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Minnesota Legislature

Office of the Revisor of Statutes

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

  
    Laws of Minnesota 1993 

                        CHAPTER 236-S.F.No. 264 
           An act relating to housing; changing program review 
          requirements; increasing deferred loan limits; 
          expanding the types of eligible users of the 
          homesharing program; expanding the project eligibility 
          of the housing trust fund; authorizing cities to sell 
          single-family residential housing under the 
          neighborhood land trust program; expanding the types 
          of eligible service providers and changing the 
          authorized payment structure of the rental assistance 
          for family stabilization program; increasing the 
          income limits for rental housing assistance; 
          establishing the community rehabilitation fund 
          account; consolidating the blighted residential 
          property and capital reserve programs; authorizing 
          tribal Indian housing demonstration projects; 
          appropriating money; amending Minnesota Statutes 1992, 
          sections 462A.05, subdivisions 14a and 24; 462A.07, 
          subdivisions 14 and 15; 462A.201, subdivision 2; 
          462A.202, subdivision 7; 462A.205, subdivisions 2, 3, 
          4, 5, 6, 7, and by adding subdivisions; 462A.21, 
          subdivision 8c and by adding a subdivision; and 
          462C.04, subdivision 2; proposing coding for new law 
          in Minnesota Statutes, chapter 462A; repealing 
          Minnesota Statutes 1992, sections 462A.05, subdivision 
          37; and 462A.32. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 462A.05, 
subdivision 14a, is amended to read: 
    Subd. 14a.  [REHABILITATION LOANS; EXISTING OWNER OCCUPIED 
RESIDENTIAL HOUSING.] 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 $10,000, 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. 2.  Minnesota Statutes 1992, section 462A.05, 
subdivision 24, is amended to read: 
    Subd. 24.  [ACCESSIBILITY PROGRAMS HOUSING FOR ELDERLY, 
PERSONS WITH PHYSICAL OR DEVELOPMENTAL DISABILITIES, AND SINGLE 
PARENT FAMILIES.] It may engage in housing programs for low- and 
moderate-income elderly, handicapped, or developmentally 
disabled persons with physical or developmental disabilities, or 
single parent families in the case of home sharing programs, as 
defined by the agency, to provide grants or loans, with or 
without interest, for 
    (1) accessibility improvements to residences occupied by 
elderly persons; 
    (2) housing sponsors, as defined by the agency, of home 
sharing programs to match existing homeowners with prospective 
tenants who will contribute either rent or services to the 
homeowner, where either the homeowner or the prospective tenant 
is elderly, handicapped, or developmentally disabled a person 
with physical or developmental disabilities, or the head of a 
single parent family; 
    (3) the construction of or conversion of existing buildings 
into structures for occupancy by the elderly that contain from 
three to 12 private sleeping rooms with shared cooking 
facilities and common space; and 
    (4) housing sponsors, as defined by the agency, to 
demonstrate the potential for home equity conversion in 
Minnesota for the elderly, in both rural and urban areas, and to 
determine the need in those equity conversions for consumer 
safeguards.  
    In making the grants or loans, the agency shall determine 
the terms and conditions of repayment and the appropriate 
security, if any, should repayment be required.  The agency may 
provide technical assistance to sponsors of home sharing 
programs or may contract or delegate the provision of the 
technical assistance in accordance with section 462A.07, 
subdivision 12. 
     Housing sponsors who receive funding through these programs 
shall provide homeowners and tenants participating in a home 
sharing program with information regarding their rights and 
obligations as they relate to federal and state tax law 
including, but not limited to, taxable rental income, homestead 
credit under chapter 273, and the property tax refund act under 
chapter 290A. 
     Sec. 3.  Minnesota Statutes 1992, section 462A.07, 
subdivision 14, is amended to read: 
    Subd. 14.  [AMERICAN INDIANS.] (a) It may engage in housing 
programs for low- and moderate-income American Indians developed 
and administered separately or in combination by the Minnesota 
Chippewa tribe, the Red Lake band of Chippewa Indians, and the 
Sioux communities as determined by such tribe, band, or 
communities.  In furtherance of the policy of economic 
integration stated in section 462A.02, subdivision 6, it may 
engage in housing programs for American Indians who intend to 
reside on reservations and who are not persons of low and 
moderate income, provided that the aggregate dollar amount of 
the loans for each lender's fiscal year shall not exceed an 
amount equal to 25 percent of the total dollar amount of all 
loans made by that lender during the lender's fiscal year at the 
time of loan application.  In developing such housing programs, 
the tribe, band, or communities shall take into account the 
housing needs of all American Indians residing both on and off 
reservations within the state.  A plan for each such program, 
which specifically describes the program (a) content, (b) 
utilization of funds, (c) administration, (d) operation, (e) 
implementation and other matter, as determined by the agency, 
must be submitted to the agency for its review and approval 
prior to the making of eligible loans pursuant to section 
462A.21.  All such programs must conform to rules promulgated by 
the agency concerning program administration, including but not 
limited to rules concerning costs of administration; the quality 
of housing; interest rates, fees, and charges in connection with 
making eligible loans; and other matters determined by the 
agency to be necessary in order to effectuate the purposes of 
this subdivision and section 462A.21, subdivisions 4b and 4c.  
