HF 1151

1st Division Engrossment - 91st Legislature (2019 - 2020) Posted on 04/04/2019 09:27am

A bill for an act
relating to housing; appropriating money to the Housing Finance Agency for
housing programs; proposing coding for new law in Minnesota Statutes, chapter
462A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HOUSING FINANCE AGENCY APPROPRIATIONS

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies
for the purposes specified in this article. The appropriations are from the general fund, or
another named fund, and are available for the fiscal years indicated for each purpose. The
figures "2020" and "2021" used in this article mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The
first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is
fiscal years 2020 and 2021.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2020		2021

Sec. 2. HOUSING FINANCE AGENCY

Subdivision 1. Total Appropriation

$

69,298,000

$

62,298,000

(a) The amounts that may be spent for each
purpose are specified in the following
subdivisions.

(b) Unless otherwise specified, this
appropriation is for transfer to the housing
development fund for the programs specified
in this section. Except as otherwise indicated,
this transfer is part of the agency's permanent
budget base.

Subd. 2. Challenge Program

14,925,000

14,925,000

(a) This appropriation is for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33.

(b) The base for this program in fiscal year
2022 and beyond is $14,425,000.

Subd. 3. Local Housing Trust Fund Grants

7,000,000

-0-

(a) This appropriation is for grants to housing
trust funds established under Minnesota
Statutes, section 462C.16, to incentivize local
funding. This is a onetime appropriation.

(b) A grantee is eligible to receive a grant
amount equal to 100 percent of the public
revenue committed to the local housing trust
fund from any source other than the state or
federal government, up to $150,000, and in
addition, an amount equal to 50 percent of the
public revenue committed to the local housing
trust fund from any source other than the state
or federal government that is more than
$150,000 but not more than $300,000.

(c) $100,000 of this appropriation is for
technical assistance grants to local and
regional housing trust funds. A housing trust
fund may apply for a technical assistance grant
at the time and in the manner and form
required by the agency. The agency shall make
grants on a first-come, first-served basis. A
technical assistance grant must not exceed
$5,000.

(d) A grantee must use grant funds within
eight years of receipt for purposes (1)
authorized under Minnesota Statutes, section
462C.16, subdivision 3, and (2) benefiting
households with incomes at or below 115
percent of the state median income. A grantee
must return any grant funds not used for these
purposes within eight years of receipt to the
commissioner of the Housing Finance Agency
for deposit into the housing development fund.

(e) Before the agency makes any grants with
money from this appropriation, the
commissioner shall consult with interested
stakeholders when developing the guidelines
and procedures for the grant program.

Subd. 4. Workforce Housing Development

2,000,000

2,000,000

This appropriation is for the workforce
housing development program under
Minnesota Statutes, section 462A.39. If
requested by the applicant and approved by
the agency, funded properties may include a
portion of income and rent restricted units.

Subd. 5. Housing Trust Fund

11,646,000

11,646,000

This appropriation is for deposit in the housing
trust fund account created under Minnesota
Statutes, section 462A.201, and may be used
for the purposes provided in that section.

Subd. 6. Homework Starts with Home

3,000,000

3,000,000

This appropriation is for the homework starts
with home program under Minnesota Statutes,
sections 462A.201, subdivision 2, paragraph
(a), clause (4), and 462A.204, subdivision 8,
to provide assistance to homeless or highly
mobile families with children eligible for
enrollment in a prekindergarten through grade
12 academic program.

Subd. 7. Rental Assistance for Mentally Ill

5,088,000

5,088,000

This appropriation is for the rental housing
assistance program for persons with a mental
illness or families with an adult member with
a mental illness under Minnesota Statutes,
section 462A.2097. Among comparable
proposals, the agency shall prioritize those
proposals that target, in part, eligible persons
who desire to move to more integrated,
community-based settings.

Subd. 8. Family Homeless Prevention

9,519,000

9,519,000

This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204.

Subd. 9. Workforce Homeownership Program

1,000,000

1,000,000

(a) This appropriation is for the workforce
homeownership program under Minnesota
Statutes, section 462A.38.

(b) The base for this program in fiscal year
2022 and beyond is $500,000.

Subd. 10. Affordable Rental Investment Fund

4,218,000

4,218,000

(a) This appropriation is for the affordable
rental investment fund program under
Minnesota Statutes, section 462A.21,
subdivision 8b, to finance the acquisition,
rehabilitation, and debt restructuring of
federally assisted rental property and for
making equity take-out loans under Minnesota
Statutes, section 462A.05, subdivision 39.

(b) The owner of federally assisted rental
property must agree to participate in the
applicable federally assisted housing program
and to extend any existing low-income
affordability restrictions on the housing for
the maximum term permitted. The owner must
also enter into an agreement that gives local
units of government, housing and
redevelopment authorities, and nonprofit
housing organizations the right of first refusal
if the rental property is offered for sale.
Priority must be given among comparable
federally assisted rental properties to
properties with the longest remaining term
under an agreement for federal assistance.
Priority must also be given among comparable
rental housing developments to developments
that are or will be owned by local government
units, a housing and redevelopment authority,
or a nonprofit housing organization.

