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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1992 

                        CHAPTER 522-H.F.No. 2501 
           An act relating to housing; modifying requirements for 
          lead education, assessment, screening and abatement; 
          transferring rule authority from the commissioner of 
          the pollution control agency; modifying provisions of 
          rehabilitation loans, lease-purchase housing, and 
          urban and rural homesteading; limiting use of 
          emergency rules; modifying limitations on the use of 
          bond proceeds; modifying provisions of publicly-owned 
          transitional housing program; modifying provisions for 
          neighborhood land trusts; regulating certain interests 
          in contracts by public officers; increasing the debt 
          ceiling of the Minnesota housing finance agency; 
          removing the limitation on payment of property taxes 
          and assessments on certain HRA property as a lawful 
          purpose; amending Minnesota Statutes 1990, sections 
          462A.03, subdivision 7; 462A.05, subdivision 14a; 
          462A.06, subdivision 11; 462A.202, subdivision 2; and 
          462A.22, subdivision 1; Minnesota Statutes 1991 
          Supplement, sections 462A.05, subdivision 36; 
          462A.073, subdivision 2; and 462A.30, subdivisions 6 
          and 9; repealing Minnesota Statutes 1990, section 
          462A.057, subdivisions 2, 3, 4, 5, 6, 7, 8, 9, and 10; 
          and Laws 1991, chapter 292, article 9, section 35. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1991 Supplement, section 
144.871, subdivision 2, is amended to read: 
    Subd. 2.  [ABATEMENT.] "Abatement" means removal of, 
replacement of, or encapsulation of deteriorated paint, bare 
soil, dust, drinking water, or other materials that are or may 
become readily accessible during the abatement process and pose 
an immediate threat of actual lead exposure to people.  The 
abatement rules to be adopted under section 144.878, subdivision 
2, shall apply as described in section 144.874. 
    Sec. 2.  Minnesota Statutes 1990, section 144.871, 
subdivision 3, is amended to read: 
    Subd. 3.  [ABATEMENT CONTRACTOR.] "Abatement contractor" 
means any person hired by a property owner or resident to 
perform abatement of a lead source in violation of standards 
under section 144.878. 
    Sec. 3.  Minnesota Statutes 1990, section 144.871, 
subdivision 6, is amended to read: 
    Subd. 6.  [ELEVATED BLOOD LEAD LEVEL.] "Elevated blood lead 
level" in a child no more than six years old or in a pregnant 
woman means at least 25 micrograms of lead per deciliter of 
whole blood a blood lead level that exceeds the federal Centers 
for Disease Control guidelines for preventing lead poisoning in 
young children, unless the commissioner finds that a lower 
concentration is necessary to protect public health. 
    Sec. 4.  Minnesota Statutes 1990, section 144.871, is 
amended by adding a subdivision to read: 
    Subd. 7a.  [HIGH RISK FOR TOXIC LEAD EXPOSURE.] "High risk 
for toxic lead exposure" means either: 
    (1) that elevated blood lead levels have been diagnosed in 
a population of children or pregnant women; 
    (2) without blood lead data, that a population of children 
or pregnant women resides in: 
    (i) a census tract with many residential structures known 
to have or suspected of having deteriorated paint; or 
    (ii) a census tract with a median soil lead concentration 
greater than 100 parts per million for any sample collected 
according to Minnesota Rules, part 4761.0400, subpart 8, and 
rules adopted under section 144.878; or 
    (3) the priorities adopted by the commissioner under 
section 144.878, subdivision 2, shall apply to this subdivision. 
    Sec. 5.  Minnesota Statutes 1990, section 144.871, is 
amended by adding a subdivision to read: 
    Subd. 7b.  [PRIMARY PREVENTION FOR TOXIC LEAD 
EXPOSURE.] "Primary prevention for toxic lead exposure" means 
performance of swab team services, encapsulation, and removal 
and replacement abatement, including lead cleanup and health 
education, before children develop elevated blood lead levels. 
    Sec. 6.  Minnesota Statutes 1990, section 144.871, 
subdivision 8, is amended to read: 
    Subd. 8.  [SAFE HOUSING.] "Safe housing" means a residence 
that does not violate have deteriorating paint, bare soil, lead 
dust, and which does not violate any of the standards adopted 
according to section 144.878, subdivision 2. 
    Sec. 7.  Minnesota Statutes 1990, section 144.871, is 
amended by adding a subdivision to read: 
    Subd. 9.  [SWAB TEAM.] "Swab team" means a person or 
persons who implement in-place management of lead exposure 
sources, which includes: 
    (1) covering or replacing bare soil that has a lead 
concentration of 100 parts per million, and establishing safe 
exterior play and garden areas; 
    (2) removing loose paint and paint chips and installing 
guards to protect intact paint; 
    (3) removing lead dust by washing, vacuuming, and cleaning 
the interior of residential property including carpets; and 
    (4) other means, including cleanup and health education, 
that immediately protect children who engage in mouthing or pica 
behavior from lead sources.  
