2000 Minnesota Statutes

CHAPTER 474A. Bond allocation

     474A.01 Citation. 

    Sections 474A.01 to 474A.21 may be cited as the "Minnesota 
 Bond Allocation Act." 

    HIST: 1986 c 465 art 1 s 9 

     474A.02 Definitions. 

    Subdivision 1.    Terms defined.  For the purposes of 
 this chapter, the terms defined in this section shall have the 
 meanings given them. 

    Subd. 2.    Annual volume cap.  "Annual volume cap" 
 means the aggregate dollar amount of obligations bearing 
 interest excluded from gross income for purposes of federal 
 income taxation which, under the provisions of federal tax law, 
 may be issued in one year by issuers. 

    Subd. 2a.    Bonding authority.  "Bonding authority" 
 means all or a portion of the annual volume cap. 

    Subd. 2b.    Carryforward.  "Carryforward" means the 
 ability to issue obligations in a year subsequent to the year in 
 which an allocation of bonding authority was obtained under this 
 chapter as provided in section 146(f) of federal tax law.  

    Subd. 3.  Repealed, 1986 c 465 art 1 s 32 

    Subd. 4.    City.  "City" means a statutory or home rule 
 charter city. 

    Subd. 5. Repealed, 1987 c 268 art 16 s 45 

    Subd. 5a.    Commissioner.  "Commissioner" means the 
 commissioner of finance. 

    Subd. 6.    Department; department of finance.  
 "Department" means the department of finance. 

    Subd. 7.    Entitlement issuer.  "Entitlement issuer" 
 means an issuer to which an allocation is made under section 
 474A.03, subdivision 2a. 

    Subd. 8.    Federal tax law.  "Federal tax law" means 
 those provisions of the Internal Revenue Code of 1986, as 
 amended through December 31, 1990, that limit the aggregate 
 amount of obligations of a specified type or types which may be 
 issued by an issuer during a calendar year whose interest is 
 excluded from gross income for purposes of federal income 
 taxation. 

    Subd. 8a.    Housing pool.  "Housing pool" means the 
 amount of the annual volume cap allocated under section 474A.061 
 which is available for mortgage credit certificates or the 
 issuance of residential rental project bonds or mortgage bonds. 

    Subd. 9. Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 
 16 s 45 

    Subd. 10. Repealed, 1986 c 465 art 1 s 32; 1987 c 268 
 art 16 s 45 

    Subd. 11. Repealed, 1986 c 465 art 1 s 32; 1987 c 268 
 art 16 s 45 

    Subd. 12.    Issuer.  "Issuer" means any entitlement 
 issuer, state issuer, or other issuer. 

    Subd. 13. Repealed, 1987 c 268 art 16 s 45 

    Subd. 13a.    Small issue pool.  "Small issue pool" 
 means the amount of the annual volume cap allocated under 
 section 474A.061, that is available for the issuance of 
 enterprise zone facility bonds authorized under Public Law 
 Number 103-66, section 13301, small issue bonds to finance 
 manufacturing projects, and the agricultural development bond 
 beginning farmer and agricultural business enterprise loan 
 program authorized in sections 41C.01 to 41C.13. 

    Subd. 14.    Manufacturing project.  "Manufacturing 
 project" means any facility which is used in the manufacturing 
 or production of tangible personal property, including the 
 processing resulting in a change in the condition of the 
 property. 

    Subd. 15. Repealed, 1987 c 268 art 16 s 45 

    Subd. 16.  Repealed, 1986 c 465 art 1 s 32 

    Subd. 17. Repealed, 1987 c 268 art 16 s 45 

    Subd. 18.    Notice of entitlement allocation.  "Notice 
 of entitlement allocation" means a notice provided to an 
 entitlement issuer under section 474A.04, subdivision 5. 

    Subd. 19.    Other issuer.  "Other issuer" means an 
 entity other than an entitlement issuer or state issuer which 
 may issue obligations subject to an annual volume cap, including 
 the University of Minnesota, a city, town, federally recognized 
 American Indian tribe or subdivision located in Minnesota, 
 housing and redevelopment authority referred to in sections 
 469.001 to 469.047, or a body authorized to exercise the powers 
 of a housing and redevelopment authority, a port authority 
 referred to in sections 469.048 to 469.089, or a body authorized 
 to exercise the powers of a port authority, an economic 
 development authority referred to in sections 469.090 to 
 469.108, an area or municipal redevelopment agency referred to 
 in sections 469.109 to 469.123, a county, or municipal authority 
 or agency established under special law, or an entity issuing on 
 behalf of the foregoing. 

    Subd. 20. Repealed, 1987 c 268 art 16 s 45 

    Subd. 20a.    Permanently issued.  Obligations are 
 "permanently issued" if either (1) the obligations have been 
 issued under terms and conditions such that the proceeds are 
 available for the purpose for which they were issued, or (2) ten 
 percent of the proceeds of the obligations, excluding costs of 
 issuance, have been disbursed for the purpose for which they 
 were issued. 

    Subd. 21.    Preliminary resolution.  "Preliminary 
 resolution" means a resolution adopted by the governing body or 
 board of the issuer, or in the case of the iron range resources 
 and rehabilitation board by the commissioner.  The resolution 
 must express a preliminary intention of the issuer to issue 
 obligations for a specific project, identify the proposed 
 project, and disclose the proposed amount of qualified bonds to 
 be issued.  Preliminary resolutions for mortgage bonds and 
 student loan bonds need not identify a specific project. 

    Subd. 22. Repealed, 1986 c 465 art 1 s 32; 1987 c 268 
 art 16 s 45 

    Subd. 22a.    Public facilities pool.  "Public 
 facilities pool" means the amount of the annual volume cap 
 allocated under section 474A.061, which is available for the 
 issuance of public facility bonds or student loan bonds. 

    Subd. 22b.    Public facilities project.  "Public 
 facilities project" means any publicly owned facility that is 
 eligible to be financed with the proceeds of public facilities 
 bonds as defined under section 474A.02, subdivision 23a. 

