Bill Text: MN SF1373 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Nonprofit housing bonds sale and issuance for community land trusts authorization
Sponsorship: N/A
Status: (Introduced - Dead) 2011-05-03 - Referred to Jobs and Economic Growth [SF1373 Detail]
Download: Minnesota-2011-SF1373-Introduced.html
1.2relating to housing; authorizing the sale and issuance of nonprofit housing bonds
1.3for community land trusts;amending Minnesota Statutes 2010, section 462A.36.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 462A.36, is amended to read:
1.6462A.36 NONPROFIT HOUSING BONDS;AUTHORIZATION; STANDING
1.7APPROPRIATION AUTHORIZATIONS AND APPROPRIATIONS.
1.8 Subdivision 1. Definitions. (a) For purposes of this section the following terms have
1.9the meanings given them in this subdivision.
1.10 (b) "Debt service" means the amount payable in any fiscal year of principal,
1.11premium, if any, and interest on nonprofit housing bonds and the fees, charges, and
1.12expenses related to the bonds.
1.13 (c) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
1.14 (d) "Nonprofit housing bonds" means bonds issued by the agency under chapter
1.15462A that are "qualified 501(c)(3) bonds" (within the meaning of Section 145(a) of
1.16the Internal Revenue Code) or are not "private activity bonds" (within the meaning of
1.17Section 141(a) of the Internal Revenue Code), for the purpose of financing or refinancing
1.18affordable housing authorized under this chapter.
1.19 (e) "Permanent supportive housing" means housing that is not time-limited and
1.20provides or coordinates with linkages to services necessary for residents to maintain
1.21housing stability and maximize opportunities for education and employment.
1.22 Subd. 2. Authorization; permanent supportive housing. (a) The agency may issue
1.23up to $36,000,000 of nonprofit housing bonds in one or more series to which the payments
1.24made under this section may be pledged. The nonprofit housing bonds authorized in this
2.1subdivision may be issued for the purpose of making loans, on terms and conditions
2.2the agency deems appropriate, to finance the costs of the construction, acquisition,
2.3preservation, and rehabilitation of permanent supportive housing for individuals and
2.4families who: (1) either have been without a permanent residence for at least 12 months
2.5or at least four times in the last three years; or (2) are at significant risk of lacking a
2.6permanent residence for 12 months or at least four times in the last three years. The bonds
2.7may also be issued to finance the costs of the construction, acquisition, preservation, and
2.8rehabilitation of foreclosed or vacant housing to be used for affordable rental housing.
2.9 (b) An insubstantial portion of the bond proceeds may be used for permanent
2.10supportive housing for individuals and families experiencing homelessness who do not
2.11meet the criteria of paragraph (a).
2.12 Subd. 2a. Authorization; community land trusts. (a) The agency may issue up
2.13to $5,000,000 of nonprofit housing bonds in one or more series to which the payments
2.14made under this section may be pledged. The nonprofit housing bonds authorized in this
2.15subdivision may be issued for the purpose of making grants, on terms and conditions the
2.16agency deems appropriate, to community land trusts authorized under section 462A.31,
2.17to acquire land for residential properties that are at risk of foreclosure, undergoing the
2.18foreclosure process, or foreclosed.
2.19(b) Grants made under this subdivision are a supplement to be used by the agency
2.20with other funding for the purposes specified in paragraph (a). The agency must consider
2.21the award of a grant under this subdivision when making decisions under other funding
2.22programs for long-term affordable housing through land leases.
2.23 Subd. 3. No full faith and credit. The nonprofit housing bonds are not public debt
2.24of the state, and the full faith and credit and taxing powers of the state are not pledged
2.25to the payment of the nonprofit housing bonds or to any payment that the state agrees to
2.26make under this section. The bonds must contain a conspicuous statement to that effect.
2.27 Subd. 4.Appropriation Appropriations; payment to agency or trustee. (a)
2.28The agency must certify annually to the commissioner of management and budget the
2.29actual amount of annual debt service on each series of bonds issued undersubdivision
2.30subdivisions 2 and 2a, respectively.
2.31 (b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing
2.32bonds issued under subdivision 2 remain outstanding, the commissioner of management
2.33and budget must transfer to the nonprofit housing bond account established under
2.34section462A.21 , subdivision 32, the amount certified under paragraph (a), not to exceed
2.35$2,400,000 annually.
3.1(c) Each July 15, beginning in 2011 and through 2033, if any nonprofit housing
3.2bonds issued under subdivision 2a remain outstanding, the commissioner of management
3.3and budget must transfer to the nonprofit housing bond account the amount certified under
3.4paragraph (a), not to exceed $400,000 annually.
3.5(d) The amounts necessary to make the transfers under this subdivision are
3.6appropriated from the general fund to the commissioner of management and budget.
3.7(c) (e) The agency may pledge to the payment of the nonprofit housing bonds the
3.8payments to be made by the state under this section.