    Sec. 8.  Minnesota Statutes 1990, section 144.872, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PROACTIVE LEAD EDUCATION STRATEGY.] For 
fiscal years 1990 and 1991, The commissioner shall, within 
available federal or state appropriations, contract with boards 
of health in communities at high risk for toxic lead exposure to 
children, lead advocacy organizations, and businesses to design 
and implement a uniform, proactive educational program to 
introduce sections 144.871 to 144.878 and to promote the 
prevention of exposure to all sources of lead to target 
populations.  Priority shall be given to providing to assure, at 
the time of a home assessment or following an abatement order, 
that a family will receive visits by public health nurses and 
community-based advocates specifically trained in lead cleanup 
and the health-related aspects of lead exposure in their 
residence periodically throughout the abatement process or until 
the child's blood lead level is no longer elevated.  The purpose 
of the home visit is to provide information about safety 
measures, community resources, legal resources related to the 
abatement process, housing resources, nutrition, health 
follow-up materials, and methods to be followed before, during, 
and after the abatement process.  If a family moves to a new 
residence temporarily, during the abatement process, services 
should be provided at the temporary residence whenever 
feasible.  Boards of health are encouraged to link the service 
with other home visits a family may be receiving and to use 
neighborhood-based programs which give priority to hiring 
neighborhood residents as community-based advocates.  Ongoing 
education that includes health and lead cleanup information and 
the lead laws and rules shall be provided to health care and 
social service providers, registered licensed abatement 
contractors, other contractors, building trades professionals 
and nonprofessionals, property owners, and parents.  Educational 
materials shall be multilingual and multicultural to meet the 
needs of diverse populations.  The commissioner shall create and 
administer a program to fund locally based advocates who, 
following the issuance of an abatement order, shall visit the 
family in their residence to instruct them about safety 
measures, materials, and methods to be followed before, during, 
and after the abatement process. either conduct or contract with 
nonprofit organizations or businesses, for a proactive lead 
education program to serve communities at high risk for toxic 
lead exposure to children in which a board of health does not 
have a contract with the commissioner for a proactive lead 
education strategy.  
    Sec. 9.  Minnesota Statutes 1990, section 144.872, 
subdivision 2, is amended to read: 
    Subd. 2.  [HOME ASSESSMENTS.] The commissioner shall, 
within available federal or state appropriations, contract with 
boards of health, who may determine priority for responding to 
cases of elevated blood lead levels, to conduct assessments to 
determine sources of lead contamination in the residences of 
children and pregnant women whose blood lead levels exceed 25 
are at least ten micrograms per deciliter and of children whose 
blood lead levels are at least 20 micrograms per deciliter or 
whose blood lead levels persist in the range of 15 to 19 
micrograms per deciliter for 90 days after initial 
identification to the board of health or the commissioner.  
Assessments must be conducted within five working days of the 
board of health receiving notice that the criteria in this 
subdivision have been met.  The commissioner or boards of health 
must identify the known addresses for the previous 12 months of 
the child or pregnant woman with elevated blood lead levels and 
notify the property owners at those addresses.  The commissioner 
may also collect information on the race, sex, and family income 
of children and pregnant women with elevated blood lead levels.  
Within the limits of appropriations, a board of health shall 
conduct home assessments for children and pregnant women whose 
confirmed blood lead levels are in the range of ten to 19 
micrograms per deciliter.  The commissioner shall also provide 
educational materials on all sources of lead to boards of health 
to provide education on ways of reducing the danger of lead 
contamination.  The commissioner may provide laboratory or field 
lead testing equipment to a board of health or may reimburse a 
board of health for direct costs associated with assessments. 
    Sec. 10.  Minnesota Statutes 1990, section 144.872, 
subdivision 3, is amended to read: 
    Subd. 3.  [SAFE HOUSING.] The commissioner shall contract 
with boards of health for safe housing to be used in meeting 
relocation requirements in section 144.874, subdivision 4.  The 
commissioner shall, within available federal or state 
appropriations, award grants to boards of health for the 
purposes of paying housing costs under section 144.874, 
subdivision 4. 
    Sec. 11.  Minnesota Statutes 1990, section 144.872, 
subdivision 4, is amended to read: 
    Subd. 4.  [PAINT REMOVAL LEAD CLEANUP EQUIPMENT AND 
MATERIAL GRANTS.] State matching Within the limits of available 
state or federal appropriations, funds shall be made 
available for under a grant program to nonprofit community-based 
organizations in areas at high risk for toxic lead exposure.  
Grantees shall use the money to purchase and provide paint 
removal lead cleanup equipment and educational materials, and to 
pay for training for staff and volunteers for lead abatement 
certification.  Grantees may work with licensed lead abatement 
contractors and certified trainers to meet the requirements of 
this program.  Equipment shall include:  high efficiency 
particle accumulator and wet vacuum cleaners, drop cloths, 
secure containers, respirators, scrapers, and dust and particle 
containment material, and other cleanup and containment 
materials to patch loose paint and plaster, control household 
dust, wax floors, clean carpets and sidewalks, and cover bare 
soil.  Upon certification, the grantees may make equipment and 
educational materials available to residents and property owners 
and instruct them on the proper use.  Equipment shall be made 
available to low-income households on a priority basis. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
144.873, subdivision 1, is amended to read: 
    Subdivision 1.  [REPORT REQUIRED.] Medical laboratories 
performing blood lead analyses must report to the commissioner 
confirmed finger stick and venipuncture blood lead results of at 
least five micrograms per deciliter and the method used to 
obtain these results.  Boards of health must report to the 
commissioner the results of analyses from residential samples of 
paint, bare soil, dust, and drinking water that show lead in 
concentrations greater than or equal to the lead standards 
adopted by permanent rule under section 144.878.  The 
commissioner shall require the date of the test, and the current 
address and birthdate of the patient, and other related 
information from medical laboratories and boards of health as 
may be needed to monitor and evaluate blood lead levels in the 
public, including the date of the test and the address of the 
patient. 
