Minnesota 2023-2024 Regular Session

Minnesota House Bill HF302 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to housing; adding an eligible use of housing infrastructure bonds;
3		-	1.3 prescribing the issuance of housing infrastructure bonds; amending Minnesota
4		-	1.4 Statutes 2022, sections 462A.22, subdivision 1; 462A.37, subdivisions 2, 5, by
5		-	1.5 adding subdivisions.
6		-	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7		-	1.7 Section 1. Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:
8		-	1.8 Subdivision 1.Debt ceiling.The aggregate principal amount of general obligation bonds
9		-	1.9and notes which are outstanding at any time, excluding the principal amount of any bonds
10		-	1.10and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of
11		-	1.11$5,000,000,000.
12		-	1.12 Sec. 2. Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:
13		-	1.13 Subd. 2.Authorization.(a) The agency may issue up to $30,000,000 in aggregate
14		-	1.14principal amount of housing infrastructure bonds in one or more series to which the payment
15		-	1.15made under this section may be pledged. The housing infrastructure bonds authorized in
16		-	1.16this subdivision may be issued to fund loans, or grants for the purposes of clause clauses
17		-	1.17(4) and (7), on terms and conditions the agency deems appropriate, made for one or more
18		-	1.18of the following purposes:
19		-	1.19 (1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
20		-	1.20housing for individuals and families who are without a permanent residence;
21		-	1.21 (2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
22		-	1.22housing to be used for affordable rental housing and the costs of new construction of rental
	3	+	1.3 prescribing the issuance of housing infrastructure bonds; authorizing the sale and
	4	+	1.4 issuance of state bonds; appropriating money; amending Minnesota Statutes 2022,
	5	+	1.5 sections 462A.22, subdivision 1; 462A.37, subdivisions 2, 5, by adding
	6	+	1.6 subdivisions.
	7	+	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
	8	+	1.8 Section 1. Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:
	9	+	1.9 Subdivision 1.Debt ceiling.The aggregate principal amount of general obligation bonds
	10	+	1.10and notes which are outstanding at any time, excluding the principal amount of any bonds
	11	+	1.11and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of
	12	+	1.12$5,000,000,000.
	13	+	1.13 Sec. 2. Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:
	14	+	1.14 Subd. 2.Authorization.(a) The agency may issue up to $30,000,000 in aggregate
	15	+	1.15principal amount of housing infrastructure bonds in one or more series to which the payment
	16	+	1.16made under this section may be pledged. The housing infrastructure bonds authorized in
	17	+	1.17this subdivision may be issued to fund loans, or grants for the purposes of clause clauses
	18	+	1.18(4) and (7), on terms and conditions the agency deems appropriate, made for one or more
	19	+	1.19of the following purposes:
	20	+	1.20 (1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
	21	+	1.21housing for individuals and families who are without a permanent residence;
	22	+	1.22 (2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
	23	+	1.23housing to be used for affordable rental housing and the costs of new construction of rental
23	24		1Sec. 2.
