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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1990 

                        CHAPTER 520-S.F.No. 1950 
           An act relating to housing; requiring state 
          interagency coordination on homelessness; providing 
          for treatment of certain obligations upon foreclosure 
          of certain mortgages; appropriating nonrefundable bond 
          allocation deposits to the housing trust fund account; 
          amending Minnesota Statutes 1988, sections 462A.201, 
          subdivision 2; 462C.07, by adding a subdivision; 
          469.155, by adding a subdivision; and 474A.21; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 462A. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 462A.201, 
subdivision 2, is amended to read: 
    Subd. 2.  [LOW-INCOME HOUSING.] The agency may, in 
consultation with the advisory committee, use money from the 
housing trust fund account to provide loans or grants for 
projects for the development, construction, acquisition, 
preservation, and rehabilitation of low-income rental and 
limited equity cooperative housing units and homes for 
ownership.  No more than 20 percent of available funds may be 
used for home ownership projects.  At least 75 percent of 
the rental and cooperative units, and 100 percent of the homes 
for ownership, must be rented to or cooperatively owned, or 
owned by persons and families whose income at the time the 
person or family originally occupied the unit was at or 
below does not exceed 30 percent of the median family income for 
the metropolitan area as defined in section 473.121, subdivision 
2.  In making the grants, the agency shall determine the terms 
and conditions of repayment and the appropriate security, if 
any, should repayment be required.  To promote the geographic 
distribution of grants and loans, the agency may designate a 
portion of the grant or loan awards to be set aside for projects 
located in specified congressional districts or other 
geographical regions specified by the agency.  The agency may 
adopt emergency and permanent rules for awarding grants and 
loans under this subdivision.  The emergency rules are effective 
for 180 days or until the permanent rules are adopted, whichever 
occurs first. 
    Sec. 2.  [462A.29] [INTERAGENCY COORDINATION ON 
HOMELESSNESS.] 
    The agency shall coordinate services and activities of all 
state agencies relating to homelessness.  The agency shall 
coordinate an investigation and review of the current system of 
service delivery to the homeless.  The agency may request 
assistance from other agencies of state government as needed for 
the execution of the responsibilities under this section and the 
other agencies shall furnish the assistance upon request. 
    Sec. 3.  Minnesota Statutes 1988, section 462C.07, is 
amended by adding a subdivision to read: 
    Subd. 4.  [FORECLOSURE.] Upon foreclosure of any mortgage 
securing a revenue agreement entered into with respect to 
revenue bonds issued under this section, the city, trustee, or 
other mortgagee may determine that the mortgage debt for 
purposes of chapters 580, 581, 582, and 583 is the revenue 
agreement debt and does not include the bond debt, or the 
mortgagee may determine that the mortgage debt includes both the 
revenue agreement debt and the bond debt.  The notice of sale or 
complaint shall state whether the foreclosure is to enforce only 
the revenue agreement debt or both the revenue agreement debt 
and the bond debt.  If the mortgagee determines that the 
foreclosure is to enforce only the revenue agreement debt and 
not the bond debt: 
    (1) the revenue agreement debt is the mortgage debt for all 
purposes under chapters 580, 581, 582, and 583; 
    (2) the bond debt will remain outstanding as a valid and 
continuing separate debt and will not be extinguished, 
satisfied, relinquished, or otherwise terminated by the 
foreclosure sale; and 
    (3) the city or mortgagee may enter into a revenue 
agreement with the purchaser of the mortgaged property or a 
subsequent transferee, which provides for satisfaction by 
payment in full or otherwise of all principal of and interest on 
the bonds then in arrears and to become due. 
    Sec. 4.  Minnesota Statutes 1988, section 469.155, is 
amended by adding a subdivision to read: 
    Subd. 18.  [FORECLOSURE.] Upon foreclosure of any mortgage 
securing a revenue agreement entered into with respect to 
revenue bonds issued under this section, the city, trustee, or 
other mortgagee may determine that the mortgage debt for 
purposes of chapters 580, 581, 582, and 583 is the revenue 
agreement debt and does not include the bond debt, or the 
mortgagee may determine that the mortgage debt includes both the 
revenue agreement debt and the bond debt.  The notice of sale or 
complaint shall state whether the foreclosure is to enforce only 
the revenue agreement debt or both the revenue agreement debt 
and the bond debt.  If the mortgagee determines that the 
foreclosure is to enforce only the revenue agreement debt and 
not the bond debt: 
    (1) the revenue agreement debt is the mortgage debt for all 
purposes under chapters 580, 581, 582, and 583; 
    (2) the bond debt will remain outstanding as a valid and 
continuing separate debt and will not be extinguished, 
satisfied, relinquished, or otherwise terminated by the 
foreclosure sale; and 
    (3) the city or mortgagee may enter into a revenue 
agreement with the purchaser of the mortgaged property or a 
subsequent transferee, which provides for satisfaction by 
payment in full or otherwise of all principal of and interest on 
the bonds then in arrears and to become due. 
    Sec. 5.  Minnesota Statutes 1988, section 474A.21, is 
amended to read: 
    474A.21 [APPROPRIATION; RECEIPTS.] 
    Any fees collected by the department under Laws 1987, 
chapter 268, article 16, sections 1 474A.01 to 40 474A.21 must 
be deposited in a separate account in the general fund.  The 
amount necessary to refund application deposits is appropriated 
to the department from the separate account in the general fund 
for that purpose.  The interest accruing on application deposits 
and any application deposit not refunded as provided under 
section 474A.061, subdivision 4, or section 474A.091, 
subdivision 5, or forfeited as provided under section 474A.131, 
subdivision 2, must be deposited in the housing trust fund 
account under section 462A.201. 
    Presented to the governor April 24, 1990 
    Signed by the governor April 26, 1990, 10:04 p.m.