Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1989, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1989
CHAPTER 328-S.F.No. 522
An act relating to community development; authorizing
the establishment of affordable housing programs under
the administration of the Minnesota housing finance
agency; establishing a neighborhood preservation
program; revising certain tenant damage provisions in
landlord-tenant actions; regulating tenant screening
services; establishing a rent escrow system; providing
mandatory building repair fines; authorizing a housing
calendar consolidation pilot project in Hennepin and
Ramsey counties; revising certain housing receivership
provisions; providing a limited right of entry to
secure vacant or unoccupied buildings; providing for
city housing rehabilitation loan programs;
establishing the community and neighborhood
development organization program; establishing a child
development program; authorizing a neighborhood
revitalization program; establishing a youth
employment and housing program; requiring housing
impact reports and replacement housing under certain
conditions in cities of the first class; imposing
penalties; amending Minnesota Statutes 1988, sections
268.361, subdivision 4, and by adding a subdivision;
268.362; 268.364; 268.365; 268.366; 268.367; 282.01,
subdivision 1; 462A.03, by adding a subdivision;
462A.05, subdivisions 24 and 27, and by adding
subdivisions; 462A.21, subdivisions 4k and 12, and by
adding subdivisions; 462C.02, by adding subdivisions;
462C.05, by adding a subdivision; 463.15, subdivisions
3 and 4; 463.16; 463.161; 463.17; 463.20; 463.21;
463.22; 469.007; 469.012, subdivision 1; 504.255;
504.26; 566.17; 566.175, subdivision 1; 566.29,
subdivisions 1 and 4, and by adding subdivisions;
580.04; 580.12; 580.23, subdivision 1; 580.24; 581.10;
582.03; and 582.30, subdivision 2; Laws 1974, chapter
285, sections 1, 2, 3, 4, and by adding a section;
proposing coding for new law in Minnesota Statutes,
chapters 16B; 116J; 129A; 363; 462A; 462C.13; 469;
504; 566; and 582; repealing Minnesota Statutes 1988,
section 474A.081, subdivision 3; Laws 1974, chapter
351, sections 1 to 4, as amended; Laws 1975, chapter
260, sections 1 to 5; and Laws 1987, chapters 384,
article 3, section 22; and 386, article 6, sections 4
to 11.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
AFFORDABLE HOUSING PROGRAMS
Section 1. [16B.89] [ACQUISITION OF SURPLUS FEDERAL
PROPERTY.]
The commissioner of administration, after consultation with
one or more nonprofit organizations with an interest in
providing housing for homeless veterans and their families, may
acquire property from the United States government that is
designated by the General Services Administration as surplus
property. The commissioner of administration may lease the
property to a qualified nonprofit organization that agrees to
develop or rehabilitate the property for the purpose of
providing suitable housing for veterans and their families. The
lease agreement with the nonprofit organization may require that
the property be developed for use as housing for homeless and
displaced veterans and their families and for veterans and their
families who lose their housing.
Sec. 2. [129A.11] [ACCESSIBLE HOUSING INFORMATION.]
The commissioner of jobs and training may make accessible
housing information grants to eligible organizations to develop,
maintain, and publicize a list of accessible housing units
within their area of operation, based on recommendations of the
disability council. For purposes of this section, accessible
housing unit means an accessible housing unit that meets the
handicapped facility requirements of the state building code,
Minnesota Rules, chapter 1340. The list may also include
housing units that do not meet handicapped facility code
requirements, but that are accessible to disabled persons. The
list must be made available at no cost to persons seeking
accessible housing and must be updated at least every two
months. An eligible organization must have the capability to
develop, maintain, and publicize a list of accessible housing
units within the organization's area of operation.
Sec. 3. Minnesota Statutes 1988, section 462A.03, is
amended by adding a subdivision to read:
Subd. 21. [CITY.] "City" has the meaning given in section
462C.02, subdivision 6.
Sec. 4. Minnesota Statutes 1988, section 462A.05, is
amended by adding a subdivision to read:
Subd. 14c. [NEIGHBORHOOD PRESERVATION.] It may agree or
enter commitments to purchase, make, or participate in making
loans described in subdivision 14 for programs approved by the
agency for the preservation of designated neighborhoods. To
achieve the policy of economic integration stated in section
462A.02, subdivision 6, the programs may authorize loans to
borrowers having ownership interests in properties in the
neighborhood who are not eligible mortgagors as defined in
section 462A.03, subdivision 13. The aggregate original
principal balances of noneligible mortgagor loans in a
neighborhood benefiting from financing under this subdivision
must not exceed 25 percent of the total amount of neighborhood
preservation loan funds allocated to the neighborhood under the
program.
Sec. 5. Minnesota Statutes 1988, section 462A.05,
subdivision 24, is amended to read:
Subd. 24. It may engage in housing programs for low and
moderate income elderly, handicapped, or developmentally
disabled persons, as defined by the agency, to provide grants or
loans, with or without interest, for
(1) accessibility improvements to residences occupied by
elderly persons;
(2) housing sponsors, as defined by the agency, of home
sharing programs to match existing elderly homeowners with
prospective tenants who will contribute either rent or services
to the homeowner, where either the homeowner or the prospective
tenant is elderly, handicapped, or developmentally disabled;
(3) the construction of or conversion of existing buildings
into structures for occupancy by the elderly that contain from
three to 12 private sleeping rooms with shared cooking
facilities and common space; and
(4) housing sponsors, as defined by the agency, to
demonstrate the potential for home equity conversion in
Minnesota for the elderly, in both rural and urban areas, and to
determine the need in those equity conversions for consumer
safeguards.
In making the grants or loans, the agency shall determine
the terms and conditions of repayment and the appropriate
security, if any, should repayment be required. The agency may
provide technical assistance to sponsors of home sharing
programs or may contract or delegate the provision of the
technical assistance in accordance with section 462A.07,
subdivision 12.
Housing sponsors who receive funding through these programs
shall provide homeowners and tenants participating in a home
sharing program with information regarding their rights and
obligations as they relate to federal and state tax law
including, but not limited to, taxable rental income, homestead
credit under chapter 273, and the property tax refund act under
chapter 290A.
Sec. 6. Minnesota Statutes 1988, section 462A.05,
subdivision 27, is amended to read:
Subd. 27. The agency, or the corporations referred to in
subdivision 26, may acquire property or property interests under
subdivisions 25 and 26 and section 462A.06, subdivision 7, for
the following purposes: (1) to protect a loan or grant in which
the agency or corporation has an interest; or (2) to preserve
for the use of low- and moderate-income persons or families
multifamily housing, previously financed by the agency, which
was (i) previously financed by the agency, or (ii) not financed
by the agency but is benefited by federal housing assistance
payments or other rental subsidy or interest reduction
contracts. Property or property interests acquired for the
purpose specified in clause (1) may be acquired by foreclosure,
deed in lieu of foreclosure, or otherwise.
Multifamily property acquired as provided in clause (2)
must be managed on a fee basis by an entity other than the
agency or corporation. The agency or corporation may manage the
property on a temporary basis until an agreement is entered into
with another entity to manage the property. The agency or
corporation shall make the property available for sale at a
purchase price and on terms that are mutually agreeable to the
parties. In the sale of property benefited by federal housing
assistance, priority must be given to a buyer who agrees to
maintain the federal housing assistance.
Sec. 7. Minnesota Statutes 1988, section 462A.05, is
amended by adding a subdivision to read:
Subd. 34. [HOME EQUITY CONVERSION LOANS.] (a) The agency
may make or purchase home equity conversion loans for low- or
moderate-income elderly homeowners. Loan recipients must be at
least 62 years of age, have substantial equity in their home,
and have an income at or below 50 percent of the greater of
statewide or area median income. The agency must inform a
program participant of available home equity conversion loan
counseling services before making a loan.
(b) Repayment of a home equity conversion loan may not be
required until at least one of the following conditions occurs:
(1) the sale or conveyance of the mortgaged property;
(2) the mortgaged property is no longer the mortgagor's
principal residence;
(3) the death of the mortgagor; or
(4) a violation of an obligation of the mortgagor under the
mortgage.
For purposes of this section, an obligation of the
mortgagor under the mortgage does not include immediate
repayment upon completion of loan disbursements at the end of a
specified term.
Sec. 8. [462A.057] [MINNESOTA RURAL AND URBAN HOMESTEADING
PROGRAM.]
Subdivision 1. [ESTABLISHMENT; PURPOSE.] There is
established the Minnesota rural and urban homesteading program
to be administered by the agency for grants to eligible
applicants to acquire, rehabilitate, and sell eligible property.
The program is directed at single family residential properties
in need of rehabilitation that are sold to "at risk" homebuyers
committed to strengthening the neighborhood and following a good
neighbor policy.
Subd. 2. [DEFINITIONS.] For the purposes of this section,
the following terms have the meanings given them.
(1) "Contract for deed" is the agreement between the
homebuyer and eligible applicant as established by the agency.
(2) "Eligible organization" or "organization" means a
political subdivision, nonprofit or cooperative organization, as
defined by the agency, housing and redevelopment authority, or
other organization designated by the agency, which demonstrates
the capacity to perform the duties outlined in subdivision 5.
(3) "Eligible property" or "property" means a single family
residential dwelling and surrounding property that is vacant,
condemned, abandoned, or otherwise defined as eligible by the
agency, which, if rehabilitated, may prevent or arrest the
spread of blight.
(4) "Homebuyer" means an individual or family who has not
owned a residential dwelling in the past three years and meets
the definition of "at risk" established by the agency under
subdivision 4.
(5) "Designated home ownership area" or "designated area"
means a specific area where the acquisition, rehabilitation, and
sale of eligible properties may take place under this section.
In the metropolitan area, as defined in section 473.121,
subdivision 2, a designated area must be a specific four square
block area.
(6) "Neighborhood volunteer resident advisory board" or
"advisory board" means the board established by an organization
under subdivision 6.
(7) "Program" means the Minnesota rural and urban
homesteading program established in subdivision 1.
Subd. 3. [GRANTS.] The agency may award grants of up to
$300,000 to eligible organizations. The grants must be used by
the organization to buy eligible properties and pay for the
costs of rehabilitating those properties. Up to $30,000 of the
grant award may be used for the administrative costs of the
organization and for other costs associated with the acquisition
and sale of properties under this program including the payment
of taxes on the property during the period between the purchase
and sale of the property.
Subd. 4. [AGENCY POWERS; DUTIES.] The agency shall:
(1) establish criteria for selecting which eligible
organizations that apply for grants under this section receive
the grants;
(2) establish criteria for targeting the program to
homebuyers who are at risk which is defined to include families
and individuals who are homeless, receiving public assistance,
or otherwise cannot afford home ownership; and
(3) establish the terms and provisions of the contract for
deed and other program standards as necessary.
Subd. 5. [ELIGIBLE ORGANIZATION; CAPACITY.] The eligible
organization must demonstrate to the agency that it has the
capacity to:
(1) organize and continue an ongoing relationship with the
neighborhood volunteer resident advisory boards required under
subdivision 6;
(2) provide the necessary staff to administer the program
on the local level for an extended period; and
(3) select and acquire property that meets the requirements
established for this program and contract with businesses or
organizations for the rehabilitation of the property.
Subd. 6. [NEIGHBORHOOD VOLUNTEER RESIDENT ADVISORY BOARD.]
Each organization must establish a neighborhood volunteer
resident advisory board for each designated area. The advisory
board must consist of residents of the designated area that
reflects the racial composition of the area. In the
metropolitan area, as defined in section 473.121, subdivision 2,
at least 20 percent of the advisory board must be minority
residents. The advisory board must:
(1) recommend to the organization properties that may be
acquired for the program in the designated area; and
(2) recommend to the organization the selection of
homebuyers.
Subd. 7. [PURCHASE AND REHABILITATION.] An eligible
organization may acquire up to five properties in a designated
area with the consent of the advisory board for that area. The
organization must rehabilitate these properties to the standards
established by the agency. The total maximum cost of the
acquisition, rehabilitation, closing costs, and back taxes must
be no greater than $50,000 per individual property. The $50,000
maximum may be exceeded if the excess costs over $50,000 are
attributed to rehabilitation or improvements to make the
property handicapped accessible.
Subd. 8. [SALE OF PROPERTY TO HOMEBUYER.] The eligible
organization may sell rehabilitated property to homebuyers. The
terms and other provisions of the contract for deed must be
established by the agency. The following requirements must be
included in the contract: (1) the purchase price paid by the
home buyer must be equal to the total costs of acquiring and
rehabilitating the property; (2) no down payment or interest
payment is required of the home buyer; and (3) the monthly
payment must equal 25 percent of the home buyer's gross monthly
income.
Subd. 9. [RIGHT TO REPURCHASE.] The eligible organization
may repurchase the property if the home buyer rents, assigns,
vacates, transfers, or offers to sell the property within 20
years of the purchase of the property from the organization.
This option to repurchase does not apply to a transfer of the
property to a surviving joint tenant or heir of the home buyer.
If the organization chooses not to exercise its option to
repurchase the property, the agency may repurchase the property.
The repurchase price paid by the organization or the agency
may not exceed the lesser of the (1) appraised value of the
property at the time of repurchase, or (2) the sum of:
(i) the total amount paid by the home owner to the
organization for debt payment on the contract for deed;
(ii) the value of any major improvements to the property
that are paid directly by the home buyer and were not part of
the required monthly payment; and
(iii) the product of the sum of (i) and (ii), and the
increase in inflation based on the housing component of the
federal Consumer Price Index.
Subd. 10. [REPORTS.] Each organization that receives a
grant under this section shall submit an annual report to the
agency by December 1 of each year that describes the use of
grant funds received under this section.
The agency shall prepare and submit an annual report to the
legislature and the governor by January 15 of each year,
beginning in 1991, that summarizes the reports of the
organizations. The agency's report may also include
recommendations to improve the program.
Sec. 9. [462A.203] [HOUSING PRESERVATION PROGRAM.]
Subdivision 1. [ESTABLISHMENT.] The agency may establish a
housing preservation program for the purpose of making housing
preservation grants to cities. Cities may use the grants to
establish revolving loan funds for the acquisition, improvement,
or rehabilitation of residential buildings for the purpose of
preserving eligible housing. To achieve the policy of economic
integration stated in section 462A.02, subdivision 6, the
aggregate original principal balances of noneligible mortgagor
loans must not exceed 25 percent of the total amount of housing
preservation loan funds allocated to a city provided that the
mortgagor's income must not exceed 110 percent of the area
median income. Housing preservation loans may not be made for
housing located within a targeted neighborhood designated under
a neighborhood revitalization program.
Subd. 2. [ELIGIBILITY REQUIREMENTS.] A city's application
for a housing preservation grant must include a geographic
description of the area for which the grant will be used. A
city may designate only one area for each grant application
submitted, but may submit more than one application. The
application must include a city council resolution certifying
that the designated area meets the following requirements:
(1) at least 70 percent of the single-family housing is at
least 35 years old;
(2) at least 60 percent of the single-family housing is
owner-occupied;
(3) the average market value of the area's owner-occupied
housing is not more than 100 percent of the purchase price limit
for existing homes eligible for purchase in the area under the
agency's home mortgage loan program; and
(4) the geographic area consists of contiguous parcels of
land.
Subd. 3. [LOCAL MATCH.] In order to qualify for a program
grant, a city must match every dollar of state money with one
dollar of city matching funds. City matching funds may consist
of:
(1) money from the general fund or a special fund of the
city;
(2) money paid or repaid to a city from the proceeds of a
grant that the city has received from the federal government, a
profit or nonprofit corporation, or another entity or
individual;
(3) the greater of the fair market value or the cost to the
city of acquiring land, buildings, equipment, or other real or
personal property that a city contributes, grants, or loans to a
profit or nonprofit corporation, or other entity or individual
in connection with the implementation of the housing
preservation program;
(4) money to be used to install, reinstall, repair, or
improve the infrastructure facilities of an eligible area;
(5) money contributed by a city to pay issuance costs or to
otherwise provide financial support for revenue bonds or
obligations issued for a project or program related to the
implementation of a housing preservation program; and
(6) money derived from fees received by a city in
connection with its community development activities that are to
be used in implementing a housing preservation program.
Subd. 4. [ADVISORY COMMITTEE.] Before a city may make any
loans under the housing preservation program, the city must
establish an advisory committee to advise and assist the city in
implementing the housing preservation program.
Sec. 10. Minnesota Statutes 1988, section 462A.21, is
amended by adding a subdivision to read:
Subd. 3a. [CAPACITY BUILDING REVOLVING LOAN FUND.] It may
establish a revolving loan fund for predevelopment costs for
nonprofit organizations and local government units engaged in
the construction or rehabilitation of low- and moderate-income
housing, and for the purposes specified in sections 462A.05,
subdivision 5; and 462A.07, subdivisions 2, 3, 3a, 5, 5a, 6, 7,
11, and 16. The agency may delegate the authority to administer
the revolving loan fund for designated areas in the state to
existing nonprofit organizations. Nonprofit entities selected
to exercise such delegated powers must have sufficient
professional housing development expertise, as determined by the
agency, to evaluate the economic feasibility of an applicant's
proposed project. Loans to nonprofit organizations or local
government units under this subdivision may be made with or
without interest as determined by the agency.
Sec. 11. Minnesota Statutes 1988, section 462A.21, is
amended by adding a subdivision to read:
Subd. 3b. [CAPACITY BUILDING GRANTS.] It may make capacity
building grants to nonprofit organizations, local government
units, Indian tribes, and Indian tribal organizations to expand
their capacity to provide affordable housing and housing-related
services. The grants may be used to assess housing needs and to
develop and implement strategies to meet those needs, including
the creation or preservation of affordable housing and the
linking of supportive services to the housing. The agency shall
adopt rules specifying the eligible uses of grant money.
Funding priority must be given to those applicants that include
low-income persons in their membership, have provided
housing-related services to low-income people, and demonstrate a
local commitment of local resources, which may include in-kind
contributions. Grants under this subdivision may be made only
with specific appropriations by the legislature.
Sec. 12. Minnesota Statutes 1988, section 462A.21,
subdivision 4k, is amended to read:
Subd. 4k. [HOUSING DEVELOPMENT FUND.] The agency may make
grants for residential housing for low-income persons under
section 462A.05, subdivision 28, from funds specifically
appropriated by the legislature for that purpose and may pay the
costs and expenses for the development and operation of the
program.
Sec. 13. Minnesota Statutes 1988, section 462A.21, is
amended by adding a subdivision to read:
Subd. 8b. [FAMILY RENTAL HOUSING.] It may establish a
family rental housing assistance program to provide loans or
direct rental subsidies for housing for families with incomes of
up to 60 percent of area median income. Priority must be given
to those developments with resident families with the lowest
income. The development may be financed by the agency or other
public or private lenders. Direct rental subsidies must be
administered by the agency for the benefit of eligible
families. Financial assistance provided under this subdivision
to recipients of aid to families with dependent children must be
in the form of vendor payments whenever possible. Loans and
direct rental subsidies under this subdivision may be made only
with specific appropriations by the legislature.
Sec. 14. Minnesota Statutes 1988, section 462A.21, is
amended by adding a subdivision to read:
Subd. 8c. [RENTAL HOUSING FOR INDIVIDUALS.] It may
establish a rental housing assistance program for persons of low
income or with a mental illness to provide loans or direct
rental subsidies for housing for individuals with incomes of up
to 30 percent of area median income. Priority must be given to
developments with the lowest income residents. Housing for the
mentally ill must be operated in coordination with social
service providers who provide services to tenants. The
developments may be financed by the agency or other public or
private entities. Direct rental subsidies must be administered
by the agency for the benefit of eligible tenants. Financial
assistance provided under this subdivision must be in the form
of vendor payments whenever possible. Loans and direct rental
subsidies under this subdivision may be made only with specific
appropriations by the legislature.
Sec. 15. Minnesota Statutes 1988, section 462A.21,
subdivision 12, is amended to read:
Subd. 12. [TEMPORARY HOUSING.] It may make loans or grants
for the purpose of section 462A.05, subdivision 20, and may pay
the costs and expenses necessary and incidental to the loan or
grant program authorized therein. Grants pursuant to section
462A.05, subdivision 20 may be made only with specific
appropriations by the legislature.
Sec. 16. Minnesota Statutes 1988, section 462A.21, is
amended by adding a subdivision to read:
Subd. 12a. [PROGRAM MONEY TRANSFER.] Grants authorized
under section 462A.05, subdivisions 20, 28, and 29, may be made
only with specific appropriations by the legislature, but
unencumbered balances of money appropriated for the purpose of
loans or grants for agency programs under these subdivisions may
be transferred between programs created by these subdivisions or
in accordance with section 462A.20, subdivision 3.
Sec. 17. Minnesota Statutes 1988, section 462A.21, is
amended by adding a subdivision to read:
Subd. 15. [RURAL AND URBAN HOMESTEADING PROGRAM.] It may
make grants to eligible organizations for the Minnesota rural
and urban homesteading program under section 8 and may pay the
costs and expenses necessary and incidental to the grant program.
Sec. 18. [462A.28] [HOME EQUITY CONVERSION LOAN COUNSELING
PROGRAM.]
Subdivision 1. [PROGRAM ADMINISTRATION.] The agency shall
select and contract with a nonprofit corporation to administer a
home equity conversion loan counseling program for senior
homeowners. The organization selected must meet the following
requirements:
(1) its primary purpose is to assist elderly persons in
obtaining and maintaining affordable housing;
(2) it is knowledgeable about reverse mortgage programs;
(3) it has experience in counseling older persons on
housing, including knowledge of alternative living arrangements
for older persons; and
(4) it has knowledge of existing public support programs
for older persons.
Subd. 2. [PROGRAM RESPONSIBILITIES.] The organization
selected to administer the counseling program in subdivision 1
must perform the following program responsibilities with program
clients:
(1) conduct a review of reverse mortgage programs,
including the advantages, disadvantages, and alternatives;
(2) explain the effects of the mortgage on the client's
estate and public benefits;
(3) explain the lending process; and
(4) discuss the client's supplemental income needs.
Sec. 19. [STATEWIDE FUNDING ALLOCATION.]
The Minnesota housing finance agency shall ensure that
money appropriated for rental housing is distributed statewide
and that within the seven-county metropolitan area, the area
outside of the cities of Minneapolis and St. Paul receive an
equitable distribution of the allocation.
Sec. 20. [MINNESOTA RURAL AND URBAN HOMESTEADING PROGRAM
PILOT PROJECT.]
The Minnesota housing finance agency may award up to two
pilot project grants under the rural and urban homesteading
program. The agency may not award more than one pilot project
grant in a county.
Sec. 21. [REPEALER.]
Minnesota Statutes 1988, section 474A.081, subdivision 3,
is repealed.
Sec. 22. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
ARTICLE 2
LANDLORD-TENANT PROVISIONS
Section 1. Minnesota Statutes 1988, section 504.255, is
amended to read:
504.255 [UNLAWFUL OUSTER OR EXCLUSION; DAMAGES.]
If a landlord, an agent, or other person acting under the
landlord's direction or control, unlawfully and in bad faith
removes or, excludes, or forcibly keeps out a tenant from a
residential premises, the tenant may recover from the landlord
up to treble damages or $500, whichever is greater, and
reasonable attorney's fees.
Sec. 2. Minnesota Statutes 1988, section 504.26, is
amended to read:
504.26 [UNLAWFUL TERMINATION OF UTILITIES.]
Except as otherwise provided in this subdivision section,
if a landlord, an agent or other person acting under the
landlord's direction or control, interrupts or causes the
interruption of electricity, heat, gas, or water services to the
tenant, the tenant may recover from the landlord treble
damages or $500, whichever is greater, and reasonable attorney's
fees. It is a defense to any action brought under
this subdivision section that the interruption was the result of
the deliberate or negligent act or omission of a tenant or
anyone acting under the direction or control of the tenant. The
tenant may recover only actual damages under this
subdivision section if:
(a) the tenant has not given the landlord, an agent or
other person acting under the landlord's direction or control,
notice of the interruption; or
(b) the landlord, an agent or other person acting under the
landlord's direction or control, after receiving notice of the
interruption from the tenant and within a reasonable period of
time after the interruption, taking into account the nature of
the service interrupted and the effect of the interrupted
service on the health, welfare and safety of the tenants, has
reinstated or made a good faith effort to reinstate the service
or has taken other remedial action; or
(c) the interruption was for the purpose of repairing or
correcting faulty or defective equipment or protecting the
health and safety of the occupants of the premises involved and
the service was reinstated or a good faith effort was made to
reinstate the service or other remedial action was taken by the
landlord, an agent, or other person acting under the landlord's
direction or control within a reasonable period of time, taking
into account the nature of the defect, the nature of the service
interrupted and the effect of the interrupted service on the
health, welfare and safety of the tenants.
Sec. 3. [504.29] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 3 to 5.
Subd. 2. [OWNER.] "Owner" has the meaning given it in
section 566.18, subdivision 3.
Subd. 3. [TENANT.] "Tenant" has the meaning given it in
section 566.18, subdivision 2.
Subd. 4. [TENANT REPORT.] "Tenant report" means a written,
oral, or other communication by a tenant screening service that
includes information concerning an individual's credit
worthiness, credit standing, credit capacity, character, general
reputation, personal characteristics, or mode of living, and
that is collected, used, or expected to be used for the purpose
of making decisions relating to residential tenancies or
residential tenancy applications.
Subd. 5. [TENANT SCREENING SERVICE.] "Tenant screening
service" means a person or business regularly engaged in the
practice of gathering, storing, or disseminating information
about tenants or assembling tenant reports for monetary fees,
dues, or on a cooperative nonprofit basis.
Sec. 4. [504.30] [TENANT REPORTS; DISCLOSURE AND
CORRECTIONS.]
Subdivision 1. [DISCLOSURES REQUIRED.] Upon request and
proper identification, a tenant screening service must disclose
the following information to an individual:
(1) the nature and substance of all information in its
files on the individual at the time of the request; and
(2) the sources of the information.
A tenant screening service must make the disclosures to an
individual without charge if information in a tenant report has
been used within the past 30 days to deny the rental or increase
the security deposit or rent of a residential housing unit to
the individual. If the tenant report has not been used to deny
the rental or increase the rent or security deposit of a
residential housing unit within the past 30 days, the tenant
screening service may impose a reasonable charge for making the
disclosure required under this section. The tenant screening
service must notify the tenant of the amount of the charge
before furnishing the information. The charge may not exceed
the amount that the tenant screening service would impose on
each designated recipient of a tenant report, except that no
charge may be made for notifying persons of the deletion of
information which is found to be inaccurate or which can no
longer be verified.
Subd. 2. [CORRECTIONS.] If the completeness or accuracy of
an item of information contained in an individual's file is
disputed by the individual, the tenant screening service must
reinvestigate and record the current status of the information.
If the information is found to be inaccurate or can no longer be
verified, the tenant screening service must delete the
information from the individual's file and tenant report. At
the request of the individual, the tenant screening service must
give notification of the deletions to persons who have received
the tenant report within the past six months.
Subd. 3. [EXPLANATIONS.] The tenant screening service must
permit an individual to explain any disputed item not resolved
by reinvestigation in a tenant report. The explanation must be
included in the tenant report. The tenant screening service may
limit the explanation to no more than 100 words.
Subd. 4. [COURT FILE INFORMATION.] If a tenant screening
service includes information from a court file on an individual
in a tenant report, the outcome of the court proceeding must be
accurately recorded in the tenant report, unless the outcome is
not provided by the court. Whenever the court supplies
information from a court file on an individual, in whatever
form, the court shall include information on the outcome of the
court proceeding when it is available. The tenant screening
service is not liable under section 5 if the tenant screening
service reports complete and accurate information as provided by
the court.
Subd. 5. [INFORMATION TO TENANT.] If the owner uses
information in a tenant report to deny the rental or increase
the security deposit or rent of a residential housing unit, the
owner must inform the prospective tenant of the name and address
of the tenant screening service that provided the tenant report.
Sec. 5. [504.31] [TENANT REPORT; REMEDIES.]
The remedies provided in section 8.31 apply to a violation
of section 4. A tenant screening service or owner in compliance
with the provisions of the Fair Credit Reporting Act, United
States Code, title 15, section 1681, et seq., is considered to
be in compliance with section 4.
Sec. 6. [504.32] [NOTICE REQUIREMENT.]
Subdivision 1. [DEFINITIONS.] The definitions of "owner"
and "tenant" in section 566.18 apply to this section.
Subd. 2. [NOTICE.] The owner of federally subsidized
rental housing must give tenants a one-year written notice under
the following conditions:
(1) a federal section 8 contract will expire;
(2) the owner will exercise the option to terminate or not
renew a federal section 8 contract and mortgage;
(3) the owner will prepay a mortgage and the prepayment
will result in the termination of any federal use restrictions
that apply to the housing; or
(4) the owner will terminate a housing subsidy program.
The notice shall be provided at the commencement of the
lease if the lease commences less than one year before any of
the above conditions apply.
Sec. 7. Minnesota Statutes 1988, section 566.17, is
amended to read:
566.17 [EXECUTION OF THE WRIT OF RESTITUTION.]
Subdivision 1. [GENERAL.] The officer holding the writ of
restitution shall execute the same by making a demand upon
defendant if found in the county or any adult member of the
defendant's family holding possession of the premises, or other
person in charge thereof, for the possession of the same, and
that the defendant leave, taking family and all personal
property from such premises within 24 hours after such demand.
If defendant fails to comply with the demand, then the officer
shall bring, if necessary, the force of the county and whatever
assistance may be necessary, at the cost of the complainant,
remove the said defendant, family and all personal property from
said premises detained, immediately and place the plaintiff in
the possession thereof. In case defendant cannot be found in
the county, and there is no person in charge of the premises
detained, so that no demand can be made upon the defendant, then
the officer shall enter into the possession of the premises,
breaking in if necessary, and the property of the defendant
shall be removed and stored at a place designated by the
plaintiff as provided under subdivision 2.
Subd. 2. [REMOVAL AND STORAGE OF PROPERTY.] (a) In cases
where the defendant's personal property is to be stored in a
place other than the premises, the officer shall remove all
property of the defendant at the expense of the plaintiff.
The plaintiff shall have a lien upon all of the goods upon
the premises for the reasonable costs and expenses incurred for
removing the personal property and for the proper caring and
storing the same, and the costs of transportation of the same to
some suitable place of storage, in case defendant shall fail or
refuse to make immediate payment for all the expenses of such
removal from the premises and plaintiff shall have the right to
enforce such lien by detaining the same until paid, and, in case
of nonpayment for 60 days after the execution of the writ, shall
have the right to enforce the lien and foreclose the same by
public sale as provided for in case of sales under sections
514.18 to 514.22.
(b) In cases where the defendant's property is to be stored
on the premises, the officer shall enter the premises, breaking
in if necessary, and the plaintiff may remove the defendant's
personal property. The provisions of section 504.24 apply to
property removed under this paragraph. The plaintiff must
prepare an inventory and mail a copy of the inventory to the
defendant's last known address or, if the defendant has provided
a different address, to the address provided by the defendant.
The inventory must be prepared, signed, and dated in the
presence of the peace officer. The inventory must include the
following:
(1) a listing of the items of personal property and a
description of the condition of the property;
(2) the date, the signature of the plaintiff or the
plaintiff's agent, and the name and telephone number of a person
authorized to release the personal property; and
(3) the name and badge number of the peace officer.
The peace officer shall retain a copy of the inventory.
The plaintiff is responsible for the proper removal, storage,
and care of the defendant's personal property and is liable for
damages for loss of or injury to the defendant's personal
property caused by the plaintiff's failure to exercise care in
regard to it as a reasonably careful person would exercise under
like circumstances.
The plaintiff shall notify the defendant of the date and
approximate time the officer is scheduled to remove the
defendant, family, and the defendant's personal property from
the premises. The notice must be sent by first-class mail. In
addition, the plaintiff must make a good faith effort to notify
the defendant by telephone. The notice must be mailed as soon
as the information regarding the date and approximate time the
officer is scheduled to enforce the writ is known to the
plaintiff, except that the scheduling of the peace officer to
enforce the writ need not be delayed because of the notice
requirement. The notice must inform the defendant that the
defendant and the defendant's property will be removed from the
premises if the defendant has not vacated the premises by the
time specified in the notice.
Subd. 3. [PENALTY; WAIVER PROHIBITED.] Unless the premises
have been abandoned, a plaintiff, agent, or other person acting
under the plaintiff's direction or control who enters the
premises and removes the defendant's property in violation of
this section is guilty of wrongful ouster under section 504.255
and is subject to penalty under section 504.25. The provisions
of this section may not be waived or modified by any oral or
written lease or other agreement.
Sec. 8. Minnesota Statutes 1988, section 566.175,
subdivision 1, is amended to read:
Subdivision 1. [UNLAWFUL EXCLUSION OR REMOVAL.] For
purposes of this section, "unlawfully removed or excluded" means
actual or constructive removal or exclusion. Actual or
constructive removal or exclusion may include the termination of
utilities, or the removal of doors, windows, or locks. Any
tenant who is unlawfully removed or excluded from lands or
tenements which are demised or let to the tenant may recover
possession of the premises in the following manner:
(a) The tenant shall present a verified petition to the
county or municipal court of the county in which the premises
are located, which petition shall:
(1) describe the premises of which possession is claimed
and the owner, as defined in section 566.18, subdivision 3, of
the premises;
(2) specifically state the facts and grounds that
demonstrate that the removal or exclusion was unlawful including
a statement that no judgment and writ of restitution have been
issued under section 566.09 in favor of the owner and against
petitioner as to the premises and executed in accordance with
section 566.17; and
(3) ask for possession thereof.
(b) If it clearly appears from the specific grounds and
facts stated in the verified petition or by separate affidavit
of petitioner or the petitioner's counsel or agent that the
removal or exclusion was unlawful, the court shall immediately
order that petitioner have possession of the premises.
(c) The petitioner shall furnish monetary or other security
if any as the court deems appropriate under the circumstances
for payment of all costs and damages the defendant may sustain
if the order is subsequently found to have been obtained
wrongfully. In determining the appropriateness of any security
the court shall consider petitioner's ability to afford monetary
security.
(d) The court shall direct the order to the sheriff or any
constable of the county in which the premises is located and the
sheriff or constable shall execute the order immediately by
making a demand upon the defendant, if found, or the defendant's
agent or other person in charge of the premises, for possession
of the premises. If the defendant fails to comply with the
demand, the officer shall take whatever assistance may be
necessary and immediately place the petitioner in possession of
the premises. If the defendant or the defendant's agent or
other person in control of the premises cannot be found and if
there is no person in charge of the premises detained so that no
demand can be made, the officer shall immediately enter into
possession of the premises and place the petitioner in
possession of the premises. The officer shall also serve the
order and verified petition or affidavit without delay upon the
defendant or agent, in the same manner as a summons is required
to be served in a civil action in district court.
Sec. 9. Minnesota Statutes 1988, section 566.29,
subdivision 1, is amended to read:
Subdivision 1. [ADMINISTRATOR.] The administrator may be
any a person, local government unit or agency, other than an
owner of the building, the inspector, the complaining tenant or
any person living in the complaining tenant's dwelling unit. If
a state, or court, or local agency is authorized by statute,
ordinance or regulation to provide persons to act as
administrators under this section, the court may appoint such
persons as administrators to the extent they are available.
Sec. 10. Minnesota Statutes 1988, section 566.29,
subdivision 4, is amended to read:
Subd. 4. [POWERS.] The administrator shall be empowered is
authorized to:
(a) Collect rents from tenants and commercial tenants,
evict tenants and commercial tenants for nonpayment of rent or
other cause, rent vacant dwelling units on a month to month
basis, rent vacant commercial units with the consent of the
owner and exercise all other powers necessary and appropriate to
carry out the purposes of Laws 1973, chapter 611;
(b) Contract for the reasonable cost of materials, labor
and services necessary to remedy the violation or violations
found by the court to exist and for the rehabilitation of the
property in order to maintain safe and habitable conditions over
the useful life of the property, and make disbursements for
payment therefor from funds available for the purpose;
(c) Provide any services to the tenants which the owner is
obligated to provide but refuses or fails to provide, and pay
for them from funds available for the purpose;
(d) Petition the court, after notice to the parties, for an
order allowing the administrator to encumber the premise to
secure funds to the extent necessary to cover the cost of
materials, labor, and services necessary to remedy the violation
or violations found by the court to exist and for rehabilitation
of the property in order to maintain safe and habitable
conditions over the useful life of the property, and to pay for
them from funds derived from the encumbrance; and
(e) Petition the court, after notice to the parties, for an
order allowing the administrator to receive funds made available
for this purpose by the municipality to the extent necessary to
cover the cost of materials, labor, and services necessary to
remedy the violation or violations found by the court to
exist and for rehabilitation of the property in order to
maintain safe and habitable conditions over the useful life of
the property, and pay for them from funds derived from the
municipal sources. The municipality shall recover disbursements
by special assessment on the real estate affected, bearing
interest at the rate determined by the municipality, not
exceeding the rate established for finance charges for open-end
credit sales under section 334.16, subdivision 1, clause (b),
with the assessment, interest and any penalties to be collected
the same as special assessments made for other purposes under
state statute or municipal charter.
Sec. 11. Minnesota Statutes 1988, section 566.29, is
amended by adding a subdivision to read:
Subd. 6. [BUILDING REPAIRS AND SERVICES.] The
administrator must first contract and pay for building repairs
and services necessary to keep the building habitable before
other expenses may be paid. If sufficient funds are not
available for paying other expenses, such as tax and mortgage
payments, after paying for necessary repairs and services, the
owner is responsible for the other expenses.
