1998 Minnesota Statutes

     462A.201 Housing trust fund account. 

    Subdivision 1.    Creation.  (a) The housing trust fund 
 account is created as a separate account in the housing 
 development fund. 

    (b) The housing trust fund account consists of: 

    (1) money appropriated and transferred from other state 
 funds; 

    (2) interest accrued from real estate trust accounts as 
 provided under section 82.24, subdivision 8; 

    (3) gifts, grants, and donations received from the United 
 States, private foundations, and other sources; and 

    (4) money made available to the agency for the purpose of 
 the account from other sources. 

    Subd. 2.    Low-income housing.  (a) The agency may, in 
 consultation with the advisory committee, use money from the 
 housing trust fund account to provide loans or grants for 
 projects for the development, construction, acquisition, 
 preservation, and rehabilitation of low-income rental and 
 limited equity cooperative housing units, including temporary 
 and transitional housing, and homes for ownership.  Loans or 
 grants for residential housing for migrant farmworkers may be 
 made under this section.  No more than 20 percent of available 
 funds may be used for home ownership projects.  

    (b) A rental or limited equity cooperative permanent 
 housing project must meet one of the following income tests: 

    (1) at least 75 percent of the rental and cooperative units 
 must be rented to or cooperatively owned by persons and families 
 whose income does not exceed 30 percent of the median family 
 income for the metropolitan area as defined in section 473.121, 
 subdivision 2; or 

    (2) all of the units funded by the housing trust fund 
 account must be used for the benefit of persons and families 
 whose income does not exceed 30 percent of the median family 
 income for the metropolitan area as defined in section 473.121, 
 subdivision 2. 

    The median family income may be adjusted for families of 
 five or more. 

    (c) Homes for ownership must be owned or purchased by 
 persons and families whose income does not exceed 50 percent of 
 the metropolitan area median income, adjusted for family size. 

    (d) In making the grants, the agency shall determine the 
 terms and conditions of repayment and the appropriate security, 
 if any, should repayment be required.  To promote the geographic 
 distribution of grants and loans, the agency may designate a 
 portion of the grant or loan awards to be set aside for projects 
 located in specified congressional districts or other 
 geographical regions specified by the agency.  The agency may 
 adopt rules for awarding grants and loans under this subdivision.

    Subd. 3.    Matching funds.  The agency may use money 
 from the housing trust fund account to match federal, local, or 
 private money to be used for projects authorized under 
 subdivision 2. 

    Subd. 4.    Advisory committee.  The agency shall 
 establish an eight member advisory committee under section 
 15.059 to advise or assist the agency in providing loans or 
 grants from the housing trust fund account.  Members of the 
 committee must represent the interests of realtors, lenders, 
 nonprofit developers, apartment owners, low income persons, 
 housing advocates, advocates for the homeless, and single or 
 multifamily builders.  Members of the committee shall be 
 reimbursed for expenses but shall not receive any other 
 compensation for services on the committee.  Money in the 
 housing trust fund account may be used for the expenses of the 
 advisory committee and the agency related to the development and 
 implementation of the program described in this section. 

    Subd. 5. Repealed, 1993 c 309 s 32 

    Subd. 6.    Report.  The agency shall report to the 
 legislature and the governor annually on the use of the housing 
 trust fund account including the number of loans and grants 
 made, the number and types of residential units assisted through 
 the account, and the number of residential units assisted 
 through the account that were rented to or cooperatively owned 
 by persons or families at or below 30 percent of the median 
 family income of the metropolitan area at the time of initial 
 occupancy.  

    Subd. 7.    Capacity building grant set-aside.  Five 
 percent of the money credited to the housing trust fund account 
 under section 82.24, subdivision 8, may be used to make capacity 
 building grants as provided under section 462A.21, subdivision 
 3b. 

    HIST: 1988 c 654 s 5; 1990 c 520 s 1; 1993 c 236 s 5; 1994 c 
 586 s 6; 1995 c 224 s 99; 1996 c 305 art 2 s 63; 1997 c 200 art 
 4 s 11