2007 Minnesota Statutes

474A.061 MANUFACTURING, HOUSING, AND PUBLIC FACILITIES POOLS.
    Subdivision 1. Allocation 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 and the Internal Revenue Code,
(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 and enterprise zone facility project applications, and (6) for
residential rental projects, a statement from the applicant or bond counsel as to whether the
project preserves existing federally subsidized housing for residential rental project applications
and whether the project is restricted to persons who are 55 years of age or older. 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
Office of Higher Education 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 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. An entitlement issuer may
not apply for an allocation from the housing pool unless it either has permanently issued bonds
equal to any amount of bonding authority carried forward from a previous year or has returned for
reallocation any unused bonding authority carried forward from a previous year. 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) Commencing on the second Tuesday in January and
continuing on each Monday through July 15, the commissioner shall allocate available bonding
authority from the housing pool to applications received on or before the Monday of the preceding
week for residential rental projects that meet the eligibility criteria under section 474A.047.
Allocations of available bonding authority from the housing pool for eligible residential rental
projects shall be awarded in the following order of priority: (1) projects that preserve existing
federally subsidized housing; (2) projects that are not restricted to persons who are 55 years of
age or older; and (3) other residential rental projects. Prior to May 15, no allocation shall be made
to a project restricted to persons who are 55 years of age or older. 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
or to the unified pool after July 15.
(b) After January 1, and through January 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) for applicants who choose to have the agency issue bonds on their behalf, an application
fee pursuant to section 474A.03, subdivision 4, and an application deposit equal to one percent of
the requested allocation must be submitted to the Minnesota Housing Finance Agency before the
agency forwards the list specifying the amounts allocated to the commissioner under paragraph
(d). The agency shall submit the city's application fee 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.
(c) Any amounts remaining in the housing pool after July 15 are available for single-family
housing programs for cities that applied in January and received an allocation under this section in
the same calendar year. For a city that chooses to issue bonds on its own behalf or pursuant to a
joint powers agreement, the agency must allot available bonding authority based on the formula
in paragraphs (d) and (f). Allocations will be made loan by loan, on a first come, first served basis
among cities on whose behalf the Minnesota housing finance agency issues bonds.
Any city that received an allocation pursuant to paragraph (f) in the same calendar year that
wishes to issue bonds on its own behalf or pursuant to a joint powers agreement for an amount
becoming available for single-family housing programs after July 15 shall notify the Minnesota
Housing Finance Agency by July 15. The Minnesota Housing Finance Agency shall notify each
city making a request of the amount of its allocation within three business days after July 15. The
city must comply with paragraph (f).
For purposes of paragraphs (a) to (h), "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.
(d) 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 to the
commissioner a list specifying the amounts allotted to each application with all application fees
and deposits from applicants who choose to have the agency issue bonds on their behalf.
Total allocations from the housing pool for single-family housing programs may not exceed
31 percent of the adjusted allocation to the housing pool until after July 15.
(e) 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 second Tuesday in January and through the last
Monday in July. After awarding an allocation and receiving a notice of issuance for the mortgage
bonds issued on behalf of the participating cities, the commissioner shall transfer the application
deposits to the Minnesota housing finance agency to be returned to the participating cities. The
Minnesota Housing Finance Agency 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 (d).
(f) A city may choose to issue bonds on its own behalf or through a joint powers agreement
and may request an allocation from the commissioner by forwarding an application with an
application fee pursuant to section 474A.03, subdivision 4, and a one percent application deposit
to the commissioner no later than the Monday of the week preceding an allocation. 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 (d) has been forwarded to the
commissioner. A city must request an allocation from the commissioner no later than the last
Monday in July. No city may receive an allocation from the housing pool for mortgage bonds
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.
(g) No entitlement city or county or city in an entitlement county may apply for or be
allocated authority to issue mortgage bonds or use mortgage credit certificates from the housing
pool. No city in an entitlement county may apply for or be allocated authority to issue residential
rental bonds from the housing pool or the unified pool.
(h) 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 for an allocation made prior to July 15, regardless of the amount used in
the preceding calendar year, except that a city whose allocation in the preceding year was the
minimum amount of $100,000 and who did not use at least 50 percent of its allocation from the
preceding year is ineligible for an allocation in the immediate succeeding calendar year. Each
local government unit in a consortium must meet the requirements of this paragraph.
    Subd. 2b. Small issue pool allocation. Commencing on the second Tuesday in January and
continuing on each Monday through the last Monday in July, the commissioner shall allocate
available bonding authority from the small issue pool to applications received on or before the
Monday of the preceding week for manufacturing projects and enterprise zone facility projects.
From the second Tuesday in January 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.
Beginning in calendar year 2002, on the second Tuesday in January through the last Monday
in July, the commissioner shall reserve $10,000,000 of available bonding authority in the small
issue pool for applications for student loan bonds of or on behalf of the Minnesota Office of
Higher Education. The total amount of allocations for student loan bonds from the small issue
pool may not exceed $10,000,000 per year.
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 enterprise zone facility projects and manufacturing
projects. The amount of allocation provided to an issuer for a specific enterprise zone facility
project or manufacturing project will be based on the number of points received for the proposed
project under the scoring system under section 474A.045.
If there are two or more applications for manufacturing and enterprise zone facility 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. Commencing on the second Tuesday in
January and continuing on each Monday through the last Monday in July, the commissioner shall
allocate available bonding authority from the public facilities pool 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.
    Subd. 5.[Repealed, 1988 c 586 s 5]
    Subd. 6.[Repealed, 2001 c 214 s 49]
History: 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; 2001 c 214 s 26-30; 2003 c 127 art 12 s 22; 1Sp2003 c
21 art 10 s 9,11; 2005 c 107 art 2 s 60; 2005 c 152 art 1 s 21