Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2004, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 259-S.F.No. 2177
An act relating to metropolitan government; modifying
the method for determining each municipality's
affordable and life-cycle housing opportunities
amount; modifying the basis on which nonparticipating
municipalities may elect to participate; making
conforming changes; amending Minnesota Statutes 2002,
section 473.254, subdivisions 2, 3, 4, 6, 7, 8, by
adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2002, section 473.254,
subdivision 2, is amended to read:
Subd. 2. [AFFORDABLE, LIFE-CYCLE GOALS.] The council shall
negotiate with each municipality to establish affordable and
life-cycle housing goals for that municipality that are
consistent with and promote the policies of the Metropolitan
Council as provided in the adopted metropolitan development
guide. The council shall adopt, by resolution after a public
hearing, the negotiated affordable and life-cycle housing goals
for each municipality by January 15, 1996, and by January 15 in
each succeeding year for each municipality newly electing to
participate in the program or for each municipality with which
new housing goals have been negotiated. By June 30, 1996, and
by June 30 in each succeeding year for each municipality newly
electing to participate in the program or for each municipality
with which new housing goals have been negotiated, each
municipality shall identify to the council the actions it plans
to take to meet the established housing goals.
Sec. 2. Minnesota Statutes 2002, section 473.254,
subdivision 3, is amended to read:
Subd. 3. [AFFORDABLE, LIFE-CYCLE OPPORTUNITIES AMOUNT
THROUGH CALENDAR YEAR 2002.] (1) By July 1, 1996, each county
assessor shall certify each municipality's average residential
homestead limited market value for the 1994 assessment year,
including the value of the farm house, garage, and one acre only
in the case of farm homesteads, multiplied by a factor of two,
as the municipality's "market value base amount." For 1997 and
thereafter through 2001, the "market value base amount" shall be
equal to the product of (i) the market value base amount for the
previous year multiplied by (ii) the annual average United
States Consumer Price Index for all urban consumers, United
States average, as determined by the United States Department of
Labor, for the previous year divided by that annual average for
the year before the previous year.
(2) By July 1, 1996, and each succeeding year through 2001,
the county assessor shall determine which homesteads have market
values in excess of the municipality's market value base amount
and the county auditor shall certify the aggregate net tax
capacity corresponding to the amount by which those homesteads'
market values exceed the municipality's market value base amount
as the "net tax capacity excess amount" for the assessment year
corresponding to the current taxes payable year. By July 1,
1996, the county auditor shall also certify the net tax capacity
excess amount for taxes payable in 1995.
(3) By July 1, 1996, and each succeeding year through 2001,
the county auditor shall also certify each municipality's local
tax rate for the current taxes payable year.
(4) By July 1, 1996, and each succeeding year through 2001,
the county auditor shall certify for each municipality the
amount equal to four percent of the municipality's current year
total residential homestead tax capacity multiplied by the local
tax rate.
(5) By August 1, 1996, and each succeeding year through
2001, the Metropolitan Council shall notify each municipality of
its "affordable and life-cycle housing opportunities amount" for
the following calendar year equal to the lesser of the amount
certified under clause (4) or the amount, if any, by which the
net tax capacity excess amount for the current year exceeds the
amount for taxes payable in 1995, multiplied by the
municipality's local tax rate certified in clause (3).
Sec. 3. Minnesota Statutes 2002, section 473.254, is
amended by adding a subdivision to read:
Subd. 3a. [AFFORDABLE AND LIFE-CYCLE HOUSING OPPORTUNITIES
AMOUNT AFTER CALENDAR YEAR 2002.] (1) Notwithstanding any other
provisions of this section, commencing for calendar year 2003
and each succeeding calendar year, each municipality's
"affordable and life-cycle housing opportunities amount" for
that year must be determined by the council using the method in
this subdivision. The affordable and life-cycle housing
opportunities amount must be determined for each calendar year
for all municipalities in the metropolitan area.
(2) The council must allocate to each municipality its
portion of the $1,000,000 of the revenue generated by the levy
authorized in section 473.249 which is credited to the local
housing incentives account pursuant to subdivision 5, paragraph
(b). The allocation must be made by determining the amount
levied for and payable in each municipality in the previous
calendar year pursuant to the council levy in section 473.249
divided by the total amount levied for and payable in the
metropolitan area in the previous calendar year pursuant to such
levy and multiplying that result by $1,000,000.
(3) The council must also determine the amount levied for
and payable in each municipality in the previous calendar year
pursuant to the council levy in section 473.253, subdivision 1.
(4) A municipality's affordable and life-cycle housing
opportunities amount for the calendar year is the sum of the
amounts determined under clauses (2) and (3).
(5) Within 90 days after the effective date of this act,
the council must notify each municipality of its affordable and
life-cycle housing opportunities amount for calendar years 2003
and 2004 as determined by the method in this subdivision. These
amounts replace the affordable and life-cycle housing
opportunities amount for each municipality for calendar years
2003 and 2004 as previously determined by the method in
subdivision 3.