Sec. 12. Minnesota Statutes 1988, section 566.29, is
amended by adding a subdivision to read:
Subd. 7. [ADMINISTRATOR'S LIABILITY.] The administrator
may not be held personally liable in the performance of duties
under this section except for misfeasance, malfeasance, or
nonfeasance of office.
Sec. 13. Minnesota Statutes 1988, section 566.29, is
amended by adding a subdivision to read:
Subd. 8. [DWELLING'S ECONOMIC VIABILITY.] In considering
whether to grant the administrator funds under subdivision 4,
the court must consider factors relating to the long-term
economic viability of the dwelling. The court's analysis must
consider factors including the causes leading to the appointment
of an administrator, the repairs necessary to bring the property
into code compliance, the market value of the property, and
whether present and future rents will be sufficient to cover the
cost of repairs or rehabilitation.
Sec. 14. [566.291] [RECEIVERSHIP REVOLVING LOAN FUND.]
The Minnesota housing finance agency may establish a
revolving loan fund to pay the administrative expenses of
receivership administrators under section 566.29 for properties
for occupancy by low- and moderate-income persons or families.
Property owners are responsible for repaying administrative
expense payments made from the fund.
Sec. 15. [566.34] [ESCROW OF RENT TO REMEDY VIOLATIONS.]
Subdivision 1. [DEFINITIONS.] The definitions in section
566.18 apply to this section.
Subd. 2. [ESCROW OF RENT.] If a violation exists in a
building, a tenant may deposit the amount of rent due to the
owner with the court administrator using the following procedure:
(a) For a violation of section 566.18, subdivision 6,
clause (a), the tenant may deposit with the court administrator
the rent due the owner along with a copy of the written notice
of the code violation as provided in section 566.19, subdivision
2. The tenant may not deposit the rent or file the written
notice of the code violation until the time granted to make
repairs has expired without satisfactory repairs being made,
unless the tenant alleges that the time granted is excessive.
(b) For a violation of section 566.18, subdivision 6,
clause (b) or (c), the tenant must give written notice to the
owner specifying the violation. The notice must be delivered
personally or sent to the person or place where rent is normally
paid. If the violation is not corrected within 14 days, the
tenant may deposit the amount of rent due to the owner with the
court administrator along with an affidavit specifying the
violation. The court must provide a simplified form affidavit
for use under this clause.
As long as proceedings are pending under this section, the
tenant must pay rent to the owner or as directed by the court
and may not withhold rent to remedy a violation.
Subd. 3. [COUNTERCLAIM FOR POSSESSION.] The owner may file
a counterclaim for possession of the premises in cases where the
owner alleges that the tenant did not deposit the full amount of
rent with the court administrator. The court must set the date
for a hearing on the counterclaim not less than seven nor more
than 14 days from the day of filing the counterclaim. If the
rent escrow hearing and the hearing on the counterclaim for
possession cannot be heard on the same day, the matters must be
consolidated and heard on the date scheduled for the hearing on
the counterclaim. The contents of the counterclaim for
possession must meet the requirements for a complaint in
unlawful detainer under section 566.05. The owner must serve
the counterclaim as provided in section 566.06, except that the
affidavits of service or mailing may be brought to the hearing
rather than filed with the court before the hearing. The court
must provide a simplified form for use under this section.
Subd. 4. [DEFENSES.] The defenses provided in section
566.23 are defenses to an action brought under this section.
Subd. 5. [FILING FEE.] The court administrator may charge
a filing fee in the amount set for complaints and counterclaims
in conciliation court, subject to the filing of an inability to
pay affidavit.
Subd. 6. [NOTICE OF HEARING.] A hearing must be held
within ten to 14 days of the day a tenant deposits rent with the
court administrator. If the cost of remedying the violation, as
estimated by the tenant, is within the jurisdictional limit for
conciliation court, the court administrator shall notify the
owner and the tenant of the time and place of the hearing by
first class mail. The tenant must provide the court
administrator with the owner's name and address. If the owner
has disclosed a post office box as the owner's address under
section 504.22, notice of the hearing may be mailed to the post
office box. If the cost of remedying the violation, as
estimated by the tenant, is above the jurisdictional limit for
conciliation court, the tenant must serve the notice of hearing
according to the rules of civil procedure. The notice of
hearing must specify the amount the tenant has deposited with
the court administrator, and must inform the owner that
possession of the premises will not be in issue at the hearing
unless the owner files a counterclaim for possession or an
action under sections 566.01 to 566.17.
Subd. 7. [HEARING.] The hearing shall be conducted by a
court without a jury. A certified copy of an inspection report
meets the requirements of rule 803(8) of the Rules of Evidence
as an exception to the rule against hearsay, and meets the
requirements of rules 901 and 902 of the Rules of Evidence as to
authentication.
Subd. 8. [RELEASE OF RENT PRIOR TO HEARING.] If the tenant
gives written notice to the court administrator that the
violation has been remedied, the court administrator must
release the rent to the owner and, unless the hearing has been
consolidated with another action, must cancel the hearing. If
the tenant and the owner enter into a written agreement signed
by both parties apportioning the rent between them, the court
administrator must release the rent in accordance with the
written agreement and cancel the hearing.
Subd. 9. [CONSOLIDATION WITH UNLAWFUL DETAINER.] Actions
under this section and actions in unlawful detainer brought
under sections 566.01 to 566.17 which involve the same parties
must be consolidated and heard on the date scheduled for the
unlawful detainer.
Subd. 10. [JUDGMENT.] (a) Upon finding that a violation
exists, the court may, in its discretion, do any or all of the
following:
(1) order relief as provided in section 566.25, including
retroactive rent abatement;
(2) order that all or a portion of the rent in escrow be
released for the purpose of remedying the violation;
(3) order that rent be deposited with the court as it
becomes due to the owner or abate future rent until the owner
remedies the violation; or
(4) impose fines as required in section 16.
(b) When a proceeding under this section has been
consolidated with a counterclaim for possession or an action in
unlawful detainer under sections 566.01 to 566.17, and the owner
prevails, the tenant may redeem the tenancy as provided in
section 504.02.
(c) When a proceeding under this section has been
consolidated with a counterclaim for possession or an action
under an unlawful detainer under sections 566.01 to 566.17 on
the grounds of nonpayment, the court may not require the tenant
to pay the owner's filing fee as a condition of retaining
possession of the premises when the tenant has deposited with
the court the full amount of money found by the court to be owed
to the owner.
Subd. 11. [RELEASE OF RENT AFTER HEARING.] Upon finding,
after a hearing on the matter has been held, that no violation
exists in the building or that the tenant did not deposit the
full amount of rent due with the court administrator, the court
shall order the immediate release of the rent to the owner.
Upon finding that a violation existed, but was remedied between
the commencement of the action and the hearing, the court may
order rent abatement and must release the rent to the parties
accordingly. Any rent found to be owed to the tenant must be
released to the tenant.
Subd. 12. [RETALIATION; WAIVER; RIGHTS AS ADDITIONAL.] The
provisions of section 566.28 apply to proceedings under this
section. The tenant rights under this section may not be waived
or modified and are in addition to and do not limit other rights
or remedies which may be available to the tenant and owner,
except as provided in subdivision 2.
Sec. 16. [566.35] [VIOLATIONS OF BUILDING REPAIR ORDERS.]
Subdivision 1. [NONCOMPLIANCE; FINES.] Upon finding an
owner has willfully failed to comply with a court order to
remedy a violation, the court shall fine the owner according to
the following schedule:
(1) $250 for the first failure to comply;
(2) $500 for the second failure to comply with an order
regarding the same violation; and
(3) $750 for the third and each subsequent failure to
comply with an order regarding the same violation.
Subd. 2. [CRIMINAL PENALTY.] An owner who willfully fails
to comply with a court order to remedy a violation is guilty of
a gross misdemeanor if it is the third or subsequent time that
the owner has willfully failed to comply with an order to remedy
a violation within a three-year period.
Subd. 3. [FINES COLLECTED.] Fines collected under
subdivision 1 in Hennepin county must be used for expenses of
the fourth judicial district, housing calendar consolidation
project. Fines collected under subdivision 1 in Ramsey county
must be used for expenses of the second judicial district,
housing calendar consolidation project.
Sec. 17. [HOUSING CALENDAR CONSOLIDATION PILOT PROJECT.]
Subdivision 1. [ESTABLISHMENT.] A three-year pilot project
may be established in the second and fourth judicial districts
to consolidate the hearing and determination of matters related
to residential rental housing and to ensure continuity and
consistency in the disposition of cases.
Subd. 2. [JURISDICTION.] The housing calendar project may
consolidate the hearing and determination of all proceedings
under Minnesota Statutes, chapters 504 and 566; criminal and
civil proceedings related to violations of any state, county or
city health, safety, housing, building, fire prevention or
housing maintenance code; escrow of rent proceedings;
landlord-tenant damage actions; and actions for rent and rent
abatement. A proceeding under sections 566.01 to 566.17 may not
be delayed because of the consolidation of matters under the
housing calendar project.
Subd. 3. [REFEREE.] The chief judge of district court may
appoint a referee for the housing calendar project. The referee
must be learned in the law. The referee must be compensated
according to the same scale used for other referees in the
district court. Minnesota Statutes, section 484.70, subdivision
6, applies to the housing calendar project.
Subd. 4. [REFEREE DUTIES.] The duties and powers of the
referee in the housing calendar project are as follows:
(1) to hear and report all matters within the jurisdiction
of the housing calendar project and as may be directed to the
referee by the chief judge; and
(2) to recommend findings of fact, conclusions of law,
temporary and interim orders, and final orders for judgment.
All recommended orders and findings of the referee are
subject to confirmation by a judge.
Subd. 5. [TRANSMITTAL OF COURT FILE.] Upon the conclusion
of the hearing in each case, the referee must transmit to the
district court judge, the court file together with the referee's
recommended findings and orders in writing. The recommended
findings and orders of the referee become the findings and
orders of the court when confirmed by the district court judge.
The order of the court is proof of the confirmation.
Subd. 6. [CONFIRMATION OF REFEREE ORDERS.] Review of any
recommended order or finding of the referee by a district court
judge may be had by notice served and filed within ten days of
effective notice of the recommended order or finding. The
notice of review must specify the grounds for the review and the
specific provisions of the recommended findings or orders
disputed, and the district court judge, upon receipt of the
notice of review, must set a time and place for the review
hearing.
Subd. 7. [PROCEDURES.] The chief judge of the district
must establish procedures for the implementation of the pilot
project, including designation of a location for the hearings.
The chief judge may also appoint other staff as necessary for
the project.
Subd. 8. [EVALUATION.] The state court administrator may
establish a procedure in consultation with the chief judge of
each district, each district administrator, and an advisory
group for evaluating the efficiency and the effectiveness of
consolidating the hearing of residential rental housing matters,
and must report to the legislature by January 1, 1992. An
advisory group, appointed by the state court administrator, may
be established to provide ongoing oversight and evaluation of
the housing calendar consolidation project. The advisory group
must include representatives of the second and fourth judicial
districts and must be composed of at least one representative
from each of the following groups: the state court
administrator's office; the district court administrator's
office; the district judges; owners of rental property; and
tenants.
Sec. 18. [DEMONSTRATION PROJECTS.]
The establishment of a housing calendar project under
section 17 is a demonstration project to evaluate the
effectiveness of coordinating the adjudication of all
housing-related cases in one court.
Sec. 19. [REPEALER.]
Sections 16, subdivision 3; 17; and 18 are repealed July 1,
1992.
ARTICLE 3
MISCELLANEOUS
Section 1. [363.032] [AFFIRMATIVE MARKETING REGULATIONS.]
To promote and encourage open housing policies, the
commissioner must establish affirmative marketing regulations
for housing developers that receive more than $50,000 in state
or local funds. The regulations must require the management or
marketing agency for the housing development to adopt an
information distribution or marketing plan for actively
informing minorities and other protected groups of available
housing opportunities. For purposes of this subdivision,
"protected groups" has the meaning given it in section 43A.02,
subdivision 33. The commissioner may adopt rules to carry out
the purposes of this section.
Sec. 2. [363.033] [RENTAL HOUSING PRIORITY; ACCESSIBLE
UNITS.]
Subdivision 1. [DEFINITIONS.] The definitions in this
subdivision apply to this section.
(a) "Accessible unit" means an accessible rental housing
unit that meets the handicapped facility requirements of the
state building code, Minnesota Rules, chapter 1340.
(b) "Owner" has the meaning given it in section 566.18,
subdivision 3.
Subd. 2. [PRIORITY REQUIREMENT.] (a) An owner of rental
housing that contains accessible units must give priority for
the rental of an accessible unit to a disabled person or a
family with a disabled family member who will reside in the
unit. The owner must inform nondisabled persons and families
that do not include a disabled family member of the possibility
of being offered a non-handicapped-equipped unit as provided
under this section before a rental agreement to rent an
accessible unit is entered.
(b) If a nondisabled person or a family that does not
include a disabled person is living in an accessible unit, the
person or family must be offered a non-handicapped-equipped unit
if the following conditions occur:
(1) a disabled person or a family with a disabled family
member who will reside in the unit has signed a rental agreement
to rent the accessible unit; and
(2) a similar non-handicapped-equipped unit in the same
rental housing complex is available at the same rent.
Sec. 3. Minnesota Statutes 1988, section 463.21, is
amended to read:
463.21 [ENFORCEMENT OF JUDGMENT.]
If a judgment is not complied with in the time prescribed,
the governing body may cause the building to be repaired, razed,
or removed or the hazardous condition to be removed or corrected
as set forth in the judgment, or acquire the building, if any,
and real estate on which the building or hazardous condition is
located by eminent domain as provided in section 463.152. The
cost of such the repairs, razing, correction, or removal shall
may be: a lien against the real estate on which the building is
located or the hazardous condition exists and, or recovered by
obtaining a judgment against the owner of the real estate on
which the building is located or the hazardous condition
exists. A lien may be levied and collected only as a special
assessment in the manner provided by Minnesota Statutes 1961,
sections 429.061 to 429.081, but the assessment shall be is
payable in a single installment. When the building is razed or
removed by the municipality, the governing body may sell the
salvage and valuable materials at public auction upon three
days' posted notice.
Sec. 4. Minnesota Statutes 1988, section 469.007, is
amended to read:
469.007 [POWERS OF COUNTY AND MULTICOUNTY AUTHORITIES.]
Subdivision 1. [POWERS.] A county or multicounty authority
and its commissioners shall, within the area of operation of the
authority, have the same functions, rights, powers, duties,
privileges, immunities, and limitations as are provided for
housing and redevelopment authorities created for cities, and
for the commissioners of those authorities. The provisions of
law applicable to housing and redevelopment authorities created
for cities and their commissioners shall be applicable to county
and multicounty authorities and their commissioners, except as
clearly indicated otherwise.
Subd. 2. [POWERS AS TO HOUSING DEVELOPMENT PROJECTS.] When
a county or multicounty authority undertakes any housing project
or housing development project involving the acquisition of
multifamily housing rental properties that (1) were financed
under the federal section 8 or section 236 programs, or (2) are
designed to be affordable to persons or families with incomes
not greater than 80 percent of median income for the
metropolitan statistical area or nonmetropolitan county, and are
located within any city or town, the authority shall notify the
governing body of the city or town in writing of the location of
the housing project or housing development project. If the
governing body fails to take action on a housing project or
housing development project in a writing which sets forth its
reasons for the action within 30 days, the governing body is
considered to have approved the location of the housing project
or housing development project for purposes of any special or
general law requiring local approval of the location of housing
projects and housing development projects undertaken by county
or multicounty authorities.