    Sec. 13.  Minnesota Statutes 1990, section 144.873, 
subdivision 2, is amended to read: 
    Subd. 2.  [TEST OF CHILDREN IN HIGH RISK AREAS.] Within 
limits of available state and federal appropriations, the 
commissioner shall promote and subsidize a blood lead test of 
all children under six years of age who live in the all areas of 
high risk areas of Minneapolis, St. Paul, and Duluth for toxic 
lead exposure that are currently known or subsequently 
identified.  Within the limits of available appropriations, the 
commissioner shall conduct surveys, especially soil assessments 
larger than a residence, as defined by the commissioner, in 
greater Minnesota communities where a case of elevated blood 
lead levels has been reported. 
    Sec. 14.  Minnesota Statutes 1990, section 144.873, 
subdivision 3, is amended to read: 
    Subd. 3.  [STATEWIDE LEAD SCREENING.] Statewide lead 
screening by erythrocyte protoporphyrin test blood lead assays 
in conjunction with routine blood tests analyzed by atomic 
absorption equipment or other equipment with equivalent or 
better accuracy shall be advocated by boards of health. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
144.874, subdivision 1, is amended to read: 
    Subdivision 1.  [RESIDENCE ASSESSMENT.] (a) A board of 
health must conduct a timely assessment of a residence, within 
five working days of receiving notification that the criteria in 
this subdivision have been met, to determine sources of lead 
exposure if: 
    (1) a pregnant woman in the residence is identified as 
having a blood lead level of at least ten micrograms of lead per 
deciliter of whole blood; or 
    (2) a child in the residence is identified as having an 
elevated a blood lead level at or above 20 micrograms per 
deciliter; or 
    (3) a blood lead level that persists in the range of 15 to 
19 micrograms per deciliter for 90 days after initial 
identification.  
    Within the limits of available state and federal 
appropriations, a board of health shall also conduct home 
assessments for children whose confirmed blood lead levels are 
in the range of ten to 19 micrograms per deciliter.  If a child 
regularly spends several hours per day at another residence, 
such as a residential child care facility, the board of health 
must also assess the other residence. 
    (b) The board of health must conduct the residential 
assessment according to rules adopted by the commissioner 
according to section 144.878. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
144.874, subdivision 2, is amended to read: 
    Subd. 2.  [RESIDENTIAL LEAD ASSESSMENT GUIDE.] (a) The 
commissioner of health shall develop or purchase a residential 
lead assessment guide that enables parents to assess the 
possible lead sources present and that suggests actions.  The 
guide must provide information on safe abatement and disposal 
methods, sources of equipment, and telephone numbers for 
additional information to enable the persons to either perform 
the abatement or to intelligently select an abatement 
contractor.  In addition, the guide must: 
    (1) meet the requirements of Minnesota laws and rules; 
    (2) be understandable at an eighth grade reading level; 
    (3) include information on all necessary safety precautions 
for all lead source cleanup; and 
    (4) be the best available educational material. 
    (b) A board of health must provide the residential lead 
assessment guide to: 
    (1) parents of children who are identified as having blood 
lead levels of at least ten micrograms per deciliter; and 
    (2) property owners and occupants who are issued housing 
code orders requiring disruption of lead sources.  
    (c) A board of health must provide the residential lead 
assessment guide on request to owners or tenants of residential 
property within the jurisdiction of the board of health.  
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
144.874, subdivision 3, is amended to read: 
    Subd. 3.  [ABATEMENT ORDERS.] A board of health must order 
a property owner to perform abatement on a lead source that 
exceeds a standard adopted according to section 144.878 at the 
residence of a child with an elevated blood lead level or a 
pregnant woman with a blood lead level of at least ten 
micrograms per deciliter.  Abatement orders must require that 
any source of damage, such as leaking roofs, plumbing, and 
windows, must be repaired or replaced, as needed, to prevent 
damage to lead-containing interior surfaces.  With each 
abatement order, the board of health must provide a residential 
lead abatement guide.  The guide must be developed or purchased 
by the commissioner and must provide information on safe 
abatement and disposal methods, sources of equipment, and 
telephone numbers for additional information to enable the 
property owner to either perform the abatement or to 
intelligently select an abatement contractor. 
    Sec. 18.  Minnesota Statutes 1990, section 144.874, 
subdivision 4, is amended to read: 
    Subd. 4.  [RELOCATION OF RESIDENTS.] A board of health must 
ensure that residents are relocated from rooms or dwellings 
during abatement that generates leaded dust, such as removal or 
disruption of lead-based paint or plaster that contains lead.  
Residents must be allowed to return to the residence or dwelling 
after completion of abatement.  A board of health shall use 
grant funds under section 144.872, subdivision 3, in cooperation 
with local housing agencies, to pay for moving costs for any low 
income resident temporarily relocated during lead abatement, not 
to exceed $250 per household. 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
144.874, subdivision 12, is amended to read: 
    Subd. 12.  [ENFORCEMENT AND STATUS REPORT.] The 
commissioner shall examine compliance with Minnesota's existing 
lead standards and rules and report to the legislature by 
January 15, 1992, on biennially, beginning February 15, 1993, 
including an evaluation of current levels of compliance lead 
program activities by the state and boards of health, the need 
for any additional enforcement procedures, recommendations on 
developing a method to enforce compliance with lead standards 
and cost estimates for any proposed enforcement procedure.  The 
report must also include a geographic analysis of all blood lead 
assays showing incidence data and environmental analyses 
reported or collected by the commissioner.  
