Bill Text: MN HF3037 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Jobs created through rehabilitation and construction of affordable housing, green energy investments in public buildings, and capital improvements at institutions of higher education; nonprofit housing bonds authorized; bonds issued; and money appropriated.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2012-05-03 - Authors added Carlson, Mullery and Clark [HF3037 Detail]
Download: Minnesota-2011-HF3037-Introduced.html
1.2relating to jobs; creating jobs through rehabilitation and construction of
1.3affordable housing, green energy investments in public buildings, and capital
1.4improvements at institutions of higher education; authorizing nonprofit housing
1.5bonds; authorizing the sale and issuance of state bonds; appropriating money;
1.6amending Minnesota Statutes 2010, section 462A.36, by adding subdivisions.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. FINDINGS AND PURPOSE.
1.11Investments in Minnesota's public infrastructure have been falling behind the need,
1.12and the state has a large backlog of unmet maintenance and repair of existing facilities. At
1.13the same time, Minnesota has a high unemployment rate, particularly among construction
1.14workers.
1.15During the Great Depression, the federal government recognized the wisdom of
1.16addressing public infrastructure needs and high unemployment rates by putting jobless
1.17workers to work building with roads, bridges, schools, parks and recreational facilities,
1.18courthouses, dams, and other public facilities.
1.19Learning from history, Minnesota could stimulate the state economy and put
1.20thousands of construction workers back to work building and rehabilitating public
1.21infrastructure. Making these investments at this time of low interest rates and high
1.22unemployment would cost less now than it will in the future, and it would also save the
1.23state money through energy efficiency and renewable energy.
2.1In addition, giving Minnesota schools, colleges, and universities first rate facilities
2.2will help Minnesota's education system thrive.
2.3Public funds can be used to create construction jobs, but those projects should serve
2.4a public purpose, constructing public facilities, not subsidizing shopping malls or other
2.5private businesses. Certainly there is no shortage of public needs.
2.6Currently, there is more than a $350,000,000 backlog of rehabilitation and
2.7maintenance on public housing for seniors and low income Minnesotans. The failure
2.8to properly maintain this housing infrastructure will cost much more in the future if
2.9the buildings deteriorate to the point that they need to be demolished and replaced. In
2.10addition, there is a severe shortage of affordable housing. Consequently this legislation
2.11would provide funding for rehabilitation public housing and assist local governments
2.12and nonprofits in acquiring vacant and foreclosed residential property and constructing
2.13or renovating affordable rental housing.
2.14The University of Minnesota currently has a backlog of $949,000,000 in deferred
2.15maintenance and asset preservation projects, and the Minnesota State Colleges and
2.16Universities have a backlog of at least $344,000,000. This legislation would provide the
2.17funds to address those needs now, when the costs are lower and construction workers
2.18are seeking work.
2.19For schools and other government facilities, funding would be available not only for
2.20much needed asset preservation, but also to significantly boost initiatives to make energy
2.21efficiency and renewable energy investments in those facilities.
2.22Consequently this legislation would put thousands of construction workers to
2.23work, addressing the needs of one of the hardest hit sectors of the economy. And these
2.24jobs would provide several additional benefits: they would improve our school and
2.25educational facilities; they would save money and improve the environment by moving
2.26Minnesota closer to a sustainable energy economy; they would improve neighborhoods
2.27and communities, addressing blight and the problems caused by vacant property; and they
2.28would help address the crisis-level lack of affordable housing.
