Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 197--H.F.No. 1147
           An act relating to local government; permitting the 
          cities of Richfield and Bloomington to implement an 
          energy conservation program; authorizing the financing 
          of a residential energy conservation program; 
          requiring a report to the legislature. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [RESIDENTIAL ENERGY CONSERVATION PROGRAM.] 
    Sections 1 to 4 may apply to the cities of Richfield and 
Bloomington.  Notwithstanding any contrary provision of law or 
charter a city may develop and administer a program or programs 
to make or purchase energy improvement or energy rehabilitation 
loans with respect to housing located anywhere within the city 
on terms and conditions as set forth in this act and a 
resolution adopted by the city council.  At least 75 percent of 
the proceeds of each energy improvement or energy rehabilitation 
loan shall be used for housing repairs and improvements, 
    (1) which the city determines are (a) used or useful to 
conserve energy or (b) to convert or refit an existing structure 
to use an energy source which does not depend on nuclear or 
nonrenewable petroleum-based resources, and 
    (2) which, when installed or completed, will with respect 
to each housing unit directly result in a cost effective 
reduction of energy use from nuclear or nonrenewable 
petroleum-based resources.  
    The resolution establishing the program shall establish the 
manner of determining whether the housing repairs and 
improvements will directly result in the required cost effective 
reduction of energy use.  Loans may be made without regard to 
income level of the loan recipient, shall bear interest at a 
rate or rates established by the city, shall be for a term of 
not to exceed 20 years, and may be secured by a mortgage or 
other security interest.  The powers granted to the city by 
sections 1 to 4 are supplemental and in addition to those 
granted by Minnesota Statutes, chapter 462C or other law or 
charter provision.  
    Sec. 2.  [LIMITATIONS.] 
    A program may be established pursuant to this act only 
after the city determines that:  
    (1) There is a continued need to reduce consumption of 
energy from nonrenewable petroleum-based resources.  
    (2) There are housing units within the jurisdiction of the 
city which are in need of energy improvements and energy 
rehabilitation;  
    (3) Private sources of financing are not reasonably 
available to provide the needed loans for energy improvements 
and energy rehabilitation; and 
    (4) The types of energy improvements and energy 
rehabilitation will reduce the consumption of energy from 
nonrenewable petroleum-based resources or from nuclear sources.  
    Findings made by the city pursuant to this section are 
conclusive and final.  
    Sec. 3.  [REVENUE BONDS.] 
    Subdivision 1.  [RESOLUTION.] To finance the program or 
programs authorized by sections 1 to 4, the city council may, by 
resolution, authorize, issue, and sell revenue bonds or 
obligations, payable from the revenues of the program or 
programs authorized by sections 1 to 4.  The cities may expend 
any municipal funds properly available to them or to the housing 
and redevelopment authorities of those cities acting pursuant to 
section 4 to finance any program authorized by this act.  
    Subd. 2.  [BONDING AND FINANCIAL AUTHORITY.] 
Notwithstanding any contrary provision of charter or other law, 
and in addition to the authority contained in any other law, the 
city may exercise any of the powers in relation to making or 
purchasing loans or other securities and issuing revenue bonds 
or obligations in furtherance of the programs authorized by 
sections 1 to 4 that the Minnesota housing finance agency may 
exercise under Minnesota Statutes, chapter 462A.  The revenue 
bonds or obligations shall be payable from revenues from the 
program and other city housing programs.  The revenue bonds or 
obligations may be payable from other sources of city revenue 
which are derived from federal sources other than general 
revenue sharing, or private grant sources.  The city shall not 
levy or pledge to levy any ad valorem tax upon real property to 
pay principal of or interest on revenue bonds or obligations.  
    Sec. 4.  [EXERCISE OF POWERS.] 
    The city may by resolution authorize the housing and 
redevelopment authority for the city to exercise any powers 
granted to the city by this act, in which event the sources of 
city revenue that may be pledged to the payment of revenue bonds 
or obligations shall include any revenues of the housing and 
redevelopment authority.  
    Sec. 5.  [REPORT.] 
    By January 1, 1984, the city shall report to the 
appropriate committees of the legislature on the implementation 
of the program or programs created pursuant to sections 1 to 5. 
The report shall include but is not limited to information on 
the amount of bonds issued and the number and types of dwelling 
units served, whether single family, multifamily, of four units 
or less, or multifamily of more than four units.  
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1 to 6 are effective separately for each of the 
cities of Richfield and Bloomington the day after compliance 
with Minnesota Statutes, section 645.021, subdivision 3. 
    Approved May 19, 1983