462C.03 CITY HOUSING PLAN.
Subdivision 1.[Repealed, 1995 c 167 s 16
Subd. 1a. Plan requirements.
In addition to the requirements provided in subdivisions 2
and 3, if applicable, each program to be developed and administered by a city under a housing
plan shall, at a minimum, set forth:
(a) a general description of the program;
(b) a designation of the geographic location to which the program will be limited;
(c) in the case of a program for single family housing, the number and qualifications of
lenders eligible to participate in the program;
(d) in the case of a program for single family housing, the estimated amount of mortgage or
rehabilitation loans to be made or purchased in the program;
(e) the estimated amounts and timing of the sale of revenue bonds required to finance the
program, including the funding of appropriate reserves, and paying costs of issuance;
(f) methods for monitoring the implementation by participants to insure that the program will
be consistent with the plan and its objectives;
(g) the portion, if any, of the state ceiling for qualified mortgage bonds needed for the
(h) an analysis of how the program will meet the needs of low and moderate income
(i) for mortgage credit certificate programs the program shall additionally set forth, or
contain as an exhibit, the following:
(1) the range of credit certificate rates to be used and how the rates are assigned to certificate
(2) the nonissued bond amount as that term is used in section 25(d)(2)(B) of the Internal
Revenue Code of 1954, as amended through July 18, 1984;
(3) the form used to elect under section 25(c)(2)(A)(ii) of the Internal Revenue Code of 1954,
as amended through July 18, 1984;
(4) the plan submitted to the secretary of the treasury pursuant to section 25(d)(3) of the
Internal Revenue Code of 1954, as amended through July 18, 1984; and
(5) how the city will ensure compliance with all of the requirements of section 25 of the
Internal Revenue Code of 1954, as amended through July 18, 1984.
Subd. 2. Income limits; exception; source of data.
Each single family housing program
shall establish limits on gross income for persons and families to be served by the program.
The adjusted gross income may not exceed the greater of (a) 110 percent of the median family
income as estimated by the United States Department of Housing and Urban Development for the
nonmetropolitan county or standard metropolitan statistical area, as the case may be, or (b) 100
percent of the income limits established by the Minnesota Housing Finance Agency in which the
city is located; except as provided in subdivision 8. The Minnesota Housing Finance Agency shall
provide the relevant income data to any city requesting the data.
Subd. 3. Maximum prices or values.
The single family housing program shall establish
maximum purchase prices or appraised values for single family housing eligible for mortgage
loans in the program. The maximum purchase price allowable for each dwelling unit shall not
exceed three times the income limit established for the program in subdivision 2, except that, for
any program or portion of a program undertaken within a targeted area, the maximum purchase
price for each dwelling unit shall not exceed four times the income limit established pursuant to
Subd. 4. Loan originators.
Any financial institution as defined in section
business within the city which is an approved FHA/VA or FNMA/FHLMC lender shall be eligible
for consideration for origination of single family housing loans in any city single family housing
program. Other lenders may be eligible as provided in the program. Origination of loans in the
single family program may not be limited to a single lender unless other eligible lenders are
not interested in participating or the program clearly sets forth why a public purpose would be
served by confining participation to one lender.
Subd. 5.[Repealed, 1995 c 167 s 16
Subd. 6. Multiple developers, builders required.
Loans under a single family housing
program may not be made to one developer or builder or restricted to housing provided by one
developer or builder.
Subd. 7. Half to those under 90 percent of limit.
Fifty percent of the money available for
loans for each single family housing program subject to the income limits established pursuant to
subdivision 2, must be made available to persons and families with adjusted gross incomes of less
than 90 percent of the program's income limits for a period of six months from the date when the
money becomes available for the program.
Subd. 8. Other conditions.
Twenty percent of the aggregate amount of all loans provided
under all city housing programs included in the housing plan for single family housing may be
provided without regard to income limits or net worth limits if: (a) the single family housing
program is used to finance single family housing in a targeted area; or (b) the city has previously
developed and administered a housing program for low and moderate income persons and
families and the single family housing program will be used to further policies of economic
integration, stability and revitalization of residential areas. No single family housing program
shall be developed or administered pursuant to this subdivision if the single family housing
program will contribute to urban sprawl. A housing program shall be deemed to contribute
to urban sprawl if the housing program is to be used to finance single family housing in any
previously unincorporated real property annexed by the city pursuant to chapter 414, within one
year prior to the date of the resolution adopted pursuant to Laws 1979, Chapter 306.
Subd. 9. Assumption.
The single family housing program may include limitations or
prohibitions on the assumption of the loans or other terms which are inconsistent with section
47.20, subdivision 6
or 6a, for notes or bonds or other obligations issued by the city pursuant
Subd. 10. Tax exempt board proceeds; aggregate limits.
Notwithstanding any provision of
this chapter, not more than 20 percent of the aggregate dollar amount of tax-exempt bond proceeds
appropriated by any city within any calendar year to make or purchase loans providing single
family housing or dwelling units for sale within multifamily housing developments described
462C.05, subdivision 3
, shall be appropriated to provide single family housing for
persons or families, including renters of the single family housing, whose gross income exceeds
the limit in section
462C.03, subdivision 2
. If 20 percent of the total amount of tax-exempt bond
funds so appropriated by the city in any calendar year is expended for housing not within the
limit, no additional funds may be expended pursuant to any other similar appropriation until the
remaining 80 percent is expended for housing within the limit. Notwithstanding subdivision 2,
the city may use taxable bond proceeds for single family housing for persons and families with
adjusted gross incomes of up to 175 percent of the median family income as estimated by the
United States Department of Housing and Urban Development for the nonmetropolitan county or
standard metropolitan statistical area, whichever is appropriate.
Subd. 11. Rehabilitation.
The single family housing program may provide for loans for
rehabilitation of single family housing or for the acquisition of rehabilitated housing. The single
family housing program may also provide loans for acquisition of and the discharge of any lien or
interest in and rehabilitation of single family housing if:
(a) the mortgagor to whom the financing is provided is the first resident of the residence
after completion of the rehabilitation;
(b) there is a period of at least 20 years between the date on which the structure was first used
and the date on which the physical work on the rehabilitation begins;
(c) 75 percent or more of the existing external walls of the structure are retained in place as
external walls in the rehabilitation process; and
(d) the expenditures for the rehabilitation equal 25 percent or more of the mortgagor's
"adjusted basis" (as determined pursuant to the Internal Revenue Code of 1954, as amended
through December 31, 1981), in the residence, determined at the time of completion of the
rehabilitation, or, if later, the date on which the mortgagor acquires the residence.
History: 1979 c 306 s 3; 1980 c 593 s 7; 1981 c 306 s 14; 1982 c 624 s 7; 1Sp1985 c 14 art
8 s 23,24; 1991 c 291 art 21 s 16