2000 Minnesota Statutes

     462A.073 Single-family mortgage bonds; limitations. 

    Subdivision 1.    Definitions.  (a) For purposes of this 
 section, the following terms have the meanings given them. 

    (b) "Existing housing" means single-family housing that (i) 
 has been previously occupied prior to the first day of the 
 origination period; or (ii) has been available for occupancy for 
 at least 12 months but has not been previously occupied.  

    (c) "Metropolitan area" means the metropolitan area as 
 defined in section 473.121, subdivision 2. 

    (d) "New housing" means single-family housing that has not 
 been previously occupied.  

    (e) "Origination period" means the period that loans 
 financed with the proceeds of qualified mortgage revenue bonds 
 are available for the purchase of single-family housing.  The 
 origination period begins when financing actually becomes 
 available to the borrowers for loans.  

    (f) "Redevelopment area" means a compact and contiguous 
 area within which the city finds by resolution that 70 percent 
 of the parcels are occupied by buildings, streets, utilities, or 
 other improvements and more than 25 percent of the buildings, 
 not including outbuildings, are structurally substandard to a 
 degree requiring substantial renovation or clearance. 

    (g) "Single-family housing" means dwelling units eligible 
 to be financed from the proceeds of qualified mortgage revenue 
 bonds under federal law. 

    (h) "Structurally substandard" means containing defects in 
 structural elements or a combination of deficiencies in 
 essential utilities and facilities, light, ventilation, fire 
 protection including adequate egress, layout and condition of 
 interior partitions, or similar factors, which defects or 
 deficiencies are of sufficient total significance to justify 
 substantial renovation or clearance. 

    Subd. 2.    Limitation; origination period.  During the 
 first ten months of an origination period, the agency may make 
 loans financed with proceeds of mortgage bonds for the purchase 
 of existing housing.  Loans financed with the proceeds of 
 mortgage bonds for new housing in the metropolitan area may be 
 made during the first ten months of an origination period only 
 if at least one of the following conditions is met: 

    (1) the new housing is located in a redevelopment area; 

    (2) the new housing is replacing a structurally substandard 
 structure or structures; 

    (3) the new housing is part of a housing affordability 
 initiative, other than those financed with the proceeds from the 
 sale of bonds, in which federal, state, or local assistance is 
 used to substantially improve the terms of the financing or to 
 substantially write down the purchase price of the new housing; 

    (4) the new housing is accessible housing and the borrower 
 or a member of the borrower's family is a person with a 
 disability.  For the purposes of this clause, "accessible 
 housing" means a dwelling unit with the modifications necessary 
 to enable a person with a disability to function in a 
 residential setting.  "A person with a disability" means a 
 person who has a permanent physical condition which is not 
 correctable and which substantially reduces the person's ability 
 to function in a residential setting.  A person with a physical 
 condition which does not require the use of a device to increase 
 mobility must be deemed a person with a disability upon written 
 certification of a licensed physician that the physical 
 condition substantially limits the person's ability to function 
 in a residential setting; or 

    (5) the new housing is part of an effort to meet the 
 affordable housing goals negotiated under section 473.254.  

    Upon expiration of the first ten-month period, the agency 
 may make loans financed with the proceeds of mortgage bonds for 
 the purchase of new and existing housing.  

    Subd. 3. Repealed, 1999 c 211 s 17 

    Subd. 4.    Limitation; commitments and loans to builders 
 and developers.  The agency may not make available, provide 
 set-asides, or commit to make available proceeds of mortgage 
 bonds for the exclusive use of builders or developers for loans 
 to eligible purchasers for new housing except for new housing 
 described in subdivision 2.  This prohibition is in effect for 
 the total origination period. 

    Subd. 5.    Reporting requirement.  The agency shall 
 report to the chairs of the appropriate housing-related standing 
 committees or divisions of the state senate and house of 
 representatives by January 1 of each year detailing new housing 
 activity financed with the proceeds of mortgage bonds, including 
 a description of affordable housing initiatives, the number of 
 loans, the average purchase price, average borrower income, and 
 steps taken to encourage loan activity as required in 
 subdivision 3. 

    HIST: 1991 c 346 s 1; 1992 c 522 s 31; 1992 c 545 art 1 s 2; 
 1999 c 211 s 3,4