1999 Minnesota Statutes

     462C.15 Mortgage credit certificate aid. 

    Subdivision 1.    Application.  By May 15 of each year, 
 a city issuing mortgage credit certificates during the previous 
 calendar year shall report to the commissioner of trade and 
 economic development.  The report shall be in a form and contain 
 the information necessary to determine the aid amounts, as 
 prescribed by the commissioner.  The report shall contain, at 
 least, for each mortgage loan for which a mortgage credit 
 certificate was issued:  (1) the principal amount of the loan, 
 (2) the interest rate on the loan, (3) the term of the loan, and 
 (4) the credit rate. 

    Subd. 2.    Payment of aid.  By July 15 of each year, 
 the commissioner of trade and economic development shall pay 
 mortgage credit certificate aid to each city issuing 
 certificates during the previous calendar year and submitting a 
 timely application under subdivision 1.  The amount of aid to be 
 paid to a city for a calendar year equals the sum of the aid for 
 each mortgage credit certificate issued by the city for a 
 mortgage loan that is outstanding during the calendar year, 
 assuming no prepayment of principal.  The amount of mortgage 
 credit certificate aid for each mortgage credit certificate 
 equals eight percent multiplied by the product of the credit 
 rate, the outstanding principal amount of the loan, and the 
 original interest rate on the loan.  For purposes of calculating 
 the aid for a variable rate loan, the original interest rate 
 means the interest rate that applies in the first year of the 
 loan.  For purposes of calculating the aid, the commissioner 
 shall assume level amortization with no prepayment of principal. 

    Subd. 3.    Use of aid.  The city shall transfer the aid 
 to its housing authority to be used to provide homeownership 
 programs to families or individuals whose incomes are at or 
 below 80 percent of the area median income. 

    Subd. 4.    Appropriation.  An amount sufficient to pay 
 the aid under this section is appropriated from the general fund 
 to the commissioner of trade and economic development. 

    Subd. 5.    Definitions.  The definitions in section 
 462C.02 apply to this section. 

    HIST: 1994 c 587 art 3 s 12