(c) The appropriation also may be used to
finance the acquisition, rehabilitation, and debt
restructuring of existing supportive housing
properties and naturally occurring affordable
housing as determined by the commissioner.
For purposes of this paragraph, "supportive
housing" means affordable rental housing with
links to services necessary for individuals,
youth, and families with children to maintain
housing stability.

Subd. 11. Housing Rehabilitation

6,515,000

6,515,000

(a) This appropriation is for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14. Of
this amount, $2,772,000 each year is for the
rehabilitation of owner-occupied housing and
$3,743,000 each year is for the rehabilitation
of eligible rental housing. In administering a
rehabilitation program for rental housing, the
agency may apply the processes and priorities
adopted for administration of the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33,
and may provide grants or forgivable loans if
approved by the agency.

(b) Notwithstanding any law to the contrary,
grants or loans under this subdivision may be
made without rent or income restrictions of
owners or tenants. To the extent practicable,
grants or loans must be made available
statewide.

Subd. 12. Home Ownership Assistance Fund

885,000

885,000

This appropriation is for the home ownership
assistance program under Minnesota Statutes,
section 462A.21, subdivision 8. The agency
shall continue to strengthen its efforts to
address the disparity gap in the
homeownership rate between white
households and indigenous American Indians
and communities of color. To better
understand and address the disparity gap, the
agency is required to collect, on a voluntary
basis, demographic information regarding
race, color, national origin, and sex of
applicants for agency programs intended to
benefit homeowners and homebuyers.

Subd. 13. Lead Safe Homes Grant Program

1,000,000

1,000,000

(a) This appropriation is for grants under the
lead safe homes grant program under
Minnesota Statutes, section 462A.2095.

(b) At least one grant must be to a nonprofit
organization or political subdivision serving
an area in the seven-county metropolitan area,
as defined in Minnesota Statutes, section
473.121, and at least one grant must be to a
nonprofit organization or political subdivision
serving an area outside the seven-county
metropolitan area.

(c) The base for this program in fiscal year
2022 and beyond is $500,000.

Subd. 14. Homeownership Education, Counseling, and Training

857,000

857,000

This appropriation is for the homeownership
education, counseling, and training program
under Minnesota Statutes, section 462A.209.

Subd. 15. Capacity-Building Grants

745,000

745,000

This appropriation is for nonprofit
capacity-building grants under Minnesota
Statutes, section 462A.21, subdivision 3b. Of
this amount, $125,000 each year is for support
of the Homeless Management Information
System (HMIS). Of this amount, $300,000
each year is for a statewide tenant hotline that
provides free and confidential legal advice for
all Minnesota renters.

Subd. 16. Build Wealth MN

500,000

500,000

This appropriation is for a grant to Build
Wealth Minnesota to provide a family
stabilization plan program including program
outreach, financial literacy education, and
budget and debt counseling.

Subd. 17. Homeownership Capacity

400,000

400,000

This appropriation is for competitive grants
to nonprofit housing organizations, housing
and redevelopment authorities, or other
political subdivisions to provide intensive
financial education and coaching services to
individuals or families who have the goal of
homeownership. Financial education and
coaching services include but are not limited
to asset building, development of spending
plans, credit report education, repair and
rebuilding, consumer protection training, and
debt reduction. Priority must be given to
organizations that have experience serving
underserved populations.

Sec. 3. EFFECTIVE DATE.

This article is effective July 1, 2019.

ARTICLE 2

HOUSING PROGRAMS

Section 1.

[462A.2095] LEAD SAFE HOMES GRANT PROGRAM.

Subdivision 1.

Establishment.

The Housing Finance Agency shall establish a lead safe
homes grant program to increase lead testing in residential rental housing and make
residential rental housing units lead safe. The agency shall give priority to grantees that
target landlords and tenants in areas with a high concentration of lead poisoning in children
based on information provided by the commissioner of health.

Subd. 2.

Eligibility.

(a) An eligible grantee must be a nonprofit organization or political
subdivision capable of administering funding and services to a defined geographic area.

(b) Up to ten percent of a grant award may be used to administer the grant and provide
education and outreach about lead health hazards.

Subd. 3.

Inspection; lead hazard reduction.

(a) A grantee must provide lead risk
assessments completed by a lead inspector or a lead risk assessor licensed by the
commissioner of health pursuant to section 144.9505 for properties built before 1978 to
determine the presence of lead hazards and to provide interim controls to reduce lead health
hazards. The grantee must conduct testing and provide lead hazard reduction to:

(1) landlords of residential buildings with 11 units or less where the tenants have incomes
that do not exceed 60 percent of area median income;

(2) landlords of residential buildings with 12 units or more where at least 50 percent of
the tenants have incomes that are below 60 percent of the median income; and

(3) tenants with an income that does not exceed 60 percent of area median income.

(b) A landlord or tenant must first access other available state and federal funding related
to lead testing and lead hazard reduction for which they are eligible.

Subd. 4.

Short title.

This section shall be known as the "Dustin Luke Shields Act."

EFFECTIVE DATE.

This section is effective July 1, 2019.