1.1                          A bill for an act 
  1.2             relating to housing; changing age limitations under 
  1.3             the family homeless prevention and assistance program; 
  1.4             modifying the rental housing program; correcting 
  1.5             references to municipal housing plan reporting 
  1.6             requirements; amending Minnesota Statutes 1994, 
  1.7             sections 462A.204, subdivision 1; 462A.205, 
  1.8             subdivision 4; 462A.21, by adding a subdivision; and 
  1.9             469.0171; proposing coding for new law in Minnesota 
  1.10            Statutes, chapter 462A; repealing Minnesota Statutes 
  1.11            1994, section 462A.21, subdivision 8c. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1994, section 462A.204, 
  1.14  subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [ESTABLISHMENT.] The agency may establish a 
  1.16  family homeless prevention and assistance program to assist 
  1.17  families who are homeless or are at imminent risk of 
  1.18  homelessness.  The agency may make grants to develop and 
  1.19  implement family homeless prevention and assistance projects 
  1.20  under the program.  For purposes of this section, "families" 
  1.21  means families and persons under the age of ~~18~~ 22.  
  1.22     Sec. 2.  Minnesota Statutes 1994, section 462A.205, 
  1.23  subdivision 4, is amended to read: 
  1.24     Subd. 4.  [AMOUNT AND PAYMENT OF RENT ASSISTANCE.] (a) This 
  1.25  subdivision applies to both the voucher option and the 
  1.26  project-based voucher option.  
  1.27     (b) Within the limits of available appropriations, eligible 
  1.28  families may receive monthly rent assistance for a 36-month 
  2.1   period starting with the month the family first receives rent 
  2.2   assistance under this section.  The amount of the family's 
  2.3   portion of the rental payment is equal to at least 30 percent of 
  2.4   gross income. 
  2.5      (c) The rent assistance must be paid by the local housing 
  2.6   organization to the property owner. 
  2.7      (d) Subject to the limitations in paragraph (e), the amount 
  2.8   of rent assistance is the difference between the rent and the 
  2.9   family's portion of the rental payment. 
  2.10     (e) In no case: 
  2.11     (1) may the amount of monthly rent assistance be more 
  2.12  than $250 for housing located within the metropolitan area, as 
  2.13  defined in section 473.121, subdivision 2, or more than $200 for 
  2.14  housing located outside of the metropolitan area; 
  2.15     (2) may the owner receive more rent for assisted units than 
  2.16  for comparable unassisted units; nor 
  2.17     (3) may the amount of monthly rent assistance be more than 
  2.18  the difference between the family's portion of the rental 
  2.19  payment and the fair market rent for the unit as determined by 
  2.20  the Department of Housing and Urban Development. 
  2.21     Sec. 3.  [462A.209] [RENTAL HOUSING.] 
  2.22     The agency may establish a rental housing assistance 
  2.23  program for persons of low income or for persons with a mental 
  2.24  illness or families that include an adult family member with a 
  2.25  mental illness.  Rental assistance may be in the form of direct 
  2.26  rental subsidies for housing for persons or families with 
  2.27  incomes of up to 50 percent of the area median income as 
  2.28  determined by the United States Department of Housing and Urban 
  2.29  Development, adjusted for families of five or more.  Housing for 
  2.30  the mentally ill must be operated in coordination with social 
  2.31  service providers who provide services requested by tenants.  
  2.32  Direct rental subsidies must be administered by the agency for 
  2.33  the benefit of eligible tenants.  Financial assistance provided 
  2.34  under this section must be in the form of vendor payments 
  2.35  whenever possible. 
  2.36     Sec. 4.  Minnesota Statutes 1994, section 462A.21, is 
  3.1   amended by adding a subdivision to read: 
  3.2      Subd. 22.  [RENTAL HOUSING.] The agency may spend money for 
  3.3   the purposes of the rental housing program authorized under 
  3.4   section 462A.209, and may pay the costs and expenses necessary 
  3.5   and incidental to the development and operation of the program. 
  3.6      Sec. 5.  Minnesota Statutes 1994, section 469.0171, is 
  3.7   amended to read: 
  3.8      469.0171 [HOUSING PLAN, PROGRAM, AND REVIEW.] 
  3.9      Prior to the issuance of bonds or obligations for a housing 
  3.10  development project proposed by an authority under section 
  3.11  469.017, the authority shall: 
  3.12     (1) prepare a plan meeting the requirements of section 
  3.13  462C.03, subdivision 1, paragraphs (a) to (d); 
  3.14     (2) obtain review of the plan in the manner provided in 
  3.15  section 462C.04, subdivision 1; ~~and~~ 
  3.16     (3) prepare and submit for review a program as defined in 
  3.17  section 462C.02, subdivision 3, in the manner provided in 
  3.18  section 462C.04, subdivision 2, and section 462C.05, subdivision 
  3.19  5, for the making or purchasing of loans by cities; and 
  3.20     (4) prepare and submit the report required under section 
  3.21  462C.04, subdivision 3. 
  3.22     Sec. 6.  [REPEALER.] 
  3.23     Minnesota Statutes 1994, section 462A.21, subdivision 8c, 
  3.24  is repealed. 
  3.25     Sec. 7.  [EFFECTIVE DATE.] 
  3.26     Sections 1 to 6 are effective the day following final 
  3.27  enactment.