Bill Text: MN SF1977 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Public housing rehabilitation bond issue and appropriation

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-05-02 - Comm report: To pass and re-referred to Capital Investment [SF1977 Detail]

Download: Minnesota-2013-SF1977-Introduced.html

1.1A bill for an act
1.2relating to capital investment; appropriating money for public housing
1.3rehabilitation and debt service on additional housing infrastructure bonds issued
1.4by the Minnesota Housing Finance Agency; authorizing the sale and issuance of
1.5state bonds;amending Minnesota Statutes 2012, section 462A.37, subdivision 2,
1.6by adding subdivisions.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8    Section 1. Minnesota Statutes 2012, section 462A.37, subdivision 2, is amended to read:
1.9    Subd. 2. Authorization. (a) The agency may issue up to $30,000,000 in aggregate
1.10principal amount of housing infrastructure bonds in one or more series to which the
1.11payment made under this section may be pledged. The housing infrastructure bonds
1.12authorized in this subdivision may be issued to fund loans, on terms and conditions the
1.13agency deems appropriate, made for one or more of the following purposes:
1.14(1) to finance the costs of the construction, acquisition, and rehabilitation of
1.15supportive housing for individuals and families who are without a permanent residence;
1.16(2) to finance the costs of the acquisition and rehabilitation of foreclosed or
1.17abandoned housing to be used for affordable rental housing and the costs of new
1.18construction of rental housing on abandoned or foreclosed property where the existing
1.19structures will be demolished or removed;
1.20(3) to finance that portion of the costs of acquisition of abandoned or foreclosed
1.21property that is attributable to the land to be leased by community land trusts to low- and
1.22moderate-income homebuyers and that portion of the costs of acquisition of property
1.23located in a foreclosure priority area identified by the agency that is attributable to the land
1.24to be leased by community land trusts to low- and moderate-income homebuyers; and
2.1(4) to finance the costs of acquisition and rehabilitation of federally assisted rental
2.2housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
2.3of federally assisted rental housing, including providing funds to refund, in whole or in
2.4part, outstanding bonds previously issued by the agency or another government unit to
2.5finance or refinance such costs.
2.6(b) Among comparable proposals for permanent supportive housing, preference
2.7shall be given to permanent supportive housing for veterans and other individuals or
2.8families who:
2.9(1) either have been without a permanent residence for at least 12 months or at
2.10least four times in the last three years; or
2.11(2) are at significant risk of lacking a permanent residence for 12 months or at least
2.12four times in the last three years.
2.13EFFECTIVE DATE.This section is effective the day following final enactment for
2.14bonds authorized in 2014 and thereafter.

2.15    Sec. 2. Minnesota Statutes 2012, section 462A.37, is amended by adding a subdivision
2.16to read:
2.17    Subd. 2a. Additional authorization. In addition to the amount authorized in
2.18subdivision 2, the agency may issue up to $80,000,000 of housing infrastructure bonds in
2.19one or more series to which the payments made under this section may be pledged.
2.20EFFECTIVE DATE.This section is effective the day following final enactment.

2.21    Sec. 3. Minnesota Statutes 2012, section 462A.37, is amended by adding a subdivision
2.22to read:
2.23    Subd. 5. Additional appropriation. (a) The agency must certify annually to the
2.24commissioner of management and budget the actual amount of annual debt service on
2.25each series of bonds issued under subdivision 2a.
2.26(b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
2.27bonds issued under subdivision 2a remain outstanding, the commissioner of management
2.28and budget must transfer to the housing infrastructure bond account established under
2.29section 462A.21, subdivision 32, the amount certified under paragraph (a), not to exceed
2.30$6,400,000 annually. The amounts necessary to make the transfers are appropriated from
2.31the general fund to the commissioner of management and budget.
2.32(c) The agency may pledge to the payment of the housing infrastructure bonds the
2.33payments to be made by the state under this section.
3.1EFFECTIVE DATE.This section is effective the day following final enactment.

3.2    Sec. 4. MINNESOTA HOUSING FINANCE AGENCY; PUBLIC HOUSING.
3.3    Subdivision 1. Appropriation. $20,000,000 is appropriated from the bond proceeds
3.4fund to the to the Minnesota Housing Finance Agency for transfer to the housing
3.5development fund to finance the costs of rehabilitation to preserve public housing under
3.6Minnesota Statutes, section 462A.202, subdivision 3a. For purposes of this section,
3.7"public housing" means housing for low-income persons and households financed by
3.8the federal government and owned and operated by the public housing authorities and
3.9agencies formed by cities and counties. Public housing authorities receiving a public
3.10housing assessment composite score of 80 or above are eligible to receive funding.
3.11Priority must be given to proposals that maximize federal or local resources to finance the
3.12capital costs. The priority in Minnesota Statutes, section 462A.202, subdivision 3a, for
3.13projects to increase the supply of affordable housing and the restrictions of Minnesota
3.14Statutes, section 462A.202, subdivision 7, do not apply to this appropriation.
3.15    Subd. 2. Bond sale. To provide the money appropriated in this section from the
3.16bond proceeds fund, the commissioner of management and budget shall sell and issue
3.17bonds of the state in an amount up to $20,000,000 in the manner, upon the terms, and with
3.18the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
3.19Minnesota Constitution, article XI, sections 4 to 7.
3.20EFFECTIVE DATE.This section is effective the day following final enactment.
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