Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 542-H.F.No. 2063 
           An act relating to housing; providing a definition; 
          authorizing certain refinancing; providing for grants 
          for housing for low-income persons; providing for 
          reservation of low-income housing credits; amending 
          Minnesota Statutes 1986, sections 462A.03, by adding a 
          subdivision; 462A.05, by adding a subdivision; and 
          462A.07, subdivisions 14 and 15; Minnesota Statutes 
          1987 Supplement, sections 462A.05, subdivision 28; and 
          462A.222, subdivision 2; 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 1986, section 462A.03, is 
amended by adding a subdivision to read: 
    Subd. 20.  "American Indian" means a person who is a member 
of an Indian tribe, as the terms "Indian," "Indian tribe," and 
"tribal organization" are defined in United States Code, title 
25, section 450b. 
    Sec. 2.  Minnesota Statutes 1986, section 462A.05, is 
amended by adding a subdivision to read:  
    Subd. 3a.  It may refinance the existing indebtedness of 
nonprofit entities, as defined by the agency, secured by 
residential housing for occupancy by persons and families of low 
and moderate income, if refinancing is determined by the agency 
to be necessary to reduce housing costs to an affordable level 
or to maintain the supply of affordable low-income housing.  The 
authority granted in this subdivision is in addition to and not 
in limitation of the authority granted in section 462A.05, 
subdivision 14. 
     Sec. 3.  Minnesota Statutes 1987 Supplement, section 
462A.05, subdivision 28, is amended to read:  
    Subd. 28.  [GRANTS FOR HOUSING FOR LOW-INCOME PERSONS 
LIVING ALONE.] The agency may make grants for residential 
housing to be used by low-income persons living alone whose 
annual gross income does not exceed 150 percent of the poverty 
line as updated by the United States Office of Management and 
Budget.  The grants may be made to cities, joint powers boards 
established by two or more cities, housing and redevelopment 
authorities created under sections 462.415 to 462.705, or 
nonprofit entities as defined by the agency, or for-profit 
entities to the extent necessary to enable the recipient to 
qualify for low-income housing credits provided under section 42 
of the Internal Revenue Code of 1986, as amended through 
December 31, 1987, provided that the agency determines that the 
credits will confer a benefit on the residential housing.  The 
occupants of the residential housing must be offered a written 
lease that complies with section 325G.31, offers the occupants 
the option to renew, and prohibits eviction of an occupant 
without good cause.  Grants under this subdivision must not 
exceed 50 percent of the development costs for the residential 
housing, and must not be made for any residential housing that 
requires the occupants to accept board as well as lodging.  In 
making grants, the agency shall determine the circumstances, 
terms, and conditions under which all or part of the grant will 
be repaid and the appropriate security if repayment is required. 
    Sec. 4.  Minnesota Statutes 1986, section 462A.07, 
subdivision 14, is amended to read:  
    Subd. 14.  It may engage in housing programs for low and 
moderate income American Indians, as that term is defined in 
section 254A.02, subdivision 11, developed and administered 
separately or in combination by the Minnesota Chippewa tribe, 
the Red Lake band of Chippewa Indians, and the Sioux communities 
as determined by such tribe, band, or communities.  In 
developing such housing programs the tribe, band, or communities 
shall take into account the housing needs of all American 
Indians residing both on and off reservations within the state.  
A plan for each such program, which specifically describes the 
program (a) content, (b) utilization of funds, (c) 
administration, (d) operation, (e) implementation and other 
matter, as determined by the agency, must be submitted to the 
agency for its review and approval prior to the making of 
eligible loans pursuant to section 462A.21.  All such programs 
must conform to rules promulgated by the agency concerning 
program administration, including but not limited to rules 
concerning costs of administration; the quality of housing; 
interest rates, fees and charges in connection with making 
eligible loans; and other matters determined by the agency to be 
necessary in order to effectuate the purposes of this 
subdivision and section 462A.21, subdivisions 4b and 4c.  All 
such programs must provide for a reasonable balance in the 
distribution of funds appropriated for the purpose of this 
section between American Indians residing on and off 
reservations within the state.  Nothing in this section shall 
preclude such tribe, band, or communities from requesting and 
receiving cooperation, advice, and assistance from the agency as 
regards program development, operation, delivery, financing, or 
administration.  As a condition to the making of such eligible 
loans, the Minnesota Chippewa tribe, the Red Lake band of 
Chippewa Indians and the Sioux communities shall: 
    (a) enter into a loan agreement and other contractual 
arrangements with the agency for the purpose of transferring the 
allocated portion of loan funds as set forth in section 462A.26 
and to insure compliance with the provisions of this section and 
this chapter, and 
    (b) shall agree that all of their official books and 
records related to such housing programs shall be subjected to 
audit by the legislative auditor in the manner prescribed for 
agencies of state government. 