(6) By August 1, 2004, and by August 1 of each succeeding
year, the council must notify each municipality of its
affordable and life-cycle housing opportunities amount for the
following calendar year determined by the method in this
subdivision.
Sec. 4. Minnesota Statutes 2002, section 473.254,
subdivision 4, is amended to read:
Subd. 4. [AFFORDABLE AND LIFE-CYCLE HOUSING REQUIREMENT.]
(a) A municipality that is determined by the council to have met
its affordable and life-cycle housing goals in the previous
calendar year may retain the amount calculated under subdivision
3 to maintain existing affordable and life-cycle housing.
(b) In 1998, and thereafter, a municipality that is
determined by the council not to have met the affordable and
life-cycle housing goals in the previous calendar year, as
negotiated and agreed to with the council, and not to have spent
does not spend 85 percent of its affordable and life-cycle
housing opportunities amount to create affordable and life-cycle
housing opportunities in the previous calendar year must do one
of the following with the affordable and life-cycle housing
opportunities amount for the previous year as determined under
subdivision 3 or 3a, as applicable:
(1) distribute it to the local housing incentives account;
or
(2) distribute it to the housing and redevelopment
authority of the city or county in which the municipality is
located to create affordable and life-cycle housing
opportunities in the municipality.
A municipality may enter into agreements with adjacent
municipalities to cooperatively provide affordable and
life-cycle housing. The housing may be provided in any of the
cooperating municipalities, but must meet the combined housing
goals of each participating municipality.
Sec. 5. Minnesota Statutes 2002, 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 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 affordable and life-cycle housing opportunities amount
under subdivision 3 or 3a, as applicable. 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. 6. Minnesota Statutes 2002, section 473.254,
subdivision 7, is amended to read:
Subd. 7. [REPORT TO COUNCIL.] Beginning January 15, 1998,
and annually thereafter, each municipality must report to the
council the following:
(1) the tax revenues defined in subdivision 3 that were
levied in the prior year;
(2) the portion of the revenues that were spent on meeting
the municipality's affordable and life-cycle housing goals; and
(3) information on how the expenditures directly support
the municipality's efforts to meet its affordable and life-cycle
housing goals.
The council shall verify each municipality's compliance
with this subdivision. By July 1, 2004, and by July 1 in each
succeeding year, each municipality must certify to the council
whether or not it has spent 85 percent of its affordable and
life-cycle housing opportunities amount, as determined under
subdivision 3a, in the previous calendar year to create
affordable and life-cycle housing opportunities. The council
may verify each municipality's certification.
Sec. 7. Minnesota Statutes 2002, section 473.254,
subdivision 8, is amended to read:
Subd. 8. [LATER ELECTION TO PARTICIPATE.] If a
municipality did not participate for one or more years and
elects later to participate, the municipality must, with respect
to its affordable and life-cycle housing opportunities amount
for the calendar year preceding the participating calendar year;
(1) establish that it has spent or agrees to spend such
amount on affordable and life-cycle housing during that
preceding calendar year, or agrees
(2) agree to spend such amount from the preceding calendar
year on affordable and life-cycle housing in the participating
calendar year, in addition to its affordable and life-cycle
housing opportunities amount for the participating calendar
year, or
(3) distribute such amount to the local housing incentives
account, an amount equivalent to what it would have spent on
affordable and life-cycle housing had goals been established
under this section for the period in which it was not
participating.
The council will determine which investments count toward
the required cumulative investment affordable and life-cycle
housing opportunities amount by comparing the municipality to
participating municipalities similar in terms of stage of
development and demographics. If it determines it to be in the
best interests of the region, the council may waive a reasonable
portion of the cumulative investment amount.
Sec. 8. [TRANSITION PROVISIONS.]
If a municipality's affordable and life-cycle housing
opportunities amount for 2002 as determined under Minnesota
Statutes 2002, section 473.254, subdivision 3, is less than the
municipality's affordable and life-cycle housing opportunities
amount for 2004 as determined under section 3, then increases in
the municipality's affordable and life-cycle housing
opportunities amounts are limited as provided in this section.
Then, a municipality's affordable and life-cycle housing
opportunities amount for each of calendar years 2003, 2004,
2005, 2006, and 2007 is the lesser of:
(1) the amount determined under section 3 for the calendar
year in question; or
(2) the amount of the municipality's affordable and
life-cycle housing opportunities amount for the preceding
calendar year plus an amount equal to 20 percent of the
difference between the municipality's affordable and life-cycle
housing opportunities amount for 2004 as determined under
section 3 and the municipality's affordable and life-cycle
housing opportunities amount for 2002 as determined under
Minnesota Statutes 2002, section 473.254, subdivision 3.
Beginning in 2008, the affordable and life-cycle housing
opportunities amount for each municipality subject to this
section must be determined as provided in section 3, without
further limit.
Sec. 9. [APPLICATION.]
This act applies to the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
Sec. 10. [EFFECTIVE DATE.]
This act is effective the day following final enactment.
Presented to the governor May 18, 2004
Signed by the governor May 29, 2004, 2:30 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes