2002 Minnesota Statutes

     473.254 Local housing incentives account. 

    Subdivision 1.    Participation.  (a) A municipality may 
 elect to participate in the local housing incentive account 
 program.  If the election to participate occurs by November 15 
 of any year, it is effective commencing the next calendar year; 
 otherwise it is effective commencing the next succeeding 
 calendar year.  An election to participate in the program is 
 effective until revoked according to paragraph (b).  A 
 municipality is subject to this section only in those calendar 
 years for which its election to participate in the program is 
 effective.  For purposes of this section, municipality means a 
 municipality electing to participate in the local housing 
 incentive account program for the calendar year in question, 
 unless the context indicates otherwise. 

    (b) A municipality may revoke its election to participate 
 in the local housing incentive account program.  If the 
 revocation occurs by November 15 of any year, it is effective 
 commencing the next calendar year; otherwise it is effective 
 commencing the next succeeding calendar year.  After revoking 
 its election to participate in the program, a municipality may 
 again elect to participate in the program according to paragraph 
 (a). 

    (c) A municipality that elects to participate may receive 
 grants or loans from the tax base revitalization account, 
 livable communities demonstration account, or the local housing 
 incentive account.  A municipality that does not participate is 
 not eligible to receive a grant under sections 116J.551 to 
 116J.557.  The council, when making discretionary funding 
 decisions, shall give consideration to a municipality's 
 participation in the local housing incentives program.  

    Subd. 2.    Affordable, life-cycle goals.  The council 
 shall negotiate with each municipality to establish affordable 
 and life-cycle housing goals for that municipality that are 
 consistent with and promote the policies of the metropolitan 
 council as provided in the adopted metropolitan development 
 guide.  The council shall adopt, by resolution after a public 
 hearing, the negotiated affordable and life-cycle housing goals 
 for each municipality by January 15, 1996.  By June 30, 1996, 
 each municipality shall identify to the council the actions it 
 plans to take to meet the established housing goals. 

    Subd. 3.    Affordable, life-cycle opportunities amount. 
  (1) By July 1, 1996, each county assessor shall certify each 
 municipality's average residential homestead limited market 
 value for the 1994 assessment year, including the value of the 
 farm house, garage, and one acre only in the case of farm 
 homesteads, multiplied by a factor of two, as the municipality's 
 "market value base amount."  For 1997 and thereafter, the 
 "market value base amount" shall be equal to the product of (i) 
 the market value base amount for the previous year multiplied by 
 (ii) the annual average United States Consumer Price Index for 
 all urban consumers, United States average, as determined by the 
 United States Department of Labor, for the previous year divided 
 by that annual average for the year before the previous year.  

    (2) By July 1, 1996, and each succeeding year the county 
 assessor shall determine which homesteads have market values in 
 excess of the municipality's market value base amount and the 
 county auditor shall certify the aggregate net tax capacity 
 corresponding to the amount by which those homesteads' market 
 values exceed the municipality's market value base amount as the 
 "net tax capacity excess amount" for the assessment year 
 corresponding to the current taxes payable year.  By July 1, 
 1996, the county auditor shall also certify the net tax capacity 
 excess amount for taxes payable in 1995. 

    (3) By July 1, 1996, and each succeeding year, the county 
 auditor shall also certify each municipality's local tax rate 
 for the current taxes payable year. 

    (4) By July 1, 1996, and each succeeding year, the county 
 auditor shall certify for each municipality the amount equal to 
 four percent of the municipality's current year total 
 residential homestead tax capacity multiplied by the local tax 
 rate. 

    (5) By August 1, 1996, and each succeeding year, the 
 metropolitan council shall notify each municipality of its 
 "affordable and life-cycle housing opportunities amount" for the 
 following calendar year equal to the lesser of the amount 
 certified under clause (4) or the amount, if any, by which the 
 net tax capacity excess amount for the current year exceeds the 
 amount for taxes payable in 1995, multiplied by the 
 municipality's local tax rate certified in clause (3). 

    Subd. 4.    Affordable and life-cycle housing requirement. 
  (a) A municipality that is determined by the council to have 
 met its affordable and life-cycle housing goals in the previous 
 calendar year may retain the amount calculated under subdivision 
 3 to maintain existing affordable and life-cycle housing. 

