Bill Text: MN HF1739 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Housing definitions added, Minnesota Housing Finance Agency provisions amended, and eligibility and selection criteria for agency funding changed.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-05-20 - Introduction and first reading, referred to Jobs and Economic Development Finance [HF1739 Detail]
Download: Minnesota-2011-HF1739-Introduced.html
1.2relating to housing; adding definitions; amending Minnesota Housing Finance
1.3Agency provisions; changing eligibility and selection criteria for agency funding;
1.4amending Minnesota Statutes 2010, sections 462A.03, by adding subdivisions;
1.5462A.07, by adding subdivisions; 462A.209, subdivisions 1, 2, 3, 5.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 462A.03, is amended by adding a
1.8subdivision to read:
1.9 Subd. 24. Counseling, education or training certification, or licensing entity.
1.10"Counseling, education or training certification, or licensing entity" includes the agency,
1.11the United States Department of Housing and Urban Development (HUD), the Minnesota
1.12Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention Association,
1.13the AARP program, including an organization administering the program under an
1.14agreement with HUD, and NeighborWorks America.
1.15 Sec. 2. Minnesota Statutes 2010, section 462A.03, is amended by adding a subdivision
1.16to read:
1.17 Subd. 25. Authorized counseling agency. (a) "Authorized counseling agency"
1.18means:
1.19(1) a political subdivision that provides counseling services, education, or training; or
1.20(2) a nonprofit organization or nonprofit third-party individual that provides
1.21counseling services, education, or training and is:
1.22(i) a HUD-approved housing counseling agency as determined by HUD under Code
1.23of Federal Regulations, title 24, part 214;
2.1(ii) a recipient of funds, scholarships, or fee waivers for counseling services,
2.2education, or training from the agency, HUD, NeighborWorks America, or the Minnesota
2.3Mortgage Foreclosure Prevention Association; or
2.4(iii) certified, accredited, or licensed through a certification or licensing entity to
2.5provide those specific types of counseling services, education, or training identified in
2.6the certification or accreditation.
2.7(b) For purposes of this subdivision, "counseling services, education, or training"
2.8means programs and services, education, or training for an individual or group of
2.9individuals related to housing, including but not limited to topics on homelessness, all
2.10phases of buying a home and homeownership, foreclosure prevention, mortgages and
2.11reverse mortgages, finances, and credit.
2.12 Sec. 3. Minnesota Statutes 2010, section 462A.03, is amended by adding a subdivision
2.13to read:
2.14 Subd. 26. Disadvantaged nonprofit organization. "Disadvantaged nonprofit
2.15organization" means a nonprofit organization that:
2.16(1) provides services or administers programs related to housing, including but not
2.17limited to matters of homelessness, all phases of buying a home and homeownership,
2.18foreclosure prevention, mortgages and reverse mortgages, finances, and credit;
2.19(2) serves disadvantaged, culturally and linguistically specific, unserved, and
2.20underrepresented populations as a primary constituency for the organization's services and
2.21programs, including but not limited to minority populations, refugees, and veterans;
2.22(3) is not a HUD-approved housing counseling agency as determined by the
2.23United States Department of Housing and Urban Development under Code of Federal
2.24Regulations, title 24, part 214;
2.25(4) has not received sufficient financial assistance for housing-related purposes in
2.26a previous fiscal year from a state or federal agency, including but not limited to the
2.27Minnesota Housing Finance Agency;
2.28(5) requires financial assistance from a state agency in order to qualify for federal
2.29housing-related funds identified and sought by the organization; and
2.30(6) has an annual operating budget of no more than $3,000,000 as reported in the
2.31organization's most recent financial statements.
2.32 Sec. 4. Minnesota Statutes 2010, section 462A.07, is amended by adding a subdivision
2.33to read:
3.1 Subd. 17. Information on Web site. The department shall provide on its Internet
3.2Web site a link and contact information for each counseling, education or training
3.3certification, or licensing entity's list of certified or licensed counselors and counseling
3.4agencies with designations for the nonprofit counselors and organizations.
3.5 Sec. 5. Minnesota Statutes 2010, section 462A.07, is amended by adding a subdivision
3.6to read:
3.7 Subd. 18. Capacity-building; education and training opportunities. The
3.8agency shall assist disadvantaged nonprofit organizations in developing capacity
3.9to provide housing-related services and programs and achieve eligibility to receive
3.10federal housing-related funds. The agency shall waive fees for disadvantaged nonprofit
3.11organizations to attend education and training opportunities provided or sponsored by
3.12the agency.
3.13 Sec. 6. Minnesota Statutes 2010, section 462A.209, subdivision 1, is amended to read:
3.14 Subdivision 1. Full cycle homeownership services. The homeownership education,
3.15counseling, and training program shall be used to provide funding to community-based
3.16nonprofit organizations, authorized counseling agencies, and political subdivisions to
3.17assist them in building the capacity to provide and providing full cycle homeownership
3.18services to low and moderate income home buyers and homeowners, including seniors.
3.19The purpose of the program is to encourage private investment in affordable housing and
3.20collaboration of nonprofit organizations, authorized counseling agencies, and political
3.21subdivisions with each other and private lenders in providing full cycle homeownership
3.22services.
3.23 Sec. 7. Minnesota Statutes 2010, section 462A.209, subdivision 2, is amended to read:
3.24 Subd. 2.Definition Definitions. For purposes of this section, the following terms
3.25have the meanings given:
3.26(1) "Eligible organization" means a community-based nonprofit organization, an
3.27authorized counseling agency, or a political subdivision; and
3.28(2) "Full cycle homeownership services" means supporting eligible home buyers
3.29and home owners through all phases of purchasing and keeping a home, by providing
3.30prepurchase home buyer education; prepurchase counseling and credit repair; prepurchase
3.31and postpurchase property inspection and technical and financial assistance to buyers in
3.32rehabilitating the home; postpurchase counseling, including home equity conversion loan
3.33counseling, mortgage default counseling, postpurchase assistance with home maintenance,
4.1entry cost assistance; foreclosure prevention and assistance; and access to flexible loan
4.2products.
4.3 Sec. 8. Minnesota Statutes 2010, section 462A.209, subdivision 3, is amended to read:
4.4 Subd. 3. Eligibility. (a) The agency shall establish eligibility criteria fornonprofit
4.5organizations and political subdivisions an eligible organization to receive funding under
4.6this section.
4.7(b) The eligibility criteria must require thenonprofit organization or political
4.8subdivision eligible organization to provide, to build capacity to provide, or support full
4.9cycle homeownership services for eligible home buyers. The agency may funda nonprofit
4.10organization or political subdivision an eligible organization that will provide full cycle
4.11homeownership services by coordinating with one or more other organizations that
4.12will provide specific components of full cycle homeownership services. The agency
4.13may make exceptions to providing all components of full cycle lending if justified by
4.14the application. If there are more applicants requesting funding than there are funds
4.15available, the agencyshall award the funds on a competitive basis shall prioritize funding
4.16to first provide assistance to disadvantaged housing service organizations and also
4.17assure an equitable geographic distribution of the available funds. based on the needs of
4.18the population. The agency shall consider the service area of an organization applying
4.19for funding and the ability of the organization to serve disadvantaged, culturally and
4.20linguistically specific, unserved, and underrepresented populations including but not
4.21limited to minority populations, refugees, and veterans. The eligibility criteria must
4.22require thenonprofit organization or political subdivision eligible organization to have a
4.23demonstrated involvement in the local community and to target the housing affordability
4.24needs of the local community or to have demonstrated experience with counseling older
4.25persons on housing, or both.
4.26(c) The eligibility criteria may include:
4.27(1) a requirement for specific training provided by designated state or national
4.28entities. The agency may also include an eligibility criteria that requires; and
4.29(2) a requirement for counselor certification or organizational accreditation by
4.30specified organizations which provide certification or accreditation services. The agency
4.31may not impose the eligibility criteria under this paragraph for an authorized counseling
4.32agency that is certified through a counseling certification entity for the specific type of
4.33counseling services for which funding under this section is requested, and authorized
4.34counseling agencies may not require certification from a particular or specified counseling
4.35certification entity.
5.1(d) Partnerships and collaboration with innovative, grass roots, or community-based
5.2initiatives shall be encouraged.The agency shall give priority to nonprofit organizations
5.3and political subdivisions that have funding from other sources for full cycle
5.4homeownership services. Applicants for funds under section
462A.057 may also apply
5.5funds under this program.
5.6 Sec. 9. Minnesota Statutes 2010, section 462A.209, subdivision 5, is amended to read:
5.7 Subd. 5. Selection and prioritization criteria. (a) If there are more applicants
5.8requesting funding than there are funds available, the agency must prioritize funding to
5.9first provide assistance to disadvantaged housing services organizations.
5.10(b) The agency shall take the following criteria into consideration when determining
5.11whether to award funds to an eligible organization:
5.12(1) the extent to which there is an equitable geographic distribution of funds among
5.13program applicants based on the needs of the population;
5.14(2) the prior experience and documented familiarity of the organization, as may be
5.15applicable,in establishing, administering, and maintaining some or all of the components
5.16of full cycle homeownership services in providing services to disadvantaged, culturally
5.17and linguistically specific, unserved, and underrepresented populations including but not
5.18limited to minority populations, refugees, and veterans;
5.19(3) the reasonableness of the proposed budget in meeting the program objectives, a
5.20demonstrated ability to leverage program money with other sources of funding, and the
5.21extent of the leveraging of other sources of funding;
5.22(4) the extent to which efforts are targeted towards households with incomes that
5.23do not exceed 80 percent of the state or area median income or underserved segments of
5.24the local population; and
5.25(5) the extent to which program funding does not duplicate other efforts currently
5.26available in the local area and will enable, expand, or enhance existing activities.; and
5.27(6) the extent to which program funding provides services to disadvantaged,
5.28culturally and linguistically specific, unserved, and underrepresented populations
5.29including but not limited to minority populations, refugees, and veterans.