    Subd. 23. Repealed, 1987 c 268 art 16 s 45 

    Subd. 23a.    Qualified bonds.  "Qualified bonds" means 
 the specific type or types of obligations that are subject to 
 the annual volume cap.  Qualified bonds include the following 
 types of obligations as defined in federal tax law: 

    (a) "public facility bonds" means "exempt facility bonds" 
 as defined in federal tax law, except for residential rental 
 project bonds, which are those obligations issued to finance 
 airports, docks and wharves, mass commuting facilities, 
 facilities for the furnishing of water, sewage facilities, solid 
 waste disposal facilities, facilities for the local furnishing 
 of electric energy or gas, local district heating or cooling 
 facilities, and qualified hazardous waste facilities.  New bonds 
 and other obligations are ineligible to receive state 
 allocations or entitlement authority for public facility 
 projects under this section if they have been issued:  

    (1) for the purpose of refinancing, refunding, or otherwise 
 defeasing existing debt; and 

    (2) more than one calendar year prior to the date of 
 application; 

    (b) "residential rental project bonds" which are those 
 obligations issued to finance qualified residential rental 
 projects; 

    (c) "mortgage bonds"; 

    (d) "small issue bonds" issued to finance manufacturing 
 projects and the acquisition or improvement of agricultural real 
 or personal property under sections 41C.01 to 41C.13; 

    (e) "student loan bonds"; 

    (f) "redevelopment bonds"; 

    (g) "governmental bonds" with a nonqualified amount in 
 excess of $15,000,000 as set forth in section 141(b)5 of federal 
 tax law; and 

    (h) "enterprise zone facility bonds" issued to finance 
 facilities located within empowerment zones or enterprise 
 communities, as authorized under Public Law Number 103-66, 
 section 13301. 

    Subd. 23b.    Rent.  "Rent" means the total monthly cost 
 of occupancy payable directly by the tenant and the cost of any 
 utilities, other than telephone.  It does not include a charge 
 for a service that is not required as a condition of occupancy. 

    Subd. 23c.    Single-room occupancy unit.  "Single-room 
 occupancy unit" means an enclosed dwelling space which does not 
 include within the space a separate bedroom and is suitable for 
 occupancy by one individual person capable of independent living.

    Subd. 24. Repealed, 1987 c 268 art 16 s 45 

    Subd. 25. Repealed, 1986 c 465 art 1 s 32; 1987 c 268 
 art 16 s 45 

    Subd. 26.    State issuer.  "State issuer" means the 
 state of Minnesota; the commissioner of iron range resources and 
 rehabilitation; or other agency, department, board, or 
 commission of the state, that is authorized to issue obligations 
 and has statewide jurisdiction. 

    Subd. 26a.    Unified pool.  "Unified pool" means the 
 amount of the annual volume cap allocated under section 474A.091 
 that is available for the issuance of qualified bonds.  

    Subd. 27. Repealed, 1987 c 268 art 16 s 45 

    Subd. 28. Repealed, 1987 c 268 art 16 s 45 

    Subd. 29. Repealed, 1987 c 268 art 16 s 45 

    HIST: 1986 c 465 art 1 s 10; 1987 c 268 art 16 s 1-21; 1987 c 
 312 art 1 s 26 subd 2; 1989 c 209 art 2 s 46; 1989 c 335 art 1 s 
 250; 1990 c 552 s 2-4; 1991 c 332 s 19,20; 1991 c 346 s 3-10; 
 1994 c 527 s 1-3; 1999 c 189 s 1 

     474A.025 Deadline dates and times. 

    All applications, notices, and other materials required to 
 be filed or submitted to the department pursuant to this chapter 
 must be received by the department no later than 4:30 p.m. on 
 the deadline day or date.  When an application, notice, or other 
 required material is required to be filed or submitted to the 
 department on or before a prescribed day or date and the 
 prescribed day or date falls on a Saturday, Sunday, or legal 
 holiday, it is timely filed or submitted if it is received by 
 the department by 4:30 p.m. on the next succeeding day which is 
 not a Saturday, Sunday, or legal holiday. 

    HIST: 1996 c 362 s 7 

     474A.03 Determination of annual volume cap. 

    Subdivision 1.    Under federal tax law; allocations.  
 At the beginning of each calendar year after December 31, 1997, 
 the commissioner shall determine the aggregate dollar amount of 
 the annual volume cap under federal tax law for the calendar 
 year, and of this amount the commissioner shall make the 
 following allocation:  

    (1) $63,000,000 to the small issue pool; 

    (2) $59,000,000 to the housing pool, $37,000,000 of which 
 is reserved until the day after the first Monday in February for 
 single-family housing programs; 

    (3) $10,500,000 to the public facilities pool; and 

    (4) amounts to be allocated as provided in subdivision 2a.  

    If the annual volume cap is greater or less than the amount 
 of bonding authority allocated under clauses (1) to (4) and 
 subdivision 2a, paragraph (a), clauses (1) to (4), the 
 allocation must be adjusted so that each adjusted allocation is 
 the same percentage of the annual volume cap as each original 
 allocation is of the total bonding authority originally 
 allocated. 

    Subd. 2. Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 
 16 s 45 

    Subd. 2a.    Entitlement issuer allocation.  (a) The 
 commissioner shall make the following allocation to the 
 Minnesota housing finance agency and the following cities and 
 county:  

    (1) $53,750,000 per year to the Minnesota housing finance 
 agency, less any amount received in the previous year under 
 section 474A.091, subdivision 6; 

    (2) $21,000,000 per year to the city of Minneapolis; 

    (3) $15,750,000 per year to the city of Saint Paul; and 

    (4) $10,500,000 per year to the Dakota county community 
 development agency for the county of Dakota and all political 
 subdivisions located within the county. 

    (b) Allocations provided under this subdivision must be 
 used for mortgage bonds, mortgage credit certificates, public 
 facility bonds, or residential rental project bonds, except that 
 entitlement issuers may also use their allocations for public 
 facility bonds, and may carry forward their allocations for any 
 qualified bond as defined under section 474A.02, subdivision 23a.

    Subd. 3. Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 
 16 s 45 

    Subd. 4.    Application fee.  Every entitlement issuer 
 and other issuer shall pay to the commissioner a nonrefundable 
 application fee to offset the state cost of program 
 administration.  The application fee is $20 for each $100,000 of 
 entitlement or allocation requested, with the request rounded to 
 the nearest $100,000.  The minimum fee is $20.  Fees received by 
 the commissioner must be credited to the general fund.  
 Application fees for projects of entitlement issuers must be 
 submitted to the commissioner with the notice of issuance of 
 bonds, notice of use of mortgage credit certificates, and notice 
 of carry forward. 