2.31 Section 1. Minnesota Statutes 2010, section 462A.36, is amended by adding a
2.32subdivision to read:
2.33 Subd. 2a. Authorization for other purposes. The agency may issue up to
2.34$190,000,000 of nonprofit housing bonds in one or more series to which the payments
2.35made under this section may be pledged. The nonprofit housing bonds authorized in this
3.1subdivision may be issued for the purpose of making loans, on terms and conditions the
3.2agency deems appropriate, to local governments and 501(c)(3) nonprofit organizations
3.3as follows:
3.4(1) up to $100,000,000 to acquire land and to predesign, design, construct, renovate,
3.5furnish, and equip affordable rental housing;
3.6(2) up to $50,000,000 for modification of existing low-income rental housing for
3.7compliance with Americans with Disabilities Act requirements; and
3.8(3) up to $40,000,000 to acquire vacant or foreclosed residential property, up to
3.9$20,000,000 of which must be used for the purpose of making loans to a neighborhood
3.10land trust authorized under section 462A.31, to acquire land for affordable housing, and
3.11the remainder of which must be used to rehabilitate low-income rental housing.
3.12 Sec. 2. Minnesota Statutes 2010, section 462A.36, is amended by adding a subdivision
3.13to read:
3.14 Subd. 5. Appropriation for other purposes; payment. (a) The agency must certify
3.15annually to the commissioner of finance the actual amount of annual debt service on each
3.16series of bonds issued under subdivision 2a.
3.17 (b) Each July 15, beginning in 2013 and through 2032, if any nonprofit housing
3.18bonds issued under subdivision 2a remain outstanding, the commissioner of finance
3.19must transfer to the nonprofit housing bond account established under section462A.21 ,
3.20subdivision 32, the amount certified under paragraph (a), not to exceed $16,000,000
3.21annually. The amounts necessary to make the transfers are appropriated from the general
3.22fund to the commissioner of finance.
3.23 (c) The agency may pledge to the payment of the nonprofit housing bonds the
3.24payments to be made by the state under this section.
3.25 Sec. 3. ENERGY EFFICIENCY.
3.26Projects funded with nonprofit housing bonds under Minnesota Statutes, section
3.27462A.36, and with bonds authorized in section 4, must seek to improve energy efficiency
3.28using current best practices and utilize, to the extent practicable, renewable energy sources
3.29to generate energy used in those buildings.
3.30 Sec. 4. PUBLIC HOUSING.
3.31 Subdivision 1. Appropriation. $350,000,000 is appropriated from the bond
3.32proceeds fund to the Housing Finance Agency for loans or grants for publicly owned
3.33permanent rental housing under Minnesota Statutes, section 462A.202, subdivision 3a.
4.1Eligible public housing authorities or agencies must have a public housing assessment
4.2system rating of standard or above. Priority must be given to proposals that maximize
4.3federal or local resources to finance the capital costs. Minnesota Statutes, section 16A.642,
4.4applies to the amounts transferred from the date of the original appropriation.
4.5 Subd. 2. Bond sale. To provide the money appropriated in subdivision 1 from
4.6the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
4.7state in an amount up to $350,000,000 in the manner, upon the terms, and with the effect
4.8prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
4.9Constitution, article XI, sections 4 to 7.
4.10 Sec. 5. EFFECTIVE DATE.
4.11This article is effective the day following final enactment.
4.14 Section 1. RESIDENTIAL ENERGY-EFFICIENCY PROGRAMS;
4.15APPROPRIATION.
4.16$10,000,000 in fiscal year 2013 is appropriated from the general fund to
4.17the Minnesota Housing Finance Agency to continue and enhance the residential
4.18energy-efficiency programs and activities for Minnesota homeowners and renters.
4.19 Sec. 2. LOCAL GOVERNMENT ENERGY IMPROVEMENTS.
4.20$10,000,000 in fiscal year 2013 is appropriated to the Department of Commerce to
4.21be deposited into an escrow account to be used as a loan-loss reserve pool supporting
4.22energy improvement finance programs as defined in Minnesota Statutes, section 216C.436.
4.23 Sec. 3. LOCAL GOVERNMENT AND SCHOOL DISTRICT RENOVATIONS;
4.24APPROPRIATION.
4.25(a) $25,000,000 in fiscal year 2013 is appropriated from the general fund to the
4.26commissioner of commerce for grants to local governments and school districts to make
4.27energy efficiency improvements in existing local government and school district facilities
4.28through the public building enhanced energy efficiency program under Minnesota Statutes,
4.29section 216C.43. These grants must be coordinated with other available financing
4.30programs.