All such programs must provide for a reasonable balance in the 
distribution of funds appropriated for the purpose of this 
section between American Indians residing on and off 
reservations within the state.  Nothing in this section shall 
preclude such tribe, band, or communities from requesting and 
receiving cooperation, advice, and assistance from the agency as 
regards program development, operation, delivery, financing, or 
administration.  As a condition to the making of such eligible 
loans, the Minnesota Chippewa tribe, the Red Lake band of 
Chippewa Indians, and the Sioux communities shall: 
    (a) (1) enter into a loan agreement and other contractual 
arrangements with the agency for the purpose of transferring the 
allocated portion of loan funds as set forth in section 462A.26 
and to insure compliance with the provisions of this section and 
this chapter, and 
    (b) (2) shall agree that all of their official books and 
records related to such housing programs shall be subjected to 
audit by the legislative auditor in the manner prescribed for 
agencies of state government. 
    The agency shall submit a biennial report concerning the 
various housing programs for American Indians, and related 
receipts and expenditures as provided in section 462A.22, 
subdivision 9, and such tribe, band, or communities to the 
extent that they administer such programs, shall be responsible 
for any costs and expenses related to such administration 
provided, however, they shall be eligible for payment for costs, 
expenses, and services pursuant to subdivision 12 and section 
462A.21.  The agency may provide or cause to be provided 
essential general technical services as set forth in subdivision 
2, and general consultative project assistance services, 
including, but not limited to, management training, and home 
ownership counseling as set forth in subdivision 3.  Members of 
boards, committees, or other governing bodies of the tribe, 
band, and communities administering the programs authorized by 
this subdivision must be compensated for those services as 
provided in section 15.0575.  Rules promulgated under this 
subdivision may be promulgated as emergency rules under chapter 
14. 
    (b) The agency may engage in demonstration projects to 
encourage the participation of financial institutions or other 
leveraging sources in providing housing opportunities for 
American Indians.  The agency shall consult with the Minnesota 
Chippewa tribe, the Red Lake band of Chippewa Indians, and the 
Sioux communities in developing the demonstration projects.  The 
income limits specified in paragraph (a) do not apply to the 
demonstration projects. 
    Sec. 4.  Minnesota Statutes 1992, section 462A.07, 
subdivision 15, is amended to read: 
    Subd. 15.  [AMERICAN INDIANS IN METROPOLITAN AREA URBAN 
INDIAN HOUSING PROGRAM.] It may engage in housing programs for 
low and moderate income American Indians residing in the 
metropolitan area defined in section 473.121, subdivision 2, and 
cities with a population greater than 50,000 persons, and cities 
with an American Indian population greater than 1,000 persons.  
The programs shall demonstrate innovative methods of providing 
housing for urban Indians, may involve the construction, 
purchase, and rehabilitation of residential housing, and may be 
administered through any other provision of this chapter.  To 
the extent possible, the programs shall combine appropriated 
money with other money from both public and private sources, 
except that interest earned on the portion of an appropriation 
to be expended for Indian housing programs in the city of Duluth 
does not have to be combined with money from other sources.  
Effective June 30, 1985, all money allocated by the agency under 
this subdivision to programs for urban Indian housing that are 
not subject to active contracts shall be reallocated by the 
agency to programs to fulfill the purposes of this subdivision.  
Members of boards, committees, or other governing bodies of 
organizations administering the urban Indian programs authorized 
by this subdivision must be compensated for those services as 
provided in section 15.0575.  The agency shall consult with the 
advisory council on urban Indians created pursuant to section 
3.922, subdivision 8, in the development of programs pursuant to 
this subdivision. 
    Sec. 5.  Minnesota Statutes 1992, section 462A.201, 
subdivision 2, is amended to read: 
    Subd. 2.  [LOW-INCOME HOUSING.] (a) 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.  