    HIST: 1986 c 465 art 1 s 11; 1Sp1986 c 3 art 2 s 33; 1987 c 
 268 art 16 s 22,23; 1990 c 552 s 5; 1991 c 332 s 21; 1991 c 345 
 art 1 s 96; 1991 c 346 s 11; 1992 c 545 art 1 s 3; 1994 c 527 s 
 4; 1995 c 167 s 6,7; 1997 c 169 s 1,2; 1999 c 248 s 25 

     474A.04 Entitlement allocations under existing federal 
  tax law. 

    Subdivision 1. Repealed, 1987 c 268 art 16 s 45 

    Subd. 1a.    Entitlement reservations; carryforward; 
 deduction.  Any amount returned by an entitlement issuer 
 before July 15 shall be reallocated through the housing pool.  
 Any amount returned on or after July 15 shall be reallocated 
 through the unified pool.  An amount returned after the last 
 Monday in November shall be reallocated to the Minnesota housing 
 finance agency.  Any amount of bonding authority that an 
 entitlement issuer carries forward under federal tax law that is 
 not permanently issued or for which the governing body of the 
 entitlement issuer has not enacted a resolution electing to use 
 the authority for mortgage credit certificates by July 15 of the 
 succeeding calendar year shall be deducted from the entitlement 
 allocation for that entitlement issuer for the current calendar 
 year.  Any amount deducted from an entitlement issuer's 
 allocation under this subdivision shall be reallocated through 
 the unified pool.  An entitlement issuer must permanently issue 
 all carryforward authority or enact a resolution electing to use 
 all carryforward authority for mortgage credit certificates 
 prior to issuing any current year authority of that entitlement 
 issuer. 

    Subd. 2. Repealed, 1987 c 268 art 16 s 45 

    Subd. 3. Repealed, 1987 c 268 art 16 s 45 

    Subd. 4. Repealed, 1987 c 268 art 16 s 45 

    Subd. 5.    Notice of entitlement allocation.  As soon 
 as possible in each calendar year, the commissioner shall 
 provide to each entitlement issuer a written notice of the 
 amount of its entitlement allocation.  

    Subd. 6.    Entitlement transfers.  An entitlement 
 issuer may enter into an agreement with another entitlement 
 issuer whereby the recipient entitlement issuer issues 
 obligations pursuant to bonding authority allocated to the 
 original entitlement issuer under this section.  An entitlement 
 issuer may enter into an agreement with an issuer which is not 
 an entitlement issuer whereby the recipient issuer issues 
 qualified mortgage bonds, up to $100,000 of which are issued 
 pursuant to bonding authority allocated to the original 
 entitlement issuer under this section.  The agreement may be 
 approved and executed by the mayor of the entitlement issuer 
 with or without approval or review by the city council. 

    HIST: 1986 c 465 art 1 s 12; 1987 c 268 art 16 s 24-26; 1988 c 
 586 s 1; 1988 c 702 s 8; 1991 c 346 s 12; 1992 c 545 art 1 s 4; 
 1994 c 527 s 5; 1997 c 169 s 3 

     474A.045 Scoring system for manufacturing projects. 

    The following criteria must be used in determining the 
 allocation of small issue bonds for manufacturing projects.  The 
 issuer must prepare and submit to the commissioner a public 
 purpose scoring worksheet that presents the data and methods 
 used in determining the total score under this section.  The 
 total score is the sum of the following: 

    (1) the number of direct new jobs in the state generated by 
 the proposed project for the next two years per $100,000 of 
 proposed allocation multiplied by 15; 

    (2) the number of direct existing jobs in the state 
 multiplied by .625 due to the proposed project per $100,000 of 
 proposed allocation multiplied by 15; 

    (3) the average hourly wage paid to employees by the 
 proposed project, exclusive of benefits mandated by law, based 
 on the following scale: 

 Wages paid per hour             $ 8    $10    $12    $15 
 Non-Metro area points awarded    10     15     20     20 
 Seven-County Metro Area 
 points awarded                    0     10     15     20 

    For purposes of this section, the seven-county metropolitan 
 area includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
 and Washington; 

    (4) the quotient of the estimated total net increase in 
 property taxes generated in the state by the project in the 
 first full year of operation divided by the proposed bond 
 allocation, multiplied by 500; and 

    (5) the seasonally unadjusted unemployment rate in the 
 community where the proposed project is located measured as a 
 percent of the state's unemployment rate, multiplied by ten. 

    The community seasonally unadjusted unemployment rate used 
 in determining the points under clause (5) must be the most 
 recent rate for the city or county in which the proposed project 
 is located, as provided by the commissioner of economic security.

    HIST: 1990 c 552 s 6; 1994 c 483 s 1; 1998 c 363 s 3; 1999 c 
 189 s 2 

     474A.047 Residential rental bonds; limitations. 

    Subdivision 1.    Eligibility.  (a) An issuer may only 
 use the proceeds from residential rental bonds if the proposed 
 project meets one of the following: 

    (1) the proposed project is a single room occupancy project 
 and all the units of the project will be occupied by individuals 
 whose incomes at the time of their initial residency in the 
 project are 50 percent or less of the greater of the statewide 
 or county median income adjusted for household size as 
 determined by the federal Department of Housing and Urban 
 Development; 

    (2) the proposed project is a multifamily project where at 
 least 75 percent of the units have two or more bedrooms and at 
 least one-third of the 75 percent have three or more bedrooms; 
 or 

    (3) the proposed project is a multifamily project that 
 meets the following requirements: 

    (i) the proposed project is the rehabilitation of an 
 existing building which meets the requirements for minimum 
 rehabilitation expenditures in sections 42(e)(2) and 42(e)(3)(A) 
 of the Internal Revenue Code; 

    (ii) the proposed project involves participation by the 
 Minnesota housing finance agency or a local unit of government 
 in the financing of the acquisition or rehabilitation of the 
 project.  For purposes of this subdivision, "participation" 
 means an activity other than the issuance of the bonds; and 

    (iii) the proposed project must be occupied by individuals 
 or families whose incomes at the time of their initial residency 
 in the project meet the requirements of section 42(g) of the 
 Internal Revenue Code. 

    (b) The maximum rent for a proposed single room occupancy 
 unit under paragraph (a), clause (1), is 30 percent of the 
 amount equal to 30 percent of the greater of the statewide or 
 county median income for a one-member household as determined by 
 the federal Department of Housing and Urban Development.  The 
 maximum rent for at least 75 percent of the units of a 
 multifamily project under paragraph (a), clause (2), is 30 
 percent of the amount equal to 50 percent of the greater of the 
 statewide or county median income as determined by the federal 
 Department of Housing and Urban Development based on a household 
 size with 1.5 persons per bedroom. 

