1.1                          A bill for an act
  1.2             relating to the city of Richfield; authorizing the 
  1.3             formation of nonprofit corporations for the purpose of 
  1.4             owning low and moderate income housing developments. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [CITY OF RICHFIELD; FORMATION OF NONPROFIT 
  1.7   HOUSING CORPORATIONS.] 
  1.8      The housing and redevelopment authority of the city of 
  1.9   Richfield may form or consent to the formation of one or more 
  1.10  corporations under Minnesota Statutes, chapter 317A, for the 
  1.11  purpose of owning and operating housing developments financed 
  1.12  with mortgages insured by the Federal Housing Administration of 
  1.13  the United States Department of Housing and Urban Development to 
  1.14  be occupied by low and moderate income persons and families. 
  1.15     Sec. 2.  [CONTROL BY AUTHORITY.] 
  1.16     The authority shall be a member of each corporation, and 
  1.17  the members of the board of directors of each corporation shall 
  1.18  be members or employees of the authority.  The authority may 
  1.19  capitalize a corporation and may acquire all or a part of the 
  1.20  corporation's share or member certificates.  The authority shall 
  1.21  approve a corporation's articles of incorporation and bylaws, 
  1.22  directors, projects, and expenditures, the sale or conveyance of 
  1.23  projects, the issuance of obligations, and such other actions of 
  1.24  a corporation as the authority may determine.  The authority 
  1.25  shall take title to property of a corporation upon its 
  2.1   dissolution. 
  2.2      Sec. 3.  [ISSUANCE OF BONDS.] 
  2.3      A nonprofit corporation authorized to be formed under 
  2.4   section 1 may issue bonds for the purpose of financing the 
  2.5   acquisition and operation of multifamily housing developments, 
  2.6   in furtherance of the public purpose of provision of low and 
  2.7   moderate income housing.  The bonds shall be payable solely from 
  2.8   the revenues of the developments and shall be issued upon such 
  2.9   terms as the corporation shall determine, with the consent of 
  2.10  the authority. 
  2.11     Sec. 4.  [PROPERTY TAX EXEMPTION.] 
  2.12     Property owned by a nonprofit corporation authorized to be 
  2.13  formed under section 1 shall be treated as public property 
  2.14  exclusively used for a public purpose under Minnesota Statutes, 
  2.15  section 272.02, subdivision 1. 
  2.16     Sec. 5.  [EFFECTIVE DATE.] 
  2.17     Sections 1 to 4 are effective the day after compliance with 
  2.18  Minnesota Statutes, section 645.021, subdivision 3, by the city 
  2.19  council of the city of Richfield.