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Office of the Revisor of Statutes

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

                            CHAPTER 61-H.F.No. 1059 
                  An act relating to housing; housing finance agency; 
                  making various clarifying, technical, and other 
                  changes to agency programs; increasing debt ceiling; 
                  extending civil service pilot project; amending 
                  Minnesota Statutes 2002, sections 462A.05, by adding a 
                  subdivision; 462A.057, subdivision 1; 462A.073, 
                  subdivision 2; 462A.21, subdivision 3a; 462A.22, 
                  subdivisions 1, 7; Laws 1993, chapter 301, section 1, 
                  subdivision 4, as amended; Laws 1995, chapter 248, 
                  article 12, section 2, as amended. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 462A.05, is 
        amended by adding a subdivision to read: 
           Subd. 3b.  [REFINANCING MORTGAGES.] The agency may make 
        loans to refinance the existing indebtedness, of owners of 
        rental property, secured by federally assisted housing for the 
        purpose of obtaining agreement of the owner to participate in 
        the federally assisted rental housing program and to extend any 
        existing low-income affordability restrictions on the housing 
        for the maximum term permitted.  For purposes of this 
        subdivision, "federally assisted rental housing" includes 
        housing that is: 
           (1) subject to a project-based housing or rental assistance 
        payment contract funded by the federal government; 
           (2) financed by the Rural Housing Service of the United 
        States Department of Agriculture under section 515 of the 
        Housing Act of 1949, as amended; or 
           (3) financed under section 236; section 221(d)(3) below 
        market interest rate program; section 202; or section 811 of the 
        Housing and Urban Development Act of 1968, as amended. 
           Sec. 2.  Minnesota Statutes 2002, section 462A.057, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT; PURPOSE.] The agency may 
        establish the Minnesota urban and rural homesteading program for 
        the purpose of making grants or loans to eligible applicants to 
        acquire, rehabilitate, demolish or remove existing structures 
        and construct new housing, and sell single family residential 
        properties in need of rehabilitation to home buyers committed to 
        strengthening the neighborhood and following a good neighbor 
        policy.  If the grant or loan is used for demolition or removal 
        of existing structures, the cleared land must be used for 
        construction of housing owned by persons who meet the income 
        limits of this program and the demolition and new construction 
        must be less expensive than acquisition and rehabilitation.  
           Sec. 3.  Minnesota Statutes 2002, 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; 
           (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; 
           (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; or 
           (5) the new housing is part of an effort to meet the 
        affordable housing goals negotiated under section 473.254 the 
        new housing is serviced by the regional wastewater treatment 
        system or by a wastewater treatment system operated and 
        maintained by a local unit of government.  
           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. 4.  Minnesota Statutes 2002, section 462A.21, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [CAPACITY BUILDING REVOLVING LOAN FUND.] It may 
        establish a revolving loan fund for predevelopment costs for 
        nonprofit organizations and local government units engaged in 
        the construction or rehabilitation of low- and moderate-income 
        housing, and for the purposes specified in sections 462A.05, 
        subdivision 5; and 462A.07, subdivisions 2, 3, 3a, 5, 5a, 6, 7, 
        11, and 16.  The agency may delegate the authority to administer 
        the revolving loan fund for designated areas in the state to 
        existing nonprofit organizations.  For purposes of the authority 
        to administer the revolving loan fund under this subdivision, a 
        nonprofit organization includes a private nonprofit corporation 
        that is formed under laws other than the laws of this state, 
        provided that the nonprofit corporation has an office located in 
        this state.  Nonprofit entities selected to exercise such 
        delegated powers must have sufficient professional housing 
        development expertise, as determined by the agency, to evaluate 
        the economic feasibility of an applicant's proposed project.  
        Loans to nonprofit organizations or local government units under 
        this subdivision may be made with or without interest as 
        determined by the agency. 
           Sec. 5.  Minnesota Statutes 2002, section 462A.22, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [UP TO $2,400,000,000 OUTSTANDING DEBT 
        CEILING.] 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 $2,400,000,000 $3,000,000,000. 
           Sec. 6.  Minnesota Statutes 2002, section 462A.22, 
        subdivision 7, is amended to read: 
           Subd. 7.  [TRANSFER OF YEAR-END EXCESS.] To the extent 
        consistent with the resolutions and indentures securing 
        outstanding bonds and notes, the agency may at the close of any 
        fiscal year periodically transfer to any other fund or account 
        from any debt service reserve fund, any excess in that fund over 
        the amount deemed by the agency to be reasonably necessary for 
        the purpose of the fund. 
           Sec. 7.  Laws 1993, chapter 301, section 1, subdivision 4, 
        as amended by Laws 1999, chapter 47, section 1, and Laws 2001, 
        First Special Session chapter 4, article 2, section 26, is 
        amended to read: 
           Subd. 4.  [WAIVER.] (a) Upon receipt of the committee 
        report required by subdivision 3, each entity head shall submit 
        the list of recommended waivers to the commissioner of employee 
        relations.  The commissioner shall then grant the waivers 
        requested by each entity, effective for the requesting entity, 
        for a period ending June 30, 1997, except the waivers granted 
        for the Minnesota housing finance agency shall extend to June 
        30, 2003 not expire, subject to the restrictions in paragraph (b)
        and to revision in accordance with subdivision 5.  The 
        commissioner shall waive a rule by granting a variance under 
        Minnesota Statutes, section 14.05, subdivision 4.  
           (b) The commissioner may not grant a waiver if it would 
        result in the layoff of classified employees or unclassified 
        employees covered by a collective bargaining agreement except as 
        provided in a plan negotiated under Minnesota Statutes, chapter 
        179A, that provides options to layoff for employees who would be 
        affected.  If a proposed waiver would violate the terms of a 
        collective bargaining agreement reached under Minnesota 
        Statutes, chapter 179A, the waiver may not be granted without 
        the consent of the exclusive representative that is a party to 
        the agreement. 
           Sec. 8.  Laws 1995, chapter 248, article 12, section 2, as 
        amended by Laws 1999, chapter 47, section 2, and Laws 2001, 
        First Special Session chapter 4, article 2, section 27, is 
        amended to read: 
           Sec. 2.  [TERMINATION.] 
           Section 1 and the civil service pilot project in the 
        housing finance agency as authorized by Laws 1993, chapter 301, 
        terminate June 30, 2003, or at any earlier time as amended, 
        terminate by a method agreed upon by the commissioners of 
        employee relations and housing finance and the affected 
        exclusive bargaining representative of state employees. 
           Sec. 9.  [EFFECTIVE DATE.] 
           Sections 7 and 8 are effective July 1, 2003. 
           Presented to the governor May 15, 2003 
           Signed by the governor May 19, 2003, 11:33 a.m.