    (c) The proceeds from residential rental bonds may be used 
 for a project for which project-based federal rental assistance 
 payments are made only if: 

    (1) the owner of the project enters into a binding 
 agreement with the Minnesota housing finance agency under which 
 the owner is obligated to extend any existing low-income 
 affordability restrictions and any contract or agreement for 
 rental assistance payments for the maximum term permitted, 
 including any renewals thereof; and 

    (2) the Minnesota housing finance agency certifies that 
 project reserves will be maintained at closing of the bond issue 
 and budgeted in future years at the lesser of: 

    (i) the level described in Minnesota Rules, part 4900.0010, 
 subpart 7, item A, subitem (2), effective May 1, 1997; or 

    (ii) the level of project reserves available prior to the 
 bond issue, provided that additional money is available to 
 accomplish repairs and replacements needed at the time of bond 
 issue. 

    Subd. 2.    15-year agreement.  Prior to the issuance of 
 residential rental bonds, the developer of the project for which 
 the bond proceeds will be used must enter into a 15-year 
 agreement with the issuer that specifies the maximum rental 
 rates of the units in the project and the income levels of the 
 residents of the project.  The rental rates and income levels 
 must be within the limitations established under subdivision 1.  
 The developer must annually certify to the issuer over the term 
 of the agreement that the rental rates are within the 
 limitations under subdivision 1.  The issuer may request 
 individual certification of the income of all residents of the 
 project.  The commissioner may request from the issuer a copy of 
 the annual certification prepared by the developer.  The 
 commissioner may require the issuer to request individual 
 certification of all residents of the project. 

    Subd. 3.    Penalty.  The issuer shall monitor project 
 compliance with the rental rate and income level requirements 
 under subdivision 1.  The issuer may issue an order of 
 noncompliance if a project is found by the issuer to be out of 
 compliance with the rental rate or income level requirements 
 under subdivision 1.  The owner or owners of the project shall 
 pay a penalty to the issuer equal to one-half of one percent of 
 the total amount of bonds issued for the project under this 
 chapter if the issuer issues an order of noncompliance.  For 
 each additional year a project is out of compliance, the annual 
 penalty must be increased by one-half of one percent of the 
 total amount of bonds issued under this chapter for the project. 
 The issuer may waive insubstantial violations. 

    HIST: 1990 c 552 s 7; 1991 c 346 s 13,14; 1992 c 545 art 1 s 
 5; 1993 c 164 s 4; 1994 c 527 s 6; 1997 c 169 s 4; 2000 c 493 s 
 15 

  474A.048 Repealed, 1991 c 346 s 29 

  474A.05 Repealed, 1987 c 268 art 16 s 45 

  474A.06 Repealed, 1987 c 268 art 16 s 45 

     474A.061 Allocation of manufacturing, housing, and 
  public facilities pools. 

    Subdivision 1.    Application.  (a) An issuer may apply 
 for an allocation under this section by submitting to the 
 department an application on forms provided by the department, 
 accompanied by (1) a preliminary resolution, (2) a statement of 
 bond counsel that the proposed issue of obligations requires an 
 allocation under this chapter, (3) the type of qualified bonds 
 to be issued, (4) an application deposit in the amount of one 
 percent of the requested allocation before the last Monday in 
 July, or in the amount of two percent of the requested 
 allocation on or after the last Monday in July, (5) a public 
 purpose scoring worksheet for manufacturing project 
 applications, and (6) a statement from the applicant or bond 
 counsel as to whether the project preserves existing federally 
 subsidized housing for residential rental project applications.  
 The issuer must pay the application deposit by a check made 
 payable to the department of finance.  The Minnesota housing 
 finance agency, the Minnesota rural finance authority, and the 
 Minnesota higher education services office may apply for and 
 receive an allocation under this section without submitting an 
 application deposit. 

    (b) An entitlement issuer may not apply for an allocation 
 from the housing pool or from the public facilities pool unless 
 it has either permanently issued bonds equal to the amount of 
 its entitlement allocation for the current year plus any amount 
 of bonding authority carried forward from previous years or 
 returned for reallocation all of its unused entitlement 
 allocation.  For purposes of this subdivision, its entitlement 
 allocation includes an amount obtained under section 474A.04, 
 subdivision 6.  This paragraph does not apply to an application 
 from the Minnesota housing finance agency for an allocation 
 under subdivision 2a for cities who choose to have the agency 
 issue bonds on their behalf. 

    (c) If an application is rejected under this section, the 
 commissioner must notify the applicant and return the 
 application deposit to the applicant within 30 days unless the 
 applicant requests in writing that the application be 
 resubmitted.  The granting of an allocation of bonding authority 
 under this section must be evidenced by a certificate of 
 allocation. 

    Subd. 2. Repealed, 1990 c 552 s 24 

    Subd. 2a.    Housing pool allocation.  (a) On the first 
 business day that falls on a Monday of the calendar year and the 
 first Monday in February, the commissioner shall allocate 
 available bonding authority in the housing pool to applications 
 received by the Monday of the previous week for residential 
 rental projects that are not restricted to persons who are 55 
 years of age or older and that meet the eligibility criteria 
 under section 474A.047, except that allocations may be made to 
 projects that are restricted to persons who are 55 years of age 
 or older, if the project preserves existing federally subsidized 
 housing.  Projects that preserve existing federally subsidized 
 housing shall be allocated available bonding authority in the 
 housing pool for residential rental projects prior to the 
 allocation of available bonding authority to other eligible 
 residential rental projects.  If an issuer that receives an 
 allocation under this paragraph does not issue obligations equal 
 to all or a portion of the allocation received within 120 days 
 of the allocation or returns the allocation to the commissioner, 
 the amount of the allocation is canceled and returned for 
 reallocation through the housing pool. 