24		-	REVISOR MS ~~H0302-1~~~~HF302 FIRST ENGROSSMENT~~
	25	+	REVISOR MS/BM 23-0098412/15/22
25	26		State of Minnesota
26	27		This Document can be made available
27	28		in alternative formats upon request
28	29		HOUSE OF REPRESENTATIVES
29	30		H. F. No. 302
30	31		NINETY-THIRD SESSION
31	32		Authored by Howard; Lee, F.; Agbaje; Hussein; Frazier and others01/11/2023
32		-	The bill was read for the first time and referred to the Committee on Capital Investment
33		-	Adoption of Report: Amended and re-referred to the Committee on Housing Finance and Policy02/01/2023 2.1housing on abandoned or foreclosed property where the existing structures will be demolished
	33	+	The bill was read for the first time and referred to the Committee on Capital Investment 2.1housing on abandoned or foreclosed property where the existing structures will be demolished
34	34		2.2or removed;
35	35		2.3 (3) to finance that portion of the costs of acquisition of property that is attributable to
36	36		2.4the land to be leased by community land trusts to low- and moderate-income home buyers;
37	37		2.5 (4) to finance the acquisition, improvement, and infrastructure of manufactured home
38	38		2.6parks under section 462A.2035, subdivision 1b;
39	39		2.7 (5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
40	40		2.8of senior housing;
41	41		2.9 (6) to finance the costs of acquisition and rehabilitation of federally assisted rental
42	42		2.10housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
43	43		2.11of federally assisted rental housing, including providing funds to refund, in whole or in part,
44	44		2.12outstanding bonds previously issued by the agency or another government unit to finance
45	45		2.13or refinance such costs; and
46	46		2.14 (7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
47	47		2.15of single-family housing.; and
48	48		2.16 (8) to finance the costs of construction, acquisition, and rehabilitation of permanent
49	49		2.17housing that is affordable to households with incomes at or below 50 percent of the area
50	50		2.18median income for the applicable county or metropolitan area as published by the Department
51	51		2.19of Housing and Urban Development, as adjusted for household size.
52	52		2.20 (b) Among comparable proposals for permanent supportive housing, preference shall
53	53		2.21be given to permanent supportive housing for veterans and other individuals or families
54	54		2.22who:
55	55		2.23 (1) either have been without a permanent residence for at least 12 months or at least four
56	56		2.24times in the last three years; or
57	57		2.25 (2) are at significant risk of lacking a permanent residence for 12 months or at least four
58	58		2.26times in the last three years.
59	59		2.27 (c) Among comparable proposals for senior housing, the agency must give priority to
60	60		2.28requests for projects that:
61	61		2.29 (1) demonstrate a commitment to maintaining the housing financed as affordable to
62	62		2.30seniors;
63	63		2.31 (2) leverage other sources of funding to finance the project, including the use of
64	64		2.32low-income housing tax credits;
65	65		2Sec. 2.
66		-	REVISOR MS ~~H0302-1~~~~HF302 FIRST ENGROSSMENT~~ 3.1 (3) provide access to services to residents and demonstrate the ability to increase physical
	66	+	REVISOR MS/BM 23-0098412/15/22 3.1 (3) provide access to services to residents and demonstrate the ability to increase physical
67	67		3.2supports and support services as residents age and experience increasing levels of disability;
68	68		3.3 (4) provide a service plan containing the elements of clause (3) reviewed by the housing
69	69		3.4authority, economic development authority, public housing authority, or community
70	70		3.5development agency that has an area of operation for the jurisdiction in which the project
71	71		3.6is located; and
72	72		3.7 (5) include households with incomes that do not exceed 30 percent of the median
73	73		3.8household income for the metropolitan area.
74	74		3.9 (d) To the extent practicable, the agency shall balance the loans made between projects
75	75		3.10in the metropolitan area and projects outside the metropolitan area. Of the loans made to
76	76		3.11projects outside the metropolitan area, the agency shall, to the extent practicable, balance
77	77		3.12the loans made between projects in counties or cities with a population of 20,000 or less,
78	78		3.13as established by the most recent decennial census, and projects in counties or cities with
79	79		3.14populations in excess of 20,000.
80	80		3.15 (e) Among comparable proposals for permanent housing, the agency must give preference
81	81		3.16to projects that will provide housing that is affordable to households at or below 30 percent
82	82		3.17of the area median income.
83	83		3.18 (f) If a loan recipient uses the loan for any of the purposes in paragraph (a) on a building
84	84		3.19containing more than four units, the loan recipient must construct, convert, or otherwise
85	85		3.20adapt the building to include:
86	86		3.21 (1) the greater of (i) at least one unit, or (ii) at least five percent of units that are accessible
87	87		3.22units, as defined by section 1002 of the current State Building Code Accessibility Provisions
88	88		3.23for Dwelling Units in Minnesota, and include at least one roll-in shower; and
89	89		3.24 (2) the greater of (i) at least one unit, or (ii) at least five percent of units that are
90	90		3.25sensory-accessible units that include:
91	91		3.26 (A) soundproofing between shared walls for first and second floor units;
92	92		3.27 (B) no florescent lighting in units and common areas;
93	93		3.28 (C) low-fume paint;
94	94		3.29 (D) low-chemical carpet; and
95	95		3.30 (E) low-chemical carpet glue in units and common areas.
