Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Office of the Revisor of Statutes

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

KEY: stricken = old language to be removed
     underscored = new language to be added
                            CHAPTER 298-S.F.No. 1925 
                  An act relating to the housing finance agency; making 
                  technical changes to requirements under single family 
                  housing programs; amending Minnesota Statutes 1994, 
                  sections 462A.05, subdivisions 14a and 18; and 
                  462A.07, subdivision 14.  
           Section 1.  Minnesota Statutes 1994, section 462A.05, 
        subdivision 14a, is amended to read: 
        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) $10,000 a maximum loan amount determined under 
        rules adopted by the agency not to exceed $20,000, 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.  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 1994, section 462A.05, 
        subdivision 18, is amended to read: 
           Subd. 18.  [LOANS TO NONPROFIT SPONSORS.] It may make loans 
        to "nonprofit" sponsors as defined by the agency, with or 
        without interest, and with such security for repayment, if any, 
        as the agency determines reasonably necessary and practicable, 
        solely from the housing development fund in accordance with the 
        provisions of section 462A.21, subdivision 9, to encourage 
        innovations in the development or rehabilitation of single and 
        multifamily residential housing including the demonstration of 
        new techniques for energy efficient construction.  It may make 
        loans to for-profit sponsors pursuant to this subdivision, 
        provided that the agency shall make the loan with interest at a 
        rate determined by the agency.  
           It shall promulgate rules, in accordance with chapter 14, 
        relating to the administration of the loans authorized by this 
        subdivision.  The rules may define types of projects eligible 
        for loans, criteria for selecting between eligible loans, terms 
        of the loans including interest rates and loan periods, and 
        other characteristics that the agency deems necessary to 
        administer the program. 
           Sec. 3.  Minnesota Statutes 1994, 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 persons who are not of low- or moderate-income 
        closed in each lender's fiscal year shall not exceed an amount 
        equal to 25 percent of the total dollar amount of all loans made 
        closed by that lender during the lender's fiscal year at the 
        time of loan application same fiscal year.  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 content, 
        utilization of funds, administration, operation, 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: 
           (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 
           (2) 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 
           (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. 
           (c) The agency may make home improvement loans under this 
        subdivision without regard to household income. 
           Presented to the governor March 1, 1996 
           Signed by the governor March 4, 1996, 11:17 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes