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.
Official Publication of the State of Minnesota
Revisor of Statutes