    (b) After February 1, and through February 15, the 
 Minnesota housing finance agency may accept applications from 
 cities for single-family housing programs which meet program 
 requirements as follows:  

    (1) the housing program must meet a locally identified 
 housing need and be economically viable; 

    (2) the adjusted income of home buyers may not exceed 80 
 percent of the greater of statewide or area median income as 
 published by the Department of Housing and Urban Development, 
 adjusted for household size; 

    (3) house price limits may not exceed the federal price 
 limits established for mortgage revenue bond programs.  Data on 
 the home purchase price amount, mortgage amount, income, 
 household size, and race of the households served in the 
 previous year's single-family housing program, if any, must be 
 included in each application; and 

    (4) an application deposit equal to one percent of the 
 requested allocation must be submitted before the agency 
 forwards the list specifying the amounts allocated to the 
 commissioner under paragraph (c).  The agency shall submit the 
 city's application and application deposit to the commissioner 
 when requesting an allocation from the housing pool. 

    Applications by a consortium shall include the name of each 
 member of the consortium and the amount of allocation requested 
 by each member. 

    The Minnesota housing finance agency may accept 
 applications from June 15 through June 30 from cities for 
 single-family housing programs which meet program requirements 
 specified under clauses (1) to (4) if bonding authority is 
 available in the housing pool.  Applications will be accepted 
 from June 15 to June 30 only from cities that received an 
 allotment in the same calendar year and used at least 75 percent 
 of their allotment by June 1.  Allocations will be made loan by 
 loan, on a first come, first served basis among applicant 
 cities.  The agency must allot available bonding authority.  For 
 purposes of paragraphs (a) to (g), "city" means a county or a 
 consortium of local government units that agree through a joint 
 powers agreement to apply together for single-family housing 
 programs, and has the meaning given it in section 462C.02, 
 subdivision 6.  "Agency" means the Minnesota housing finance 
 agency.  

    (c) The total amount of allocation for mortgage bonds for 
 one city is limited to the lesser of:  (i) the amount requested, 
 or (ii) the product of the total amount available for mortgage 
 bonds from the housing pool, multiplied by the ratio of each 
 applicant's population as determined by the most recent estimate 
 of the city's population released by the state demographer's 
 office to the total of all the applicants' population, except 
 that each applicant shall be allocated a minimum of $100,000 
 regardless of the amount requested or the amount determined 
 under the formula in clause (ii).  If a city applying for an 
 allocation is located within a county that has also applied for 
 an allocation, the city's population will be deducted from the 
 county's population in calculating the amount of allocations 
 under this paragraph. 

    Upon determining the amount of each applicant's allocation, 
 the agency shall forward a list specifying the amounts allotted 
 to each application and application deposit checks to the 
 commissioner. 

    (d) The agency may issue bonds on behalf of participating 
 cities.  The agency shall request an allocation from the 
 commissioner for all applicants who choose to have the agency 
 issue bonds on their behalf and the commissioner shall allocate 
 the requested amount to the agency.  The agency may request an 
 allocation at any time after the first Monday in February and 
 through the last Monday in July, but may request an allocation 
 no later than the last Monday in July.  The commissioner shall 
 return any application deposit to a city that paid an 
 application deposit under paragraph (b), clause (4), but was not 
 part of the list forwarded to the commissioner under paragraph 
 (c). 

    (e) A city may choose to issue bonds on its own behalf or 
 through a joint powers agreement or may use bonding authority 
 for mortgage credit certificates and may request an allocation 
 from the commissioner.  If the total amount requested by all 
 applicants exceeds the amount available in the pool, the city 
 may not receive a greater allocation than the amount it would 
 have received under the list forwarded by the Minnesota housing 
 finance agency to the commissioner.  No city may request or 
 receive an allocation from the commissioner until the list under 
 paragraph (c) has been forwarded to the commissioner.  A city 
 must request an allocation from the commissioner no later than 
 14 days before the unified pool is created pursuant to section 
 474A.091, subdivision 1.  On and after the first Monday in 
 February and through the last Monday in July, no city may 
 receive an allocation from the housing pool which has not first 
 applied to the Minnesota housing finance agency.  The 
 commissioner shall allocate the requested amount to the city or 
 cities subject to the limitations under this paragraph.  

    If a city issues mortgage bonds from an allocation received 
 under this paragraph, the issuer must provide for the recycling 
 of funds into new loans.  If the issuer is not able to provide 
 for recycling, the issuer must notify the commissioner in 
 writing of the reason that recycling was not possible and the 
 reason the issuer elected not to have the Minnesota housing 
 finance agency issue the bonds.  "Recycling" means the use of 
 money generated from the repayment and prepayment of loans for 
 further eligible loans or for the redemption of bonds and the 
 issuance of current refunding bonds. 

    (f) No entitlement city or county or city in an entitlement 
 county may apply for or be allocated authority to issue bonds or 
 use mortgage credit certificates from the housing pool. 

    (g) A city that does not use at least 50 percent of its 
 allotment by the date applications are due for the first 
 allocation that is made from the housing pool for single-family 
 housing programs in the immediately succeeding calendar year may 
 not apply to the housing pool for a single-family mortgage bond 
 or mortgage credit certificate program allocation that exceeds 
 the amount of its allotment for the preceding year that was used 
 by the city in the immediately preceding year or receive an 
 allotment from the housing pool in the succeeding calendar year 
 that exceeds the amount of its allotment for the preceding year 
 that was used in the preceding year.  The minimum allotment is 
 $100,000, regardless of the amount used in the preceding 
 calendar year.  Each local government unit in a consortium must 
 meet the requirements of this paragraph. 

    Subd. 2b.    Small issue pool allocation.  On the first 
 Monday in January that is a business day through the last Monday 
 in July, the commissioner shall allocate available bonding 
 authority from the small issue pool on Monday of each week to 
 applications received on or before the Monday of the preceding 
 week.  From the first Monday in January that is a business day 
 through the last Monday in July, the commissioner shall reserve 
 $5,000,000 of the available bonding authority from the small 
 issue pool for applications for agricultural development bond 
 loan projects of the Minnesota rural finance authority.  The 
 commissioner shall reserve $10,000,000 until the day after the 
 last Monday in February, $10,000,000 until the day after the 
 last Monday in April, and $10,000,000 until the day after the 
 last Monday in June in the small issue pool for manufacturing 
 projects.  The amount of allocation provided to an issuer for a 
 specific manufacturing project will be based on the number of 
 points received for the proposed project under the scoring 
 system under section 474A.045.  Proposed projects that receive 
 50 points or more are eligible for all of the proposed 
 allocation.  Proposed projects that receive less than 50 points 
 are eligible to receive a proportionally reduced share of the 
 proposed authority, based upon the number of points received. 