     (b) The project must meet one of the following income 
tests; 
     (1) 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 does not exceed 30 percent of the median 
family income for the metropolitan area as defined in section 
473.121, subdivision 2; or 
     (2) all of the units funded by the housing trust fund 
account must be used for the benefit of persons and families 
whose income does not exceed 30 percent of the median family 
income for the metropolitan area as defined in section 473.121, 
subdivision 2. 
     The median family income may be adjusted for families of 
five or more. 
     (c) 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. 6.  Minnesota Statutes 1992, section 462A.202, 
subdivision 7, is amended to read: 
    Subd. 7.  [RESTRICTIONS.] (a) Except as provided in 
paragraphs (b), (c), and (d), and (e), 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. 
     (e) A city may sell single-family residential housing 
directly to persons and families of low and moderate income. 
    Sec. 7.  Minnesota Statutes 1992, section 462A.205, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
the following terms have the meaning given them. 
    (a) "Caretaker parent" means a parent, relative caretaker, 
or minor caretaker as defined by the aid to families with 
dependent children program, sections 256.72 to 256.87. 
    (b) "Counties with high average housing costs" means 
counties whose average federal section 8 fair market rents as 
determined by the Department of Housing and Urban Development 
are in the highest one-third of average rents in the state. 
    (c) "Designated rental property" is rental property (1) 
that is made available by a self-sufficiency program for use by 
participating families and meets federal section 8 existing 
quality standards, or (2) that has received federal, state, or 
local rental rehabilitation assistance since January 1, 1987, 
and meets federal section 8 existing housing quality standards. 
    (d) "Gross family income" for a family receiving rental 
assistance under this section means the gross amount of the 
wages, salaries, social security payments, pensions, workers' 
compensation, unemployment compensation, public assistance 
payments, alimony, child support, and income from assets 
received by the family. 
    (e) "Local housing agency organization" means the agency of 
local government responsible for administering the Department of 
Housing and Urban Development's section 8 existing voucher and 
certificate program or a nonprofit or for-profit organization 
experienced in housing management. 
     (f) "Public assistance" means aid to families with 
dependent children, family general assistance, or family work 
readiness. 
     (g) "Self-sufficiency program" means a program operated by 
a certified employment and training service provider as defined 
in section 256.736, subdivision 1a, paragraph (e), an 
employability program administered by a community action agency, 
or courses of study at an accredited institution of higher 
education pursued with at least half-time student status. 
    Sec. 8.  Minnesota Statutes 1992, section 462A.205, 
subdivision 3, is amended to read: 
    Subd. 3.  [LOCAL HOUSING AGENCY ORGANIZATION.] The agency 
may contract with a local housing agency organization to 
administer the rent assistance under this section.  The agency 
may pay the local housing agency must be paid organization an 
administrative fee.  The administrative fee is equal to the 
greater of ten percent of the amount of the subsidy or $15 may 
not exceed $40 per unit per month. 
    Sec. 9.  Minnesota Statutes 1992, section 462A.205, 
subdivision 4, is amended to read: 
    Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
subdivision applies to both the voucher option and the 
project-based voucher option.  
    (b) Within the limits of available appropriations, eligible 
families may receive monthly rent assistance for a 36-month 
period starting with the month the family first receives rent 
assistance under this section.  The amount of the family's 
portion of the rental payment is equal to at least 30 percent of 
gross income. 
    (c) The rent assistance must be paid by the local housing 
agency organization to the property owner. 
    (d) Subject to the limitations in paragraph (e), the amount 
of rent assistance is the difference between the rent and the 
family's portion of the rental payment. 
    (e) In no case: 
    (1) may the amount of monthly rent assistance be more than 
$200; 
    (2) may the owner receive more rent for assisted units than 
for comparable unassisted units; nor 
    (3) may the amount of monthly rent assistance be more than 
the difference between the family's portion of the rental 
payment and the fair market rent for the unit as determined by 
the Department of Housing and Urban Development. 
    Sec. 10.  Minnesota Statutes 1992, section 462A.205, is 
amended by adding a subdivision to read: 
     Subd. 4a.  [ADDITIONAL AUTHORIZED EXPENSES.] In addition to 
the monthly rent assistance authorized under subdivision 4, rent 
assistance may include up to $200 for a security deposit. 
    Sec. 11.  Minnesota Statutes 1992, section 462A.205, 
subdivision 5, is amended to read: 
    Subd. 5.  [VOUCHER OPTION.] At least one-half of the 
appropriated funds must be made available for a voucher option.  
Under the voucher option, the Minnesota housing finance agency, 
in consultation with the department of human services, will 
award a number of vouchers to self-sufficiency program 
administrators for participating families.  Families may use the 
voucher for any rental housing that is certified by the local 
housing agency organization as meeting section 8 existing 
housing quality standards. 
