1.1 	A bill for an act
1.2 	relating to the city of Crystal; authorizing creation of a housing development 
1.3 	account.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. CITY OF CRYSTAL; HOUSING ACTIVITIES.
 1.6 		Subdivision 1.Deposits in account. The Crystal Economic Development Authority 
1.7 	may deposit in the housing development account all tax increment revenues derived from 
1.8 	housing replacement districts numbers one and two for the duration of those districts 
1.9 	under Laws 1995, chapter 264, article 5, sections 44 to 47. Amounts in the account may 
1.10 	be expended for housing activities in accordance with this section.
1.11 		Subd. 2.Permitted housing activities. For the purposes of this section, housing 
1.12 	activities:
1.13 	(1) may include rehabilitation, acquisition, demolition, and financing of new or 
1.14 	existing single-family or multifamily housing and public improvements directly related to 
1.15 	such activities and the allocated administrative expenses of the authority;
1.16 	(2) may be located anywhere in the city without regard to the boundaries of housing 
1.17 	replacement districts numbers one and two or any project area;
1.18 	(3) must be specified in, and expended in accordance with, a tax increment financing 
1.19 	plan adopted in accordance with Minnesota Statutes, section 469.175, subdivision 5, as 
1.20 	such plan may be amended from time to time; and
1.21 	(4) must meet the income requirements specified in Minnesota Statutes, section 
1.22 	469.1761.
1.23 		Subd. 3.Housing development account. Tax increment to be expended for housing 
1.24 	activities under this section must be segregated by the Crystal Economic Development 
2.1 	Authority into a special housing development account on its official book and records. 
2.2 	The account may also receive funds from other public and private sources, provided that to 
2.3 	the extent such other funds are maintained in a subaccount segregated from tax increment 
2.4 	revenues, such other funds are not deemed to be tax increment and are not subject to any 
2.5 	limitations of this act that apply to tax increments.
2.6 		Subd. 4.Loans from account. Funds in the housing development account may 
2.7 	be used for housing activities in the form of loans to any person or entity. Minnesota 
2.8 	Statutes, section 469.174, subdivision 25, clause (3), applies to loans made from the 
2.9 	housing development account, unless the loan terms provide that principal and any 
2.10 	accrued interest are payable only at the earlier of maturity, sale, or failure to comply 
2.11 	with Minnesota Statutes, section 469.1761.
2.12 		Subd. 5.Reporting. The reporting requirements of Minnesota Statutes, section 
2.13 	469.175, subdivisions 5 and 6, apply to the housing development account and expenditures 
2.14 	from the account through 2013.
2.15 		Subd. 6.Applicability to existing laws. The duration of housing replacement 
2.16 	districts numbers one and two created by the Crystal Economic Development Authority 
2.17 	and the computation of tax increment in those districts are governed by Laws 1995, 
2.18 	chapter 264, article 5, sections 44 to 47. In all other respects, Laws 1995, chapter 264, 
2.19 	article 5, sections 44 to 47, do not apply to housing replacement districts numbers one and 
2.20 	two or the housing development account. After the effective date of this act, the Crystal 
2.21 	Economic Development Authority may not expand housing replacement districts numbers 
2.22 	one and two or designate any additional parcels in any new housing replacement district 
2.23 	under Laws 1995, chapter 264, article 5, sections 44 to 47.
2.24 		Subd. 7.Applicability of other law. Minnesota Statutes, sections 469.174 to 
2.25 	469.1799, apply to the tax increments deposited in and expended from the housing 
2.26 	development account except to the extent inconsistent with the provisions of this act.

2.27 	EFFECTIVE DATE. This act is effective upon compliance by the city of Crystal 
2.28 	with Minnesota Statutes, section 645.021.