5.1(b) The commissioner shall prioritize lighting upgrades, energy-efficient windows,
5.2energy recommissioning, and other cost-effective energy projects that are ready for
5.3immediate implementation.
5.4(c) The commissioner may require a local government or school district, as a
5.5condition of receiving a grant, to commit to implement future activities, including but not
5.6limited to staff training, that are designed to create additional energy or operating savings
5.7to the local government.
5.8(d) The commissioner shall coordinate with the Department of Education to
5.9prioritize school district projects for funding under this section, consistent with the
5.10principles of statewide geographic distribution of projects, optimized energy savings, and
5.11an improved learning environment for schoolchildren.
5.12(e) As an incentive to promote energy efficiency and renewable energy the
5.13commissioner shall forgive ten percent of loans made under this section.
5.14 Sec. 4. RENEWABLE ENERGY GRANT PROGRAM; APPROPRIATION.
5.15$100,000,000 in fiscal year 2013 is appropriated from the general fund to the
5.16commissioner of commerce for grants to local units of government to finance the purchase
5.17and installation of renewable energy systems and geothermal heating and cooling systems
5.18under the terms spelled out in Laws 2009, chapter 138, article 3, section 5, provided all
5.19cost-effective energy efficiency measures are planned or already implemented.
5.20 Sec. 5. STATE GOVERNMENT BUILDING RENOVATIONS;
5.21APPROPRIATION.
5.22(a) $15,000,000 in fiscal year 2013 is appropriated from the general fund to the
5.23commissioner of administration to continue and enhance state government building
5.24energy-efficiency improvement programs and activities. $500,000 of this amount is
5.25for energy-efficiency improvements to the State Capitol and State Office Building.
5.26Energy-efficiency improvements to the State Capitol and State Office Building shall
5.27include, but are not limited to, motion sensor detection devices for lighting, simple,
5.28low-cost components, and communication of energy-saving strategies to building
5.29tenants. Priority must be given to lighting upgrades, window repair and replacement
5.30with energy-efficient windows, energy recommissioning, and other cost-effective energy
5.31projects that are ready for immediate implementation.
5.32(b) In addition to other uses, funds may be used to advance public building enhanced
5.33energy efficiency program projects under Minnesota Statutes, section 16B.322, and for
6.1grants for a portion of costs incurred by state agencies in implementing energy efficiency
6.2improvements not part of that program.
6.3(c) Funds may be used to develop a system and procedures to set energy-reduction
6.4goals for state buildings, to automate utility bill data and analysis, to develop a system for
6.5reporting monthly energy use relative to these state building energy-reduction goals, and
6.6to install individual metering devices for separate buildings.
6.7(d) The commissioner of administration may require a state agency, as a condition
6.8of receiving funds under this section, to commit to implement future energy-savings
6.9activities, including but not limited to staff training, that are designed to create additional
6.10energy or operating savings to the state agency.
6.11 Sec. 6. EFFECTIVE DATE.
6.12This article is effective the day following final enactment.
6.15 Section 1. APPROPRIATION; MINNESOTA STATE COLLEGES AND
6.16UNIVERSITIES.
6.17$344,000,000 is appropriated to the board of trustees of the Minnesota State Colleges
6.18and Universities for the purposes specified in Minnesota Statutes, section 135A.046.
6.19 Sec. 2. APPROPRIATION; UNIVERSITY OF MINNESOTA.
6.20$949,000,000 is appropriated from the bond proceeds fund to the board of regents of
6.21the University of Minnesota to be spent in accordance with Minnesota Statutes, section
6.22135A.046.
6.23 Sec. 3. BOND SALE.
6.24To provide the money appropriated in sections 1 and 2 from the bond proceeds
6.25fund, the commissioner of management and budget shall sell and issue bonds of the state
6.26in an amount up to $1,293,000,000 in the manner, upon the terms, and with the effect
6.27prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
6.28Constitution, article XI, sections 4 to 7.