Sec. 5. Minnesota Statutes 1988, section 469.012,
subdivision 1, is amended to read:
Subdivision 1. [SCHEDULE OF POWERS.] An authority shall be
a public body corporate and politic and shall have all the
powers necessary or convenient to carry out the purposes of
sections 469.001 to 469.047, except that the power to levy and
collect taxes or special assessments is limited to the power
provided in sections 469.027 to 469.033. Its powers include the
following powers in addition to others granted in sections
469.001 to 469.047:
(1) to sue and be sued; to have a seal, which shall be
judicially noticed, and to alter it; to have perpetual
succession; and to make, amend, and repeal rules consistent with
sections 469.001 to 469.047;
(2) to employ an executive director, technical experts, and
officers, agents, and employees, permanent and temporary, that
it requires, and determine their qualifications, duties, and
compensation; for legal services it requires, to call upon the
chief law officer of the city or to employ its own counsel and
legal staff; so far as practicable, to use the services of local
public bodies in its area of operation, provided that those
local public bodies, if requested, shall make the services
available;
(3) to delegate to one or more of its agents or employees
the powers or duties it deems proper;
(4) within its area of operation, to undertake, prepare,
carry out, and operate projects and to provide for the
construction, reconstruction, improvement, extension,
alteration, or repair of any project or part thereof;
(5) subject to the provisions of section 469.026, to give,
sell, transfer, convey, or otherwise dispose of real or personal
property or any interest therein and to execute leases, deeds,
conveyances, negotiable instruments, purchase agreements, and
other contracts or instruments, and take action that is
necessary or convenient to carry out the purposes of these
sections;
(6) within its area of operation, to acquire real or
personal property or any interest therein by gifts, grant,
purchase, exchange, lease, transfer, bequest, devise, or
otherwise, and by the exercise of the power of eminent domain,
in the manner provided by chapter 117, to acquire real property
which it may deem necessary for its purposes, after the adoption
by it of a resolution declaring that the acquisition of the real
property is necessary to eliminate one or more of the conditions
found to exist in the resolution adopted pursuant to section
469.003 or to provide decent, safe, and sanitary housing for
persons of low and moderate income, or is necessary to carry out
a redevelopment project. Real property needed or convenient for
a project may be acquired by the authority for the project by
condemnation pursuant to this section. This includes any
property devoted to a public use, whether or not held in trust,
notwithstanding that the property may have been previously
acquired by condemnation or is owned by a public utility
corporation, because the public use in conformity with the
provisions of sections 469.001 to 469.047 shall be deemed a
superior public use. Property devoted to a public use may be so
acquired only if the governing body of the municipality has
approved its acquisition by the authority. An award of
compensation shall not be increased by reason of any increase in
the value of the real property caused by the assembly, clearance
or reconstruction, or proposed assembly, clearance or
reconstruction for the purposes of sections 469.001 to 469.047
of the real property in an area;
(7) within its area of operation, and without the adoption
of an urban renewal plan, to acquire, by all means as set forth
in clause (6) but without the adoption of a resolution provided
for in clause (6), real property, and to demolish, remove,
rehabilitate, or reconstruct the buildings and improvements or
construct new buildings and improvements thereon, or to so
provide through other means as set forth in Laws 1974, chapter
228, or to grade, fill, and construct foundations or otherwise
prepare the site for improvements. The authority may dispose of
the property pursuant to section 469.029, provided that the
provisions of section 469.029 requiring conformance to an urban
renewal plan shall not apply. The authority may finance these
activities by means of the redevelopment project fund or by
means of tax increments or tax increment bonds or by the methods
of financing provided for in section 469.033 or by means of
contributions from the municipality provided for in section
469.041, clause (9), or by any combination of those means. Real
property with buildings or improvements thereon shall only be
acquired under this clause when the buildings or improvements
are substandard. The exercise of the power of eminent domain
under this clause shall be limited to real property which
contains buildings and improvements which are vacated and
substandard. For the purpose of this clause, substandard
buildings or improvements mean hazardous buildings as defined in
section 463.15, subdivision 3, or buildings or improvements that
are dilapidated or obsolescent, faultily designed, lack adequate
ventilation, light, or sanitary facilities, or any combination
of these or other factors that are detrimental to the safety or
health of the community;
(8) within its area of operation, to determine the level of
income constituting low or moderate family income. The
authority may establish various income levels for various family
sizes. In making its determination, the authority may consider
income levels that may be established by the federal housing
administration or a similar or successor federal agency for the
purpose of federal loan guarantees or subsidies for persons of
low or moderate income. The authority may use that
determination as a basis for the maximum amount of income for
admissions to housing development projects or housing projects
owned or operated by it;
(9) to provide in federally assisted projects any
relocation payments and assistance necessary to comply with the
requirements of the Federal Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970, and any
amendments or supplements thereto;
(10) to make, or agree to make, payments in lieu of taxes
to the city or the county, the state or any political
subdivision thereof, that it finds consistent with the purposes
of sections 469.001 to 469.047;
(11) to cooperate with or act as agent for the federal
government, the state or any state public body, or any agency or
instrumentality of the foregoing, in carrying out any of the
provisions of sections 469.001 to 469.047 or of any other
related federal, state, or local legislation; and upon the
consent of the governing body of the city to purchase, lease,
manage, or otherwise take over any housing project already owned
and operated by the federal government;
(12) to make plans for carrying out a program of voluntary
repair and rehabilitation of buildings and improvements, and
plans for the enforcement of laws, codes, and regulations
relating to the use of land and the use and occupancy of
buildings and improvements, and to the compulsory repair,
rehabilitation, demolition, or removal of buildings and
improvements. The authority may develop, test, and report
methods and techniques, and carry out demonstrations and other
activities for the prevention and elimination of slums and
blight;
(13) to borrow money or other property and accept
contributions, grants, gifts, services, or other assistance from
the federal government, the state government, state public
bodies, or from any other public or private sources;
(14) to include in any contract for financial assistance
with the federal government any conditions that the federal
government may attach to its financial aid of a project, not
inconsistent with purposes of sections 469.001 to 469.047,
including obligating itself (which obligation shall be
specifically enforceable and not constitute a mortgage,
notwithstanding any other laws) to convey to the federal
government the project to which the contract relates upon the
occurrence of a substantial default with respect to the
covenants or conditions to which the authority is subject; to
provide in the contract that, in case of such conveyance, the
federal government may complete, operate, manage, lease, convey,
or otherwise deal with the project until the defaults are cured
if the federal government agrees in the contract to reconvey to
the authority the project as then constituted when the defaults
have been cured;
(15) to issue bonds for any of its corporate purposes and
to secure the bonds by mortgages upon property held or to be
held by it or by pledge of its revenues, including grants or
contributions;
(16) to invest any funds held in reserves or sinking funds,
or any funds not required for immediate disbursement, in
property or securities in which savings banks may legally invest
funds subject to their control or in the manner and subject to
the conditions provided in section 475.66 for the deposit and
investment of debt service funds;
(17) within its area of operation, to determine where
blight exists or where there is unsafe, unsanitary, or
overcrowded housing;
(18) to carry out studies of the housing and redevelopment
needs within its area of operation and of the meeting of those
needs. This includes study of data on population and family
groups and their distribution according to income groups, the
amount and quality of available housing and its distribution
according to rentals and sales prices, employment, wages,
desirable patterns for land use and community growth, and other
factors affecting the local housing and redevelopment needs and
the meeting of those needs; to make the results of those studies
and analyses available to the public and to building, housing,
and supply industries;
(19) if a local public body does not have a planning agency
or the planning agency has not produced a comprehensive or
general community development plan, to make or cause to be made
a plan to be used as a guide in the more detailed planning of
housing and redevelopment areas;
(20) to lease or rent any dwellings, accommodations, lands,
buildings, structures, or facilities included in any project
and, subject to the limitations contained in sections 469.001 to
469.047 with respect to the rental of dwellings in housing
projects, to establish and revise the rents or charges therefor;
(21) to own, hold, and improve real or personal property
and to sell, lease, exchange, transfer, assign, pledge, or
dispose of any real or personal property or any interest
therein;
(22) to insure or provide for the insurance of any real or
personal property or operations of the authority against any
risks or hazards;
(23) to procure or agree to the procurement of government
insurance or guarantees of the payment of any bonds or parts
thereof issued by an authority and to pay premiums on the
insurance;
(24) to make expenditures necessary to carry out the
purposes of sections 469.001 to 469.047;
(25) to enter into an agreement or agreements with any
state public body to provide informational service and
relocation assistance to families, individuals, business
concerns, and nonprofit organizations displaced or to be
displaced by the activities of any state public body;
(26) to compile and maintain a catalog of all vacant, open
and undeveloped land, or land which contains substandard
buildings and improvements as that term is defined in clause
(7), that is owned or controlled by the authority or by the
governing body within its area of operation and to compile and
maintain a catalog of all authority owned real property that is
in excess of the foreseeable needs of the authority, in order to
determine and recommend if the real property compiled in either
catalog is appropriate for disposal pursuant to the provisions
of section 469.029, subdivisions 9 and 10;
(27) to recommend to the city concerning the enforcement of
the applicable health, housing, building, fire prevention, and
housing maintenance code requirements as they relate to
residential dwelling structures that are being rehabilitated by
low or moderate income persons pursuant to section 469.029,
subdivision 9, for the period of time necessary to complete the
rehabilitation, as determined by the authority;
(28) to recommend to the city the initiation of municipal
powers, against certain real properties, relating to repair,
closing, condemnation, or demolition of unsafe, unsanitary,
hazardous, and unfit buildings, as provided in section 469.041,
clause (5); and
(29) to sell, at private or public sale, at the price or
prices determined by the authority, any note, mortgage, lease,
sublease, lease purchase, or other instrument or obligation
evidencing or securing a loan made for the purpose of economic
development, job creation, redevelopment, or community
revitalization by a public agency to a business, for-profit or
nonprofit organization, or an individual.; and
(30) within its area of operation, to acquire and sell real
property that is benefited by federal housing assistance
payments, other rental subsidies, interest reduction payments,
or interest reduction contracts for the purpose of preserving
the affordability of low- and moderate-income multifamily
housing.
Sec. 6. Minnesota Statutes 1988, section 580.04, is
amended to read:
580.04 [REQUISITES OF NOTICE.]
Each notice shall specify:
(1) The name of the mortgagor and of the mortgagee, and of
the assignee of the mortgage, if any, and the original principal
amount secured by said mortgage;
(2) The date of the mortgage, and when and where recorded,
except where the mortgage is upon registered land, in which case
the notice shall state that fact, and when and where registered;
(3) The amount claimed to be due thereon, and taxes, if
any, paid by the mortgagee at the date of the notice;
(4) A description of the mortgaged premises, conforming
substantially to that contained in the mortgage;
(5) The time and place of sale; and
(6) The time allowed by law for redemption by the
mortgagor, the mortgagor's personal representatives or assigns.;
and
(7) If the party foreclosing the mortgage desires to
preserve the right to reduce the redemption period under section
13 after the first publication of the notice, the notice must
also state in capital letters: "THE TIME ALLOWED BY LAW FOR
REDEMPTION BY THE MORTGAGOR, THE MORTGAGOR'S PERSONAL
REPRESENTATIVES OR ASSIGNS, MAY BE REDUCED TO FIVE WEEKS IF A
JUDICIAL ORDER IS ENTERED UNDER MINNESOTA STATUTES, SECTION
580.032, DETERMINING, AMONG OTHER THINGS, THAT THE MORTGAGED
PREMISES ARE IMPROVED WITH A RESIDENTIAL DWELLING OF LESS THAN
FIVE UNITS, ARE NOT PROPERTY USED IN AGRICULTURAL PRODUCTION,
AND ARE ABANDONED."
Sec. 7. Minnesota Statutes 1988, section 580.12, is
amended to read:
580.12 [CERTIFICATE OF SALE; RECORD; EFFECT.]
When any sale of real property is made under a power of
sale contained in any mortgage, the officer shall make and
deliver to the purchaser a certificate, executed in the same
manner as a conveyance, containing:
(1) A description of the mortgage;
(2) A description of the property sold;
(3) The price paid for each parcel sold;
(4) The time and place of the sale, and the name of the
purchaser; and
(5) The time allowed by law for redemption. The, provided
that if the redemption period stated in the certificate is five
weeks and a longer redemption period was stated in the published
notice of foreclosure sale, a certified copy of the court order
entered under section 13, authorizing reduction of the
redemption period to five weeks, must be attached to the
certificate.
A certificate which states a five-week redemption period
must be recorded within ten days after the sale; any other
certificate shall must be recorded within 20 days after such the
sale, and. When so recorded, upon expiration of the time for
redemption, the certificate shall operate as a conveyance to the
purchaser or the purchaser's assignee of all the right, title,
and interest of the mortgagor in and to the premises named
therein at the date of such mortgage, without any other
conveyance.
Sec. 8. Minnesota Statutes 1988, section 580.23,
subdivision 1, is amended to read:
Subdivision 1. When lands have been sold in conformity
with the preceding sections of this chapter the mortgagor, the
mortgagor's personal representatives or assigns, within six
months after such sale, except as otherwise provided in
subdivision 2 or section 13, may redeem such lands, as
hereinafter provided, by paying the sum of money for which the
same were sold, with interest from the time of sale at the rate
provided to be paid on the mortgage debt and, if no rate be
provided in the mortgage note, at the rate of six percent per
annum, together with any further sums which may be
payable pursuant to section as provided in sections 582.03 and
section 12.
Sec. 9. Minnesota Statutes 1988, section 580.24, is
amended to read:
580.24 [REDEMPTION BY CREDITOR.]
If no such redemption be made by the mortgagor, the
mortgagor's personal representatives or assigns, the senior
creditor having a lien, legal or equitable, upon the mortgaged
premises, or some part thereof, subsequent to the mortgage, may
redeem within five days after the expiration of the redemption
period specified in determined under section 580.23 or section
13, whichever is applicable; and each subsequent creditor having
a lien in succession, according to priority of liens, within
five days after the time allowed the prior lienholder,
respectively, may redeem by paying the amount aforesaid and all
liens prior to the lienholder's own held by the person from whom
redemption is made; provided that no creditor shall be entitled
to redeem unless within the period allowed for redemption the
creditor file for record notice of intention to redeem with the
county recorder or registrar of titles of each county where the
mortgage is recorded.
Sec. 10. Minnesota Statutes 1988, section 581.10, is
amended to read:
581.10 [REDEMPTION BY MORTGAGOR, CREDITOR.]
The mortgagor, or those claiming under the mortgagor,
within the time specified in section 580.23 or section 13,
whichever applies, after the date of the order of confirmation,
may redeem the premises sold, or any separate portion thereof,
by paying the amount bid therefor, with interest thereon from
the time of sale at the rate provided to be paid on the mortgage
debt, not to exceed eight percent per annum, and, if no rate to
be provided in the mortgage, at the rate of six percent,
together with any further sum which may be payable pursuant to
section 582.03 and section 12. Creditors having a lien may
redeem in the order and manner specified in section 580.24, but
no creditor shall be entitled to redeem unless within such
specified the applicable redemption period the creditor files
with the court administrator notice of intention to redeem.
Sec. 11. Minnesota Statutes 1988, section 582.03, is
amended to read:
582.03 [PURCHASER AT FORECLOSURE, EXECUTION, OR JUDICIAL
SALE MAY PAY TAXES, ASSESSMENTS, INSURANCE PREMIUMS, OR
INTEREST.]
The purchaser at any sale, upon foreclosure of mortgage or
execution or at any judicial sale during the year period of
redemption, may pay any taxes or assessments on which any
penalty would otherwise accrue, and may pay the premium upon any
policy of insurance procured in renewal of any expiring policy
upon mortgaged premises, may pay any costs incurred under
section 12, and may, in case any interest or installment of
principal upon any prior or superior mortgage, lien, or contract
for deed is in default or shall become due during such year the
period of redemption, pay the same, and, in all such cases, the
sum so paid, with interest, shall be a part of the sum required
to be paid to redeem from such sale. Such payments shall be
proved by the affidavit of the purchaser or the purchaser's
agent or attorney, stating the items and describing the
premises, which must be filed for record with the county
recorder or registrar of titles, and a copy thereof shall be
furnished to the sheriff at least ten days before the expiration
of the year period of redemption.
Sec. 12. [582.031] [LIMITED RIGHT OF ENTRY BY MORTGAGEE OR
PURCHASER AT FORECLOSURE SALE.]
Subdivision 1. [RIGHT OF ENTRY.] If premises described in
a mortgage or sheriff's certificate are vacant or unoccupied,
the holder of the mortgage or sheriff's certificate or the
holder's agents and contractors may, but is under no obligation
to, enter upon the premises to protect the premises from waste,
until the holder of the mortgage or sheriff's certificate
receives notice that the premises are occupied. The holder of
the mortgage or sheriff's certificate does not become a
mortgagee in possession by taking actions authorized under this
section. An affidavit of the sheriff, the holder of the
mortgage or sheriff's certificate, or a person acting on behalf
of the holder, describing the premises and stating that the same
are vacant or unoccupied, is prima facie evidence of the facts
stated in the affidavit and is entitled to be recorded in the
office of the county recorder or the registrar of titles in the
county where the premises are located, if it contains a legal
description of the premises.
Subd. 2. [AUTHORIZED ACTIONS.] The holder of the mortgage
or sheriff's certificate may take the following actions to
protect the premises from waste: install or change locks on
doors and windows, board windows, and otherwise prevent or
minimize damage to the premises from the elements, vandalism,
trespass, or other illegal activities. If the holder of the
mortgage or sheriff's certificate installs or changes locks
under this section, a key to the premises must be promptly
delivered to the mortgagor or any person lawfully claiming
through the mortgagor, upon request.
Subd. 3. [COSTS.] All costs incurred by the holder of the
mortgage to protect the premises from waste may be added to the
principal balance of the mortgage. The costs may bear interest
to the extent provided in the mortgage and may be added to the
redemption price if the costs are incurred after a foreclosure
sale. If the costs are incurred after a foreclosure sale, the
purchaser at the foreclosure sale must comply with the
provisions of section 582.03. The provisions of this section
are in addition to, and do not limit or replace, any other
rights or remedies available to holders of mortgages and
sheriff's certificates, at law or under the applicable mortgage
agreements.
Sec. 13. [582.032] [FIVE-WEEK REDEMPTION PERIOD FOR
CERTAIN ABANDONED PROPERTIES.]
Subdivision 1. [APPLICATION.] This section applies to
mortgages executed after December 31, 1989, under which there
has been a default in the payment of money existing for at least
60 days as of the date of the filing of the complaint or motion
provided for in this section. This section applies only when
the mortgaged premises are:
(1) ten acres or less in size;
(2) improved with a residential dwelling consisting of less
than five units which is neither a model home nor a dwelling
under construction; and
(3) not property used in agricultural production within the
meaning of Laws 1986, chapter 398, section 5.
This section applies to foreclosures by action under
chapter 581 and to foreclosures by advertisement under chapter
580.
Subd. 2. [BEFORE FORECLOSURE SALE.] Notwithstanding
section 580.23 or 581.10, if at any time before the foreclosure
sale but not more than 30 days before the first publication of
the notice of sale, a court order is entered reducing the
mortgagor's redemption period to five weeks under subdivision 7,
after the mortgaged premises have been sold as provided in
chapter 580 or 581, the mortgagor, and the mortgagor's personal
representatives or assigns, within five weeks after the sale
under chapter 580, or within five weeks after the date of the
order confirming the sale under chapter 581, may redeem the
mortgaged premises as provided in section 580.23, subdivision 1,
or section 581.10, as applicable. If an order is obtained after
the first publication of the notice of sale, the five-week
redemption period applies only if the notice of sale contained
the statement required by section 580.04, clause (7).
Subd. 3. [AFTER FORECLOSURE SALE.] Notwithstanding section
580.23 or 581.10, if at any time after the foreclosure sale, a
court order is entered reducing the mortgagor's redemption
period under subdivision 7, the period during which the
mortgagor, the mortgagor's personal representatives and assigns,
may redeem the mortgaged premises in accordance with the
provisions of section 580.23, subdivision 1, or section 581.10,
as applicable, is reduced so as to expire five weeks from the
date the order is entered. Within ten days after the order is
entered, a certified copy of the order must be filed with the
office of the county recorder or registrar of titles for the
county in which the mortgaged premises are located, and a copy
of the order must be posted in a conspicuous place on the
mortgaged premises. Within ten days of the order's entry, a
copy of the order must be sent by certified mail to any party
holding a lien or interest of record junior to the foreclosed
mortgage who has filed with the county recorder or registrar of
titles a certificate identifying the lienholder and the lien
claimed, stating the lienholder's address and the legal
description of the property covered by the lien, and requesting
notice of any post-foreclosure sale reduction of the mortgagor's
redemption period for any superior lien. Affidavits of posting
and mailing to evidence the same are prima facie evidence of the
facts stated therein and are entitled to recordation along with
the certified copy of the order.
Subd. 4. [SUMMONS AND COMPLAINT.] In a foreclosure by
advertisement, the party foreclosing a mortgage or holding the
sheriff's certificate of sale may initiate a proceeding in
district court to reduce the mortgagor's redemption period under
this section. The proceeding must be initiated by the filing of
a complaint, naming the mortgagor, or the mortgagor's personal
representatives or assigns of record, as defendant, in district
court for the county in which the mortgaged premises are
located. If the proceeding is commenced after the foreclosure
sale, the holders of junior liens and interests entitled to
notice under subdivision 3 must also be named as defendants.
The complaint must identify the mortgaged premises by legal
description and must identify the mortgage by the names of the
mortgagor and mortgagee, and any assignee of the mortgagee; the
date of its making; and pertinent recording information. The
complaint must allege that the mortgaged premises are:
(1) ten acres or less in size;
(2) improved with a residential dwelling consisting of less
than five units, which is not a model home or a dwelling under
construction;
(3) not property used in agricultural production within the
meaning of Laws 1986, chapter 398, section 5; and
(4) abandoned.