    Sec. 12.  Minnesota Statutes 1992, section 462A.205, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROJECT-BASED VOUCHER OPTION.] A portion of the 
appropriated funds must be made available for a project-based 
voucher option.  Under the project-based voucher option, the 
Minnesota housing finance agency, in consultation with the 
department of human services, will award a number of vouchers to 
self-sufficiency program administrators for participating 
families who live in designated rental property that is 
certified by a local housing agency organization as meeting 
section 8 existing housing quality standards.  The Minnesota 
housing finance agency and local housing agencies organizations 
must work with self-sufficiency program administrators to 
identify rental property that has received rental rehabilitation 
assistance since January 1, 1987.  The agency may set aside a 
portion of the funds to be used in connection with rental 
rehabilitation projects which will be completed by July 1, 1992. 
    Sec. 13.  Minnesota Statutes 1992, section 462A.205, 
subdivision 7, is amended to read: 
    Subd. 7.  [PROPERTY OWNER.] In order to receive rent 
assistance payments, the property owner must enter into a 
standard lease agreement with the family which includes a clause 
providing for good cause evictions only.  Otherwise, the lease 
may be any standard lease agreement.  The agency and local 
housing agencies organizations must make model lease agreements 
available to participating families and property owners.  
    Sec. 14.  Minnesota Statutes 1992, section 462A.205, is 
amended by adding a subdivision to read: 
     Subd. 8.  [AUTHORIZED LEVERAGE OF MONEY.] The agency may 
leverage federal program money with program money from the 
family stabilization demonstration project authorized under this 
section. 
     Sec. 15.  [462A.206] [COMMUNITY REHABILITATION FUND 
ACCOUNT.] 
    Subdivision 1.  [ACCOUNT.] The community rehabilitation 
fund account is established as a separate account in the housing 
development fund.  Money in the account is appropriated to the 
agency for the purposes specified in this section. 
    Subd. 2.  [AUTHORIZATION.] The agency may make grants or 
loans to cities for the purposes of construction, acquisition, 
rehabilitation, demolition, permanent financing, refinancing, or 
gap financing of single or multifamily housing.  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.  The agency shall take into 
account the amount of money that the city leverages from other 
sources in awarding grants and loans.  Cities may use the grants 
and loans to establish revolving loan funds and to provide 
grants and loans to eligible mortgagors.  The city may determine 
the terms and conditions of the grants and loans.  An agency 
loan may only be used by a city to make loans. 
     Subd. 3.  [REQUIREMENTS.] Grants or loans made under this 
section must be used for housing rented to or owned by persons 
or families with income less than or equal to 115 percent of the 
greater of state or area median income as determined by the 
United States Department of Housing and Urban Development.  If a 
grant or loan is used for demolition, the cleared land must be 
used for the construction of housing to be rented to or owned by 
persons or for other housing related purposes primarily for the 
benefit of persons residing in the adjacent housing. 
     Subd. 4.  [DESIGNATED AREAS.] For the purposes of focusing 
resources, a city located in a metropolitan statistical area 
must designate neighborhoods within which the grants or loans 
may be used, and a city located outside of a metropolitan 
statistical area must designate a geographic area within which 
the grants or loans may be used. 
    Subd. 5.  [OTHER ELIGIBLE ORGANIZATIONS.] A nonprofit 
organization is eligible to apply directly for grants or loans 
from the community rehabilitation fund account if the city 
within which it is located enacts a resolution authorizing the 
organization to apply on the city's behalf. 
     Sec. 16.  Minnesota Statutes 1992, section 462A.21, 
subdivision 8c, is amended to read: 
    Subd. 8c.  [RENTAL HOUSING FOR INDIVIDUALS.] It may 
establish a rental housing assistance program for persons of low 
income or for persons with a mental illness to provide or 
families that include an adult family member with a mental 
illness.  Rental assistance may be in the form of loans or 
direct rental subsidies for housing for individuals persons or 
families with incomes of up to 30 50 percent of area median 
income as determined by the United States Department of Housing 
and Urban Development, adjusted for families of five or more.  
Priority must be given to developments with the lowest income 
residents.  Housing for the mentally ill must be operated in 
coordination with social service providers who provide 
services to requested by tenants.  The developments may be 
financed by the agency or other public or private entities.  
Direct rental subsidies must be administered by the agency for 
the benefit of eligible tenants.  Financial assistance provided 
under this subdivision must be in the form of vendor payments 
whenever possible.  Loans and direct rental subsidies under this 
subdivision may be made only with specific appropriations by the 
legislature.  The limitations on eligible mortgagors contained 
in section 462A.03, subdivision 13, do not apply to loans for 
the rehabilitation of existing housing under this subdivision. 