    If there are two or more applications for manufacturing 
 projects from the small issue pool and there is insufficient 
 bonding authority to provide allocations for all projects in any 
 one week, the available bonding authority shall be awarded based 
 on the number of points awarded a project under section 
 474A.045, with those projects receiving the greatest number of 
 points receiving allocation first.  If two or more applications 
 receive an equal number of points, available bonding authority 
 shall be awarded by lot unless otherwise agreed to by the 
 respective issuers. 

    Subd. 2c.    Public facilities pool allocation.  From 
 the beginning of the calendar year and continuing for a period 
 of 120 days, the commissioner shall reserve $5,000,000 of the 
 available bonding authority from the public facilities pool for 
 applications for public facilities projects to be financed by 
 the Western Lake Superior Sanitary District.  On the first 
 Monday in January that is a business day through the last Monday 
 in July, the commissioner shall allocate available bonding 
 authority from the public facilities pool on Monday of each week 
 to applications for eligible public facilities projects received 
 on or before the Monday of the preceding week.  If there are two 
 or more applications for public facilities projects from the 
 pool and there is insufficient available bonding authority to 
 provide allocations for all projects in any one week, the 
 available bonding authority shall be awarded by lot unless 
 otherwise agreed to by the respective issuers. 

    Subd. 3. Repealed, 1998 c 363 s 9 

    Subd. 4.    Return of allocation; deposit refund.  (a) 
 If an issuer that receives an allocation under this section 
 determines that it will not issue obligations equal to all or a 
 portion of the allocation received under this section within 120 
 days of allocation or within the time period permitted by 
 federal tax law, whichever is less, the issuer must notify the 
 department.  If the issuer notifies the department or the 
 120-day period since allocation has expired prior to the last 
 Monday in July, the amount of allocation is canceled and 
 returned for reallocation through the pool from which it was 
 originally allocated.  If the issuer notifies the department or 
 the 120-day period since allocation has expired on or after the 
 last Monday in July, the amount of allocation is canceled and 
 returned for reallocation through the unified pool.  If the 
 issuer notifies the department after the last Monday in 
 November, the amount of allocation is canceled and returned for 
 reallocation to the Minnesota housing finance agency.  To 
 encourage a competitive application process, the commissioner 
 shall reserve, for new applications, the amount of allocation 
 that is canceled and returned for reallocation under this 
 section for a minimum of seven calendar days. 

    (b) An issuer that returns for reallocation all or a 
 portion of an allocation received under this section within 120 
 days of allocation shall receive within 30 days a refund equal 
 to:  

    (1) one-half of the application deposit for the amount of 
 bonding authority returned within 30 days of receiving 
 allocation; 

    (2) one-fourth of the application deposit for the amount of 
 bonding authority returned between 31 and 60 days of receiving 
 allocation; and 

    (3) one-eighth of the application deposit for the amount of 
 bonding authority returned between 61 and 120 days of receiving 
 allocation. 

    (c) No refund shall be available for allocations returned 
 120 or more days after receiving the allocation or beyond the 
 last Monday in November.  This subdivision does not apply to the 
 Minnesota housing finance agency or the Minnesota rural finance 
 authority. 

    Subd. 5. Repealed, 1988 c 586 s 5 

    Subd. 6.    Deadline for issuance of qualified bonds.  
 If an issuer fails to notify the department before the last 
 Monday in December of issuance of obligations pursuant to an 
 allocation received for any qualified bond project, the 
 allocation is canceled and the bonding authority is allocated to 
 the department of finance for reallocation under section 
 474A.091, subdivision 6. 

    HIST: 1987 c 268 art 16 s 27; 1988 c 586 s 2,3; 1Sp1989 c 1 
 art 17 s 16-18; 1990 c 552 s 9-14; 1991 c 332 s 22-25; 1991 c 
 346 s 15-20; 1992 c 545 art 1 s 6,7; 1993 c 164 s 5; 1994 c 527 
 s 7,8; 1995 c 167 s 8-11; 1995 c 186 s 93; 1995 c 212 art 3 s 
 59; 1996 c 362 s 8-10; 1997 c 169 s 5; 1998 c 363 s 4-6; 1999 c 
 189 s 3-5 

    474A.07 Subdivision 1. Repealed, 1987 c 268 art 16 
 s 45 

    Subd. 2. Repealed, 1987 c 268 art 16 s 45 

    Subd. 3. Repealed, 1987 c 268 art 16 s 45 

    Subd. 4. Repealed, 1987 c 268 art 16 s 45 

    Subd. 5. Repealed, 1987 c 268 art 16 s 45 

    Subd. 6. Repealed, 1987 c 268 art 16 s 45 

    Subd. 7. Repealed, 1986 c 465 art 1 s 32; 1987 c 
 268 art 16 s 45 

  474A.08 Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 16 
  s 45 

    474A.081 Subdivision 1. Repealed, 1991 c 199 art 1 s 78; 
 1991 c 346 s 29 

    Subd. 2.  Repealed, 1991 c 199 art 1 s 78; 1991 c 346 s 
 29 

    Subd. 3.  Repealed, 1989 c 328 art 1 s 21 

    Subd. 4.  Repealed, 1991 c 199 art 1 s 78; 1991 c 346 s 
 29 

  474A.09 Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 16 
  s 45 

     474A.091 Allocation of unified pool. 

    Subdivision 1.    Unified pool amount.  On the day after 
 the last Monday in July any bonding authority remaining 
 unallocated from the small issue pool, the housing pool, and the 
 public facilities pool is transferred to the unified pool and 
 must be reallocated as provided in this section. 

    Subd. 2.    Application.  Issuers may apply for an 
 allocation under this section by submitting to the department an 
 application on forms provided by the department accompanied by 
 (1) a preliminary resolution, (2) a statement of bond counsel 
 that the proposed issue of obligations requires an allocation 
 under this chapter, (3) the type of qualified bonds to be 
 issued, (4) an application deposit in the amount of two percent 
 of the requested allocation, and (5) a public purpose scoring 
 worksheet for manufacturing applications.  The issuer must pay 
 the application deposit by check.  An entitlement issuer may not 
 apply for an allocation for public facility bonds, residential 
 rental project bonds, or mortgage bonds under this section 
 unless it has either permanently issued bonds equal to the 
 amount of its entitlement allocation for the current year plus 
 any amount carried forward from previous years or returned for 
 reallocation all of its unused entitlement allocation.  For 
 purposes of this subdivision, its entitlement allocation 
 includes an amount obtained under section 474A.04, subdivision 6.

