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Office of the Revisor of Statutes

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

                            CHAPTER 246-H.F.No. 2899 
                  An act relating to metropolitan government; making 
                  changes to the livable community provisions; amending 
                  Minnesota Statutes 2000, sections 473.253, subdivision 
                  2; 473.254, subdivisions 1, 6; 473.255, subdivisions 
                  1, 4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 473.253, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DISTRIBUTION OF FUNDS.] The council shall use 
        the funds in the livable communities demonstration account to 
        make grants or loans to municipalities participating in the 
        local housing incentives program under section 473.254 or to 
        metropolitan area counties or development authorities to fund 
        the initiatives specified in section 473.25, paragraph (b), in 
        participating municipalities.  A grant to a metropolitan county 
        or a development authority must be used for a project in a 
        participating municipality.  For the purpose of this section, 
        "development authority" means a statutory or home rule charter 
        city, housing and redevelopment authority, economic development 
        authority, or port authority. 
           Sec. 2.  Minnesota Statutes 2000, section 473.254, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PARTICIPATION.] (a) By November 15 of each 
        year, A municipality may elect to participate in the local 
        housing incentive account program.  If a municipality does not 
        elect to participate for the year, it is not subject to this 
        section.  If the election to participate occurs by November 15 
        of any year, it is effective commencing the next calendar year; 
        otherwise it is effective commencing the next succeeding 
        calendar year.  An election to participate in the program is 
        effective until revoked according to paragraph (b).  A 
        municipality is subject to this section only in those calendar 
        years for which its election to participate in the program is 
        effective.  For purposes of this section, municipality means a 
        municipality electing to participate in the local housing 
        incentive account program for the calendar year in question, 
        unless the context indicates otherwise. 
           (b) A municipality may revoke its election to participate 
        in the local housing incentive account program.  If the 
        revocation occurs by November 15 of any year, it is effective 
        commencing the next calendar year; otherwise it is effective 
        commencing the next succeeding calendar year.  After revoking 
        its election to participate in the program, a municipality may 
        again elect to participate in the program according to paragraph 
        (a). 
           (c) A municipality that elects to participate may receive 
        grants or loans from the tax base revitalization account, 
        livable communities demonstration account, or the local housing 
        incentive account.  A municipality that does not participate is 
        not eligible to receive a grant under sections 116J.551 to 
        116J.557.  The council, when making discretionary funding 
        decisions, shall give consideration to a municipality's 
        participation in the local housing incentives program.  
           Sec. 3.  Minnesota Statutes 2000, section 473.254, 
        subdivision 6, is amended to read: 
           Subd. 6.  [DISTRIBUTION OF FUNDS.] The funds in the account 
        must be distributed annually by the council to municipalities 
        that: 
           (1) have not met their affordable and life-cycle housing 
        goals as determined by the council; and 
           (2) are actively funding projects designed to help meet the 
        goals.  
           Funds may also be distributed to a development authority 
        for a project in an eligible municipality.  The funds 
        distributed by the council must be matched on a 
        dollar-for-dollar basis by the municipality or development 
        authority receiving the funds.  When distributing funds in the 
        account, the council must give priority to those municipalities 
        projects that (1) are in municipalities that have contribution 
        net tax capacities that exceed their distribution net tax 
        capacities by more than $200 per household, (2) demonstrate the 
        proposed project will link employment opportunities with 
        affordable and life-cycle housing, and (3) provide matching 
        funds from a source other than the required amount under 
        subdivision 3.  For the purposes of this subdivision, 
        "municipality" means a statutory or home rule charter city or 
        town in the metropolitan area and "development authority" means 
        a housing and redevelopment authority, economic development 
        authority, or port authority. 
           Sec. 4.  Minnesota Statutes 2000, section 473.255, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) "Inclusionary housing 
        development" means a new construction development, including 
        owner-occupied or rental housing, or a combination of both, with 
        a variety of prices and designs which serve families with a 
        range of incomes and housing needs. 
           (b) "Municipality" means a statutory or home rule charter 
        city or town participating in the local housing incentives 
        program under section 473.254. 
           (c) "Development authority" means a housing and 
        redevelopment authority, economic development authority, or port 
        authority. 
           Sec. 5.  Minnesota Statutes 2000, section 473.255, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INCLUSIONARY HOUSING GRANTS.] The council shall 
        use funds in the inclusionary housing account to make grants or 
        loans to municipalities or development authorities to fund the 
        production of inclusionary housing developments that are located 
        in municipalities that offer incentives to assist in the 
        production of inclusionary housing.  Such incentives include but 
        are not limited to:  density bonuses, reduced setbacks and 
        parking requirements, decreased roadwidths, flexibility in site 
        development standards and zoning code requirements, waiver of 
        permit or impact fees, fast-track permitting and approvals, or 
        any other regulatory incentives that would result in 
        identifiable cost avoidance or reductions that contribute to the 
        economic feasibility of inclusionary housing. 
           Sec. 6.  [APPLICATION.] 
           Sections 1 to 5 apply in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 7.  [EFFECTIVE DATE.] 
           This act is effective on the day following its final 
        enactment. 
           Presented to the governor March 20, 2002 
           Signed by the governor March 21, 2002, 3:12 p.m.