6.29 Sec. 4. EFFECTIVE DATE.
6.30This article is effective the day following final enactment.
1.3affordable housing, green energy investments in public buildings, and capital
1.4improvements at institutions of higher education; authorizing nonprofit housing
1.5bonds; authorizing the sale and issuance of state bonds; appropriating money;
1.6amending Minnesota Statutes 2010, section 462A.36, by adding subdivisions.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. FINDINGS AND PURPOSE.
1.11Investments in Minnesota's public infrastructure have been falling behind the need,
1.12and the state has a large backlog of unmet maintenance and repair of existing facilities. At
1.13the same time, Minnesota has a high unemployment rate, particularly among construction
1.14workers.
1.15During the Great Depression, the federal government recognized the wisdom of
1.16addressing public infrastructure needs and high unemployment rates by putting jobless
1.17workers to work building with roads, bridges, schools, parks and recreational facilities,
1.18courthouses, dams, and other public facilities.
1.19Learning from history, Minnesota could stimulate the state economy and put
1.20thousands of construction workers back to work building and rehabilitating public
1.21infrastructure. Making these investments at this time of low interest rates and high
1.22unemployment would cost less now than it will in the future, and it would also save the
1.23state money through energy efficiency and renewable energy.
2.1In addition, giving Minnesota schools, colleges, and universities first rate facilities
2.2will help Minnesota's education system thrive.
2.3Public funds can be used to create construction jobs, but those projects should serve
2.4a public purpose, constructing public facilities, not subsidizing shopping malls or other
2.5private businesses. Certainly there is no shortage of public needs.
2.6Currently, there is more than a $350,000,000 backlog of rehabilitation and
2.7maintenance on public housing for seniors and low income Minnesotans. The failure
2.8to properly maintain this housing infrastructure will cost much more in the future if
2.9the buildings deteriorate to the point that they need to be demolished and replaced. In
2.10addition, there is a severe shortage of affordable housing. Consequently this legislation
2.11would provide funding for rehabilitation public housing and assist local governments
2.12and nonprofits in acquiring vacant and foreclosed residential property and constructing
2.13or renovating affordable rental housing.
2.14The University of Minnesota currently has a backlog of $949,000,000 in deferred
2.15maintenance and asset preservation projects, and the Minnesota State Colleges and
2.16Universities have a backlog of at least $344,000,000. This legislation would provide the
2.17funds to address those needs now, when the costs are lower and construction workers
2.18are seeking work.
2.19For schools and other government facilities, funding would be available not only for
2.20much needed asset preservation, but also to significantly boost initiatives to make energy
2.21efficiency and renewable energy investments in those facilities.
2.22Consequently this legislation would put thousands of construction workers to
2.23work, addressing the needs of one of the hardest hit sectors of the economy. And these
2.24jobs would provide several additional benefits: they would improve our school and
2.25educational facilities; they would save money and improve the environment by moving
2.26Minnesota closer to a sustainable energy economy; they would improve neighborhoods
2.27and communities, addressing blight and the problems caused by vacant property; and they
2.28would help address the crisis-level lack of affordable housing.
2.31 Section 1. Minnesota Statutes 2010, section 462A.36, is amended by adding a
2.32subdivision to read:
2.33 Subd. 2a. Authorization for other purposes. The agency may issue up to
2.34$190,000,000 of nonprofit housing bonds in one or more series to which the payments
2.35made under this section may be pledged. The nonprofit housing bonds authorized in this
3.1subdivision may be issued for the purpose of making loans, on terms and conditions the
3.2agency deems appropriate, to local governments and 501(c)(3) nonprofit organizations
3.3as follows:
3.4(1) up to $100,000,000 to acquire land and to predesign, design, construct, renovate,
3.5furnish, and equip affordable rental housing;
3.6(2) up to $50,000,000 for modification of existing low-income rental housing for
3.7compliance with Americans with Disabilities Act requirements; and
3.8(3) up to $40,000,000 to acquire vacant or foreclosed residential property, up to
3.9$20,000,000 of which must be used for the purpose of making loans to a neighborhood
3.10land trust authorized under section 462A.31, to acquire land for affordable housing, and
3.11the remainder of which must be used to rehabilitate low-income rental housing.