    The agency shall submit a biennial report concerning the 
various housing programs for American Indians, and related 
receipts and expenditures as provided in section 462A.22, 
subdivision 9, and such tribe, band, or communities to the 
extent that they administer such programs, shall be responsible 
for any costs and expenses related to such administration 
provided, however, they shall be eligible for payment for costs, 
expenses and services pursuant to subdivision 12, and section 
462A.21.  The agency may provide or cause to be provided 
essential general technical services as set forth in subdivision 
2, and general consultative project assistance services, 
including, but not limited to, management training, and home 
ownership counseling as set forth in subdivision 3.  Members of 
boards, committees, or other governing bodies of the tribe, 
band, and communities administering the programs authorized by 
this subdivision must be compensated for those services as 
provided in section 15.0575.  Rules promulgated under this 
subdivision may be promulgated as emergency rules under chapter 
14. 
    Sec. 5.  Minnesota Statutes 1986, section 462A.07, 
subdivision 15, is amended to read:  
    Subd. 15.  It may engage in housing programs for low and 
moderate income American Indians as that term is defined in 
section 254A.02, subdivision 11, residing in the metropolitan 
area defined in section 473.121, subdivision 2, and cities with 
a population greater than 50,000 persons.  The programs shall 
demonstrate innovative methods of providing housing for urban 
Indians, may involve the construction, purchase, and 
rehabilitation of residential housing, and may be administered 
through any other provision of this chapter.  To the extent 
possible, the programs shall combine appropriated money with 
other money from both public and private sources, except that 
interest earned on the portion of an appropriation to be 
expended for Indian housing programs in the city of Duluth does 
not have to be combined with money from other sources.  
Effective June 30, 1985, all money allocated by the agency under 
this subdivision to programs for urban Indian housing that are 
not subject to active contracts shall be reallocated by the 
agency to programs to fulfill the purposes of this subdivision.  
Members of boards, committees, or other governing bodies of 
organizations administering the urban Indian programs authorized 
by this subdivision must be compensated for those services as 
provided in section 15.0575.  The agency shall consult with the 
advisory council on urban Indians created pursuant to section 
3.922, subdivision 8, in the development of programs pursuant to 
this subdivision. 
    Sec. 6.  Minnesota Statutes 1987 Supplement, section 
462A.222, subdivision 2, is amended to read:  
    Subd. 2.  [CREDIT FORMULA.] The agency shall reserve to 
each eligible city and county an amount equal to the greater of 
(1) the product obtained by multiplying $1.6875 by the 
population of the city or county the product obtained by:  (a) 
deducting from the per capita amount used in determining the 
annual state ceiling for low-income housing credits provided 
under section 42 of the Internal Revenue Code of 1986, a 
percentage portion of the per capita amount equal to the 
percentage set-aside apportionment for projects involving a 
qualified nonprofit organization, as provided therein, and (b) 
multiplying the difference obtained in (a) by the population of 
the city or county, and (c) multiplying the product obtained 
under (b) by 1.5, or (2) 90 percent of the total state ceiling 
for low-income housing credits, multiplied by a fraction that 
has as its numerator the number of rental units located within 
the city or county and that has as its denominator the total 
number of rental units located within the state.  For purposes 
of this subdivision, the state demographer shall provide 
population and rental unit estimates to the agency.  
     Sec. 7.  [469.0171] [HOUSING PLAN, PROGRAM, AND REVIEW.] 
    Prior to the issuance of bonds or obligations for a housing 
development project proposed by an authority under section 
469.017, the authority shall prepare a plan meeting the 
requirements of section 462C.03, subdivision 1, paragraphs (a) 
to (d); obtain review of the plan in the manner provided in 
section 462C.04, subdivision 1; and prepare and submit for 
review a program as defined in section 462C.02, subdivision 3, 
in the manner provided in section 462C.04, subdivision 2, and 
section 462C.05, subdivision 5, for the making or purchasing of 
loans by cities. 
    Sec. 8.  [EFFECTIVE DATE.] 
    Sections 1 to 6 are effective the day following final 
enactment.  Section 7 is effective August 2, 1988. 
    Approved April 18, 1988