1997 Minnesota Statutes

     462A.206 Community rehabilitation fund account. 

    Subdivision 1.    Account.  The community rehabilitation 
 fund account is established as a separate account in the housing 
 development fund.  Money in the account is appropriated to the 
 agency for the purposes specified in this section. 

    Subd. 2.    Authorization.  The agency may make grants 
 or loans to cities or nonprofit organizations for the purposes 
 of construction, acquisition, rehabilitation, demolition, 
 permanent financing, refinancing, gap financing of single or 
 multifamily housing, or full cycle home ownership services, as 
 defined in section 462A.209, subdivision 2.  Gap financing is 
 financing for the difference between the cost of the improvement 
 of the blighted property, including acquisition, demolition, 
 rehabilitation, and construction, and the market value of the 
 property upon sale.  The agency shall take into account the 
 amount of money that the city or nonprofit organization 
 leverages from other sources in awarding grants and loans.  The 
 agency shall also consider the extent to which the grant or loan 
 recipient will coordinate use of the funds with its other 
 housing-related efforts or other housing-related efforts in the 
 recipient's geographic area.  The city or nonprofit organization 
 must indicate in its application how the proposed project is 
 consistent with the consolidated housing plan.  Not less than 
 ten days before submitting its application to the agency, a 
 nonprofit organization must notify the city in which the project 
 will be located of its intent to apply for funds.  The city may 
 submit to the agency its written comments on the nonprofit 
 organization's application and the agency shall consider the 
 city's comments in reviewing the application.  Cities and 
 nonprofit organizations may use the grants and loans to 
 establish revolving loan funds and to provide grants and loans 
 to eligible mortgagors.  The city or nonprofit organization may 
 determine the terms and conditions of the grants and loans.  An 
 agency loan may only be used by a city or nonprofit organization 
 to make loans. 

    Subd. 3.    Requirements.  Grants or loans made under 
 this section must be used for housing rented to or owned by 
 persons or families with income less than or equal to 115 
 percent of the greater of state or area median income as 
 determined by the United States Department of Housing and Urban 
 Development.  If a grant or loan is used for demolition, the 
 cleared land must be used for the construction of housing to be 
 rented to or owned by persons or for other housing-related 
 purposes primarily for the benefit of persons residing in the 
 adjacent housing. 

    Subd. 4.    Designated areas.  For the purposes of 
 focusing resources, a city or a nonprofit organization located 
 in a metropolitan statistical area must designate neighborhoods 
 within which the grants or loans may be used, and a city or 
 nonprofit organization located outside of a metropolitan 
 statistical area must designate a geographic area within which 
 the grants or loans may be used. 

    Subd. 5. Repealed, 1997 c 200 art 4 s 23 

    HIST: 1993 c 236 s 15; 1995 c 224 s 104,105; 1997 c 200 art 4 
 s 13,14