    The Minnesota housing finance agency may not apply for an 
 allocation for mortgage bonds under this section until after the 
 last Monday in August.  Notwithstanding the restrictions imposed 
 on unified pool allocations after September 1 under subdivision 
 3, paragraph (c)(2), the Minnesota housing finance agency may be 
 awarded allocations for mortgage bonds from the unified pool 
 after September 1.  The Minnesota housing finance agency, the 
 Minnesota higher education services office, and the Minnesota 
 rural finance authority may apply for and receive an allocation 
 under this section without submitting an application deposit. 

    Subd. 3.    Allocation procedure.  (a) The commissioner 
 shall allocate available bonding authority under this section on 
 the Monday of every other week beginning with the first Monday 
 in August through and on the last Monday in November.  
 Applications for allocations must be received by the department 
 by the Monday preceding the Monday on which allocations are to 
 be made.  If a Monday falls on a holiday, the allocation will be 
 made or the applications must be received by the next business 
 day after the holiday.  

    (b) On or before September 1, allocations shall be awarded 
 from the unified pool in the following order of priority: 

    (1) applications for enterprise zone facility bonds; 

    (2) applications for small issue bonds for manufacturing 
 projects; 

    (3) applications for small issue bonds for agricultural 
 development bond loan projects; 

    (4) applications for residential rental project bonds; 

    (5) applications for public facility projects funded by 
 public facility bonds; 

    (6) applications for redevelopment bonds; 

    (7) applications for mortgage bonds; and 

    (8) applications for governmental bonds. 

    Allocations for residential rental projects may only be 
 made during the first allocation in August.  The amount of 
 allocation provided to an issuer for a specific manufacturing 
 project will be based on the number of points received for the 
 proposed project under the scoring system under section 474A.045.
 Proposed manufacturing projects that receive 50 points or more 
 are eligible for all of the proposed allocation.  Proposed 
 manufacturing projects that receive less than 50 points under 
 section 474A.045 are only eligible to receive a proportionally 
 reduced share of the proposed authority, based upon the number 
 of points received.  If there are two or more applications for 
 manufacturing projects from the unified pool and there is 
 insufficient bonding authority to provide allocations for all 
 manufacturing projects in any one allocation period, the 
 available bonding authority shall be awarded based on the number 
 of points awarded a project under section 474A.045 with those 
 projects receiving the greatest number of points receiving 
 allocation first.  If two or more applications receive an equal 
 amount of points, available bonding authority shall be awarded 
 by lot unless otherwise agreed to by the respective issuers. 

    (c)(1) From the first Monday in August through the last 
 Monday in November, $20,000,000 of bonding authority or an 
 amount equal to the total annual amount of bonding authority 
 allocated to the small issue pool under section 474A.03, 
 subdivision 1, less the amount allocated to issuers from the 
 small issue pool for that year, whichever is less, is reserved 
 within the unified pool for small issue bonds to the extent such 
 amounts are available within the unified pool.  On the first 
 Monday in September through the last Monday in November, 
 $2,500,000 of bonding authority or an amount equal to the total 
 annual amount of bonding authority allocated to the public 
 facilities pool under section 474A.03, subdivision 1, less the 
 amount allocated to issuers from the public facilities pool for 
 that year, whichever is less, is reserved within the unified 
 pool for public facility bonds to the extent such amounts are 
 available within the unified pool.  

    (2) The total amount of allocations for mortgage bonds from 
 the housing pool and the unified pool may not exceed: 

    (i) $10,000,000 for any one city; or 

    (ii) $20,000,000 for any number of cities in any one county.

    An allocation for mortgage bonds may be used for mortgage 
 credit certificates. 

    (d) After September 1, allocations shall be awarded from 
 the unified pool only for the following types of qualified bonds:
 small issue bonds, public facility bonds to finance publicly 
 owned facility projects, residential rental project bonds, and 
 enterprise zone facility bonds. 

    If there is insufficient bonding authority to fund all 
 projects within any qualified bond category, allocations shall 
 be awarded by lot unless otherwise agreed to by the respective 
 issuers.  If an application is rejected, the commissioner must 
 notify the applicant and return the application deposit to the 
 applicant within 30 days unless the applicant requests in 
 writing that the application be resubmitted.  The granting of an 
 allocation of bonding authority under this section must be 
 evidenced by issuance of a certificate of allocation. 

    Subd. 4.    Mortgage bonds.  All remaining bonding 
 authority available for allocation under this section on 
 December 1, is allocated to the Minnesota housing finance agency.

    Subd. 4a. Repealed, 1990 c 552 s 24 

    Subd. 5.    Return of allocation; deposit refund.  (a) 
 If an issuer that receives an allocation under this section 
 determines that it will not issue obligations equal to all or a 
 portion of the allocation received under this section within 120 
 days of the allocation or within the time period permitted by 
 federal tax law, whichever is less, the issuer must notify the 
 department.  If the issuer notifies the department or the 
 120-day period since allocation has expired prior to the last 
 Monday in November, the amount of allocation is canceled and 
 returned for reallocation through the unified pool.  If the 
 issuer notifies the department on or after the last Monday in 
 November, the amount of allocation is canceled and returned for 
 reallocation to the Minnesota housing finance agency.  To 
 encourage a competitive application process, the commissioner 
 shall reserve, for new applications, the amount of allocation 
 that is canceled and returned for reallocation under this 
 section for a minimum of seven calendar days. 

    (b) An issuer that returns for reallocation all or a 
 portion of an allocation received under this section within 120 
 days of the allocation shall receive within 30 days a refund 
 equal to:  

    (1) one-half of the application deposit for the amount of 
 bonding authority returned within 30 days of receiving the 
 allocation; 

    (2) one-fourth of the application deposit for the amount of 
 bonding authority returned between 31 and 60 days of receiving 
 the allocation; and 

    (3) one-eighth of the application deposit for the amount of 
 bonding authority returned between 61 and 120 days of receiving 
 the allocation. 

    (c) No refund of the application deposit shall be available 
 for allocations returned on or after the last Monday in November.
 This subdivision does not apply to the Minnesota housing finance 
 agency, or the Minnesota rural finance authority. 

    Subd. 6.    Final allocation; carryforward.  Any bonding 
 authority remaining unissued by the Minnesota housing finance 
 agency shall be carried forward into the next calendar year by 
 the Minnesota housing finance agency in accordance with section 
 474A.131, subdivision 2. 