The complaint must request an order reducing the
mortgagor's redemption period to five weeks. When the complaint
has been filed, the court shall issue a summons commanding the
person or persons named in the complaint to appear before the
court on a day and at a place stated in the summons. The
appearance date shall be not less than l5 nor more than 25 days
from the date of the issuing of the summons. A copy of the
filed complaint must be attached to the summons.
Subd. 5. [ORDER TO SHOW CAUSE.] In a foreclosure by
action, the plaintiff or the holder of the sheriff's certificate
may make a motion to reduce the mortgagor's redemption period
under this section. The motion must conform generally to the
pleading requirements provided in subdivision 4. For purposes
of the motion, the court has continuing jurisdiction over the
parties and the mortgaged premises through the expiration of the
redemption period. When the motion has been filed, the court
shall issue an order to show cause commanding the parties it
considers appropriate to appear before the court on a day and at
a place stated in the order. The appearance date may not be
less than 15 nor more than 25 days after the date of the order
to show cause. A copy of the motion must be attached to the
order to show cause.
Subd. 6. [SERVICE.] The summons or order to show cause may
be served by any person not named a party to the action. The
summons or order to show cause must be served at least seven
days before the appearance date, in the manner provided for
service of a summons in a civil action in the district court.
If the defendant cannot be found in the county, the summons or
order to show cause may be served by sending a copy by certified
mail to the defendant's last known address, if any, at least ten
days before the appearance date. The summons or order to show
cause must be posted in a conspicuous place on the mortgaged
premises not less than seven days before the appearance date.
If personal or certified mail service cannot be made on a
defendant, then the plaintiff or plaintiff's attorney may file
an affidavit to that effect with the court and service by
posting the summons or order to show cause on the mortgaged
premises is sufficient as to that defendant.
Subd. 7. [HEARING; EVIDENCE; ORDER.] At the hearing on the
summons and complaint or order to show cause, the court shall
enter an order reducing the mortgagor's redemption period as
provided in subdivision 2 or 3, as applicable, if evidence is
presented supporting the allegations in the complaint or motion
and no appearance is made to oppose the relief sought. An
affidavit by the sheriff or a deputy sheriff of the county in
which the mortgaged premises are located, or of a building
inspector, zoning administrator, housing official, or other
municipal or county official having jurisdiction over the
mortgaged premises, stating that the mortgaged premises are not
actually occupied and further setting forth any of the following
supporting facts, is prima facie evidence of abandonment:
(1) windows or entrances to the premises are boarded up or
closed off, or multiple window panes are broken and unrepaired;
(2) doors to the premises are smashed through, broken off,
unhinged, or continuously unlocked;
(3) gas, electric, or water service to the premises has
been terminated;
(4) rubbish, trash, or debris has accumulated on the
mortgaged premises;
(5) the police or sheriff's office has received at least
two reports of trespassers on the premises, or of vandalism or
other illegal acts being committed on the premises; or
(6) the premises are deteriorating and are either below or
are in imminent danger of falling below minimum community
standards for public safety and sanitation.
An affidavit of the party foreclosing the mortgage or
holding the sheriff's certificate, or one of their agents or
contractors, stating any of the above supporting facts, and that
the affiant has changed locks on the mortgaged premises under
section 12 and that for a period of ten days no party having a
legal possessory right has requested entrance to the premises,
is also prima facie evidence of abandonment. Either affidavit
described above, or an affidavit from any other person having
knowledge, may state facts supporting any other allegations in
the complaint or motion and is prima facie evidence of the
same. Written statements of the mortgagor, the mortgagor's
personal representatives or assigns, including documents of
conveyance, which indicate a clear intent to abandon the
premises, are conclusive evidence of abandonment. In the
absence of affidavits or written statements, or if rebuttal
evidence is offered by the defendant or a party lawfully
claiming through the defendant, the court may consider any
competent evidence, including oral testimony, concerning any
allegation in the complaint or motion. An order entered under
this section must contain a legal description of the mortgaged
premises.
Subd. 8. [RECORDING.] A certified copy of an order
reducing a mortgagor's redemption period entered under this
section may be recorded in the office of the county recorder or
registrar of titles for the county in which the mortgaged
premises are located.
Sec. 14. Minnesota Statutes 1988, section 582.30,
subdivision 2, is amended to read:
Subd. 2. [GENERAL PROHIBITION FOR PROPERTY WITH A
SIX-MONTH OR FIVE-WEEK REDEMPTION PERIOD.] A deficiency judgment
is not allowed if a mortgage is foreclosed by advertisement
under chapter 580, and has a redemption period of six months
under section 580.23, subdivision 1, or five weeks under section
13.
ARTICLE 4
SPECIAL LAWS
Section 1. [DEFINITION.]
"City" means the city of Saint Paul and the city of
Minneapolis for purposes of sections 2 to 6.
Sec. 2. Laws 1974, chapter 285, section 1, is amended to
read:
Section 1. [MINNEAPOLIS, CITY OF; HOUSING ACQUISITION AND
REHABILITATION LOAN AND GRANT PROGRAM; PURPOSE.] The legislature
of the state of Minnesota finds that preservation of the quality
of life in a major metropolitan city is dependent upon the
preservation of adequate housing, that many houses in the city
cities of Minneapolis and Saint Paul do not meet the applicable
housing code or otherwise need rehabilitation or modernizing,
that there is a need for a comprehensive housing rehabilitation
program in the city cities of Minneapolis and Saint Paul which
will complement any statewide housing rehabilitation program,
that some home owners are unable to afford any rehabilitation
expenses, that many home owners are unable to afford housing
rehabilitation loans at market rate of interest, and that
because the availability of mortgage credit for housing
rehabilitation is limited some home owners cannot obtain such
credit, and that reinvestment in the housing stock by
rehabilitating and updating homes is necessary to maintain the
stability of neighborhoods in the city. The legislature further
finds that the construction of housing to replace individual
dilapidated and obsolete buildings, for which rehabilitation is
not economically feasible, is necessary to increase the
stability and maintain the value of housing in established
neighborhoods.
Sec. 3. Laws 1974, chapter 285, section 2, is amended to
read:
Sec. 2. [CITY OF MINNEAPOLIS; HOUSING REHABILITATION LOAN
PROGRAM.] The city of Minneapolis is authorized to develop and
administer a housing rehabilitation loan program with respect to
property located anywhere within its boundaries on such terms
and conditions as it determines; provided that in approving
applications for this such a program, the following factors
shall be considered:
(1) The availability of other governmental programs
affordable by the applicant;
(2) The availability and affordability of private market
financing;
(3) Whether the housing is required, pursuant to an urban
renewal program or a code enforcement program, to be repaired,
improved, or rehabilitated;
(4) Whether the housing is required, pursuant to a court
order issued under Minnesota Statutes, 1973 Supplement, Section
566.25, Clauses (b), (c), and (e), to be repaired, improved, or
rehabilitated;
(5) Whether the housing has been determined to be
uninsurable because of physical hazards after inspection
pursuant to a statewide property insurance plan approved by the
United States Department of Housing and Urban Development under
Title XII of the National Housing Act; and further provided that
all loans and grants shall be issued primarily for
rehabilitating housing so that it meets applicable housing codes.
(6) Whether rehabilitation of the housing will maintain or
improve the value of the housing and will help to stabilize the
neighborhood in which the housing is located.
Sec. 4. Laws 1974, chapter 285, is amended by adding a
section to read:
Sec. 2a. [NEW SINGLE FAMILY RESIDENCES.]
Any housing rehabilitation loan program undertaken under
section 3 may also provide for the city to make or purchase
loans made to finance the acquisition of single family
residences that have been newly constructed in established
neighborhoods on land owned by the city or any agency of the
city. For purposes of this section, land shall be considered to
be owned by the city if the city or one of its agencies
previously owned the land and conveyed it to an individual under
a development agreement in which the individual has agreed to
construct single family housing on such land. In approving
applications for a loan to be made under this section, the
following factors shall be considered:
(1) the availability and affordability of other
governmental programs or private market financing; and
(2) whether the construction of such housing enhances the
stability of the neighborhood in which it is located.
Sec. 5. Laws 1974, chapter 285, section 3, is amended to
read:
Sec. 3. [CITY OF MINNEAPOLIS; HOUSING REHABILITATION GRANT
PROGRAM.] The city of Minneapolis is authorized to develop and
administer a housing rehabilitation grant program with respect
to property within its boundaries, on such terms and conditions
as it determines; provided that in approving applications
for grants under this program, all of the considerations and
limitations enumerated in section 2 for loans must be considered
in making grants under this program, and the following factors
must also be considered:
(1) Whether the housing unit is a single family dwelling or
homesteaded unit and
(2) Whether the applicant is a person of low income; and
further provided that the city council of the city of
Minneapolis shall by ordinance set forth the regulations
for this its grant program; and further provided that the dollar
value of grants made shall not exceed five percent of the total
value of the bonds issued for the loan and grant program
together, and that all grants shall be made primarily to
rehabilitate housing so that it meets applicable housing codes.
Sec. 6. Laws 1974, chapter 285, section 4, is amended to
read:
Sec. 4. [ISSUANCE OF BONDS.] To finance the programs
authorized in sections 2, 2a, and 3 of this act, the governing
body of the city of Minneapolis may by resolution authorize,
issue, and sell general obligation bonds of the city of
Minneapolis in accordance with the provisions of Minnesota
Statutes, Chapter 475. The total amount of all bonds
outstanding for the programs shall not exceed
$10,000,000 $25,000,000. The amount of all bonds issued shall
be included in the net indebtedness of the city for the purpose
of any charter or statutory debt limitation.
Sec. 7. [462C.13] [CITY INDIAN HOUSING AUTHORITY.]
A city may establish an Indian housing authority as
provided in the Code of Federal Regulations, title 24, part 905,
with all necessary legal powers to carry out housing projects
for low- and moderate-income American Indians.
Sec. 8. [REPEALER.]
Laws 1974, chapter 351, sections 1, 2, 3, and 4, as amended
by Laws 1975, chapter 260, section 5; and Laws 1975, chapter
260, sections 1, 2, 3, 4, and 5, are repealed.
Sec. 9. [EFFECTIVE DATE.]
Sections 1 to 6 and 8 are effective the day after enactment
without local approval in accordance with Minnesota Statutes,
section 645.023, subdivision 1, clause (a).
ARTICLE 5
CAN-DO AND WAY TO GROW/SCHOOL READINESS PROGRAMS
Section 1. [116J.983] [DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purposes of section 2, the
following terms have the meanings given them.
Subd. 2. [COMMUNITY AND NEIGHBORHOOD DEVELOPMENT
ORGANIZATION GRANT.] "Community and neighborhood development
organization grant" or "grant" means a grant awarded under
section 2, subdivision 1.
Subd. 3. [COMMUNITY AND NEIGHBORHOOD DEPARTMENT
ORGANIZATION PLAN.] "Community and neighborhood department
organization plan" or "plan" means the plan required under
section 2, subdivision 2.
Subd. 4. [ELIGIBLE ORGANIZATION.] "Eligible organization"
means a nonprofit organization or group of persons that is
recognized as a viable community or neighborhood organization by
a home rule charter or statutory city, town, or an Indian tribe,
and that has defined neighborhood or community boundaries. An
eligible organization must have a board that is representative
of the neighborhood's or community's interests and whose members
reflect the cultural, racial, and ethnic diversity of the
neighborhood or community. An eligible organization or group of
persons must complete training and be certified as required
under section 2, subdivision 3.
Sec. 2. [116J.984] [COMMUNITY AND NEIGHBORHOOD DEVELOPMENT
ORGANIZATION PILOT PROJECT.]
Subdivision 1. [COMMUNITY AND NEIGHBORHOOD DEVELOPMENT
GRANTS.] The commissioner may award matching grants to eligible
organizations. Grants to any one eligible organization may not
exceed $25,000 in any fiscal year and a grant may not be used
for any purpose that replaces an existing community program
identified by the commissioner. Each grant must be matched with
at least two dollars of nonstate money or in-kind contributions
to each dollar of grant money. The grants may be used for
community or neighborhood public safety and human service
activities, street and public property lighting, recycling
efforts, repair or removal of dilapidated buildings, community
or neighborhood beautification and cleanup, historic
preservation of buildings, small scale park and open space
development, increasing or preserving the availability of
housing primarily serving low- or moderate-income persons, and
other projects, programs, or activities that the commissioner
determines will improve or revitalize the community or
neighborhood.
Subd. 2. [GRANT APPLICATIONS.] Eligible organizations may
apply to the commissioner for grants awarded under subdivision
1. The application must include a community and neighborhood
development organization plan that addresses the following:
(1) a geographic, social, and economic description of the
area served by the eligible organization;
(2) a description of why the projects or activities are
required in the neighborhood or community;
(3) a detailed description of the objectives for which the
grant money will be used;
(4) a description of the process used to encourage citizen
involvement in determining the needs, objectives, and the design
of the project or activity;
(5) an assessment of the strength and weaknesses of the
neighborhood or community;
(6) a detailed description of the projects or activities
that will be used to implement the objectives;
(7) a description of the expected outcomes of the projects
or activities financed by the grant;
(8) identification of the source of the required matching
funds; and
(9) any other information the commissioner determines
necessary to award the grants.
Subd. 3. [TRAINING; CERTIFICATION.] Before an eligible
organization may apply for a grant under subdivision 1, the
commissioner must certify that the eligible organization meets
administrative, fiscal accountability, and planning
requirements. The commissioner shall establish a set of
criteria for the certification of eligible organizations. The
commissioner may provide leadership and other training to
eligible organizations to assist them in meeting the
requirements for certification and developing the community and
neighborhood development organization plan. The commissioner
may use other department resources and staff to carry out the
training.
Subd. 4. [RECERTIFICATION.] An eligible organization must
be recertified annually to maintain its eligibility for grants
under subdivision 1. As part of recertification, the
commissioner shall review the plan to determine whether the
organization continues to address its objectives and the
organization demonstrates that the community or neighborhood's
level of volunteer citizen participation is maintained or
expanded.
Subd. 5. [APPLICATIONS; PRIORITY.] The commissioner may
establish criteria to establish the priority of the applications
received for grants awarded under subdivision 1. The criteria
may include:
(1) the degree of community support measured by the amount
of participation in the project or activities by volunteers;
(2) the extent that the eligible organizations have
participated with or solicited input from other organizations
that provide community and regional assistance;
(3) the amount of nonstate matching funds identified as
available for the project or activities; and
(4) any other criteria the commissioner determines
necessary to carry out the purposes of this section.
Subd. 6. [ENTITLEMENT.] The commissioner may set aside up
to 40 percent of the money available under this section for
grants awarded to eligible organizations located in cities of
the first class as defined in section 410.01.
Subd. 7. [LOCAL GOVERNMENT SUPPORT.] Before an application
for a grant awarded under subdivision 1 may be considered by the
commissioner, the eligible organization must have received a
formal resolution of support for the application of the
governing body of the home rule charter or statutory city, town,
or Indian tribe within whose jurisdiction the eligible
organization is located.
Subd. 8. [COMMUNITY ASSISTANCE PROGRAM INVENTORY.] The
commissioner may develop and maintain an inventory of public and
private community assistance programs. The inventory must be
made available to eligible organizations, other community
assistance providers, and other persons that request assistance
from the commissioner. In developing the inventory the
commissioner shall coordinate with other similar activities.
Subd. 9. [RULES.] The commissioner may adopt rules under
chapter 14 as necessary for the administration of the grants
under this section.
Subd. 10. [STATE AGENCY COOPERATION.] State agencies must
cooperate and assist when requested by the commissioner to carry
out the purposes of this section.
Subd. 11. [ADVISORY COMMITTEE.] The commissioner may
establish advisory committees to assist in carrying out the
purposes of this section.
Sec. 3. [145.926] [WAY TO GROW/SCHOOL READINESS PROGRAM.]
Subdivision 1. [ADMINISTRATION.] The commissioner of state
planning shall administer the way to grow/school readiness
program, in consultation with the commissioners of human
services and education, to promote intellectual, social,
emotional, and physical development and school readiness of
children prebirth to age five by coordinating and improving
access to community based and neighborhood based services that
support and assist all parents in meeting the health and
developmental needs of their children at the earliest possible
age.
Subd. 2. [PROGRAM COMPONENTS.] A way to grow/school
readiness program may include:
(1) a program of home visitors to contact pregnant women
early in their pregnancies, encourage them to obtain prenatal
care, and provide social support, information, and referrals
regarding prenatal care and well-baby care to reduce infant
mortality, low birth weight, and childhood injury, disease, and
disability;
(2) a program of home visitors to provide social support,
information, and referrals regarding parenting skills and to
encourage families to participate in parenting skills programs
and other family supportive services;
(3) support of neighborhood based or community based
parent-child and family resource centers or interdisciplinary
resource teams to offer supportive services to families with
preschool children;
(4) staff training, technical assistance, and incentives
for collaboration designed to raise the quality of community
services relating to prenatal care, child development, health,
and school readiness;
(5) programs to raise general public awareness about
practices that promote healthy child development and school
readiness;
(6) support of neighborhood oriented and culturally
specific social support, information, outreach, and other
programs to promote healthy development of children and to help
parents obtain the information, resources, and parenting skills
needed to nurture and care for their children;
(7) programs to expand public and private collaboration to
promote the development of a coordinated and culturally specific
system of services available to all families;
(8) support of periodic screening and evaluation services
for preschool children to assure adequate developmental
progress;
(9) support of health, educational, and other developmental
services needed by families with preschool children;
(10) support of family prevention and intervention programs
needed to address risks of child abuse or neglect;
(11) development or support of a jurisdiction-wide
coordinating agency to develop and oversee programs to enhance
child health, development, and school readiness with special
emphasis on neighborhoods with a high proportion of children in
need; and
(12) other programs or services to improve the health,
development, and school readiness of children in target
neighborhoods and communities.
Subd. 3. [ELIGIBLE GRANTEES.] An application for a grant
may be submitted by any of the following entities:
(1) a city, town, county, school district, or other local
unit of government;
(2) two or more governmental units organized under a joint
powers agreement;
(3) a community action agency that satisfies the
requirements of section 268.53, subdivision 1; or
(4) a nonprofit organization, or consortium of nonprofit
organizations, that demonstrates collaborative effort with at
least one unit of local government.
Subd. 4. [PILOT PROJECTS.] The commissioner of state
planning shall award grants for one pilot project in each of the
following areas of the state:
(1) a first class city located within the metropolitan area
as defined in section 473.121, subdivision 2;
(2) a second class city located within the metropolitan
area as defined in section 473.121, subdivision 2;
(3) a city with a population of 50,000 or more that is
located outside of the metropolitan area as defined in section
473.121, subdivision 2; and
(4) the area of the state located outside of the
metropolitan area as defined in section 473.121, subdivision 2.