3.12 Sec. 2. Minnesota Statutes 2010, section 462A.36, is amended by adding a subdivision
3.13to read:
3.14 Subd. 5. Appropriation for other purposes; payment. (a) The agency must certify
3.15annually to the commissioner of finance the actual amount of annual debt service on each
3.16series of bonds issued under subdivision 2a.
3.17 (b) Each July 15, beginning in 2013 and through 2032, if any nonprofit housing
3.18bonds issued under subdivision 2a remain outstanding, the commissioner of finance
3.19must transfer to the nonprofit housing bond account established under section
3.20subdivision 32, the amount certified under paragraph (a), not to exceed $16,000,000
3.21annually. The amounts necessary to make the transfers are appropriated from the general
3.22fund to the commissioner of finance.
3.23 (c) The agency may pledge to the payment of the nonprofit housing bonds the
3.24payments to be made by the state under this section.
3.25 Sec. 3. ENERGY EFFICIENCY.
3.26Projects funded with nonprofit housing bonds under Minnesota Statutes, section
3.27462A.36, and with bonds authorized in section 4, must seek to improve energy efficiency
3.28using current best practices and utilize, to the extent practicable, renewable energy sources
3.29to generate energy used in those buildings.
3.30 Sec. 4. PUBLIC HOUSING.
3.31 Subdivision 1. Appropriation. $350,000,000 is appropriated from the bond
3.32proceeds fund to the Housing Finance Agency for loans or grants for publicly owned
3.33permanent rental housing under Minnesota Statutes, section 462A.202, subdivision 3a.
4.1Eligible public housing authorities or agencies must have a public housing assessment
4.2system rating of standard or above. Priority must be given to proposals that maximize
4.3federal or local resources to finance the capital costs. Minnesota Statutes, section 16A.642,
4.4applies to the amounts transferred from the date of the original appropriation.
4.5 Subd. 2. Bond sale. To provide the money appropriated in subdivision 1 from
4.6the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
4.7state in an amount up to $350,000,000 in the manner, upon the terms, and with the effect
4.8prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
4.9Constitution, article XI, sections 4 to 7.
4.10 Sec. 5. EFFECTIVE DATE.
4.11This article is effective the day following final enactment.
4.14 Section 1. RESIDENTIAL ENERGY-EFFICIENCY PROGRAMS;
4.15APPROPRIATION.
4.16$10,000,000 in fiscal year 2013 is appropriated from the general fund to
4.17the Minnesota Housing Finance Agency to continue and enhance the residential
4.18energy-efficiency programs and activities for Minnesota homeowners and renters.
4.19 Sec. 2. LOCAL GOVERNMENT ENERGY IMPROVEMENTS.
4.20$10,000,000 in fiscal year 2013 is appropriated to the Department of Commerce to
4.21be deposited into an escrow account to be used as a loan-loss reserve pool supporting
4.22energy improvement finance programs as defined in Minnesota Statutes, section 216C.436.
4.23 Sec. 3. LOCAL GOVERNMENT AND SCHOOL DISTRICT RENOVATIONS;
4.24APPROPRIATION.
4.25(a) $25,000,000 in fiscal year 2013 is appropriated from the general fund to the
4.26commissioner of commerce for grants to local governments and school districts to make
4.27energy efficiency improvements in existing local government and school district facilities
4.28through the public building enhanced energy efficiency program under Minnesota Statutes,
4.29section 216C.43. These grants must be coordinated with other available financing
4.30programs.
