Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 532-S.F.No. 1822 
           An act relating to housing; clarifying a definition in 
          the rural and urban homesteading program; providing 
          for the administration of section 8 existing housing 
          and low-rent public housing programs; clarifying and 
          limiting local approval requirements; removing the 
          exemption for special assessments for housing and 
          redevelopment authorities; providing for the transfer 
          of housing and housing development projects to an 
          economic development authority; authorizing the 
          metropolitan council to plan and administer a section 
          8 program in the metropolitan area without approval of 
          local units of government; authorizing the issuance of 
          bonds by the city of Bemidji and Beltrami county; 
          amending Minnesota Statutes 1988, sections 469.002, 
          subdivision 10, and by adding a subdivision; 469.004, 
          subdivision 5; 469.005, subdivision 1; 469.012, 
          subdivision 3; 469.016; 469.040, subdivisions 1 and 3; 
          469.094, subdivisions 1 and 2; and 473.195, 
          subdivision 1; and Minnesota Statutes 1989 Supplement, 
          sections 462A.057, subdivision 2; and 469.012, 
          subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1989 Supplement, section 
462A.057, subdivision 2, is amended to read: 
    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 of not more than 16 adjoining blocks.  
    (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. 
    Sec. 2.  Minnesota Statutes 1988, section 469.002, 
subdivision 10, is amended to read: 
    Subd. 10.  [FEDERAL LEGISLATION.] "Federal legislation" 
includes the United States Housing Act of 1937, Public Act No. 
412 of the 75th Congress of the United States, any act that 
amends it or adds to it, Code, title 42, sections 1401 to 1440, 
as amended through December 31, 1989; the National Housing Act, 
United States Code, title 12, sections 1701 to 1750g, as amended 
through December 31, 1989; and any other legislation of the 
Congress of the United States relating to federal assistance for 
clearance or rehabilitation of substandard or blighted areas, 
land assembly, redevelopment projects, or housing.  
    Sec. 3.  Minnesota Statutes 1988, section 469.002, is 
amended by adding a subdivision to read: 
    Subd. 24.  [SECTION 8 PROGRAM.] "Section 8 program" means 
an existing housing assistance payments program under section 8 
of the United States Housing Act of 1937, United States Code, 
title 42, section 1437f, as amended through December 31, 1989. 
    Sec. 4.  Minnesota Statutes 1988, section 469.004, 
subdivision 5, is amended to read: 
    Subd. 5.  [FUNCTION OF AUTHORITY.] A county or multicounty 
housing authority will serve, program, develop and manage all 
housing programs under its jurisdiction.  Where a county or 
multicounty authority has been established, additional city 
housing and redevelopment authorities shall not be created 
within the area of operation of the county or multicounty 
authority without the explicit concurrence of the county or 
multicounty housing and redevelopment authority and the 
commissioner of trade and economic development.  City housing 
and redevelopment authorities must petition the county or 
multicounty authority for authorization to establish a local 
housing authority and this petition must be approved by the 
commissioner of trade and economic development.  This 
subdivision does not apply if a county or multicounty authority 
has not initiated or does not have in progress an active program 
or has not applied for a public housing, section 8, or 
redevelopment program from the federal government for a period 
of 12 months after its establishment.  
    Sec. 5.  Minnesota Statutes 1988, section 469.005, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COUNTY AND MULTICOUNTY AUTHORITIES.] The 
area of operation of a county authority shall include all of the 
county for which it is created, and in case of a multicounty 
authority, it shall include all of the political subdivisions 
for which the multicounty authority is created; provided, that a 
county authority or a multicounty authority shall not undertake 
any project within the boundaries of any city which has not 
empowered the authority to function therein as provided in 
section 469.004 unless a resolution has been adopted by the 
governing body of the city, and by any authority which has been 
established in the city, declaring that there is a need for the 
county or multicounty authority to exercise its powers in the 
city.  After a resolution is adopted, individual project 
approval is not required for a section 8 program. 
    Sec. 6.  Minnesota Statutes 1989 Supplement, 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 Department of Housing and Urban Development 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 an agreement with the governing 
body or bodies creating the authority which provides exemption 
from all real and personal property taxes levied or imposed by 
the state, city, county, or other political subdivisions, for 
which the authority shall make payments in lieu of taxes to the 
state, city, county, or other political subdivisions as provided 
in section 469.040.  The governing body shall agree on behalf of 
all the applicable governing bodies affected that local 
cooperation as required by the federal government shall be 
provided by the local governing body or bodies in whose 
jurisdiction the project is to be located, at no cost or at no 
greater cost than the same public services and facilities 
furnished to other residents; 
    (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); 
    (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.; and 
    (31) to apply for, enter into contracts with the federal 
government, administer, and carry out a section 8 program.  