1.3Agency provisions; changing eligibility and selection criteria for agency funding;
1.4amending Minnesota Statutes 2010, sections 462A.03, by adding subdivisions;
1.5462A.07, by adding subdivisions; 462A.209, subdivisions 1, 2, 3, 5.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 462A.03, is amended by adding a
1.8subdivision to read:
1.9 Subd. 24. Counseling, education or training certification, or licensing entity.
1.10"Counseling, education or training certification, or licensing entity" includes the agency,
1.11the United States Department of Housing and Urban Development (HUD), the Minnesota
1.12Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention Association,
1.13the AARP program, including an organization administering the program under an
1.14agreement with HUD, and NeighborWorks America.
1.15 Sec. 2. Minnesota Statutes 2010, section 462A.03, is amended by adding a subdivision
1.16to read:
1.17 Subd. 25. Authorized counseling agency. (a) "Authorized counseling agency"
1.18means:
1.19(1) a political subdivision that provides counseling services, education, or training; or
1.20(2) a nonprofit organization or nonprofit third-party individual that provides
1.21counseling services, education, or training and is:
1.22(i) a HUD-approved housing counseling agency as determined by HUD under Code
1.23of Federal Regulations, title 24, part 214;
2.1(ii) a recipient of funds, scholarships, or fee waivers for counseling services,
2.2education, or training from the agency, HUD, NeighborWorks America, or the Minnesota
2.3Mortgage Foreclosure Prevention Association; or
2.4(iii) certified, accredited, or licensed through a certification or licensing entity to
2.5provide those specific types of counseling services, education, or training identified in
2.6the certification or accreditation.
2.7(b) For purposes of this subdivision, "counseling services, education, or training"
2.8means programs and services, education, or training for an individual or group of
2.9individuals related to housing, including but not limited to topics on homelessness, all
2.10phases of buying a home and homeownership, foreclosure prevention, mortgages and
2.11reverse mortgages, finances, and credit.
2.12 Sec. 3. Minnesota Statutes 2010, section 462A.03, is amended by adding a subdivision
2.13to read:
2.14 Subd. 26. Disadvantaged nonprofit organization. "Disadvantaged nonprofit
2.15organization" means a nonprofit organization that:
2.16(1) provides services or administers programs related to housing, including but not
2.17limited to matters of homelessness, all phases of buying a home and homeownership,
2.18foreclosure prevention, mortgages and reverse mortgages, finances, and credit;
2.19(2) serves disadvantaged, culturally and linguistically specific, unserved, and
2.20underrepresented populations as a primary constituency for the organization's services and
2.21programs, including but not limited to minority populations, refugees, and veterans;
2.22(3) is not a HUD-approved housing counseling agency as determined by the
2.23United States Department of Housing and Urban Development under Code of Federal
2.24Regulations, title 24, part 214;
2.25(4) has not received sufficient financial assistance for housing-related purposes in
2.26a previous fiscal year from a state or federal agency, including but not limited to the
2.27Minnesota Housing Finance Agency;
2.28(5) requires financial assistance from a state agency in order to qualify for federal
2.29housing-related funds identified and sought by the organization; and
2.30(6) has an annual operating budget of no more than $3,000,000 as reported in the
2.31organization's most recent financial statements.
2.32 Sec. 4. Minnesota Statutes 2010, section 462A.07, is amended by adding a subdivision
2.33to read:
3.1 Subd. 17. Information on Web site. The department shall provide on its Internet
3.2Web site a link and contact information for each counseling, education or training
3.3certification, or licensing entity's list of certified or licensed counselors and counseling
3.4agencies with designations for the nonprofit counselors and organizations.
3.5 Sec. 5. Minnesota Statutes 2010, section 462A.07, is amended by adding a subdivision
3.6to read:
3.7 Subd. 18. Capacity-building; education and training opportunities. The
3.8agency shall assist disadvantaged nonprofit organizations in developing capacity
3.9to provide housing-related services and programs and achieve eligibility to receive
3.10federal housing-related funds. The agency shall waive fees for disadvantaged nonprofit
3.11organizations to attend education and training opportunities provided or sponsored by
3.12the agency.