    HIST: 1987 c 268 art 16 s 29; 1987 c 312 art 1 s 26 subd 2; 
 1988 c 586 s 4; 1Sp1989 c 1 art 17 s 19,20; 1990 c 552 s 15-19; 
 1991 c 332 s 26; 1991 c 346 s 21-24; 1992 c 545 art 1 s 8,9; 
 1994 c 527 s 9,10; 1995 c 167 s 12,13; 1995 c 212 art 3 s 59; 
 1996 c 362 s 11; 1997 c 169 s 6,7; 1998 c 363 s 7,8; 1999 c 189 
 s 6 

  474A.10 Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 16 
  s 45 

  474A.11 Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 16 
  s 45 

  474A.12 Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 16 
  s 45 

    474A.13 Subdivision 1. Repealed, 1986 c 465 art 1 
 s 32 

    Subd. 2. Repealed, 1986 c 465 art 1 s 32; 1987 c 
 268 art 16 s 45 

    Subd. 3. Repealed, 1986 c 465 art 1 s 32; 1987 c 
 268 art 16 s 45 

    Subd. 4. Repealed, 1986 c 465 art 1 s 32 

    Subd. 5. Repealed, 1986 c 465 art 1 s 32 

     474A.131 Notice of issue and notice of carryforward. 

    Subdivision 1.    Notice of issue.  Each issuer that 
 issues bonds with an allocation received under this chapter 
 shall provide a notice of issue to the department on forms 
 provided by the department stating: 

    (1) the date of issuance of the bonds; 

    (2) the title of the issue; 

    (3) the principal amount of the bonds; 

    (4) the type of qualified bonds under federal tax law; and 

    (5) the dollar amount of the bonds issued that were subject 
 to the annual volume cap.  

    For obligations that are issued as a part of a series of 
 obligations, a notice must be provided for each series.  A 
 penalty of one-half of the amount of the application deposit not 
 to exceed $5,000 shall apply to any issue of obligations for 
 which a notice of issue is not provided to the department within 
 five business days after issuance or before the last Monday in 
 December, whichever occurs first.  Within 30 days after receipt 
 of a notice of issue the department shall refund a portion of 
 the application deposit equal to one percent of the amount of 
 the bonding authority actually issued if a one percent 
 application deposit was made, or equal to two percent of the 
 amount of the bonding authority actually issued if a two percent 
 application deposit was made, less any penalty amount. 

    Subd. 1a.    Certificate of notice.  If an allocation 
 received under this chapter is used for mortgage credit 
 certificates, a certificate notice must be submitted to the 
 department on forms provided by the department stating the date 
 of the filing of the election not to issue bonds as provided 
 under section 25, paragraph (c), of the Internal Revenue Code 
 and the amount of allocation authority to be used under the 
 program. 

    A penalty of one-half of the amount of the application 
 deposit not to exceed $5,000 shall apply to any mortgage credit 
 certificate program for which a certificate notice is not 
 provided to the department within five days of the date of the 
 filing of the election not to issue bonds or before the last 
 Monday in December, whichever occurs first.  Within 30 days 
 after receipt of a certificate notice the department shall 
 refund a portion of the application deposit equal to one percent 
 of the amount of the bonding authority to be used for the 
 mortgage credit certificate program, less any penalty amount. 

    Subd. 2.    Carryforward notice.  If an issuer intends 
 to carry forward an allocation received under this chapter, it 
 must notify the department in writing before the last Monday of 
 December.  

    Subd. 3.    Irrevocable allocation.  The department may 
 not revoke an allocation received under this chapter after 
 receiving a notice of issue or certificate notice from the 
 issuer.  

    HIST: 1987 c 268 art 16 s 33; 1990 c 552 s 20; 1991 c 346 s 
 25; 1994 c 527 s 11,12; 1995 c 167 s 14; 1996 c 362 s 12,13; 
 1997 c 169 s 8,9 

     474A.14 Notice of available authority. 

    The department shall publish in the State Register a notice 
 of the amount of bonding authority in the housing, small issue, 
 and public facilities pools as soon after January 1 as 
 possible.  The department shall publish in the State Register a 
 notice of the amount of bonding authority available for 
 allocation in the unified pool as soon after August 1 as 
 possible. 

    HIST: 1986 c 465 art 1 s 22; 1987 c 268 art 16 s 34; 1990 c 
 552 s 21; 1991 c 332 s 27; 1996 c 362 s 14 

     474A.15 State held harmless. 

    The state is not liable in any manner to any issuer, holder 
 of obligations, or other person for carrying out the duties 
 imposed on it under this chapter.  

    HIST: 1986 c 465 art 1 s 23; 1987 c 268 art 16 s 35; 1991 c 
 346 s 26 

     474A.16 Exclusive method of allocation. 

    This chapter is the exclusive method for allocating 
 authority to issue obligations for the purposes of complying 
 with the volume limitation of federal tax law.  

    HIST: 1986 c 465 art 1 s 24; 1987 c 268 art 16 s 36; 1991 c 
 346 s 27 

     474A.17 Administrative Procedure Act not applicable. 

    Chapter 14, including section 14.386, does not apply to 
 actions taken by any state agency or entity under this chapter. 

    HIST: 1986 c 465 art 1 s 25; 1987 c 268 art 16 s 37; 1991 c 
 346 s 28; 1997 c 187 art 4 s 9 

  474A.18 Repealed, 1986 c 465 art 1 s 32 

  474A.19 Repealed, 1986 c 465 art 1 s 32; 1987 c 268 art 16 
  s 45 

  474A.20 Repealed, 1986 c 465 art 1 s 32 

     474A.21 Appropriation; receipts. 

    Any fees collected by the department under sections 474A.01 
 to 474A.21 must be deposited in a separate account in the 
 general fund.  The amount necessary to refund application 
 deposits is appropriated to the department from the separate 
 account in the general fund for that purpose.  The interest 
 accruing on application deposits and any application deposit not 
 refunded as provided under section 474A.061, subdivision 4, or 
 474A.091, subdivision 5, or forfeited as provided under section 
 474A.131, subdivision 2, must be deposited in the housing trust 
 fund account under section 462A.201. 

    HIST: 1986 c 465 art 1 s 29; 1987 c 268 art 16 s 40; 1990 c 
 520 s 5