3.9EFFECTIVE DATE.This section is effective the day following final enactment.
3.10 Sec. 2. REVISOR'S INSTRUCTION.
3.11The revisor of statutes shall change the term "neighborhood land trust" to
3.12"community land trust" and the term "neighborhood land trusts" to "community land
3.13trusts" wherever they appear in Minnesota Statutes, chapter 462A.
1.3for community land trusts;amending Minnesota Statutes 2010, section 462A.36.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 462A.36, is amended to read:
1.6462A.36 NONPROFIT HOUSING BONDS;
1.7
1.8 Subdivision 1. Definitions. (a) For purposes of this section the following terms have
1.9the meanings given them in this subdivision.
1.10 (b) "Debt service" means the amount payable in any fiscal year of principal,
1.11premium, if any, and interest on nonprofit housing bonds and the fees, charges, and
1.12expenses related to the bonds.
1.13 (c) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.
1.14 (d) "Nonprofit housing bonds" means bonds issued by the agency under chapter
1.15462A that are "qualified 501(c)(3) bonds" (within the meaning of Section 145(a) of
1.16the Internal Revenue Code) or are not "private activity bonds" (within the meaning of
1.17Section 141(a) of the Internal Revenue Code), for the purpose of financing or refinancing
1.18affordable housing authorized under this chapter.
1.19 (e) "Permanent supportive housing" means housing that is not time-limited and
1.20provides or coordinates with linkages to services necessary for residents to maintain
1.21housing stability and maximize opportunities for education and employment.
1.22 Subd. 2. Authorization; permanent supportive housing. (a) The agency may issue
1.23up to $36,000,000 of nonprofit housing bonds in one or more series to which the payments
1.24made under this section may be pledged. The nonprofit housing bonds authorized in this
2.1subdivision may be issued for the purpose of making loans, on terms and conditions
2.2the agency deems appropriate, to finance the costs of the construction, acquisition,
2.3preservation, and rehabilitation of permanent supportive housing for individuals and
2.4families who: (1) either have been without a permanent residence for at least 12 months
2.5or at least four times in the last three years; or (2) are at significant risk of lacking a
2.6permanent residence for 12 months or at least four times in the last three years. The bonds
2.7may also be issued to finance the costs of the construction, acquisition, preservation, and
2.8rehabilitation of foreclosed or vacant housing to be used for affordable rental housing.
2.9 (b) An insubstantial portion of the bond proceeds may be used for permanent
2.10supportive housing for individuals and families experiencing homelessness who do not
2.11meet the criteria of paragraph (a).
2.12 Subd. 2a. Authorization; community land trusts. (a) The agency may issue up
2.13to $5,000,000 of nonprofit housing bonds in one or more series to which the payments
2.14made under this section may be pledged. The nonprofit housing bonds authorized in this
2.15subdivision may be issued for the purpose of making grants, on terms and conditions the
2.16agency deems appropriate, to community land trusts authorized under section 462A.31,
2.17to acquire land for residential properties that are at risk of foreclosure, undergoing the
2.18foreclosure process, or foreclosed.
2.19(b) Grants made under this subdivision are a supplement to be used by the agency
2.20with other funding for the purposes specified in paragraph (a). The agency must consider
2.21the award of a grant under this subdivision when making decisions under other funding
2.22programs for long-term affordable housing through land leases.
2.23 Subd. 3. No full faith and credit. The nonprofit housing bonds are not public debt
2.24of the state, and the full faith and credit and taxing powers of the state are not pledged
2.25to the payment of the nonprofit housing bonds or to any payment that the state agrees to
2.26make under this section. The bonds must contain a conspicuous statement to that effect.
2.27 Subd. 4.
2.28The agency must certify annually to the commissioner of management and budget the
2.29actual amount of annual debt service on each series of bonds issued under
2.30subdivisions 2 and 2a, respectively.
2.31 (b) Each July 15, beginning in 2009 and through 2031, if any nonprofit housing
2.32bonds issued under subdivision 2 remain outstanding, the commissioner of management
2.33and budget must transfer to the nonprofit housing bond account established under
2.34section
2.35$2,400,000 annually.
3.1(c) Each July 15, beginning in 2011 and through 2033, if any nonprofit housing
3.2bonds issued under subdivision 2a remain outstanding, the commissioner of management
3.3and budget must transfer to the nonprofit housing bond account the amount certified under
3.4paragraph (a), not to exceed $400,000 annually.
3.5(d) The amounts necessary to make the transfers under this subdivision are
3.6appropriated from the general fund to the commissioner of management and budget.
3.7
3.8payments to be made by the state under this section.
3.9EFFECTIVE DATE.This section is effective the day following final enactment.
3.10 Sec. 2. REVISOR'S INSTRUCTION.
3.11The revisor of statutes shall change the term "neighborhood land trust" to
3.12"community land trust" and the term "neighborhood land trusts" to "community land
3.13trusts" wherever they appear in Minnesota Statutes, chapter 462A.