5.1(b) The commissioner shall prioritize lighting upgrades, energy-efficient windows,
5.2energy recommissioning, and other cost-effective energy projects that are ready for
5.3immediate implementation.
5.4(c) The commissioner may require a local government or school district, as a
5.5condition of receiving a grant, to commit to implement future activities, including but not
5.6limited to staff training, that are designed to create additional energy or operating savings
5.7to the local government.
5.8(d) The commissioner shall coordinate with the Department of Education to
5.9prioritize school district projects for funding under this section, consistent with the
5.10principles of statewide geographic distribution of projects, optimized energy savings, and
5.11an improved learning environment for schoolchildren.
5.12(e) As an incentive to promote energy efficiency and renewable energy the
5.13commissioner shall forgive ten percent of loans made under this section.
5.14 Sec. 4. RENEWABLE ENERGY GRANT PROGRAM; APPROPRIATION.
5.15$100,000,000 in fiscal year 2013 is appropriated from the general fund to the
5.16commissioner of commerce for grants to local units of government to finance the purchase
5.17and installation of renewable energy systems and geothermal heating and cooling systems
5.18under the terms spelled out in Laws 2009, chapter 138, article 3, section 5, provided all
5.19cost-effective energy efficiency measures are planned or already implemented.
5.20 Sec. 5. STATE GOVERNMENT BUILDING RENOVATIONS;
5.21APPROPRIATION.
5.22(a) $15,000,000 in fiscal year 2013 is appropriated from the general fund to the
5.23commissioner of administration to continue and enhance state government building
5.24energy-efficiency improvement programs and activities. $500,000 of this amount is
5.25for energy-efficiency improvements to the State Capitol and State Office Building.
5.26Energy-efficiency improvements to the State Capitol and State Office Building shall
5.27include, but are not limited to, motion sensor detection devices for lighting, simple,
5.28low-cost components, and communication of energy-saving strategies to building
5.29tenants. Priority must be given to lighting upgrades, window repair and replacement
5.30with energy-efficient windows, energy recommissioning, and other cost-effective energy
5.31projects that are ready for immediate implementation.
5.32(b) In addition to other uses, funds may be used to advance public building enhanced
5.33energy efficiency program projects under Minnesota Statutes, section 16B.322, and for
6.1grants for a portion of costs incurred by state agencies in implementing energy efficiency
6.2improvements not part of that program.
6.3(c) Funds may be used to develop a system and procedures to set energy-reduction
6.4goals for state buildings, to automate utility bill data and analysis, to develop a system for
6.5reporting monthly energy use relative to these state building energy-reduction goals, and
6.6to install individual metering devices for separate buildings.
6.7(d) The commissioner of administration may require a state agency, as a condition
6.8of receiving funds under this section, to commit to implement future energy-savings
6.9activities, including but not limited to staff training, that are designed to create additional
6.10energy or operating savings to the state agency.
6.11 Sec. 6. EFFECTIVE DATE.
6.12This article is effective the day following final enactment.
6.15 Section 1. APPROPRIATION; MINNESOTA STATE COLLEGES AND
6.16UNIVERSITIES.
6.17$344,000,000 is appropriated to the board of trustees of the Minnesota State Colleges
6.18and Universities for the purposes specified in Minnesota Statutes, section 135A.046.
6.19 Sec. 2. APPROPRIATION; UNIVERSITY OF MINNESOTA.
6.20$949,000,000 is appropriated from the bond proceeds fund to the board of regents of
6.21the University of Minnesota to be spent in accordance with Minnesota Statutes, section
6.22135A.046.
6.23 Sec. 3. BOND SALE.
6.24To provide the money appropriated in sections 1 and 2 from the bond proceeds
6.25fund, the commissioner of management and budget shall sell and issue bonds of the state
6.26in an amount up to $1,293,000,000 in the manner, upon the terms, and with the effect
6.27prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
6.28Constitution, article XI, sections 4 to 7.
6.29 Sec. 4. EFFECTIVE DATE.
6.30This article is effective the day following final enactment.