    Sec. 20.  Minnesota Statutes 1990, section 144.876, is 
amended to read: 
    144.876 [REGISTRATION AND LICENSING OF ABATEMENT 
CONTRACTORS AND CERTIFICATION OF EMPLOYEES.] 
    Subdivision 1.  [LICENSING AND CERTIFICATION.] Abatement 
contractors must register with, within 180 days after rules are 
adopted under section 144.878, subdivision 5, obtain a license 
from the commissioner according to forms and procedures 
prescribed by the commissioner.  Employees of abatement 
contractors must obtain certification from the commissioner.  
The commissioner shall specify training and testing requirements 
for licensure and certification and shall charge a fee for the 
cost of issuing a license or certificate and for training 
provided by the commissioner.  The commissioner shall provide 
the contractor with a written violation notice, and may revoke 
the license of an abatement contractor, or the certificate of an 
employee, upon finding that the contractor or employee has 
violated the rules adopted under section 144.878 in a manner 
that poses unreasonable risk to public health. 
    Fees collected under this subdivision must be set in 
amounts to be determined by the commissioner to cover but not 
exceed the costs of adopting rules under section 144.878, 
subdivision 5, the costs of licensure, certification, and 
training, and the costs of enforcing licenses and certificates 
under this subdivision.  All fees received must be paid into the 
state treasury and credited to the lead abatement licensing and 
certification account and are appropriated to the commissioner 
to cover costs incurred under this subdivision and section 
144.878, subdivision 5. 
    Subd. 2.  [LICENSED BUILDING CONTRACTOR; INFORMATION.] The 
commissioner shall provide health and safety information on lead 
abatement to all residential building contractors licensed under 
section 326.84.  The information must include material on ways 
to protect the health and safety of both employees working on 
lead contaminated structures and residents of lead contaminated 
structures. 
    Subd. 3.  [UNLICENSED ABATEMENT CONTRACTORS.] Contractors 
may not advertise or otherwise present themselves as abatement 
contractors unless they have abatement licenses issued by the 
department of health under rules adopted under section 144.878, 
subdivision 5. 
    Sec. 21.  Minnesota Statutes 1990, section 144.878, 
subdivision 2, is amended to read: 
    Subd. 2.  [LEAD STANDARDS AND ABATEMENT METHODS.] (a) By 
January 31, 1991, The commissioner shall adopt rules 
establishing standards and abatement methods for lead in paint, 
dust, and drinking water in a manner that protects public health 
and the environment for all residences, including residences 
also used for a commercial purpose.  The commissioner shall 
adopt priorities for providing abatement services to areas 
defined to be at high risk for toxic lead exposure.  In adopting 
priorities, the commission shall consider the number of children 
and pregnant women diagnosed with elevated blood lead levels and 
the median concentration of lead in the soil.  The commissioner 
shall give priority to:  areas having the largest population of 
children and pregnant women having elevated blood lead levels; 
areas with the highest median soil lead concentration; and areas 
where it has been determined that there are large numbers of 
residences that have deteriorating paint.  The commissioner 
shall differentiate between intact paint and deteriorating 
paint.  The commissioner and political subdivisions shall 
require abatement of intact paint only if the commissioner or 
political subdivision finds that intact paint is accessible to 
children as a chewable or lead-dust producing surface and that 
is a known source of actual lead exposure to a specific person.  
In adopting rules under this subdivision, the commissioner shall 
require the best available technology for abatement methods, 
paint stabilization, and repainting.  
    (b) By January 31, 1991, The commissioner of the pollution 
control agency health shall adopt standards and abatement 
methods for lead in bare soil on playgrounds and residential 
property in a manner to protect public health and the 
environment. 
    (c) By January 31, 1991, The commissioner of the pollution 
control agency shall adopt rules to ensure that removal of 
exterior lead-based coatings from residential property by 
abrasive blasting methods is and disposal of any hazardous waste 
are conducted in a manner that protects public health and the 
environment. 
    (d) All standards adopted under this subdivision must 
provide adequate margins of safety that are consistent with a 
detailed review of scientific evidence and an emphasis on 
overprotection rather than underprotection when the scientific 
evidence is ambiguous.  The rules must apply to any individual 
performing or ordering the performance of lead abatement. 
    Sec. 22.  Minnesota Statutes 1990, section 144.878, is 
amended by adding a subdivision to read: 
    Subd. 5.  [LEAD ABATEMENT CONTRACTORS AND EMPLOYEES.] The 
commissioner shall adopt rules to license abatement contractors; 
to certify employees of lead abatement contractors who perform 
abatement; and to certify lead abatement trainers who provide 
lead abatement training for contractors, employees, or other 
lead abatement trainers.  The rules must include standards and 
procedures for on-the-job training for swab teams.  All lead 
abatement training must include a hands-on component and 
instruction on the health effects of lead exposure, the use of 
personal protective equipment, workplace hazards and safety 
problems, abatement methods and work practices, decontamination 
procedures, cleanup and waste disposal procedures, lead 
monitoring and testing methods, and legal rights and 
responsibilities.  At least 30 days before publishing initial 
notice of proposed rules under this subdivision on the licensing 
of lead abatement contractors, the commissioner shall submit the 
rules to the chairs of the health and human services committees 
in the house of representatives and the senate, and to any 
legislative committee on licensing created by the legislature.  
