1997 Minnesota Statutes

     473.197 Housing bond credit enhancement program. 

    Subdivision 1.    Authorization.  The metropolitan 
 council may establish a housing bond credit enhancement program 
 as provided in this section.  The council may pledge its full 
 faith and credit and taxing powers to the payment of bonds 
 issued under section 469.034 for qualified housing development 
 projects in the metropolitan area, as provided in this section.  
 A "qualified housing development project" has the meaning given 
 that term in section 469.034, subdivision 2, paragraph (e), 
 except that the council is substituted for "general jurisdiction 
 governmental unit" in clause (3) and "60 percent of the median 
 family income" is substituted for "80 percent of the median 
 family income."  

    Subd. 2.    Project selection.  Before pledging its full 
 faith and credit, the council must establish criteria for 
 selecting appropriate qualified housing development projects for 
 the credit enhancement program.  The council may award 
 preferences for qualified housing development projects that meet 
 criteria for preferences established by the council.  The 
 council must establish the criteria in consultation with housing 
 providers in the metropolitan area.  In developing priorities 
 for projects for the credit enhancement program, the council 
 shall give priority to projects that develop or redevelop 
 housing for low-income households.  The council shall consider 
 the extent to which projects for the credit enhancement program 
 are developed in collaboration with Minnesota Youth-Build under 
 sections 268.361 to 268.367; or training for housing programs 
 for homeless adults under Laws 1992, chapter 376, article 6; or 
 other employment training programs. 

    Subd. 3.    Limitation.  The aggregate principal amount 
 of bonds that may be secured by a pledge of the council's full 
 faith and credit under this section may not exceed $20,000,000.  
 The bonds must be payable from revenues derived from the project 
 or projects financed under the credit enhancement program, or 
 from income of the authority or authorities that participate in 
 the program, including earnings on any reserves established for 
 the program.  The council must find that the pledged revenues 
 will equal or exceed 110 percent of the principal and interest 
 due on the bonds. 

    Subd. 4.    Debt reserve; levy.  To provide money to pay 
 debt service on bonds issued under the credit enhancement 
 program if pledged revenues are insufficient to pay debt 
 service, the council must maintain a debt reserve fund in the 
 manner and with the effect provided by section 118A.04 for 
 public funds.  To provide funds for the debt reserve fund, the 
 council may use up to $3,000,000 of the proceeds of solid waste 
 bonds issued by the council under section 473.831 before its 
 repeal.  To provide additional funds for the debt reserve fund, 
 the council may levy a tax on all taxable property in the 
 metropolitan area and must levy the tax if sums in the debt 
 reserve fund are insufficient to cure any deficiency in the debt 
 service fund established for the bonds.  The tax authorized by 
 this section does not affect the amount or rate of taxes that 
 may be levied by the council for other purposes and is not 
 subject to limit as to rate or amount. 

    Subd. 5.    Agreements.  The council and each authority 
 that participates in the credit enhancement program may enter 
 into agreements they determine to be necessary to implement the 
 credit enhancement program.  The agreements may extend over any 
 period, notwithstanding any law to the contrary. 

    HIST: 1994 c 587 art 12 s 22; 1996 c 399 art 2 s 8