    (b) In 1998, and thereafter, a municipality that is 
 determined by the council not to have met the affordable and 
 life-cycle housing goals in the previous calendar year, as 
 negotiated and agreed to with the council, and not to have spent 
 85 percent of its affordable and life-cycle housing 
 opportunities amount to create affordable and life-cycle housing 
 opportunities in the previous calendar year must do one of the 
 following with the affordable and life-cycle housing 
 opportunities amount for the previous year as determined under 
 subdivision 3: 

    (1) distribute it to the local housing incentives account; 
 or 

    (2) distribute it to the housing and redevelopment 
 authority of the city or county in which the municipality is 
 located to create affordable and life-cycle housing 
 opportunities in the municipality. 

    A municipality may enter into agreements with adjacent 
 municipalities to cooperatively provide affordable and 
 life-cycle housing.  The housing may be provided in any of the 
 cooperating municipalities, but must meet the combined housing 
 goals of each participating municipality. 

    Subd. 5.    Sources of funds.  (a) The council shall 
 credit to the local housing incentives account any revenues 
 derived from municipalities under subdivision 4, paragraph (b), 
 clause (1). 

    (b) The council shall credit $1,000,000 of the proceeds of 
 solid waste bonds issued by the council under Minnesota 
 Statutes, section 473.831, before its repeal, to the local 
 housing incentives account in the metropolitan livable 
 communities fund.  In 1998 and each year thereafter, the council 
 shall credit $1,000,000 of the revenues generated by the levy 
 authorized in section 473.249 to the local housing incentives 
 account. 

    (c) In 1997, and each year thereafter, the council shall 
 transfer $500,000 from the livable communities demonstration 
 account to the local housing incentives account.  

    Subd. 6.    Distribution of funds.  The funds in the 
 account must be distributed annually by the council to 
 municipalities that: 

    (1) have not met their affordable and life-cycle housing 
 goals as determined by the council; and 

    (2) are actively funding projects designed to help meet the 
 goals.  

    Funds may also be distributed to a development authority 
 for a project in an eligible municipality.  The funds 
 distributed by the council must be matched on a 
 dollar-for-dollar basis by the municipality or development 
 authority receiving the funds.  When distributing funds in the 
 account, the council must give priority to projects that (1) are 
 in municipalities that have contribution net tax capacities that 
 exceed their distribution net tax capacities by more than $200 
 per household, (2) demonstrate the proposed project will link 
 employment opportunities with affordable and life-cycle housing, 
 and (3) provide matching funds from a source other than the 
 required amount under subdivision 3.  For the purposes of this 
 subdivision, "municipality" means a statutory or home rule 
 charter city or town in the metropolitan area and "development 
 authority" means a housing and redevelopment authority, economic 
 development authority, or port authority. 

    Subd. 7.    Report to council.  Beginning January 15, 
 1998, and annually thereafter, each municipality must report to 
 the council the following: 

    (1) the tax revenues defined in subdivision 3 that were 
 levied in the prior year; 

    (2) the portion of the revenues that were spent on meeting 
 the municipality's affordable and life-cycle housing goals; and 

    (3) information on how the expenditures directly support 
 the municipality's efforts to meet its affordable and life-cycle 
 housing goals. 

    The council shall verify each municipality's compliance 
 with this subdivision. 

    Subd. 8.    Later election to participate.  If a 
 municipality did not participate for one or more years and 
 elects later to participate, the municipality must establish 
 that it has spent or agrees to spend on affordable and 
 life-cycle housing, or agrees to distribute to the local housing 
 incentives account, an amount equivalent to what it would have 
 spent on affordable and life-cycle housing had goals been 
 established under this section for the period in which it was 
 not participating.  The council will determine which investments 
 count toward the required cumulative investment amount by 
 comparing the municipality to participating municipalities 
 similar in terms of stage of development and demographics.  If 
 it determines it to be in the best interests of the region, the 
 council may waive a reasonable portion of the cumulative 
 investment amount.  

    Subd. 9.    Report to legislature.  By February 1 of 
 each year, the council must report to the legislature the 
 municipalities that have elected to participate and not to 
 participate under subdivision 1.  This report must be filed as 
 provided in section 3.195. 

    Subd. 10.    Metro report card.  The metropolitan 
 council shall present to the legislature and release to the 
 public by November 15, 1996, and each year thereafter a 
 comprehensive report card on affordable and life-cycle housing 
 in each municipality in the metropolitan area.  The report card 
 must include information on government, nonprofit, and 
 marketplace efforts. 

    HIST: 1995 c 255 art 1 s 5; 2002 c 246 s 2,3