Authorization by the governing body creating the authority to 
administer the program at the authority's initial application is 
sufficient to authorize operation of the program in its area of 
operation for which it was created without additional local 
governing body approval.  Approval by the governing body or 
bodies creating the authority constitutes approval of a housing 
program for purposes of any special or general law requiring 
local approval of section 8 programs undertaken by city, county, 
or multicounty authorities.  
    Sec. 7.  Minnesota Statutes 1988, section 469.012, 
subdivision 3, is amended to read: 
    Subd. 3.  [EXERCISE OF POWERS.] An authority may exercise 
all or any part or combination of the powers granted by sections 
469.001 to 469.047 within its area of operation.  Any two or 
more authorities may join with one another in the exercise, 
either jointly or otherwise, of any or all of their powers for 
the purpose of financing, including the issuance of bonds and 
giving security therefor, planning, undertaking, owning, 
constructing, operating, or contracting with respect to a 
housing project located within the area of operation of any one 
or more of the authorities.  For that purpose an authority may 
by resolution prescribe and authorize any other housing 
authority, so joining with it, to act on its behalf with respect 
to any or all powers, as its agent or otherwise, in the name of 
the authority so joining or in its own name. 
    A city, county, or multicounty authority may by resolution 
authorize another housing authority to exercise its powers 
within the authorizing authority's area of operation at the same 
time that the authorizing authority is exercising the same 
powers. 
    A county or city may join with any authority to permit the 
authority, on behalf of the county, town within the county, or 
city, to plan, undertake, administer, and carry out a leased 
existing housing assistance payments program, pursuant to 
section 8 of the United States Housing Act of 1937 as amended, 
42 United States Code, section 1437f.  A city may so join with 
an authority unless there is an authority in the city which has 
been authorized by resolution under section 469.003 to transact 
business or exercise powers.  A county may so join with an 
authority unless (a) there is a county authority which has been 
authorized by resolution under section 469.004 to exercise 
powers, or the county is a member of a multicounty authority, 
and (b) the authority has initiated or has in progress an active 
program or has applied for federal assistance in a public 
housing, section 8, or redevelopment program within 12 months 
after its establishment. 
    Sec. 8.  Minnesota Statutes 1988, section 469.016, is 
amended to read: 
    469.016 [LOW RENT HOUSING.] 
    An authority shall not initiate any low rent housing 
project, and shall not enter into any contract with respect to 
it, until (1) it has made findings, after an analysis of the 
local housing market, that (i) there is need for such low rent 
housing which cannot be met by private enterprise and (ii) a gap 
of at least 20 percent exists between the upper shelter rental 
limits for admission to the proposed low rent housing and the 
lowest shelter rents at which private enterprise is providing 
through new construction and existing structures a substantial 
supply of decent, safe, and sanitary housing; and (2) the 
governing body of the municipality or bodies creating the 
authority in whose jurisdiction the project will be located, has 
by resolution affirmed those findings of the authority and 
approved the provision of that low rent housing project.  This 
subdivision shall Clauses (1) and (2) do not apply to any public 
low rent housing projects for which financial assistance is 
provided by the federal government, and which does not require 
any direct loan or grant of money from the municipality 
governing body or bodies as a condition of a federal financial 
assistance.  An authority shall not make any contract with the 
federal government for a public low rent housing project unless 
the governing body of the municipality or bodies creating the 
authority in whose jurisdiction the project will be located, has 
by resolution approved the provision of that public low rent 
housing project.  
    Sec. 9.  Minnesota Statutes 1988, section 469.040, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DECLARATION, ESSENTIAL PUBLIC AND 
GOVERNMENTAL PURPOSES.] The property of an authority is public 
property used for essential public and governmental purposes.  
The property and the authority shall be exempt from all real and 
personal property taxes and special assessments of the city, the 
county, the state, or any political subdivision thereof.  
"Taxes" does not include charges for special assessments or for 
utilities and special services, such as heat, water, 
electricity, gas, sewage disposal, or garbage removal.  For 
purposes of this subdivision, "special services" means those 
physical services provided to a project for which the actual 
cost of the governing body providing the service can be 
calculated.  When the obligations issued by an authority to 
assist in financing the development of a project have been 
retired and federal contributions have been discontinued, or the 
authority is no longer obligated by contracts with the federal 
government to maintain a project as a low-income housing 
project, whichever is later, then the exemptions from taxes and 
special assessments for that project shall terminate.  