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
326.87, subdivision 1, is amended to read: 
    Subdivision 1.  [STANDARDS.] The commissioner, in 
consultation with the council, may adopt standards for 
continuing education requirements and course approval.  Except 
for the course content, the standards must be consistent with 
the standards established for real estate agents and other 
professions licensed by the department of commerce.  At a 
minimum, the content of one hour of any required continuing 
education must contain information on lead abatement rules and 
safe lead abatement procedures. 
    Sec. 24.  Minnesota Statutes 1990, section 462A.03, 
subdivision 7, is amended to read: 
    Subd. 7.  "Residential housing" means a specific work or 
improvement within this state undertaken primarily to provide 
residential care facilities for mentally ill, mentally retarded, 
physically handicapped, and drug dependent persons licensed or 
potentially eligible for licensure under rules promulgated by 
the commissioner of human services, or to provide dwelling 
accommodations or manufactured home parks for persons and 
families of low and moderate income and for other persons and 
families when determined to be necessary in furtherance of the 
policy of economic integration stated in section 462A.02, 
subdivision 6, including land development and the acquisition, 
construction or rehabilitation of buildings and improvements 
thereto, for residential housing, and such other nonhousing 
facilities as may be incidental or appurtenant thereto. 
    Sec. 25.  Minnesota Statutes 1990, section 462A.05, 
subdivision 14a, is amended to read: 
    Subd. 14a.  It may make loans to persons and families of 
low and moderate income to rehabilitate or to assist in 
rehabilitating existing residential housing owned and occupied 
by those persons or families.  No loan shall be made unless the 
agency determines that the loan will be used primarily for 
rehabilitation work necessary for health or safety, essential 
accessibility improvements, or to improve the energy efficiency 
of the dwelling.  No loan for rehabilitation of owner occupied 
residential housing shall be denied solely because the loan will 
not be used for placing the residential housing in full 
compliance with all state, county or municipal building, housing 
maintenance, fire, health or similar codes and standards 
applicable to housing.  The amount of any loan shall not exceed 
the lesser of (a) $9,000, or (b) the actual cost of the work 
performed, or (c) that portion of the cost of rehabilitation 
which the agency determines cannot otherwise be paid by the 
person or family without the expenditure of an unreasonable 
portion of the income of the person or family.  Loans made in 
whole or in part with federal funds may exceed the maximum loan 
amount to the extent necessary to comply with federal lead 
abatement requirements prescribed by the funding source.  In 
making loans, the agency shall determine the circumstances under 
which and the terms and conditions under which all or any 
portion of the loan will be repaid and shall determine the 
appropriate security for the repayment of the loan.  Loans 
pursuant to this subdivision may be made with or without 
interest or periodic payments.  No loan under this subdivision 
shall be denied solely on the basis of the inability of the 
applicant to make periodic loan payments.  Loans made without 
interest or periodic payments need not be repaid by the borrower 
if the property for which the loan is made has not been sold, 
transferred, or otherwise conveyed nor has it ceased to be the 
principal place of residence of the borrower, within ten years 
after the date of the loan.  
    Sec. 26.  Minnesota Statutes 1991 Supplement, section 
462A.05, subdivision 20a, is amended to read: 
    Subd. 20a.  [SPECIAL NEEDS HOUSING FOR CHEMICALLY DEPENDENT 
ADULTS.] (a) The agency may make loans or grants to for-profit, 
limited-dividend, or nonprofit sponsors, as defined by the 
agency, for residential housing to be used to provide temporary 
or transitional housing to low- and moderate-income persons and 
families having an immediate need for temporary or transitional 
housing as a result of natural disaster, resettlement, 
condemnation, displacement, lack of habitable housing, or other 
cause defined by the agency who are chronic chemically dependent 
adults.  
    (b) Loans or grants for housing for chronic chemically 
dependent adults may be made under this subdivision.  Housing 
for chronic chemically dependent adults must satisfy the 
following conditions: 
    (1) be certified by the department of health or the city as 
a board and lodging facility or single residence occupancy 
housing; 
    (2) meet all applicable health, building, fire safety, and 
zoning requirements; 
    (3) be located in an area significantly distant from the 
present location of county detoxification service sites; 
    (4) make available the services of trained personnel to 
appraise each client before or upon admission and to provide 
information about medical, job training, and chemical dependency 
services as necessary; 
    (5) provide on-site security designed to assure the health 
and safety of clients, staff, and neighborhood residents; and 
    (6) operate with the guidance of a neighborhood-based board.
    Priority for loans and grants made under this paragraph 
must be given to proposals that address the needs of the Native 
American population and veterans of military services for this 
type of housing. 
    (c) Loans or grants pursuant to this subdivision must not 
be used for facilities that provide housing available for 
occupancy on less than a 24-hour continuous basis.  To the 
extent possible, a sponsor shall combine the loan or grant with 
other funds obtained from public and private sources.  In making 
loans or grants, the agency shall determine the circumstances, 
terms, and conditions under which all or any portion of the loan 
or grant will be repaid and the appropriate security should 
repayment be required. 
