SF 4254

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/03/2024 11:11am

A bill for an act
relating to housing; authorizing housing and redevelopment authorities to create
public corporations for the purpose of purchasing, owning, and operating properties
converted under the federal Rental Assistance Demonstration program; amending
Minnesota Statutes 2022, section 469.012, subdivision 2j; proposing coding for
new law in Minnesota Statutes, chapter 469.

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

Section 1.

Minnesota Statutes 2022, section 469.012, subdivision 2j, is amended to read:

Subd. 2j.

May be in LLP, LLC, or corporation; bound as if HRA.

(a) An authority
may become a member or shareholder in and enter into or form limited partnerships, limited
liability companies, or corporations for the purpose of developing, constructing, rehabilitating,
managing, supporting, or preserving housing projects and housing development projects,
including low-income housing tax credit projects. These limited partnerships, limited liability
companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
and other laws that apply to housing and redevelopment authorities, as if the limited
partnership, limited liability company, or corporation were a housing and redevelopment
authority.

(b) An authority may create a public corporation in accordance with section 469.0121
for the purpose of purchasing, owning, and operating real property converted through the
federal Rental Assistance Demonstration program under Public Law 112-55, as amended.

Sec. 2.

[469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE
DEMONSTRATION PROGRAM.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Authority" has the meaning given under section 469.002, subdivision 2.

(c) "Board" means the board of directors of a corporation created under this section.

(d) "Corporation" means a public corporation created under this section.

(e) "RAD" means the federal Rental Assistance Demonstration program under Public
Law 112-55, as amended.

Subd. 2.

Public corporation created.

An authority may create a public corporation to
purchase, own, and operate real property that has been converted through RAD to preserve
and improve public housing properties.

Subd. 3.

Corporation powers.

(a) The corporation has the following general powers:

(1) to have succession until dissolved by law;

(2) to sue and be sued in its corporate name;

(3) to adopt, alter, and use a corporate seal which shall be judicially noticed;

(4) to accept, hold, and administer gifts and bequests of money, securities, or other
personal property of whatsoever character, absolutely or in trust, for the purposes for which
the corporation is created. Unless otherwise restricted by the terms of the gift or bequest,
the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or
reinvest in such investments as it may determine from time to time the money, securities,
or other property given or bequeathed to it. The principal of such corporate funds and the
income therefrom, and all other revenues received by it from any source whatsoever shall
be placed in such depositories as the board of directors shall determine and shall be subject
to expenditure for corporate purposes;

(5) to enter into contracts generally and to execute all instruments necessary or appropriate
to carry out its corporate purposes;

(6) to appoint and prescribe the duties of officers, agents, and employees as may be
necessary to carry out its work and to compensate them;

(7) to purchase all supplies and materials necessary for carrying out its purposes;

(8) to accept from the United States or the state of Minnesota, or any of their agencies,
moneys or other assistance whether by gift, loan, or otherwise to carry out its corporate
purposes, and to enter into such contracts with the United States or the state of Minnesota,
or any of the agencies of either, or with any of the political subdivisions of the state, as it
may deem proper and consistent with the purposes of this section; and

(9) to contract and make cooperative agreements with federal, state, and municipal
departments and agencies and private corporations, associations, and individuals for the use
of the corporation property, including but not limited to rental agreements.

(b) A corporation may acquire properties converted under RAD, subject to restrictions
and conditions compatible with funding acquisitions of and improvements to real property
with state general obligation bond proceeds. The commissioner of management and budget
must determine the necessary restrictions and conditions under this paragraph.

Subd. 4.

Board of directors.

(a) A corporation is governed by a board of directors as
follows:

(1) a member of the city council from the city in which the corporation is incorporated;

(2) a commissioner of the authority that created the corporation; and

(3) the commissioner of the Minnesota Housing Finance Agency or the commissioner's
delegate.

(b) The term of a director is six years. Two members of the initial board of directors
must be appointed for terms of four years, and one for a term of two years.

(c) Vacancies on the board must be filled by the authority.

(d) Board members must not be compensated for their service as board members other
than to be reimbursed for reasonable expenses incurred in connection with their duties as
board members. Reimbursement shall be reviewed each year by the state auditor.

(e) The board must annually elect from among its members a chair and other officers
necessary for the performance of its duties.

Subd. 5.

Bylaws.

The board of directors must adopt bylaws and rules as it deems
necessary for the administration of its functions and the accomplishment of its purpose,
including among other matters the establishment of a business office and the rules, the use
of the project-based rental assistance properties, and the administration of corporation funds.

Subd. 6.

Place of business.

The board must locate and maintain the corporation's place
of business in the city in which the authority that created the corporation is located.

Subd. 7.

Open meetings.

Meetings of the board are subject to chapter 13D and meetings
of the board conducted by interactive technology are subject to section 13D.02.

Subd. 8.

Compliance.

The corporation must comply with all federal, state, and local
laws, rules, ordinances, and other regulations required to own and operate properties as
project-based rental assistance properties.

Subd. 9.

Dissolution.

Notwithstanding section 15.082, upon dissolution of the corporation
for any reason, its wholly owned assets become property of the authority that created the
corporation.

Sec. 3. EFFECTIVE DATE.

This act is effective July 1, 2024.