Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

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

  
    Laws of Minnesota 1993 

                        CHAPTER 320-H.F.No. 504 
           An act relating to housing; allowing a county 
          authority to operate certain public housing projects 
          without a city resolution; providing that a housing 
          and redevelopment authority may make down payment 
          assistance loans; changing minimum amounts for certain 
          contract letting procedures; authorizing the Duluth 
          housing and redevelopment authority to levy a property 
          tax under general law; changing requirements for 
          general obligation revenue bonds; amending Minnesota 
          Statutes 1992, sections 469.005, subdivision 1; 
          469.012, by adding a subdivision; 469.015, 
          subdivisions 1 and 2; 469.033, subdivision 6; and 
          469.034, subdivision 2. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, 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.  A resolution is not required for the operation of a 
section 8 program or a public housing scattered site project. 
    Sec. 2.  Minnesota Statutes 1992, section 469.012, is 
amended by adding a subdivision to read: 
    Subd. 13.  [DOWN PAYMENT ASSISTANCE LOANS AND GRANTS.] An 
authority may develop and administer a down payment assistance 
loan and grant program with respect to property located within 
its boundaries on terms and conditions it determines.  Before 
carrying out a down payment assistance loan and grant program, 
an authority must find that the program is necessary in the 
areas in which it is made available in furtherance of a policy 
of the authority to promote economic integration or to encourage 
owner occupancy of single family residences. 
    Sec. 3.  Minnesota Statutes 1992, section 469.015, 
subdivision 1, is amended to read: 
    Subdivision 1.  [BIDS; NOTICE.] All construction work, and 
work of demolition or clearing, and every purchase of equipment, 
supplies, or materials, necessary in carrying out the purposes 
of sections 469.001 to 469.047, that involve expenditure 
of $15,000 $25,000 or more shall be awarded by contract.  Before 
receiving bids the authority shall publish, once a week for two 
consecutive weeks in an official newspaper of general 
circulation in the community a notice that bids will be received 
for that construction work, or that purchase of equipment, 
supplies, or materials.  The notice shall state the nature of 
the work and the terms and conditions upon which the contract is 
to be let, naming a time and place where bids will be received, 
opened and read publicly, which time shall be not less than 
seven days after the date of the last publication.  After the 
bids have been received, opened and read publicly and recorded, 
the authority shall award the contract to the lowest responsible 
bidder, provided that the authority reserves the right to reject 
any or all bids.  Each contract shall be executed in writing, 
and the person to whom the contract is awarded shall give 
sufficient bond to the authority for its faithful performance.  
If no satisfactory bid is received, the authority may 
readvertise.  The authority may establish reasonable 
qualifications to determine the fitness and responsibility of 
bidders and to require bidders to meet the qualifications before 
bids are accepted. 
    Sec. 4.  Minnesota Statutes 1992, section 469.015, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXCEPTION; EMERGENCY.] If the authority by a 
vote of four-fifths of its members shall declare that an 
emergency exists requiring the immediate purchase of any 
equipment or material or supplies at a cost in excess of 
$15,000 $25,000 but not exceeding $30,000 $50,000, or making of 
emergency repairs, it shall not be necessary to advertise for 
bids, but the material, equipment, or supplies may be purchased 
in the open market at the lowest price obtainable, or the 
emergency repairs may be contracted for or performed without 
securing formal competitive bids.  An emergency, for purposes of 
this subdivision, shall be understood to be unforeseen 
circumstances or conditions which result in the placing in 
jeopardy of human life or property. 
     Sec. 5.  Minnesota Statutes 1992, section 469.033, 
subdivision 6, is amended to read: 
    Subd. 6.  [OPERATION AREA AS TAXING DISTRICT, SPECIAL TAX.] 
All of the territory included within the area of operation of 
any authority shall constitute a taxing district for the purpose 
of levying and collecting special benefit taxes as provided in 
this subdivision.  All of the taxable property, both real and 
personal, within that taxing district shall be deemed to be 
benefited by projects to the extent of the special taxes levied 
under this subdivision.  Subject to the consent by resolution of 
the governing body of the city in and for which it was created, 
an authority may levy each year a tax upon all taxable property 
within that taxing district.  The authority shall certify the 
tax to the auditor of the county in which the taxing district is 
located on or before five working days after December 20 in each 