    Sec. 27.  Minnesota Statutes 1991 Supplement, section 
462A.05, subdivision 36, is amended to read: 
    Subd. 36.  [LEASE-PURCHASE HOUSING.] The agency may make 
grants or loans to nonprofit organizations, local government 
units, Indian tribes, and Indian tribal organizations to finance 
the acquisition, improvement, rehabilitation, and lease-purchase 
of existing housing for persons of low and moderate income.  A 
person or family is eligible to participate in a lease-purchase 
agreement if the person's or family's income does not exceed 60 
percent of the greater of (1) state median income, or (2) area 
or county median income.  The lease agreement must provide for a 
portion of the lease payment to be escrowed as a down payment on 
the housing.  A property containing two or fewer dwelling units 
is eligible for financing under the lease-purchase housing 
program.  A loan made under this subdivision must be repaid to 
the agency upon sale of the housing.  The agency may only make 
grants or loans under this subdivision from funds specifically 
appropriated by the legislature for that purpose. 
    Sec. 28.  Minnesota Statutes 1991 Supplement, section 
462A.05, subdivision 37, is amended to read: 
    Subd. 37.  [BLIGHTED RESIDENTIAL PROPERTY ACQUISITION AND 
REHABILITATION; NEIGHBORHOOD LAND TRUST.] The agency may make 
grants to cities for the purpose of acquisition and demolition 
of blighted residential property and gap financing for the 
rehabilitation of blighted residential property or construction 
of new housing on the property.  Gap financing is financing for 
the difference between the cost of the improvement of the 
blighted property, including acquisition, demolition, 
rehabilitation, and construction, and the market value of the 
property upon sale.  Grants under this section must be used for 
households with income less than or equal to the county or area 
median income as determined by the United States Department of 
Housing and Urban Development.  Cities may use the grants to 
establish revolving loan funds and provide loans and grants to 
eligible mortgagors for the acquisition, demolition, 
redevelopment, and rehabilitation of blighted residential 
property located in a neighborhood designated by the city for 
neighborhood preservation.  The city may determine the terms and 
conditions of the loans and grants.  The agency may make grants 
or loans to nonprofit organizations for the purpose of 
organizing or funding neighborhood land trust projects.  The 
projects must assure the long-term affordability of neighborhood 
housing by maintaining ownership of the land through a 
neighborhood land trust. 
    Sec. 29.  Minnesota Statutes 1990, section 462A.05, is 
amended by adding a subdivision to read: 
    Subd. 38.  [NEIGHBORHOOD LAND TRUSTS.] The agency may make 
loans with or without interest for the purpose of funding 
neighborhood land trusts under sections 462A.30 and 462A.31 from 
monies other than state general obligation bond proceeds.  To 
assure the long-term affordability of housing provided by the 
neighborhood land trust, the neighborhood land trust must own 
the land acquired in whole or in part with a loan from the 
agency under this section under terms and conditions determined 
by the agency.  The agency may convert the loan to a grant under 
circumstances approved by the agency. 
    Sec. 30.  Minnesota Statutes 1990, section 462A.06, 
subdivision 11, is amended to read: 
    Subd. 11.  It may make and publish rules pursuant to 
chapter 14 respecting its mortgage lending, construction 
lending, rehabilitation lending, grants, and temporary lending, 
and any such other rules as are necessary to effectuate its 
corporate purpose, and may adopt emergency rules to implement 
demonstration programs using bond proceeds for the financing of 
residential housing. 
    Sec. 31.  Minnesota Statutes 1991 Supplement, section 
462A.073, subdivision 2, is amended to read: 
     Subd. 2.  [LIMITATION; ORIGINATION PERIOD.] During the 
first ten months of an origination period, the agency may make 
loans financed with proceeds of mortgage bonds for the purchase 
of existing housing.  Loans financed with the proceeds of 
mortgage bonds for new housing in the metropolitan area may be 
made during the first ten months of an origination period only 
if at least one of the following conditions is met: 
     (1) the new housing is located in a redevelopment area; 
     (2) the new housing is replacing a structurally substandard 
structure or structures; or 
     (3) the new housing is part of a housing affordability 
initiative, other than those financed with the proceeds from the 
sale of bonds, in which federal, state, or local assistance is 
used to substantially improve the terms of the financing or to 
substantially write down the purchase price of the new housing.; 
or 
    (4) the new housing is accessible housing and the borrower 
or a member of the borrower's family is a person with a 
disability.  For the purposes of this clause, "accessible 
housing" means a dwelling unit with the modifications necessary 
to enable a person with a disability to function in a 
residential setting.  "A person with a disability" means a 
person who has a permanent physical condition which is not 
correctable and which substantially reduces the person's ability 
to function in a residential setting.  A person with a physical 
condition which does not require the use of a device to increase 
mobility must be deemed a person with a disability upon written 
certification of a licensed physician that the physical 
condition substantially limits the person's ability to function 
in a residential setting.  
    Upon expiration of the first ten-month period, the agency 
may make loans financed with the proceeds of mortgage bonds for 
the purchase of new and existing housing.  