To the extent possible, the commissioner of state planning
shall award grants to applicants with experience or demonstrated
ability in providing comprehensive, multidisciplinary, community
based programs with objectives similar to those listed in
subdivision 2, or in providing other human services or social
services programs using a multidisciplinary, community based
approach.
Subd. 5. [APPLICATIONS.] Each grant application must
propose a five-year program designed to accomplish the purposes
of this section. The application must be submitted on forms
provided by the commissioner of state planning. The grant
application must include:
(1) a description of the specific neighborhoods that will
be served under the program and the name, address, and a
description of each community agency or agencies with which the
applicant intends to contract to provide services using grant
money;
(2) a letter of intent from each community agency
identified in clause (1) that indicates the agency's willingness
to participate in the program and approval of the proposed
program structure and components;
(3) a detailed description of the structure and components
of the proposed program and an explanation of how each component
will contribute to accomplishing the purposes of this section;
(4) a description of how public and private resources,
including schools, health care facilities, government agencies,
neighborhood organizations, and other resources, will be
coordinated and made accessible to families in target
neighborhoods, including letters of intent from public and
private agencies indicating their willingness to cooperate with
the program;
(5) a detailed, proposed budget that demonstrates the
ability of the program to accomplish the purposes of this
section using grant money and other available resources,
including funding sources other than a grant; and
(6) a comprehensive evaluation plan for measuring the
success of the program in meeting the objectives of the overall
grant program and the individual grant project, including an
assessment of the impact of the program in terms of at least
three of the following criteria:
(i) utilization rates of community services;
(ii) availability of support systems for families;
(iii) birth weights of newborn babies;
(iv) child accident rates;
(v) utilization rates of prenatal care;
(vi) reported rates of child abuse; and
(vii) rates of health screening and evaluation.
Subd. 6. [MATCH.] Each dollar of state money must be
matched with 50 cents of nonstate money. The pilot project
selected under subdivision 4, clause (4), may match state money
with in-kind contributions, including volunteer assistance.
Subd. 7. [ADVISORY COMMITTEES.] The commissioner of state
planning shall establish a program advisory committee consisting
of persons knowledgeable in child development, child and family
services, and the needs of people of color and high risk
populations; and representatives of the commissioners of state
planning and education. Each grantee must establish a program
advisory board of 12 or more members to advise the grantee on
program design, operation, and evaluation. The board must
include representatives of local units of government and
representatives of the project area who reflect the geographic,
cultural, racial, and ethnic diversity of that community.
Subd. 8. [REPORT.] The commissioner of state planning
shall provide a biennial report to the legislature on the
program administration and the activities of projects funded
under this section.
ARTICLE 6
NEIGHBORHOOD REVITALIZATION PROGRAM
Section 1. Minnesota Statutes 1988, section 282.01,
subdivision 1, is amended to read:
Subdivision 1. [CLASSIFICATION; USE; EXCHANGE.] It is the
general policy of this state to encourage the best use of
tax-forfeited lands, recognizing that some lands in public
ownership should be retained and managed for public benefits
while other lands should be returned to private ownership. All
parcels of land becoming the property of the state in trust
under the provisions of any law now existing or hereafter
enacted declaring the forfeiture of lands to the state for
taxes, shall be classified by the county board of the county
wherein such parcels lie as conservation or nonconservation.
Such classification shall be made with consideration, among
other things, to the present use of adjacent lands, the
productivity of the soil, the character of forest or other
growth, accessibility of lands to established roads, schools,
and other public services, their peculiar suitability or
desirability for particular uses and the suitability of the
forest resources on the land for multiple use, sustained yield
management. Such classification, furthermore, shall aid: to
encourage and foster a mode of land utilization that will
facilitate the economical and adequate provision of
transportation, roads, water supply, drainage, sanitation,
education, and recreation; to facilitate reduction of
governmental expenditures; to conserve and develop the natural
resources; and to foster and develop agriculture and other
industries in the districts and places best suited thereto.
In making such classification the county board may make use
of such data and information as may be made available by any
office or department of the federal, state, or local
governments, or by any other person or agency possessing
information pertinent thereto at the time such classification is
made. Such lands may be reclassified from time to time as the
county board may deem necessary or desirable, except as to
conservation lands held by the state free from any trust in
favor of any taxing district.
If any such lands are located within the boundaries of any
organized town, with taxable valuation in excess of $20,000, or
incorporated municipality, the classification or
reclassification and sale shall first be approved by the town
board of such town or the governing body of such municipality
insofar as the lands located therein are concerned. The town
board of the town or the governing body of the municipality will
be deemed to have approved the classification or
reclassification and sale if the county board is not notified of
the disapproval of the classification or reclassification and
sale within 90 days of the date the request for approval was
transmitted to the town board of the town or governing body of
the municipality. If the town board or governing body desires
to acquire any parcel lying in the town or municipality by
procedures authorized in this subdivision, it shall, within 90
days of the request for classification or reclassification and
sale, file a written application with the county board to
withhold the parcel from public sale. The county board shall
then withhold the parcel from public sale for one year.
Any tax-forfeited lands may be sold by the county board to
any organized or incorporated governmental subdivision of the
state for any public purpose for which such subdivision is
authorized to acquire property or may be released from the trust
in favor of the taxing districts upon application of any state
agency for any authorized use at not less than their value as
determined by the county board. The commissioner of revenue
shall have power to may convey by deed in the name of the state
any tract of tax-forfeited land held in trust in favor of the
taxing districts, to any governmental subdivision for any
authorized public use, provided that an application therefor
shall be is submitted to the commissioner with a statement of
facts as to the use to be made of such the tract and the need
therefor and the recommendation of the county board. The
commissioner of revenue shall convey by deed in the name of the
state any tract of tax-forfeited land held in trust in favor of
the taxing districts, to a political subdivision that submits an
application to the commissioner of revenue and the county
board. The application must include a resolution, adopted by
the governing body of the political subdivision, finding that
the conveyance of a tract of tax-forfeited land to the political
subdivision is necessary to provide for the redevelopment of
land as productive taxable property. The deed of conveyance
shall be upon a form approved by the attorney general and shall
be conditioned upon continued use for the purpose stated in the
application, provided, however, that if the governing body of
such governmental subdivision by resolution determines that some
other public use shall be made of such lands, and such change of
use is approved by the county board and an application for such
change of use is made to, and approved by, the commissioner,
such changed use may be made of such lands without the necessity
of the governing body conveying the lands back to the state and
securing a new conveyance from the state to the governmental
subdivision for such new public use.
Whenever any governmental subdivision to which any
tax-forfeited land has been conveyed for a specified public use
as provided in this section shall fail to put such land to such
use, or to some other authorized public use as provided herein,
or shall abandon such use, the governing body of the subdivision
shall authorize the proper officers to convey the same, or such
portion thereof not required for an authorized public use, to
the state of Minnesota, and such officers shall execute a deed
of such conveyance forthwith, which conveyance shall be subject
to the approval of the commissioner and in form approved by the
attorney general, provided, however, that a sale, lease,
transfer or other conveyance of such lands by a housing and
redevelopment authority, a port authority, an economic
development authority, or a city as authorized by sections
469.001 to 469.047 chapter 469 shall not be an abandonment of
such use and such lands shall not be reconveyed to the state nor
shall they revert to the state. A certificate made by a housing
and redevelopment authority, a port authority, an economic
development authority, or a city referring to a conveyance by it
and stating that the conveyance has been made as authorized
by sections 469.001 to 469.047 chapter 469 may be filed with the
county recorder or registrar of titles, and the rights of
reverter in favor of the state provided by this subdivision will
then terminate. No vote of the people shall be required for
such conveyance. In case any such land shall not be so conveyed
to the state, the commissioner of revenue shall by written
instrument, in form approved by the attorney general, declare
the same to have reverted to the state, and shall serve a notice
thereof, with a copy of the declaration, by certified mail upon
the clerk or recorder of the governmental subdivision concerned,
provided, that no declaration of reversion shall be made earlier
than five years from the date of conveyance for failure to put
such land to such use or from the date of abandonment of such
use if such lands have been put to such use. The commissioner
shall file the original declaration in the commissioner's
office, with verified proof of service as herein required. The
governmental subdivision may appeal to the district court of the
county in which the land lies by filing with the court
administrator a notice of appeal, specifying the grounds of
appeal and the description of the land involved, mailing a copy
thereof by certified mail to the commissioner of revenue, and
filing a copy thereof for record with the county recorder or
registrar of titles, all within 30 days after the mailing of the
notice of reversion. The appeal shall be tried by the court in
like manner as a civil action. If no appeal is taken as herein
provided, the declaration of reversion shall be final. The
commissioner of revenue shall file for record with the county
recorder or registrar of titles, of the county within which the
land lies, a certified copy of the declaration of reversion and
proof of service.
Any city of the first class now or hereafter having a
population of 450,000, or over, or its board of park
commissioners, which has acquired tax-forfeited land for a
specified public use pursuant to the terms of this section, may
convey said land in exchange for other land of substantially
equal worth located in said city of the first class, provided
that the land conveyed to said city of the first class now or
hereafter having a population of 450,000, or over, or its board
of park commissioners, in exchange shall be subject to the
public use and reversionary provisions of this section; the
tax-forfeited land so conveyed shall thereafter be free and
discharged from the public use and reversionary provisions of
this section, provided that said exchange shall in no way affect
the mineral or mineral rights of the state of Minnesota, if any,
in the lands so exchanged.
Sec. 2. Minnesota Statutes 1988, section 462C.02, is
amended by adding a subdivision to read:
Subd. 12. [LOAN.] "Loan" means (1) for single family
housing, any loan, mortgage, or other form of owner financing;
and (2) for multifamily housing developments which are rental
property, any loan, mortgage, financing lease, or revenue
agreement.
Sec. 3. Minnesota Statutes 1988, section 462C.02, is
amended by adding a subdivision to read:
Subd. 13. [REVENUE AGREEMENT] "Revenue agreement" has the
meaning given that term in section 469.153, subdivision 10.
Sec. 4. Minnesota Statutes 1988, section 462C.05, is
amended by adding a subdivision to read:
Subd. 8. [REVENUE AGREEMENT AND FINANCING LEASE.] Any
revenue agreement or financing lease which includes a provision
for a conveyance of real estate to the lessee or contracting
party may be terminated in accordance with the revenue agreement
or financing lease, notwithstanding that the revenue agreement
or financing lease may constitute an equitable mortgage. No
financing lease of any development is subject to section 504.02,
unless expressly so provided in the financing lease. Leases of
specific dwelling units in the development to tenants are not
affected by this subdivision.
Sec. 5. Minnesota Statutes 1988, section 463.15,
subdivision 3, is amended to read:
Subd. 3. [HAZARDOUS BUILDING OR HAZARDOUS PROPERTY.]
"Hazardous building or hazardous property" means any building or
property, which because of inadequate maintenance, dilapidation,
physical damage, unsanitary condition, or abandonment,
constitutes a fire hazard or a hazard to public safety or health.
Sec. 6. Minnesota Statutes 1988, section 463.15,
subdivision 4, is amended to read:
Subd. 4. [OWNER, OWNER OF RECORD, AND LIEN HOLDER OF
RECORD.] "Owner," "owner of record," and "lien holder of record"
means a person having a right or interest in property to which
Laws 1967, chapter 324, applies described in subdivision 3 and
evidence of which is filed and recorded in the office of the
county recorder or registrar of titles in the county in which
the property is situated.
Sec. 7. Minnesota Statutes 1988, section 463.16, is
amended to read:
463.16 [REPAIR OR REMOVAL OF HAZARDOUS BUILDING; HAZARDOUS
PROPERTY CONDITIONS.]
The governing body of any city or town may order the owner
of any hazardous building or property within the municipality to
correct or remove the hazardous condition of such the building
or property or to raze or remove the same building.
Sec. 8. Minnesota Statutes 1988, section 463.161, is
amended to read:
463.161 [ABATEMENT.]
In the manner prescribed in section 463.21 the governing
body of any city or town may correct or remove the hazardous
condition of any hazardous building or parcel of real estate
property; the cost of which shall be charged against the real
estate as provided in section 463.21 except the governing body
may provide that the cost so assessed may be paid in not to
exceed five equal annual installments with interest therein, at
eight percent per annum.
Sec. 9. Minnesota Statutes 1988, section 463.17, is
amended to read:
463.17 [THE ORDER.]
Subdivision 1. [CONTENTS.] The order shall be in writing;
recite the grounds therefor; specify the necessary repairs, if
any, and provide a reasonable time for compliance; and shall
state that a motion for summary enforcement of the order will be
made to the district court of the county in which the hazardous
building or property is situated unless corrective action is
taken, or unless an answer is filed within the time specified in
section 463.18.
Subd. 2. [SERVICE.] The order shall be served upon the
owner of record, or the owner's agent if an agent is in charge
of the building or property, and upon the occupying tenant, if
there is one, and upon all lien holders of record, in the manner
provided for service of a summons in a civil action. If the
owner cannot be found, the order shall be served upon the owner
by posting it at the main entrance to the building or, if there
is no building, in a conspicuous place on the property, and by
four weeks' publication in the official newspaper of the
municipality if it has one, otherwise in a legal newspaper in
the county.
Subd. 3. [FILING.] A copy of the order with proof of
service shall be filed with the court administrator of district
court of the county in which the hazardous building or property
is located not less than five days prior to the filing of a
motion pursuant to section 463.19 to enforce the order. At the
time of filing such order the municipality shall file for record
with the county recorder or registrar of titles a notice of the
pendency of the proceeding, describing with reasonable certainty
the lands affected and the nature of the order. If the
proceeding be abandoned the municipality shall within ten days
thereafter file with the county recorder a notice to that effect.
Sec. 10. Minnesota Statutes 1988, section 463.20, is
amended to read:
463.20 [CONTESTED CASES.]
If an answer is filed and served as provided in section
463.18, further proceedings in the action shall be governed by
the rules of civil procedure for the district courts, except
that the action has priority over all pending civil actions and
shall be tried forthwith. If the order is sustained following
the trial, the court shall enter judgment and shall fix a time
after which the building shall must be destroyed or repaired or
the hazardous condition removed or corrected, as the case may
be, in compliance with the order as originally filed or modified
by the court. If the order is not sustained, it shall be
annulled and set aside. The court administrator of the court
shall cause a copy of the judgment to be mailed forthwith to the
persons upon whom the original order was served.
Sec. 11. Minnesota Statutes 1988, section 463.22, is
amended to read:
463.22 [STATEMENT OF MONEYS RECEIVED.]
The municipality shall keep an accurate account of the
expenses incurred in carrying out the order and of all other
expenses theretofore incurred in connection with its
enforcement, including specifically, but not exclusively, filing
fees, service fees, publication fees, attorney's fees,
appraisers' fees, witness fees, including expert witness fees,
and traveling expenses incurred by the municipality from the
time the order was originally made, and shall credit thereon the
amount, if any, received from the sale of the salvage, or
building or structure, and shall report its action under the
order, with a statement of moneys received and expenses incurred
to the court for approval and allowance. Thereupon the court
shall examine, correct, if necessary, and allow the expense
account, and, if the amount received from the sale of the
salvage, or of the building or structure, does not equal or
exceed the amount of expenses as allowed, the court shall by its
judgment certify the deficiency in the amount so allowed to the
municipal clerk for collection. The owner or other party in
interest shall pay the same, without penalty added thereon, and
in default of payment by October 1, the clerk shall certify the
amount of the expense to the county auditor for entry on the tax
lists of the county as a special charge against the real estate
on which the building or hazardous condition is or was situated
and the same shall be collected in the same manner as other
taxes and the amount so collected shall be paid into the
municipal treasury. If the amount received for the sale of the
salvage or of the building or structure exceeds the expense
incurred by the municipality as allowed by the court, and if
there are no delinquent taxes, the court shall direct the
payment of the surplus to the owner or the payment of the same
into court, as provided in sections 463.15 to 463.26. If there
are delinquent taxes against the property, the court shall
direct the payment of the surplus to the county treasurer to be
applied on such taxes.
Sec. 12. [469.201] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] The definitions in this
section apply to sections 12 to 18.
Subd. 2. [CITY.] "City" means a city of the first class as
defined in section 410.01. For each city, a port authority,
housing and redevelopment authority, or other agency or
instrumentality, the jurisdiction of which is the territory of
the city, is included within the meaning of city.
Subd. 3. [CITY COUNCIL.] "City council" means the city
council of a city as defined in subdivision 2.
Subd. 4. [CITY MATCHING MONEY.] (a) "City matching money"
means the money of a city specified in a revitalization
program. The sources of city matching money may include:
(1) money from the general fund or a special fund of a city
used to implement a revitalization program;
(2) money paid or repaid to a city from the proceeds of a
grant that a city has received from the federal government, a
profit or nonprofit corporation, or another entity or
individual, that is to be used to implement a revitalization
program;
(3) tax increments received by a city under sections
469.174 to 469.179 or other law, if eligible, to be spent in the
targeted neighborhood;
(4) the greater of the fair market value or the cost to the
city of acquiring land, buildings, equipment, or other real or
personal property that a city contributes, grants, leases, or
loans to a profit or nonprofit corporation or other entity or
individual, in connection with the implementation of a
revitalization program;
(5) city money to be used to acquire, install, reinstall,
repair, or improve the infrastructure facilities of a targeted
neighborhood;
(6) money contributed by a city to pay issuance costs, fund
bond reserves, or to otherwise provide financial support for
revenue bonds or obligations issued by a city for a project or
program related to the implementation of a revitalization
program;
(7) money derived from fees received by a city in
connection with its community development activities that are to
be used in implementing a revitalization program;
(8) money derived from the apportionment to the city under
section 162.14 or by special law, and expended in a targeted
neighborhood for an activity related to the revitalization
program;
(9) administrative expenses of the city that are incurred
in connection with the planning, implementation, or reporting
requirements of sections 12 to 18.
(b) City matching money does not include:
(1) city money used to provide a service or to exercise a
function that is ordinarily provided throughout the city, unless
an increased level of the service or function is to be provided
in a targeted neighborhood in accordance with a revitalization
program;
(2) the proceeds of bonds issued by the city under chapter
462C or 469 and payable solely from repayments made by one or
more nongovernmental persons in consideration for the financing
provided by the bonds; or
(3) money given by the state to fund any part of the
revitalization program.
Subd. 5. [COMMISSIONER.] "Commissioner" means the
commissioner of trade and economic development.
Subd. 6. [HOUSING ACTIVITIES.] "Housing activities"
include any work or undertaking to provide housing and related
services and amenities primarily for persons and families of low
or moderate income. This work or undertaking may include the
planning of buildings and improvements; the acquisition of real
property which may be needed immediately or in the future for
housing purposes and the demolition of any existing
improvements; and the construction, reconstruction, alteration,
and repair of new and existing buildings. Housing activities
also include the provision of a housing rehabilitation and
energy improvement loan and grant program with respect to any
residential property located within the targeted neighborhood,
the cost of relocation relating to acquiring property for
housing activities, and programs authorized by chapter 462C.