96	96		3.31Nothing in this paragraph will relieve a project funded by the agency from meeting other
97	97		3.32applicable accessibility requirements.
98	98		3Sec. 2.
99		-	REVISOR MS ~~H0302-1~~~~HF302 FIRST ENGROSSMENT~~ 4.1 EFFECTIVE DATE.This section is effective the day following final enactment.
	99	+	REVISOR MS/BM 23-0098412/15/22 4.1 EFFECTIVE DATE.This section is effective the day following final enactment.
100	100		4.2 Sec. 3. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
101	101		4.3read:
102	102		4.4 Subd. 2i.Additional authorization.In addition to the amounts authorized in subdivisions
103	103		4.52 to 2h, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
104	104		4.6more series to which the payments under this section may be pledged.
105	105		4.7 EFFECTIVE DATE.This section is effective the day following final enactment.
106	106		4.8 Sec. 4. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
107	107		4.9read:
108	108		4.10 Subd. 2j.Additional authorization.In addition to the amounts authorized in subdivisions
109	109		4.112 to 2i, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
110	110		4.12more series to which the payments under this section may be pledged.
111	111		4.13 EFFECTIVE DATE.This section is effective January 1, 2024.
112	112		4.14 Sec. 5. Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:
113	113		4.15 Subd. 5.Additional appropriation.(a) The agency must certify annually to the
114	114		4.16commissioner of management and budget the actual amount of annual debt service on each
115	115		4.17series of bonds issued under this section.
116	116		4.18 (b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
117	117		4.19bonds issued under subdivision 2a remain outstanding, the commissioner of management
118	118		4.20and budget must transfer to the housing infrastructure bond account established under section
119	119		4.21462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000
120	120		4.22annually. The amounts necessary to make the transfers are appropriated from the general
121	121		4.23fund to the commissioner of management and budget.
122	122		4.24 (c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
123	123		4.25bonds issued under subdivision 2b remain outstanding, the commissioner of management
124	124		4.26and budget must transfer to the housing infrastructure bond account established under section
125	125		4.27462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000
126	126		4.28annually. The amounts necessary to make the transfers are appropriated from the general
127	127		4.29fund to the commissioner of management and budget.
128	128		4.30 (d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
129	129		4.31bonds issued under subdivision 2c remain outstanding, the commissioner of management
130	130		4Sec. 5.
131		-	REVISOR MS ~~H0302-1~~~~HF302 FIRST ENGROSSMENT~~ 5.1and budget must transfer to the housing infrastructure bond account established under section
	131	+	REVISOR MS/BM 23-0098412/15/22 5.1and budget must transfer to the housing infrastructure bond account established under section
132	132		5.2462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000
133	133		5.3annually. The amounts necessary to make the transfers are appropriated from the general
134	134		5.4fund to the commissioner of management and budget.
135	135		5.5 (e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
136	136		5.6bonds issued under subdivision 2d remain outstanding, the commissioner of management
137	137		5.7and budget must transfer to the housing infrastructure bond account established under section
138	138		5.8462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
139	139		5.9to make the transfers are appropriated from the general fund to the commissioner of
140	140		5.10management and budget.
141	141		5.11 (f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
142	142		5.12bonds issued under subdivision 2e remain outstanding, the commissioner of management
143	143		5.13and budget must transfer to the housing infrastructure bond account established under section
144	144		5.14462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
145	145		5.15to make the transfers are appropriated from the general fund to the commissioner of
146	146		5.16management and budget.