    Sec. 17.  Minnesota Statutes 1992, section 462A.21, is 
amended by adding a subdivision to read: 
    Subd. 8d.  [AUTHORIZED LEVERAGE OF MONEY.] The agency may 
leverage federal program money with program money from the 
family rental housing assistance program established under 
subdivision 8b and the rental housing assistance program 
established under subdivision 8c. 
    Sec. 18.  Minnesota Statutes 1992, section 462C.04, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROGRAM REVIEW.] A public hearing shall be held 
on each program after one publication of notice in a newspaper 
circulating generally in the city, at least 15 days before the 
hearing.  On or before the day on which notice of the public 
hearing is published, the city shall submit the program to the 
metropolitan council, if the city is located in the metropolitan 
area as defined in section 473.121, subdivision 2, or to the 
regional development commission for the area in which the city 
is located, if any, for review and comment.  The appropriate 
reviewing agency shall comment on:  
    (a) whether the program is consistent with the housing plan 
of the city; and 
    (b) whether the program is consistent with the metropolitan 
development guide, if the city is located in the metropolitan 
area, or adopted policies of the regional development commission.
     Review of the program may be conducted either by the board 
of the reviewing agency or by the staff of the agency.  Any 
comment submitted by the reviewing agency to the city must be 
presented to the body considering the proposed program at the 
public hearing held on the program. 
     A member or employee of the reviewing agency shall be 
permitted to present the comments of the reviewing agency at the 
public hearing.  After conducting the public hearing, the 
program may be adopted with or without amendment, provided that 
any amendments must not be inconsistent with the comments, if 
any, of the reviewing agency and must not contain any material 
changes from the program submitted to the reviewing agency other 
than changes in the financial aspects of any proposed issue of 
bonds or obligations.  If any material change other than a 
change in the financial aspects of a proposed issue of bonds or 
obligations, or any change which is inconsistent with the 
comments of the reviewing agency is adopted, the amended program 
shall be resubmitted to the appropriate reviewing agency for 
review and comment, and a public hearing shall be held on the 
amended program after one publication of notice in a newspaper 
circulating generally in the city at least 15 days before the 
hearing.  The amended program shall be considered after the 
public hearing in the same manner as consideration of the 
initial program.  Each program shall be submitted to the 
Minnesota housing finance agency for review.  The agency shall 
reject any program that: 
    (a) does not comply with statewide housing policies; 
    (b) if implemented will cause a material adverse effect on 
financing programs of the agency, will subject the interest on 
future bonds of the agency to federal income tax under any 
limitations imposed at the time by federal law; 
    (c) provides for administrative and bond issuance costs 
that are unreasonable; or 
    (d) does not comply with all other requirements of sections 
462C.01 to 462C.08. 
    The agency shall have 30 days from submission to complete 
its review and reject a program.  Submission shall be the date 
on which a complete document describing the program is submitted 
to the agency.  If the agency rejects a program it shall 
communicate the fact of that rejection, in writing, to the city 
within 15 days of the rejection.  If the agency fails to reject 
a program within 30 days of submission, or fails to communicate 
a rejection, in writing, to the city within 15 days of the 
rejection, then the agency is precluded from rejecting the 
program.  For purposes of sections 462C.01 to 462C.08, the 
agency's failure to reject a program is considered an approval 
of the program.  The agency may collect reasonable fees and 
charges in connection with its review of a city's housing 
program.  The fees and charges shall be limited to the amounts 
required to pay the actual costs to the agency. 
    Subd. 3.  [CITY REPORT.] Within 30 days after the bonds are 
issued for a housing program, the city shall submit a report to 
the Minnesota housing finance agency.  The report must include a 
program description, the amount of bonds issued, the income 
limits, and the rent levels. 
    Subd. 4.  [ANNUAL LEGISLATIVE REPORT.] The Minnesota 
housing finance agency, in cooperation with the metropolitan 
council and the regional development commissions, shall report 
annually to the legislature on the number and amounts of bond 
issues and the number of housing programs established pursuant 
to sections 462C.01 to 462C.08. 
    Sec. 19.  [REPEALER.] 
    Minnesota Statutes 1992, sections 462A.05, subdivision 37; 
and 462A.32, are repealed. 
    Sec. 20.  [EFFECTIVE DATE.] 
    Sections 1 to 19 are effective the day following final 
enactment.  Section 8 applies to contracts entered into after 
May 1, 1992. 
    Presented to the governor May 14, 1993 
    Signed by the governor May 17, 1993, 4:42 p.m.