Subd. 7. [LOST UNIT.] "Lost unit" means a rental housing
unit that is lost as a result of revitalization activities
because it is demolished, converted to an owner-occupied unit
that is not a cooperative, or converted to a nonresidential use,
or because the gross rent to be charged exceeds 125 percent of
the gross rent charged for the unit six months before the start
of rehabilitation.
Subd. 8. [PERSONS AND FAMILIES OF LOW INCOME.] "Persons
and families of low income" means persons and families of low
income as defined in section 469.002, subdivision 17.
Subd. 9. [PERSONS AND FAMILIES OF MODERATE
INCOME.] "Persons and families of moderate income" means persons
and families of moderate income as defined in section 469.002,
subdivision 18.
Subd. 10. [TARGETED NEIGHBORHOOD.] "Targeted neighborhood"
means an area including one or more census tracts, as determined
and measured by the Bureau of Census of the United States
Department of Commerce, that a city council determines in a
resolution adopted under section 13, subdivision 1, meets the
criteria of section 13, subdivision 2, and any additional area
designated under section 13, subdivision 3.
Subd. 11. [TARGETED NEIGHBORHOOD MONEY.] "Targeted
neighborhood money" means the money designated in the
revitalization program to be used to implement the
revitalization program.
Subd. 12. [TARGETED NEIGHBORHOOD REVITALIZATION AND
FINANCING PROGRAM.] "Targeted neighborhood revitalization and
financing program," "revitalization program," or "program" means
the targeted neighborhood revitalization and financing program
adopted in accordance with section 14.
Sec. 13. [469.202] [DESIGNATION OF TARGETED
NEIGHBORHOODS.]
Subdivision 1. [CITY AUTHORITY.] A city may by resolution
designate targeted neighborhoods within its borders after
adopting detailed findings that the designated neighborhoods
meet the eligibility requirements in subdivision 2 or 3.
Subd. 2. [ELIGIBILITY REQUIREMENTS FOR TARGETED
NEIGHBORHOODS.] An area within a city is eligible for
designation as a targeted neighborhood if the area meets two of
the following three criteria:
(a) The area had an unemployment rate that was twice the
unemployment rate for the Minneapolis and Saint Paul standard
metropolitan statistical area as determined by the 1980 federal
decennial census.
(b) The median household income in the area was no more
than half the median household income for the Minneapolis and
Saint Paul standard metropolitan statistical area as determined
by the 1980 federal decennial census.
(c) The area is characterized by residential dwelling units
in need of substantial rehabilitation. An area qualifies under
this paragraph if 25 percent or more of the residential dwelling
units are in substandard condition as determined by the city, or
if 70 percent or more of the residential dwelling units in the
area were built before 1940 as determined by the 1980 federal
decennial census.
Subd. 3. [ADDITIONAL AREA ELIGIBLE FOR INCLUSION IN
TARGETED NEIGHBORHOOD.] (a) A city may add to the area
designated as a targeted neighborhood under subdivision 2
additional area extending up to four contiguous city blocks in
all directions from the designated targeted neighborhood. For
the purpose of this subdivision, "city block" has the meaning
determined by the city; or
(b) The city may enlarge the targeted neighborhood to
include portions of a census tract that is contiguous to a
targeted neighborhood, provided that the city council first
determines the additional area satisfies two of the three
criteria in subdivision 2.
Sec. 14. [469.203] [TARGETED NEIGHBORHOOD REVITALIZATION
AND FINANCING PROGRAM REQUIREMENTS.]
Subdivision 1. [COMPREHENSIVE REVITALIZATION AND FINANCING
PROGRAM.] For each targeted neighborhood for which a city
requests state financial assistance under section 15, the city
must prepare a comprehensive revitalization and financing
program that includes the following:
(1) the revitalization objectives of the city for the
targeted neighborhood;
(2) the specific activities or means by which the city
intends to pursue and implement the revitalization objectives;
(3) the extent to which the activities identified in clause
(2) will benefit low- and moderate-income families, will
alleviate the blighted condition of the targeted neighborhood,
or will otherwise assist in the revitalization of the targeted
neighborhood;
(4) a statement of the intended outcomes to be achieved by
implementation of the revitalization program, how the outcomes
will be measured both qualitatively and quantitatively, and the
estimated time over which they will occur; and
(5) a financing program and budget that identifies the
financial resources necessary to implement the revitalization
program, including:
(i) the estimated total cost to implement the
revitalization program;
(ii) the estimated cost to implement each activity in the
revitalization program identified in clause (2);
(iii) the estimated amount of financial resources that will
be available from all sources other than from the appropriation
available under section 15 to implement the revitalization
program, including the amount of private investment expected to
result from the use of public money in the targeted
neighborhood;
(iv) the estimated amount of the appropriation available
under section 15 that will be necessary to implement the
revitalization program;
(v) a description of the activities identified in the
revitalization program for which the state appropriation will be
committed or spent; and
(vi) a statement of how the city intends to meet the
requirement for a financial contribution from city matching
money in accordance with section 15, subdivision 3.
Subd. 2. [TARGETED NEIGHBORHOOD PARTICIPATION IN PREPARING
REVITALIZATION PROGRAM.] A city requesting state financial
assistance under section 15 shall adopt a process to involve the
residents of targeted neighborhoods in the development,
drafting, and implementation of the revitalization program. The
process shall include the use of a citizen participation process
established by the city. A description of the process must be
included in the program. The process to involve residents of
the targeted neighborhood must include at least one public
hearing. The city of Minneapolis shall establish the
community-based process as outlined in subdivision 3. The city
of St. Paul shall use the same community-based process the city
used in planning, developing, drafting, and implementing the
revitalization program required under Laws 1987, chapter 386,
article 6, section 6. The city of Duluth shall use the same
citizen participation process the city used in planning,
developing, and implementing the federal funded community
development program.
Subd. 3. [COMMUNITY PARTICIPATION; MINNEAPOLIS.] (a) For
the purposes of this subdivision, "city" means the city of
Minneapolis.
(b) The city shall adopt a process to involve the residents
in targeted neighborhoods and assisted housing in planning,
developing, and implementing the program. As part of this
process, the city shall ensure that the community-based process
has sufficient resources to assist in the development of the
program and that the advisory board is established.
(c) Beginning with the program for 1991, each targeted
neighborhood or group of targeted neighborhoods in the city must
have a strategic planning group whose members include residents
of the targeted neighborhood and representatives of institutions
in the neighborhood. The group shall, as part of its
responsibilities, develop a strategic plan for the
neighborhood. This strategic plan must include the elements
that the planning group recommends as part of the program. The
strategic plan must also address how the targeted neighborhood
portions of the revitalization program will be integrated with
the elements that are recommended to be included as part of the
community resources program if such a program is developed in
the city. If possible, the city shall integrate the community
participation process required under this subdivision with the
community participation process required for the development of
the community resources program if such a program is developed
in the city.
(d) The city shall ensure that the strategic planning group
required under paragraph (c) is established. An existing group
or organization that reflects the required membership under
paragraph (c) may be designated as the strategic planning
group. The city may provide financial and staff resources to
ensure the establishment of the strategic planning groups, and
may use part of the money received from the state under section
15 to assist in the establishment of the targeted neighborhood
strategic planning groups.
(e) As part of the process for the development of the
program, each targeted neighborhood strategic planning group
shall submit assigned priority recommendations for the
revitalization program to the city and the advisory board
established under paragraph (f).
(f) The city shall establish an urban revitalization action
program advisory committee to assist the city in developing and
implementing the preliminary revitalization program. The
advisory committee shall consist of at least two representatives
of the city council appointed by the city council, one or more
for-profit or nonprofit housing developers, one or more
representatives of the business community appointed by the
city's chamber of commerce, and resident representatives of the
targeted neighborhoods. The representatives of the targeted
neighborhoods shall represent a majority of the membership of
the advisory committee and reflect the geographic, cultural,
racial, and ethnic diversity of the targeted neighborhoods. The
city may determine the size of the advisory committee and may
designate an existing entity as the advisory committee if the
entity meets the membership requirements outlined in this
subdivision.
(g) The advisory committee shall work closely with city
staff in developing and drafting the preliminary revitalization
program. The advisory committee shall be involved in assessing
needs, prioritizing funds, and developing criteria for
evaluating program proposals. In developing the preliminary
program, the advisory committee shall give consideration to the
recommendations made by the targeted neighborhood strategic
planning groups.
(h) The advisory committee shall conduct a public hearing
and secure input from residents of targeted neighborhoods,
business persons, governmental units affected by the program,
and other organizations and persons.
(i) The advisory committee and city staff may make any
changes to the preliminary program resulting from testimony
given at the public hearing. The advisory committee must
formally recommend to the city council a preliminary
revitalization program.
Subd. 4. [CITY APPROVAL OF PROGRAM.] (a) For the purposes
of this subdivision, "city" means the cities of Minneapolis and
Duluth.
(b) Before adoption of a revitalization program under
paragraph (c), the city must submit a preliminary program to the
commissioner, the state planning agency, and the Minnesota
housing finance agency for their comments. The city may not
adopt the revitalization program until comments have been
received from the state agencies or 30 days have elapsed without
response after the program was sent to them. Comments received
by the city from the state agencies within the 30-day period
must be responded to in writing by the city before adoption of
the program by the city.
(c) The city may adopt a revitalization program only after
holding a public hearing after the program has been prepared.
Notice of the hearing must be provided in a newspaper of general
circulation in the city and in the most widely circulated
community newspaper in the targeted neighborhoods not less than
ten days nor more than 30 days before the date of the hearing.
(d) A certification by the city that a revitalization
program has been approved by the city council for the targeted
neighborhood must be provided to the commissioner together with
a copy of the program. A copy of the program must also be
provided to the Minnesota housing finance agency and the state
planning agency.
(e) A revitalization program for the city may be modified
at any time by the city council after a public hearing, notice
of which is published in a newspaper of general circulation in
the city and in the targeted neighborhood at least ten days nor
more than 30 days before the date of the hearing. If the city
council determines that the proposed modification is a
significant modification to the program originally certified
under paragraph (d), the city council shall implement the
revitalization program approval and certification process of
this subdivision for the proposed modification.
Subd. 5. [CITY OF SAINT PAUL APPROVAL.] (a)
Notwithstanding any other law, including laws passed by the 1989
legislature, the city of St. Paul must use the process under
this subdivision for developing and certifying an urban
revitalization action program.
(b) For the purposes of this subdivision, "city" means the
city of Saint Paul.
(c) A city may approve a preliminary revitalization program
developed through a process that includes the citizen
participation required under subdivision 2 only after holding a
public hearing. Notice of the hearing must be provided in a
newspaper of general circulation in the city and in the targeted
neighborhoods not less than ten days nor more than 30 days
before the date of the hearing. After the public hearing and
after the city has incorporated any changes into the preliminary
program as a result of the public hearing, the city may approve
the preliminary program and shall submit the approved
preliminary program for final approval to the review board.
(d) After approval, the city shall submit the preliminary
program to the commissioner, the state planning agency, and the
Minnesota housing finance agency for their comments. The state
agencies have 30 days to provide comments to the preliminary
program. State agency comments must be submitted in writing to
the review board established under paragraph (e).
(e) The city shall establish a city urban revitalization
action program review board whose purpose is to review the
preliminary program submitted by the city, and approve all or
portions of the program. The review board consists of two city
council members who represent targeted neighborhoods, two
members representing the city's business community appointed by
the chamber of commerce representing businesses in the city, and
three residents of targeted neighborhoods appointed by the city
council. Two members of the house of representatives and one
member of the state senate appointed by the city's legislative
delegation shall be nonvoting members of the review board.
Nonvoting legislative members of the review board shall
represent targeted neighborhoods. A member of the review board
may not be an elected public official, or in any way be involved
in preparing or implementing the program or any portion of the
program. The review board may require the city to contract for
staff assistance in reviewing and approving the program.
Persons who provide staff assistance to the review board may not
be city employees or in any way involved in a formal or informal
organization representing residents of a targeted neighborhood.
The city may use state money available under section 15 to pay
for the costs of staffing the review board.
(f) The review board shall review the city's preliminary
program and approve all or portions of the program. In
reviewing the program, the review board shall take into account
any comments submitted by state agencies under paragraph (d).
The review board may only reject the revitalization program or
portions of the program for the following reasons:
(1) the revitalization program does not include the
information required under subdivision 1;
(2) the city did not follow the community-based process
required under subdivision 2 for developing the revitalization
program; or
(3) the revitalization program results in undue
concentration of targeted neighborhood money in a single
proposed activity or project.
The review board may approve all of the preliminary program and
submit it to the city council for certification under paragraph
(g) or submit for certification only those specific portions of
the program approved by the review board. If the review board
does not approve a portion of the program, it shall specify in
writing to the city the reasons for not approving that portion
of the program and any recommendations for changes. If the
review board determines that a portion of the program needs
significant changes, it may require the city to implement the
community participation process under subdivision 2 and state
review under this subdivision for making changes to that portion
of the program.
(g) The city council may, by formal resolution, certify
only those portions of a program approved by the review board
under paragraph (f). A certification by the city council that
all or portions of a revitalization program has been approved by
the review board must be provided to the commissioner together
with a copy of the approved portions of the program. A copy of
the approved portions of the program must be submitted to the
state planning agency and Minnesota housing finance agency.
(h) A revitalization program may be modified at any time by
the city after a public hearing and approval by the review
board. Notice of the public hearing must be published in a
newspaper of general circulation in the city and in the targeted
neighborhoods not less than ten days nor more than 30 days
before the date of the hearing. If the review board determines
that the proposed modification is a significant modification to
the program originally certified under paragraph (g), it must
require the implementation of the revitalization program
approval and certification process under this subdivision for
the proposed modification.
Sec. 15. [469.204] [PAYMENT; CITY MATCHING MONEY;
DRAWDOWN; USES OF STATE MONEY.]
Subdivision 1. [PAYMENT OF STATE MONEY.] Upon receipt from
a city of a certification that a revitalization program has been
adopted or modified, the commissioner shall, within 30 days, pay
to the city the amount of state money identified as necessary to
implement the revitalization program or program modification.
State money may be paid to the city only to the extent that the
appropriation limit for the city specified in subdivision 2 is
not exceeded. Once the state money has been paid to the city,
it becomes targeted neighborhood money for use by the city in
accordance with an adopted revitalization program and subject
only to the restrictions on its use in sections 12 to 18.
Subd. 2. [ALLOCATION.] Each city of the first class, as
defined in section 410.01, may receive a part of the
appropriations made available that is the proportion that the
population of such city bears to the combined population of such
cities of the first class. One city may agree to reduce its
entitlement amount and to make it available to another city.
For the purposes of this subdivision the population of each city
is determined according to the most recent estimates available
to the commissioner. Interest earned by a city from money paid
to the city must be repaid to the commissioner annually unless
the revitalization program identifies the interest as necessary
to implement the revitalization program and the requirement for
city matching money is satisfied with respect to the interest.
Subd. 3. [CITY MATCHING MONEY; DRAWDOWN AND RESTRICTION ON
USE OF STATE MONEY.] A city may spend state money only if the
revitalization program identifies city matching money to be used
to implement the program in an amount equal to the state
appropriation paid to the city. A city must keep the state
money in a segregated fund for accounting purposes.
Sec. 16. [469.205] [CITY POWERS AND ELIGIBLE USES OF
TARGETED NEIGHBORHOOD MONEY.]
Subdivision 1. [CONSOLIDATION OF EXISTING POWERS IN
TARGETED NEIGHBORHOODS.] A city may exercise any of its
corporate powers within a targeted neighborhood. Those powers
shall include, but not be limited to, all of the powers
enumerated and granted to any city by chapters 462C, 469, and
474A. For the purposes of sections 469.048 to 469.068, a
targeted neighborhood is considered an industrial development
district. A city may exercise the powers of chapters 469.048 to
469.068 in conjunction with, and in addition to, exercising the
powers granted by sections 469.001 to 469.047 and chapter 462C,
in order to promote and assist housing construction and
rehabilitation within a targeted neighborhood. For the purposes
of section 462C.02, subdivision 9, a targeted neighborhood is
considered a "targeted area."
Subd. 2. [GRANTS AND LOANS.] In addition to the authority
granted by other law, a city may make grants, loans, and other
forms of public assistance to individuals, for-profit and
nonprofit corporations, and other organizations to implement a
revitalization program. The public assistance must contain the
terms the city considers proper to implement a revitalization
program.
Subd. 3. [ELIGIBLE USES OF TARGETED NEIGHBORHOOD
MONEY.] The city may spend targeted neighborhood money for any
purpose authorized by subdivision 1 or 2, except that an amount
equal to at least 50 percent of the state payment under section
15 made to the city must be used for housing activities. Use of
target neighborhood money must be authorized in a revitalization
program.
Sec. 17. [469.206] [HAZARDOUS PROPERTY PENALTY.]
A city may assess a penalty up to one percent of the market
value of real property, including any building located within
the city that the city determines to be hazardous as defined in
section 463.15, subdivision 3. The city shall send a written
notice to the address to which the property tax statement is
sent at least 90 days before it may assess the penalty. If the
owner of the property has not paid the penalty or fixed the
property within 90 days after receiving notice of the penalty,
the penalty is considered delinquent and is increased by 25
percent each 60 days the penalty is not paid and the property
remains hazardous. For the purposes of this section, a penalty
that is delinquent is considered a delinquent property tax and
subject to Minnesota Statutes, chapters 279, 280, and 281, in
the same manner as delinquent property taxes.
Sec. 18. [469.207] [ANNUAL AUDIT AND REPORT.]
Subdivision 1. [ANNUAL FINANCIAL AUDIT.] In 1989 and
subsequent years, at the end of each calendar year, the
legislative auditor shall conduct a financial audit to review
the spending of state money under sections 12 to 18. Before
spending state money to implement a revitalization program, the
city must consult with the legislative auditor to determine
appropriate accounting methods and principles that will assist
the legislative auditor in conducting its financial audit. The
results of the financial audit must be submitted to the
legislative audit commission, the commissioner, the state
planning agency, and the Minnesota housing finance agency.
Subd. 2. [ANNUAL REPORT.] A city that begins to implement
a revitalization program in a calendar year must, by March 1 of
the succeeding calendar year, provide a detailed report on the
revitalization program or programs being implemented in the
city. The report must describe the status of the program
implementation and analyze whether the intended outcomes
identified in section 14, subdivision 1, clause (4), are being
achieved. The report must include at least the following:
(1) the number of housing units, including lost units,
removed, created, lost, replaced, relocated, and assisted as a
result of the program. The level of rent of the units and the
income of the households affected must be included in the
report;
(2) the number and type of commercial establishments
removed, created, and assisted as a result of a revitalization
program. The report must include information regarding the
number of new jobs created by category, whether the jobs are
full-time or part-time, and the salary or wage levels of both
new and expanded jobs in the affected commercial establishments;
(3) a description of a statement of the cost of the public
improvement projects that are part of the program and the number
of jobs created for each $20,000 of money spent on commercial
projects and applicable public improvement projects;
(4) the increase in the tax capacity for the city as a
result of the assistance to commercial and housing assistance;
and
(5) the amount of private investment that is a result of
the use of public money in a targeted neighborhood.