147	147		5.17 (g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
148	148		5.18bonds issued under subdivision 2f remain outstanding, the commissioner of management
149	149		5.19and budget must transfer to the housing infrastructure bond account established under section
150	150		5.20462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
151	151		5.21to make the transfers are appropriated from the general fund to the commissioner of
152	152		5.22management and budget.
153	153		5.23 (h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
154	154		5.24bonds issued under subdivision 2g remain outstanding, the commissioner of management
155	155		5.25and budget must transfer to the housing infrastructure bond account established under section
156	156		5.26462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
157	157		5.27to make the transfers are appropriated from the general fund to the commissioner of
158	158		5.28management and budget.
159	159		5.29 (i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
160	160		5.30bonds issued under subdivision 2h remain outstanding, the commissioner of management
161	161		5.31and budget must transfer to the housing infrastructure bond account established under section
162	162		5.32462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
163	163		5.33to make the transfers are appropriated from the general fund to the commissioner of
164	164		5.34management and budget.
165	165		5Sec. 5.
166		-	REVISOR MS ~~H0302-1~~~~HF302 FIRST ENGROSSMENT~~ 6.1 (j) Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
	166	+	REVISOR MS/BM 23-0098412/15/22 6.1 (j) Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
167	167		6.2bonds issued under subdivision 2i remain outstanding, the commissioner of management
168	168		6.3and budget must transfer to the housing infrastructure bond account established under section
169	169		6.4462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
170	170		6.5to make the transfers are appropriated from the general fund to the commissioner of
171	171		6.6management and budget.
172	172		6.7 (k) Each July 15, beginning in 2025 and through 2046, if any housing infrastructure
173	173		6.8bonds issued under subdivision 2j remain outstanding, the commissioner of management
174	174		6.9and budget must transfer to the housing infrastructure bond account established under section
175	175		6.10462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
176	176		6.11to make the transfers are appropriated from the general fund to the commissioner of
177	177		6.12management and budget.
178	178		6.13 (l) The agency may pledge to the payment of the housing infrastructure bonds the
179	179		6.14payments to be made by the state under this section.
180	180		6.15 EFFECTIVE DATE.This section is effective the day following final enactment.
181		-	6Sec. 5.
182		-	REVISOR MS H0302-1HF302 FIRST ENGROSSMENT
	181	+	6.16 Sec. 6. PUBLIC HOUSING REHABILITATION.
	182	+	6.17 Subdivision 1.Appropriations.$250,000,000 is appropriated from the bond proceeds
	183	+	6.18fund to the Minnesota Housing Finance Agency for transfer to the housing development
	184	+	6.19fund to finance the costs of rehabilitation to preserve public housing under Minnesota
	185	+	6.20Statutes, section 462A.202, subdivision 3a. For purposes of this section, "public housing"
	186	+	6.21means housing for low-income persons and households financed by the federal government
	187	+	6.22and publicly owned. The agency may give priority to proposals that maximize federal or
	188	+	6.23local resources to finance the capital costs and requests that prioritize health, safety, and
	189	+	6.24energy improvements. The priority in Minnesota Statutes, section 462A.202, subdivision
	190	+	6.253a, for projects to increase the supply of affordable housing and the restrictions of Minnesota
	191	+	6.26Statutes, section 462A.202, subdivision 7, do not apply to this appropriation.
	192	+	6.27 Subd. 2.Bond sale.To provide the money appropriated in this section from the bond
	193	+	6.28proceeds fund, the commissioner of management and budget shall sell and issue bonds of
	194	+	6.29the state in an amount up to $250,000,000 in the manner, upon the terms, and with the effect
	195	+	6.30prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
	196	+	6.31Constitution, article XI, sections 4 to 7.
	197	+	6.32 EFFECTIVE DATE.This section is effective the day following final enactment.
	198	+	6Sec. 6.
	199	+	REVISOR MS/BM 23-0098412/15/22