    Sec. 10.  Minnesota Statutes 1988, section 469.040, 
subdivision 3, is amended to read: 
    Subd. 3.  [STATEMENT FILED WITH ASSESSOR; PERCENTAGE TAX ON 
RENTALS.] Notwithstanding the provisions of subdivision 1, after 
a housing project carried on under sections 469.016 to 469.026 
has become occupied, in whole or in part, an authority shall 
file with the assessor, on or before May 1 of each year, a 
statement of the aggregate shelter rentals of that project 
collected during the preceding calendar year.  Unless a greater 
amount has been agreed upon between the authority and the city 
in and governing body or bodies for which the authority was 
created, in whose jurisdiction the project is located, five 
percent of the aggregate shelter rentals shall be charged to the 
authority as a service charge for the services and facilities to 
be furnished with respect to that project.  The service charge 
shall be collected from the authority in the manner provided by 
law for the assessment and collection of taxes.  The amount so 
collected shall be distributed to the several taxing bodies in 
the same proportion as the tax rate of each bears to the total 
tax rate of those taxing bodies.  A city in and The governing 
body or bodies for which an the authority has been created, in 
whose jurisdiction the project is located, may agree with the 
authority for the payment of a service charge for a housing 
project in an amount greater than five percent of the aggregate 
annual shelter rentals of any project, upon the basis of shelter 
rentals or upon another basis agreed upon.  The service charge 
may not exceed the amount which would be payable in taxes were 
the property not exempt.  If such an agreement is made the 
service charge so agreed upon shall be collected and distributed 
in the manner above provided.  If the project has become 
occupied, or if the land upon which the project is to be 
constructed has been acquired, the agreement shall specify the 
location of the project for which the agreement is made.  
"Shelter rental" means the total rentals of a housing project 
exclusive of any charge for utilities and special services such 
as heat, water, electricity, gas, sewage disposal, or garbage 
removal.  "Service charge" means payment in lieu of taxes.  The 
records of each housing project shall be open to inspection by 
the proper assessing officer.  
    Sec. 11.  Minnesota Statutes 1988, section 469.094, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ECONOMIC DEVELOPMENT, HOUSING, 
REDEVELOPMENT POWERS.] The city may, by ordinance, divide any 
the economic development, housing, and redevelopment powers 
granted under sections 469.001 to 469.047 and 469.090 to 469.108 
between the economic development authority and any other 
authority or commission established under statute or city 
charter for economic development, housing, or redevelopment as 
provided in subdivision 2. 
    Sec. 12.  Minnesota Statutes 1988, section 469.094, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROJECT CONTROL, AUTHORITY, OPERATION.] The city 
may, by resolution, transfer the control, authority, and 
operation of any project as defined in section 469.174, 
subdivision 8, or any other program or project authorized by 
sections 469.001 to 469.047 or sections 469.124 to 469.134 
located within the city, from the governmental agency or 
subdivision that established the project to the economic 
development authority.  The city council may also require 
acceptance of control, authority, and operation of the project 
by the economic development authority.  The economic development 
authority may exercise all of the powers that the governmental 
unit establishing the project could exercise with respect to the 
project. 
    When a project or program is transferred to the economic 
development authority, the authority shall covenant and pledge 
to perform the terms, conditions, and covenants of the bond 
indenture or other agreements executed for the security of any 
bonds issued by the governmental subdivision that initiated the 
project or program.  The economic development authority may 
exercise all of the powers necessary to perform the terms, 
conditions, and covenants of any indenture or other agreements 
executed for the security of the bonds and shall become 
obligated on the bonds when the project or program is 
transferred as provided in this subdivision. 
    If the city transfers a housing project or a housing 
development project to the economic development authority, the 
city must transfer all housing development and management powers 
relating to that specific project to the authority. 
    Sec. 13.  Minnesota Statutes 1988, section 473.195, 
subdivision 1, is amended to read: 
    Subdivision 1.  In addition to, and not in limitation of, 
all other powers invested in it by law, the council, and the 
members thereof, shall have, throughout the metropolitan area, 
the same functions, rights, powers, duties, privileges, 
immunities and limitations as are provided for housing and 
redevelopment authorities created for municipalities, and for 
the commissioners of such authorities.  The provisions of 
sections 469.001 to 469.047 and of all other laws relating to 
housing and redevelopment authorities shall be applicable to the 
council when functioning as an authority, except as herein 
provided or as clearly indicated otherwise from the context of 
such laws.  Section 469.003 shall have no application to the 
council nor to any municipality or county within which the 
council undertakes a project.  Any municipality or county, and 
the governing bodies of any municipality or county, within and 
for which the council undertakes a project shall have all the 
powers, authority and obligations granted to municipalities and 
counties by the provisions of sections 469.001 to 469.047 and 
all other laws relating to housing and redevelopment 
authorities.  The council may plan and propose projects within 
the boundaries of any municipality, and may otherwise exercise 
the powers of an authority at any time; provided, however, that 
the council shall not implement any housing project, housing 
development project, redevelopment project or urban renewal 
project within the boundaries of any municipality or county 
without the prior approval of the governing body of the 
municipality or county in which any such project is to be 
located; and provided further that the council shall not propose 
any project to the governing body of a municipality or county 
having an active authority created pursuant to section 469.003, 
or pursuant to special legislation, without first submitting the 
proposed project to the municipal or county authority for its 
review and recommendations; and provided further that as to any 
project proposed by the council and approved by the municipality 
or county, the council shall not undertake the project if within 
60 days after it has been proposed, the municipality or county 
agrees to undertake the project.  Notwithstanding section 
469.012, subdivision 3, the council may plan and administer a 
section 8 program in the metropolitan area without the approval 
of the governing body of the local governmental unit or housing 
and redevelopment authority in whose jurisdiction the program is 
operated.  The council shall not operate a section 8 program in 
the jurisdiction of a local governmental unit or housing and 
redevelopment authority in the metropolitan area which was 
operating its own section 8 program under a separate annual 
contributions contract with the Department of Housing and Urban 
Development on January 1, 1990, provided that the council may 
continue to administer a section 8 program within such 
jurisdictions until the council completes an orderly transfer of 
its section 8 program responsibilities in such jurisdictions.  