The report must be submitted to the commissioner, the
Minnesota housing finance agency, the state planning agency, and
the legislative audit commission, and must be available to the
public.
Sec. 19. [REVITALIZATION PROGRAM MONITORING.]
The commissioner of the state planning agency, in
consultation with other appropriate state agencies, shall
monitor the planning, development and implementation of the
urban revitalization action program. The commissioner shall
determine if:
(1) the process used for developing the programs is
providing adequate neighborhood participation in the planning,
drafting and implementation of the programs;
(2) the programs are effectively achieving the statutory
objectives and the objectives outlined in the programs
themselves; and
(3) private funding is being used to partially fund the
activities established under the programs.
The state planning agency shall provide an interim report
to the legislature by January 1, 1990, with a final report of
its findings due by January 1, 1991.
Sec. 20. [COMMUNITY SOCIAL AND ECONOMIC NEEDS.]
The commissioner of the state planning agency, in
consultation with representatives of cities, counties, and
school districts, shall identify significant social and economic
needs in the communities throughout the state, including the
future needs of the cities of the first class. The
identification of the needs must be done on a county by county
basis using demographic characteristics that will allow social
and economic needs to be thoroughly demonstrated. When
possible, the commissioner shall also identify the needs of all
cities with populations of 2,500 or more people.
The demographic, economic, and other data utilized in
identifying the social and economic needs shall be maintained in
a data base that is accessible to legislators, researchers, and
representatives of local governments. The commissioner shall
provide an interim report on its findings to the legislature by
January 1, 1990, with a final report by January 1, 1991.
Sec. 21. [REPEALER.]
Laws 1987, chapter 386, article 6, sections 4, 5, 6, 7, 8,
9, 10 and 11, and Laws 1987, chapter 384, article 3, section 22,
are repealed, provided that actions taken under those provisions
prior to the effective date of this chapter with respect to any
program or to a targeted neighborhood are ratified and affirmed
and must be treated as if validly taken under the provisions of
sections 12 to 18.
Sec. 22. [EFFECTIVE DATE.]
Sections 12 to 18 and 21 are effective the day after final
enactment, provided that the provisions of sections 12 to 15 and
16, subdivisions 2 and 3, shall not apply to any program funded
by the state in fiscal year 1988.
ARTICLE 7
YOUTH EMPLOYMENT AND HOUSING PROGRAM
Section 1. Minnesota Statutes 1988, section 268.361,
subdivision 4, is amended to read:
Subd. 4. [ELIGIBLE ORGANIZATION.] "Eligible organization"
means a public agency or a nonprofit organization that can
demonstrate an ability to design implement a program for
education and training services provided to targeted youth.
Eligible organizations may include local jurisdictions, public
school districts, private nonsectarian schools, post-secondary
educational institutes, alternative schools, community groups,
and labor organizations.
Sec. 2. Minnesota Statutes 1988, section 268.361, is
amended by adding a subdivision to read:
Subd. 4a. [PROGRAM.] "Program" means the services and
activities performed or contracted for by an eligible
organization for which a grant has been received or for which a
grant application has been submitted to the commissioner.
Sec. 3. Minnesota Statutes 1988, section 268.362, is
amended to read:
268.362 [PLANNING GRANTS.]
The commissioner shall make grants of up to $20,000 to
eligible organizations for the design of programs to provide
education and training services to targeted youth. The purpose
of these programs is to provide specialized training and work
experience to at-risk targeted youth who have not been served
effectively by the current educational system. The programs are
to be designed to include a work experience component with work
projects that result in the rehabilitation or construction of
residential units for the homeless. Two or more eligible
organizations may jointly apply for a planning grant. The
commissioner shall administer the grant program.
Interested eligible organizations must apply to the
commissioner for the grants. The advisory committee must review
the applications and provide to the commissioner a list of
recommended eligible organizations that the advisory committee
determines meet the requirements for receiving a planning
grant. The commissioner shall select from the committee's list
at least four organizations to receive the planning grants with
at least one organization located in each of the cities of
Minneapolis and St. Paul and two organizations located outside
the metropolitan area defined in section 473.121, subdivision 2.
Sec. 4. Minnesota Statutes 1988, section 268.364, is
amended to read:
268.364 [PROGRAM PURPOSE AND DESIGN.]
Subdivision 1. [PROGRAM PURPOSE.] The grants awarded under
section 268.362 are for the design of a youth employment and
training program directed at targeted youth who are likely to be
at risk of not completing their high school education. Each
program design must include education, work experience, and job
skills components.
Subd. 2. [EDUCATION COMPONENT.] A program design must
contain an education component that requires program
participants who have not completed to complete their secondary
education to be enrolled in a traditional public or private
secondary school, a suitable alternative school setting, or a
GED program. Program participants must be working toward the
completion of their secondary education or literacy advancement.
Subd. 3. [WORK EXPERIENCE COMPONENT.] A work experience
component must be included in each program design. The work
experience component must provide vocational skills training in
an industry where there is a viable expectation of job
opportunities and a training subsidy or stipend may be provided
to program participants. The wage or stipend must be provided
to participants who are recipients of public assistance in a
manner or amount which will not reduce public assistance
benefits. The work experience component must be designed so
that work projects result in the expansion or improvement of
residential units for homeless persons and very low income
families, and must include direct supervision by individuals
skilled in each specific vocation. The program design must
include an examination of how Program participants may earn
credits toward the completion of their secondary education from
their participation in the work experience component.
Subd. 4. [JOB READINESS SKILLS COMPONENT.] A job readiness
skills component must be included in each program design. The
component must provide program participants with job search
skills, placement assistance, and other job readiness skills to
ensure that participants will be able to compete in the
employment market.
Subd. 5. [ELIGIBLE PROGRAM PROVIDERS.] A program design
must include the examination of the types of organizations that
would administer and operate the program. The types of
organizations examined must include public school districts,
private nonsectarian schools, alternative schools, local
jurisdictions, housing related groups, community groups, and
labor organizations, or a joint effort among two or more of
these organizations.
Sec. 5. Minnesota Statutes 1988, section 268.365, is
amended to read:
268.365 [HOUSING FOR HOMELESS.]
Subdivision 1. [WORK PROJECT REQUIREMENT.] The work
experience component of the youth employment and training
program described in section 268.364 must include work projects
that provide residential units through construction or,
rehabilitation, or improvement for the homeless and families
with very low incomes.
Subd. 2. [PRIORITY FOR HOUSING.] Any residential units
that become available through the employment and training
program must be allocated in the following order:
(1) homeless families with at least one dependent;
(2) other homeless individuals;
(3) other very low income families and individuals; and
(4) families or individuals that receive public assistance
and that do not qualify in any other priority group.
Subd. 3. [ACQUISITION OF HOUSING UNITS.] The program
design must include an examination of the means of acquiring
eligible organization receiving a grant under section 268.362
shall acquire property or buildings for the construction or
rehabilitation of residential units at the lowest possible
cost. The examination must include the review of Possible
sources of property and funding through federal, state, or local
agencies, including include the federal Department of Housing
and Urban Development, Farmers Home Administration, Minnesota
housing finance agency, and the local housing authority.
Subd. 4. [MANAGEMENT OF RESIDENTIAL UNITS.] The
program design must address how to manage these residential
units, including the source of financing for the maintenance
costs of the buildings. Any management plan must include the
participation of the residents and local established
neighborhood groups.
Sec. 6. Minnesota Statutes 1988, section 268.366, is
amended to read:
268.366 [REQUIREMENTS OF ORGANIZATIONS RECEIVING GRANTS.]
An organization that is awarded a planning grant under
section 268.362 shall prepare and submit a an annual report to
the commissioner by January 15, 1989 September 1 of each year.
The report must address each include a discussion of the
following:
(1) the method process used for encouraging the
participation of the targeted youth in the geographic area
surrounding the organization receiving the grant;
(2) the support services and social services that targeted
youth require and the means of providing those services to
program participants received under the program. Services may
include client needs assessment, preemployment skills such as
basic job skills and behavior, and intermediate needs such as
education and chemical dependency treatment;
(3) the type and degree of work experience that program
participants must participate in received, including real work
experience in both vocational and nonvocational settings;
(4) the amount of training subsidy or stipend that each
participant should receive received while participating in the
work experience component. The subsidy or stipend must reflect
prevailing wage and benefits standards appropriate for
preapprenticeship training unless a participant's receipt of
public assistance is affected. The subsidy or stipend should be
structured to include incentives for progress toward increasing
job skills and completing secondary education;
(5) the identification and means of providing the necessary
job readiness skills so that to program participants who have
completed the work experience and educational components of the
program may have so they have the ability to compete in the job
market. These job search skills may include skills assessment,
job search and selection, application preparation and assistance
in preparing for job interviews;
(6) the methods that may be used to assist in placing
program participants in suitable employment. The methods should
include means of involving state government, businesses, labor
organizations, community groups, and local jurisdictions in
assisting in the placement;
(7) a plan the process used for evaluating the program,
including the necessary data elements that must be collected
from program participants after they have completed the
program to monitor for monitoring the success of the program;
(8) the method used to maximize parental involvement in the
program;
(9) the identification of existing public and private
programs that may be were utilized by the program to avoid
duplication of services;
(10) the identification of regional characteristics that
may affect affected the operation of the program in the specific
region where the organization is located;
(11) the identification and means of addressing the special
needs of priority groups of targeted youth, which groups may
include including:
(i) persons who are responsible for at least one dependent;
(ii) persons who are pregnant;
(iii) persons who are or have been subject to any stage of
the criminal justice system and who may benefit from receiving
employment and training services in overcoming barriers to
employment resulting from a record of arrest or conviction;
(iv) persons receiving income maintenance services and
social services, including chemical dependency treatment,
vocational rehabilitation services, and protection services;
(v) persons who reside on a farm who personally derive or
whose family derives a substantial portion of their income from
farming, lack nonfarm work skills, or have limited access to
vocational education or work experience opportunities;
(vi) homeless youth; and
(vii) minors who that are not financially dependent on a
parent or a guardian;
(12) cost estimates costs for each of the components of the
program; and
(13) the identification of the funding sources other than
state appropriations that may be were used to support the
program.
Sec. 7. Minnesota Statutes 1988, section 268.367, is
amended to read:
268.367 [REPORT.]
The commissioner shall prepare and submit a an annual
report to the legislature and the governor by February January
15, 1989 of each year, that outlines the various program designs
summarizes the annual reports submitted by the organizations
that received planning grants. The report must may also include
recommendations on which components of the improving the program
designs are most suitable to meeting to better meet the needs of
targeted youth. The advisory committee must participate in the
preparation of this report and in the formulation of the any
recommendations.
Sec. 8. [1990 REPORT.]
The annual report for 1990 required under Minnesota
Statutes, section 268.367, must include specific recommendations
on whether the program should be continued on a permanent basis
and, if continued, the state agency that should administer the
program. In preparing this report and the recommendations, the
commissioner of the state planning agency must consult with the
eligible organization receiving a grant under section 9 and the
advisory committee.
Sec. 9. [DEMONSTRATION GRANTS.]
Notwithstanding Minnesota Statutes, section 268.362, the
commissioner of the state planning agency shall award two
demonstration grants to eligible organizations, as defined in
Minnesota Statutes, section 268.361, subdivision 4, based on
criteria established in the report required under Laws 1988,
chapter 686, article 3, section 7. To achieve a demonstration
grant under this section, the eligible organization must match
the grant money with at least an equal amount of nonstate
money. The commissioner of finance must verify that the
eligible organization has matched the grant money.
ARTICLE 8
HOUSING IMPACT REPORT
Section 1. [504.33] [DEFINITIONS.]
Subdivision 1. [SCOPE.] The definitions in this section
apply to sections 1 to 3.
Subd. 2. [CITY.] "City" means a city of the first class as
defined in section 410.01. The term "city" also includes, where
applicable, a port authority, economic development authority, a
housing and redevelopment authority, or any development agency
established under chapter 469 which share common boundaries with
the city.
Subd. 3. [DISPLACE.] "Displace" means to demolish, acquire
for or convert to a use other than low-income housing, or to
provide or spend money that directly results in the demolition,
acquisition, or conversion of housing to a use other than
low-income housing.
"Displace" does not include providing or spending money
that directly results in: (i) housing improvements made to
comply with health, housing, building, fire prevention, housing
maintenance, or energy codes or standards of the applicable
government unit; (ii) housing improvements to make housing more
accessible to a handicapped person; or (iii) the demolition,
acquisition, or conversion of housing for the purpose of
creating owner-occupied housing that consists of no more than
four units per structure.
Subd. 4. [GOVERNMENT UNIT.] "Government unit" means a
state agency; a public or private agency, corporation, or entity
receiving a direct appropriation from the state for the purpose
of a project that would displace low-income housing in a city;
or a general or special purpose unit of government in the state,
including a city, county, and county housing and redevelopment
authority.
Subd. 5. [LOW-INCOME HOUSING.] "Low-income housing" means
rental housing with a rent less than or equal to 30 percent of
50 percent of the median income for the county in which the
rental housing is located, adjusted by size. "Low-income
housing" also includes rental housing that has been vacant for
less than two years, that was low-income housing when it was
last occupied, and that is not condemned as being unfit for
human habitation by the applicable government unit.
Subd. 6. [RENTAL HOUSING.] "Rental housing" includes
rental apartments, rooms, and housing; board and lodging units;
rooms in single-occupancy buildings and hotels that offer to be
used as the sole residence of the occupant; transitional
housing; and shelters. Rental housing does not include
transitional housing located within a floodplain or community
based residential facilities.
Subd. 7. [REPLACEMENT HOUSING.] "Replacement housing"
means rental housing that is:
(1) the lesser of (i) the number and corresponding size of
low-income housing units displaced, or (ii) sufficient in number
and corresponding size of those low-income housing units
displaced to meet the demand for those units;
(2) low-income housing for the greater of 15 years or the
compliance period of the federal low-income housing tax credit
under United States Code, title 26, section 42(i)(1), as
amended. This section does not prohibit increases in rent to
cover operating expenses;
(3) in at least standard condition; and
(4) located in the city where the displaced low-income
housing units were located.
Replacement housing may be provided as newly constructed
housing, or rehabilitated or rent subsidized existing housing
that does not already qualify as low-income housing.
Subd. 8. [SIZE.] "Size" means the number of bedrooms in a
housing unit.
Sec. 2. [504.34] [ANNUAL HOUSING IMPACT REPORT.]
Subdivision 1. [ANNUAL REPORT REQUIRED.] A government unit
shall prepare an annual housing impact report for each year in
which the government unit displaces ten or more units of
low-income housing in a city of the first class as defined in
section 410.01.
Subd. 2. [DRAFT ANNUAL HOUSING IMPACT REPORT.] A
government unit subject to this section must prepare a draft
annual housing impact report for review and comment by
interested persons. The draft report must be completed by
January 31 of the year immediately following a year in which the
government unit has displaced ten or more units of low-income
housing in a city.
Subd. 3. [CONTENTS.] The draft and final annual housing
impact reports must include:
(1) identification of each low-income housing unit that was
displaced in the previous year in the city where housing was
displaced by the government unit, including the unit's address,
size, and rent; the number of persons who could have occupied
the unit; the condition the unit was in, and whether it was
habitable at the time of displacement; the owner of the unit;
whether it was owner occupied; and how and when it was
displaced;
(2) identification of each unit of replacement housing
provided in the previous year in the city, including the unit's
address, size, and rent; the number of persons who could occupy
the unit; the owner of the unit; whether it is owner occupied;
and an identification of the displaced low-income housing unit
that was replaced by the unit of replacement housing;
(3) analysis of the supply of and demand for all sizes of
low-income housing units, by size and rent, in the city;
(4) determination of whether there is an adequate supply of
available and unoccupied low-income housing units to meet the
demand for all sizes of low-income housing, by size and rent, in
the city where housing has been displaced by the government
unit;
(5) estimation of the cost of providing replacement housing
for low-income housing not in adequate supply to meet the demand
for all sizes of low-income housing, by size and rent, in the
city where housing has been displaced by the government unit;
and
(6) analysis of the government unit's compliance with the
replacement plans of previous housing annual impact reports and
project housing impact statements.
Subd. 4. [REPLACEMENT PLAN.] If there is an inadequate
supply of available and unoccupied low-income housing units to
meet the demand for the replacement housing in the city where
housing has been displaced by the government unit, the draft and
final annual housing impact reports must include a plan for
providing the replacement housing within 36 months following the
date of the final annual housing impact report.
Subd. 5. [NOTICE; REQUEST FOR COMMENTS.] A government unit
subject to this section must provide for public input in
preparing the annual housing impact report, including a public
comment period and a public hearing. The government unit must
publish notice of its draft annual housing impact report in a
newspaper of general circulation in the city by the deadline for
completion of the draft annual housing impact report. The
notice must include a request for comments on the draft annual
housing impact report within the 30 days following the notice,
and the date, time, and location of the public hearing on the
draft annual housing impact report, to be held within 15 to 30
days following the date of notice. Copies of the notice must be
sent to the neighborhood and citizen participation
organizations, district planning councils, housing referral and
information services, shelters, homeless and tenants advocacy
groups, and legal aid offices in the city where the displaced
low-income housing was located. Copies of the notice and the
draft annual housing impact report must be submitted to the
state planning agency and the Minnesota housing finance agency.
Subd. 6. [FINAL ANNUAL HOUSING IMPACT REPORT.] In
preparing and approving a final annual housing impact report, a
government unit subject to this section must consider comments
received during the comment period and at the public hearing on
the draft report. The final report shall be prepared within 30
days following the deadline for receipt of comments on the draft
annual housing impact report. The government unit shall publish
notice of the final annual housing impact report in a newspaper
of general circulation in the city. Copies of the notice must
be sent to neighborhood and citizen participation organizations,
district planning councils, housing referral and information
services, shelters, homeless and tenants advocacy groups, and
legal aid offices in the city where the displaced low-income
housing was located. Copies of the notice and the draft annual
housing impact report must be submitted to the state planning
agency and the Minnesota housing finance agency.
Sec. 3. [504.35] [REPLACEMENT HOUSING REQUIRED.]
A government unit which displaces ten or more units of
low-income housing in a city of the first class as defined in
section 410.01 and is subject to section 2 must provide the
replacement housing within 36 months following the date of the
final annual housing impact report, unless there is an adequate
supply of available and unoccupied low-income housing units to
meet the demand for the replacement housing in the city where
housing has been displaced by the government unit.
Presented to the governor May 30, 1989
Signed by the governor June 2, 1989, 12:10 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes