1.1                          A bill for an act 
  1.2             relating to local government; modifying the authority 
  1.3             to establish a housing improvement area; amending 
  1.4             Minnesota Statutes 1998, sections 428A.11, by adding 
  1.5             subdivisions; 428A.13, subdivisions 1 and 3; 428A.14, 
  1.6             subdivision 1; 428A.15; 428A.16; 428A.17; and 428A.19; 
  1.7             repealing Minnesota Statutes 1998, section 428A.21. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 428A.11, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 7.  [AUTHORITY.] "Authority" means an economic 
  1.12  development authority or housing and redevelopment authority 
  1.13  created pursuant to section 469.003, 469.004, or 469.091. 
  1.14     Sec. 2.  Minnesota Statutes 1998, section 428A.11, is 
  1.15  amended by adding a subdivision to read: 
  1.16     Subd. 8.  [IMPLEMENTING ENTITY.] "Implementing entity" 
  1.17  means the city or authority designated in the enabling ordinance 
  1.18  as responsible for implementing and administering the housing 
  1.19  improvement area. 
  1.20     Sec. 3.  Minnesota Statutes 1998, section 428A.13, 
  1.21  subdivision 1, is amended to read: 
  1.22     Subdivision 1.  [ORDINANCE.] The governing body of the city 
  1.23  may adopt an ordinance establishing a one or more housing 
  1.24  improvement area areas.  The ordinance must specifically 
  1.25  describe the portion of the city to be included in the area, the 
  1.26  basis for the imposition of the fees, and the number of years 
  2.1   the fee will be in effect.  In addition, the ordinance must 
  2.2   include findings that without the housing improvement area, the 
  2.3   proposed improvements could not be made by the condominium 
  2.4   associations or housing unit owners, and the designation is 
  2.5   needed to maintain and preserve the housing units within the 
  2.6   housing improvement area.  The ordinance shall designate the 
  2.7   implementing entity.  The ordinance may not be adopted until a 
  2.8   public hearing has been held regarding the ordinance.  The 
  2.9   ordinance may be amended by the governing body of the city, 
  2.10  provided the governing body complies with the public hearing 
  2.11  notice provisions of subdivision 2.  Within 30 days after 
  2.12  adoption of the ordinance under this subdivision, the governing 
  2.13  body shall send a copy of the ordinance to the commissioner of 
  2.14  revenue. 
  2.15     Sec. 4.  Minnesota Statutes 1998, section 428A.13, 
  2.16  subdivision 3, is amended to read: 
  2.17     Subd. 3.  [PROPOSED HOUSING IMPROVEMENTS.] At the public 
  2.18  hearing held under subdivision 2, the city proposed implementing 
  2.19  entity shall provide a preliminary listing of the housing 
  2.20  improvements to be made in the area.  The listing shall identify 
  2.21  those improvements, if any, that are proposed to be made to all 
  2.22  or a portion of the common elements of a condominium.  The 
  2.23  listing shall also identify those housing units that have 
  2.24  completed the proposed housing improvements and are proposed to 
  2.25  be exempted from a portion of the fee.  In preparing the list 
  2.26  the city proposed implementing entity shall consult with the 
  2.27  residents of the area and the condominium associations. 
  2.28     Sec. 5.  Minnesota Statutes 1998, section 428A.14, 
  2.29  subdivision 1, is amended to read: 
  2.30     Subdivision 1.  [AUTHORITY.] Fees may be imposed by the 
  2.31  city implementing entity on the housing units within the housing 
  2.32  improvement area at a rate, term, or amount sufficient to 
  2.33  produce revenue required to provide housing improvements in the 
  2.34  area to reimburse the implementing entity for advances made to 
  2.35  pay for the housing improvements or to pay principal of, 
  2.36  interest on, and premiums, if any, on bonds issued by the 
  3.1   implementing entity under section 428A.16.  The fee can be 
  3.2   imposed on the basis of the tax capacity of the housing unit, or 
  3.3   the total amount of square footage of the housing unit, or a 
  3.4   method determined by the council and specified in the resolution.
  3.5   Before the imposition of the fees, a hearing must be held and 
  3.6   notice must be published in the official newspaper at least 
  3.7   seven days before the hearing and shall be mailed at least seven 
  3.8   days before the hearing to any housing unit owner subject to a 
  3.9   fee.  For purposes of this section, the notice must also include:
  3.10     (1) a statement that all interested persons will be given 
  3.11  an opportunity to be heard at the hearing regarding a proposed 
  3.12  housing improvement fee; 
  3.13     (2) the estimated cost of improvements including 
  3.14  administrative costs to be paid for in whole or in part by the 
  3.15  fee imposed under the ordinance; 
  3.16     (3) the amount to be charged against the particular 
  3.17  property; 
  3.18     (4) the right of the property owner to prepay the entire 
  3.19  fee; 
  3.20     (5) the number of years the fee will be in effect; and 
  3.21     (6) a statement that the petition requirements of section 
  3.22  428A.12 have either been met or do not apply to the proposed fee.
  3.23     Within six months of the public hearing, the city 
  3.24  implementing entity may adopt a resolution imposing a fee within 
  3.25  the area not exceeding the amount expressed in the notice issued 
  3.26  under this section. 
  3.27     Prior to adoption of the resolution approving the fee, the 
  3.28  condominium associations located in the housing improvement area 
  3.29  shall submit to the city implementing entity a financial plan 
  3.30  prepared by an independent third party, acceptable to the city 
  3.31  implementing entity and associations, that provides for the 
  3.32  associations to finance maintenance and operation of the common 
  3.33  elements in the condominium and a long-range plan to conduct and 
  3.34  finance capital improvements. 
  3.35     Sec. 6.  Minnesota Statutes 1998, section 428A.15, is 
  3.36  amended to read: 
  4.1      428A.15 [COLLECTION OF FEES.] 
  4.2      The city implementing entity may provide for the collection 
  4.3   of the housing improvement fees according to the terms of 
  4.4   section 428A.05. 
  4.5      Sec. 7.  Minnesota Statutes 1998, section 428A.16, is 
  4.6   amended to read: 
  4.7      428A.16 [BONDS.] 
  4.8      At any time after a contract for the construction of all or 
  4.9   part of an improvement authorized under sections 428A.11 to 
  4.10  428A.20 has been entered into or the work has been ordered, the 
  4.11  governing body of the city implementing entity may issue 
  4.12  obligations in the amount it deems necessary to defray in whole 
  4.13  or in part the expense incurred and estimated to be incurred in 
  4.14  making the improvement, including every item of cost from 
  4.15  inception to completion and all fees and expenses incurred in 
  4.16  connection with the improvement or the financing. 
  4.17     The obligations are payable primarily out of the proceeds 
  4.18  of the fees imposed under section 428A.14, or from any other 
  4.19  special assessments or revenues available to be pledged for 
  4.20  their payment under charter or statutory authority, or from two 
  4.21  or more of those sources.  The governing body of the city, or if 
  4.22  the governing bodies are the same or consist of identical 
  4.23  membership, the authority may, by resolution adopted prior to 
  4.24  the sale of obligations, pledge the full faith, credit, and 
  4.25  taxing power of the city to assure bonds issued by it to ensure 
  4.26  payment of the principal and interest if the proceeds of the 
  4.27  fees in the area are insufficient to pay the principal and 
  4.28  interest.  The obligations must be issued in accordance with 
  4.29  chapter 475, except that an election is not required, and the 
  4.30  amount of the obligations are not included in determination of 
  4.31  the net debt of the city under the provisions of any law or 
  4.32  charter limiting debt. 
  4.33     Sec. 8.  Minnesota Statutes 1998, section 428A.17, is 
  4.34  amended to read: 
  4.35     428A.17 [ADVISORY BOARD.] 
  4.36     The governing body of the city implementing entity may 
  5.1   create and appoint an advisory board for the housing improvement 
  5.2   area in the city to advise the governing body implementing 
  5.3   entity in connection with the planning and construction of 
  5.4   housing improvements.  In appointing the board, the council 
  5.5   implementing entity shall consider for membership members of 
  5.6   condominium associations located in the housing improvement 
  5.7   area.  The advisory board shall make recommendations to 
  5.8   the governing body implementing entity to provide improvements 
  5.9   or impose fees within the housing improvement area.  Before the 
  5.10  adoption of a proposal by the governing body implementing entity 
  5.11  to provide improvements within the housing improvement area, the 
  5.12  advisory board of the housing improvement area shall have an 
  5.13  opportunity to review and comment upon the proposal. 
  5.14     Sec. 9.  Minnesota Statutes 1998, section 428A.19, is 
  5.15  amended to read: 
  5.16     428A.19 [ANNUAL REPORTS.] 
  5.17     Each condominium association located within the housing 
  5.18  improvement area must, by August 15 annually, submit a copy of 
  5.19  its audited financial statements to the city implementing entity.
  5.20  The city may also, as part of the enabling ordinance, require 
  5.21  the submission of other relevant information from the 
  5.22  associations. 
  5.23     Sec. 10.  [REPEALER.] 
  5.24     Minnesota Statutes 1998, section 428A.21, is repealed.