demolished or removed;
new text end

new text begin (3) to finance that portion of the costs of acquisition of abandoned or foreclosed
property that is attributable to the land to be leased by community land trusts to low-
and moderate-income homebuyers; and
new text end

new text begin (4) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in
part, outstanding bonds previously issued by the agency or another governmental unit to
finance or refinance such costs.
new text end

new text begin (b) Among comparable proposals for permanent supportive housing, preference
shall be given to permanent supportive housing for individuals or families who: (1) either
have been without a permanent residence for at least 12 months or at least four times in
the last three years; or (2) are at significant risk of lacking a permanent residence for 12
months or at least four times in the last three years.
new text end

new text begin Subd. 3. new text end

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

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

new text begin Subd. 4. new text end

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

new text begin (a) The agency must
certify annually to the commissioner of management and budget the actual amount of
annual debt service on each series of bonds issued under subdivision 2.
new text end

new text begin (b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure
bonds issued under subdivision 2 remain outstanding, the commissioner of management
and budget must transfer to the affordable housing bond account established under
section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed
$2,200,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.
new text end

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

new text begin EFFECTIVE DATE. new text end

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