year.  The tax shall be extended, spread, and included with and 
as a part of the general taxes for state, county, and municipal 
purposes by the county auditor, to be collected and enforced 
therewith, together with the penalty, interest, and costs.  As 
the tax, including any penalties, interest, and costs, is 
collected by the county treasurer it shall be accumulated and 
kept in a separate fund to be known as the "housing and 
redevelopment project fund."  The money in the fund shall be 
turned over to the authority at the same time and in the same 
manner that the tax collections for the city are turned over to 
the city, and shall be expended only for the purposes of 
sections 469.001 to 469.047.  It shall be paid out upon vouchers 
signed by the chair of the authority or an authorized 
representative.  The amount of the levy shall be an amount 
approved by the governing body of the city, but shall not exceed 
0.0131 percent of taxable market value except that in cities of 
the first class having a population of less than 200,000, the 
levy shall not exceed 0.0065 percent of taxable market value.  
The authority may levy an additional levy, not to exceed 0.0013 
percent of taxable market value, to be used to defray costs of 
providing informational service and relocation assistance as set 
forth in section 469.012, subdivision 1.  The authority shall 
each year formulate and file a budget in accordance with the 
budget procedure of the city in the same manner as required of 
executive departments of the city or, if no budgets are required 
to be filed, by August 1.  The amount of the tax levy for the 
following year shall be based on that budget and shall be 
approved by the governing body. 
    Sec. 6.  Minnesota Statutes 1992, section 469.034, 
subdivision 2, is amended to read: 
    Subd. 2.  [GENERAL OBLIGATION REVENUE BONDS.] (a) An 
authority may pledge the general obligation of the general 
jurisdiction governmental unit as additional security for bonds 
payable from income or revenues of the project or the 
authority.  The authority must find that the pledged revenues 
will equal or exceed 110 percent of the principal and interest 
due on the bonds for each year.  The proceeds of the bonds must 
be used for a qualified housing development project or 
projects.  The obligations must be issued and sold in the manner 
and following the procedures provided by chapter 475, except the 
obligations are not subject to approval by the electors.  The 
authority is the municipality for purposes of chapter 475.  
     (b) The principal amount of the issue must be approved by 
the governing body of the general jurisdiction governmental unit 
whose general obligation is pledged.  Public hearings must be 
held on issuance of the obligations by both the authority and 
the general jurisdiction governmental unit.  The hearings must 
be held at least 15 days, but not more than 120 days, before the 
sale of the obligations. 
     (c) The maximum amount of general obligation bonds that may 
be issued and outstanding under this section equals the greater 
of (1) one-half of one percent of the taxable market value of 
the general jurisdiction governmental unit whose general 
obligation which includes a tax on property is pledged, or (2) 
$3,000,000.  In the case of county or multicounty general 
obligation bonds, the outstanding general obligation bonds of 
all cities in the county or counties issued under this 
subdivision must be added in calculating the limit under clause 
(1). 
    (d) "General jurisdiction governmental unit" means the city 
in which the housing development project is located.  In the 
case of a county or multicounty authority, the county or 
counties may act as the general jurisdiction governmental unit.  
In the case of a multicounty authority, the pledge of the 
general obligation is a pledge of a tax on the taxable property 
in each of the counties. 
    (e) "Qualified housing development project" means a housing 
development project providing housing either for the elderly or 
for individuals and families with incomes not greater than 80 
percent of the median family income as estimated by the United 
States Department of Housing and Urban Development for the 
standard metropolitan statistical area or the nonmetropolitan 
county in which the project is located, and will be owned by the 
authority for the term of the bonds.  A qualified housing 
development project may admit nonelderly individuals and 
families with higher incomes if: 
    (1) three years have passed since initial occupancy; 
    (2) the authority finds the project is experiencing 
unanticipated vacancies resulting in insufficient revenues, 
because of changes in population or other unforeseen 
circumstances that occurred after the initial finding of 
adequate revenues; and 
    (3) the authority finds a tax levy or payment from general 
assets of the general jurisdiction governmental unit will be 
necessary to pay debt service on the bonds if higher income 
individuals or families are not admitted. 
    Sec. 7.  [EFFECTIVE DATE.] 
    Section 2 is effective the day following final enactment. 
    Presented to the governor May 17, 1993 
    Signed by the governor May 20, 1993, 2:14 p.m.