For purposes of this subdivision, "section 8 program" has the 
meaning given it in section 469.002, subdivision 24.  For the 
purposes of this subdivision, "annual contributions contract" 
has the meaning given it in United States Code, title 42, 
section 1437f, and implementing federal regulations.  All plans 
and projects of the council shall be consistent with the 
comprehensive development guide. 
    Sec. 14.  [BONDS AUTHORIZED.] 
    Subdivision 1.  The governing body of the city of Bemidji 
or Beltrami county may sell and issue general obligation bonds 
or revenue bonds of the city or the county, respectively, to 
finance the construction and betterment of an airport terminal 
and other air navigation facilities as defined in Minnesota 
Statutes, section 360.013, or of other related facilities, 
including hangars, repair shops and other buildings, and 
equipment needed for the storage, repair, reconstruction, and 
servicing of aircraft.  The bonds may be issued by the city or 
the county on its own behalf with the consent of both parties, 
or with the consent of the other on behalf of both of them.  The 
bonds must be issued, sold and secured in accordance with 
Minnesota Statutes, chapter 475, except as provided in 
subdivisions 2 and 3.  The facilities to be financed by the 
bonds are a public convenience from which a revenue is derived, 
and are not indebtedness under chapter 475 or any city charter. 
    Subd. 2.  The aggregate principal amount of all bonds 
issued by the city or the county under this section which are 
outstanding and undischarged at any time shall not exceed 
$400,000.  
    Subd. 3.  If either the city or the county issues bonds on 
behalf of both of them, the entity not issuing the bonds may 
levy ad valorem taxes on all taxable property within its 
corporate limits to pay the principal of and interest on the 
bonds as agreed upon before their issuance, and may irrevocably 
appropriate the collections of the taxes to the sinking fund 
established by the issuing entity for the payment of the bonds.  
The entity issuing the bonds may levy ad valorem taxes on all 
taxable property within its corporate limits for the years and 
in the amounts that, together with any taxes levied and 
appropriated by the nonissuing entity, will meet the 
requirements of Minnesota Statutes, section 475.61.  Neither the 
taxes nor any additional taxes levied to eliminate any 
deficiencies in the collection thereof are subject to any 
limitation established by general or special law or charter as 
to rate or amount.  The taxes may not be considered in 
determining the amount of any other taxes which may be levied 
subject to any such limitation. 
    Subd. 4.  (a) After approval of a bond issue under 
subdivision 1 or the first approval of a tax levy to pay bond 
obligations under subdivision 3, the governing body of the city 
for a city action or the county for a county action shall 
publish notice of the action in its official publication.  The 
bonds may be issued and sold or the tax levied without 
submitting the question to the voters, unless within 30 days 
after the date of publication a petition signed by qualified 
voters equal to five percent of the voters who voted in the last 
general election in the governmental subdivision is filed with 
the city or the county. 
    (b) If a petition is filed that meets the requirements of 
paragraph (a), the bonds may be issued or the tax levied upon 
obtaining the approval of a majority of the voters voting on the 
question at a special or regular election. 
    Sec. 15.  [APPLICATION.] 
    Section 13 applies to the counties of Anoka, Carver, 
Dakota, Hennepin, Ramsey, Scott, and Washington.  Section 14 is 
effective upon approval by a majority of all members of the 
Bemidji city council, and by a majority of all members of the 
Beltrami county board of commissioners, and compliance with 
Minnesota Statutes, section 645.021. 
    Presented to the governor April 24, 1990 
    Signed by the governor April 26, 1990, 11:14 p.m.