3.13 Sec. 6. Minnesota Statutes 2010, section 462A.209, subdivision 1, is amended to read:
3.14 Subdivision 1. Full cycle homeownership services. The homeownership education,
3.15counseling, and training program shall be used to provide funding to community-based
3.16nonprofit organizations, authorized counseling agencies, and political subdivisions to
3.17assist them in building the capacity to provide and providing full cycle homeownership
3.18services to low and moderate income home buyers and homeowners, including seniors.
3.19The purpose of the program is to encourage private investment in affordable housing and
3.20collaboration of nonprofit organizations, authorized counseling agencies, and political
3.21subdivisions with each other and private lenders in providing full cycle homeownership
3.22services.
3.23 Sec. 7. Minnesota Statutes 2010, section 462A.209, subdivision 2, is amended to read:
3.24 Subd. 2.
3.25have the meanings given:
3.26(1) "Eligible organization" means a community-based nonprofit organization, an
3.27authorized counseling agency, or a political subdivision; and
3.28(2) "Full cycle homeownership services" means supporting eligible home buyers
3.29and home owners through all phases of purchasing and keeping a home, by providing
3.30prepurchase home buyer education; prepurchase counseling and credit repair; prepurchase
3.31and postpurchase property inspection and technical and financial assistance to buyers in
3.32rehabilitating the home; postpurchase counseling, including home equity conversion loan
3.33counseling, mortgage default counseling, postpurchase assistance with home maintenance,
4.1entry cost assistance; foreclosure prevention and assistance; and access to flexible loan
4.2products.
4.3 Sec. 8. Minnesota Statutes 2010, section 462A.209, subdivision 3, is amended to read:
4.4 Subd. 3. Eligibility. (a) The agency shall establish eligibility criteria for
4.5
4.6this section.
4.7(b) The eligibility criteria must require the
4.8
4.9cycle homeownership services for eligible home buyers. The agency may fund
4.10
4.11homeownership services by coordinating with one or more other organizations that
4.12will provide specific components of full cycle homeownership services. The agency
4.13may make exceptions to providing all components of full cycle lending if justified by
4.14the application. If there are more applicants requesting funding than there are funds
4.15available, the agency
4.16to first provide assistance to disadvantaged housing service organizations and also
4.17assure an equitable geographic distribution of the available funds
4.18the population. The agency shall consider the service area of an organization applying
4.19for funding and the ability of the organization to serve disadvantaged, culturally and
4.20linguistically specific, unserved, and underrepresented populations including but not
4.21limited to minority populations, refugees, and veterans. The eligibility criteria must
4.22require the
4.23demonstrated involvement in the local community and to target the housing affordability
4.24needs of the local community or to have demonstrated experience with counseling older
4.25persons on housing, or both.
4.26(c) The eligibility criteria may include:
4.27(1) a requirement for specific training provided by designated state or national
4.28entities
4.29(2) a requirement for counselor certification or organizational accreditation by
4.30specified organizations which provide certification or accreditation services. The agency
4.31may not impose the eligibility criteria under this paragraph for an authorized counseling
4.32agency that is certified through a counseling certification entity for the specific type of
4.33counseling services for which funding under this section is requested, and authorized
4.34counseling agencies may not require certification from a particular or specified counseling
4.35certification entity.
5.1(d) Partnerships and collaboration with innovative, grass roots, or community-based
5.2initiatives shall be encouraged.
5.3
5.4
5.5funds under this program.
5.6 Sec. 9. Minnesota Statutes 2010, section 462A.209, subdivision 5, is amended to read:
5.7 Subd. 5. Selection and prioritization criteria. (a) If there are more applicants
5.8requesting funding than there are funds available, the agency must prioritize funding to
5.9first provide assistance to disadvantaged housing services organizations.
5.10(b) The agency shall take the following criteria into consideration when determining
5.11whether to award funds to an eligible organization:
5.12(1) the extent to which there is an equitable geographic distribution of funds among
5.13program applicants based on the needs of the population;
5.14(2) the prior experience and documented familiarity of the organization, as may be
5.15applicable,
5.16
5.17and linguistically specific, unserved, and underrepresented populations including but not
5.18limited to minority populations, refugees, and veterans;
5.19(3) the reasonableness of the proposed budget in meeting the program objectives, a
5.20demonstrated ability to leverage program money with other sources of funding, and the
5.21extent of the leveraging of other sources of funding;
5.22(4) the extent to which efforts are targeted towards households with incomes that
5.23do not exceed 80 percent of the state or area median income or underserved segments of
5.24the local population; and
5.25(5) the extent to which program funding does not duplicate other efforts currently
5.26available in the local area and will enable, expand, or enhance existing activities
5.27(6) the extent to which program funding provides services to disadvantaged,
5.28culturally and linguistically specific, unserved, and underrepresented populations
5.29including but not limited to minority populations, refugees, and veterans.