     Sec. 32.  Minnesota Statutes 1990, section 462A.202, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ACCOUNT.] The local government unit 
housing account is established as a separate account in the 
housing development fund.  Money in the account is appropriated 
to the agency for loans to cities for the purposes specified in 
this section.  The agency must take steps to ensure distribution 
of the funds around the state. 
    Sec. 33.  Minnesota Statutes 1990, section 462A.202, 
subdivision 2, is amended to read: 
    Subd. 2.  [TRANSITIONAL HOUSING.] The agency may make loans 
or grants with or without interest to local government units 
cities to finance the acquisition, improvement, and 
rehabilitation of existing housing properties or the 
acquisition, site improvement, and development of new properties 
for the purposes of providing transitional housing, upon terms 
and conditions the agency determines.  Preference must be given 
to local government units cities that propose to acquire 
properties being sold by the resolution trust corporation or the 
department of housing and urban development.  The local 
government unit may contract with a nonprofit or for-profit 
organization to manage the property and to operate a 
transitional housing program on the property on behalf of the 
local government unit, on terms and conditions approved by the 
agency.  The local government unit shall retain ownership of the 
property for at least 20 years.  After 20 years, the sale of a 
property before the expiration of its useful life must be at its 
fair market value, and the net proceeds of sale must be used for 
the same purpose or repaid to the agency for deposit in the 
local government unit housing account.  Loans under this 
subdivision are subject to the restrictions in subdivision 7. 
    Sec. 34.  Minnesota Statutes 1990, section 462A.202, is 
amended by adding a subdivision to read: 
    Subd. 6.  [NEIGHBORHOOD LAND TRUSTS.] The agency may make 
loans with or without interest to cities to finance the capital 
costs of a land trust project undertaken pursuant to sections 
462A.30 and 462A.31.  Loans under this subdivision are subject 
to the restrictions in subdivision 7. 
    Sec. 35.  Minnesota Statutes 1990, section 462A.202, is 
amended by adding a subdivision to read: 
    Subd. 7.  [RESTRICTIONS.] (a) Except as provided in 
paragraphs (b), (c), and (d), the city must own the property 
financed with a loan under this section and use the property for 
the purposes specified in this section: 
    (1) the city may sell the property at its fair market value 
provided it repays the lesser of the net proceeds of the sale or 
the amount of the loan balance to the agency for deposit in the 
local government unit housing account; or 
    (2) the city may use the property for a different purpose 
provided that the city repays the amount of the original loan. 
    If the city owns and uses the property for the purposes 
specified in this section for a 20-year period, the agency shall 
forgive the loan. 
    (b) In cases where the property consists of land only, 
including land on which buildings acquired with a loan under 
this section are demolished by the city, the city may lease the 
property for a term not to exceed 99 years to a nonprofit 
corporation to use for the purposes specified in this section. 
    (c) In cases where the property consists of land and 
buildings, the city may do the following: 
    (1) demolish the buildings in whole or in part and use or 
lease the property under paragraph (b); 
    (2) sell the buildings to a nonprofit corporation to use 
for the purposes specified in this section.  If sold, the city 
must sell the buildings for fair market value and repay the 
proceeds of the sale to the agency for deposit in the local 
government unit housing account; 
    (3) lease the buildings to a nonprofit corporation to use 
for the purposes specified in this section.  If leased, except 
as provided in paragraph (d), the annual rental must equal the 
amount of the loan attributable to the cost of the buildings, 
divided by the number of years of useful life of the buildings 
as determined in accordance with generally accepted accounting 
principles.  For purposes of determining the required rental, 
the purchase price of land and buildings must be allocated 
between them based on standard valuation procedures; or 
    (4) contract with a nonprofit organization to manage the 
property. 
    (d) A city may lease a building to a nonprofit organization 
for a nominal amount under the following conditions: 
    (1) the lease does not exceed ten years; 
    (2) the city must have the option to cancel the lease with 
or without cause at the end of any three-year period; and 
    (3) the city must determine annually that the property is 
being used for the purposes specified in this section and that 
the terms of the lease, including any income limits for 
residents, are being met. 
     Sec. 36.  Minnesota Statutes 1990, section 462A.22, 
subdivision 1, is amended to read: 
    Subdivision 1.  The aggregate principal amount of bonds and 
notes which are outstanding at any time, excluding the principal 
amount of any bonds and notes refunded by the issuance of new 
bonds or notes, shall not exceed the sum of 
$1,990,000,000 $2,400,000,000. 
    Sec. 37.  Minnesota Statutes 1991 Supplement, section 
462A.30, subdivision 6, is amended to read: 
    Subd. 6.  [LIMITED EQUITY FORMULA.] "Limited equity 
formula" means a method, to be determined by rule adopted 
approved by the agency, for calculation of the limited equity 
price, designed to maintain the affordability of the housing and 
the public subsidy. 
     Sec. 38.  Minnesota Statutes 1991 Supplement, section 
462A.30, subdivision 8, is amended to read: 
    Subd. 8.  [NEIGHBORHOOD LAND TRUST.] "Neighborhood land 
trust" means a city or a nonprofit corporation organized under 
chapter 317A that complies with section 462A.31 and that 
qualifies for tax exempt status under United States Code, title 
26, section 501(c)(3), and that meets all other criteria for 
neighborhood land trust trusts set by the agency. 
    Sec. 39.  Minnesota Statutes 1991 Supplement, section 
462A.30, subdivision 9, is amended to read: 
    Subd. 9.  [PERSONS AND FAMILIES OF LOW AND MODERATE 
INCOME.] "Persons and families of low and moderate income" has 
the meaning specified in section 462A.03, subdivision 10 means 
persons or families whose income does not exceed 80 percent of 
the greater of (1) state median income, or (2) area or county 
median income as determined by the department of housing and 
urban development. 
    Sec. 40.  Minnesota Statutes 1991 Supplement, section 
462A.31, is amended by adding a subdivision to read: 
    Subd. 6.  [CITY LAND TRUST.] A city may by resolution 
determine to act as a neighborhood land trust with the powers 
and duties described in subdivisions 1 to 5. 
    Sec. 41.  Minnesota Statutes 1991 Supplement, section 
462A.31, is amended by adding a subdivision to read: 
    Subd. 7.  [RECORDING OF GROUND LEASE.] Any ground lease 
held by a neighborhood land trust shall include the legal 
description of the real property subject to the ground lease and 
shall be recorded with the county recorder or filed with the 
registrar of titles in the county in which the real property 
subject to the ground lease is located. 
     Sec. 42.  Minnesota Statutes 1990, section 471.88, is 
amended by adding a subdivision to read: 
    Subd. 14.  [HOUSING AND REDEVELOPMENT AUTHORITY.] When a 
county or multicounty housing and redevelopment authority 
administers a loan or grant program for individual residential 
property owners within the geographical boundaries of a 
government unit by an agreement entered into by the government 
unit and the housing and redevelopment authority, an officer of 
the government unit may apply for a loan or grant from the 
housing and redevelopment authority.  If an officer applies for 
a loan or grant, the officer must disclose as part of the 
official minutes of a public meeting of the governmental unit 
that the officer has applied for a loan or grant. 
    Sec. 43.  Minnesota Statutes 1990, section 471.88, is 
amended by adding a subdivision to read: 
    Subd. 15.  [FRANCHISE AGREEMENT.] When a home rule charter 
or statutory city and a utility enter into a franchise agreement 
or a contract for the provision of utility services to the city, 
a city council member who is an employee of the utility is not 
precluded from continuing to serve as a city council member 
during the term of the franchise agreement or contract if the 
council member abstains from voting on any official action 
relating to the franchise agreement or contract and discloses 
the member's reason for the abstention in the official minutes 
of the council meeting. 
    Sec. 44.  [EXEMPTION.] 
    Notwithstanding Minnesota Statutes, sections 462A.073, 
subdivision 2, and 462C.071, subdivision 2, the Minnesota 
housing finance agency and a city may make loans financed with 
the proceeds of mortgage bonds for new housing in the 
metropolitan area after the first one-third of an origination 
period if all of the other conditions specified under Minnesota 
Statutes, sections 462A.073, subdivision 2, and 462C.071, 
subdivision 2, are met.  For the purposes of this section, "city"
has the meaning given in Minnesota Statutes, section 462C.02, 
subdivision 6. 
    Sec. 45.  [144.879] [ALLOCATION OF FEDERAL LEAD ABATEMENT 
FUNDS.] 
    To the extent practicable under federal guidelines, the 
commissioner of health shall coordinate with the commissioner of 
housing finance so that at least 50 percent of federal lead 
abatement funds are allocated for swab teams as defined in 
section 144.871, subdivision 9.  Priority for funding swab teams 
shall be given to contractors who hire residents from 
neighborhoods where the contractor is providing lead abatement 
services. 
    To the extent practicable under federal guidelines, the 
commissioner of health may use federal funding for local boards 
of health for lead screening, lead assessment, and lead 
abatement only to the extent that the federal funds do not 
replace existing funding for these lead services. 
    Sec. 46.  [PROPERTY TAXES AND SPECIAL ASSESSMENTS; HRA 
AGREEMENT.] 
    If before August 1, 1990, a housing and redevelopment 
authority has entered into an agreement with the owner to 
improve the property in the redevelopment area, all property 
taxes and special assessments payable to the political 
subdivisions on that property in the redevelopment area are not 
subject to the limitation in Laws 1991, chapter 336, article 2, 
section 11, clause (9). 
    Sec. 47.  [REVISOR INSTRUCTION.] 
    In Minnesota Statutes and Minnesota Rules, the revisor 
shall recodify Minnesota Statutes, section 116.53, subdivision 
2, as part of Minnesota Statutes, chapter 144, and shall change 
the terms "commissioner of the pollution control agency," 
"pollution control agency," and similar terms to "commissioner 
of health," "department of health," and similar terms. 
    Sec. 48.  [REPEALER.] 
    Minnesota Statutes 1990, sections 116.51; 116.52; 116.53, 
subdivision 1; 144.878, subdivision 4; 462A.057, subdivisions 2, 
3, 4, 5, 6, 7, 8, 9, and 10; and 462A.202, subdivisions 3, 4, 
and 5; and Laws 1991, chapter 292, article 9, section 35, are 
repealed.  Section 44 expires June 30, 1992.  
    Sec. 49.  [EFFECTIVE DATE.] 
    Sections 24 to 44 and 48, except for the repeal of 
Minnesota Statutes, sections 116.51; 116.52; 116.53, subdivision 
1; and 144.878, subdivision 4, are effective the day following 
final enactment.  Section 44 applies to bonds with an 
origination period that began on or after October 1, 1991. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 29, 1992, 4:04 p.m.