1.1 A bill for an act
1.2 relating to housing; adding an eligible use of housing infrastructure bonds;
1.3 prescribing the issuance of housing infrastructure bonds; amending Minnesota
1.4 Statutes 2022, sections 462A.22, subdivision 1; 462A.37, subdivisions 2, 5, by
1.5 adding subdivisions.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2022, section 462A.22, subdivision 1, is amended to read:
1.8 Subdivision 1.Debt ceiling.The aggregate principal amount of general obligation bonds
1.9and notes which are outstanding at any time, excluding the principal amount of any bonds
1.10and notes refunded by the issuance of new bonds or notes, shall not exceed the sum of
1.11$5,000,000,000.
1.12 Sec. 2. Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:
1.13 Subd. 2.Authorization.(a) The agency may issue up to $30,000,000 in aggregate
1.14principal amount of housing infrastructure bonds in one or more series to which the payment
1.15made under this section may be pledged. The housing infrastructure bonds authorized in
1.16this subdivision may be issued to fund loans, or grants for the purposes of clause clauses
1.17(4) and (7), on terms and conditions the agency deems appropriate, made for one or more
1.18of the following purposes:
1.19 (1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
1.20housing for individuals and families who are without a permanent residence;
1.21 (2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
1.22housing to be used for affordable rental housing and the costs of new construction of rental
1Sec. 2.
REVISOR MS H0302-1HF302 FIRST ENGROSSMENT
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 302
NINETY-THIRD SESSION
Authored by Howard; Lee, F.; Agbaje; Hussein; Frazier and others01/11/2023
The bill was read for the first time and referred to the Committee on Capital Investment
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
2.2or removed;
2.3 (3) to finance that portion of the costs of acquisition of property that is attributable to
2.4the land to be leased by community land trusts to low- and moderate-income home buyers;
2.5 (4) to finance the acquisition, improvement, and infrastructure of manufactured home
2.6parks under section 462A.2035, subdivision 1b;
2.7 (5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
2.8of senior housing;
2.9 (6) to finance the costs of acquisition and rehabilitation of federally assisted rental
2.10housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
2.11of federally assisted rental housing, including providing funds to refund, in whole or in part,
2.12outstanding bonds previously issued by the agency or another government unit to finance
2.13or refinance such costs; and
2.14 (7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
2.15of single-family housing.; and
2.16 (8) to finance the costs of construction, acquisition, and rehabilitation of permanent
2.17housing that is affordable to households with incomes at or below 50 percent of the area
2.18median income for the applicable county or metropolitan area as published by the Department
2.19of Housing and Urban Development, as adjusted for household size.
2.20 (b) Among comparable proposals for permanent supportive housing, preference shall
2.21be given to permanent supportive housing for veterans and other individuals or families
2.22who:
2.23 (1) either have been without a permanent residence for at least 12 months or at least four
2.24times in the last three years; or
2.25 (2) are at significant risk of lacking a permanent residence for 12 months or at least four
2.26times in the last three years.
2.27 (c) Among comparable proposals for senior housing, the agency must give priority to
2.28requests for projects that:
2.29 (1) demonstrate a commitment to maintaining the housing financed as affordable to
2.30seniors;
2.31 (2) leverage other sources of funding to finance the project, including the use of
2.32low-income housing tax credits;
2Sec. 2.
REVISOR MS H0302-1HF302 FIRST ENGROSSMENT 3.1 (3) provide access to services to residents and demonstrate the ability to increase physical
3.2supports and support services as residents age and experience increasing levels of disability;
3.3 (4) provide a service plan containing the elements of clause (3) reviewed by the housing
3.4authority, economic development authority, public housing authority, or community
3.5development agency that has an area of operation for the jurisdiction in which the project
3.6is located; and
3.7 (5) include households with incomes that do not exceed 30 percent of the median
3.8household income for the metropolitan area.
3.9 (d) To the extent practicable, the agency shall balance the loans made between projects
3.10in the metropolitan area and projects outside the metropolitan area. Of the loans made to
3.11projects outside the metropolitan area, the agency shall, to the extent practicable, balance
3.12the loans made between projects in counties or cities with a population of 20,000 or less,
3.13as established by the most recent decennial census, and projects in counties or cities with
3.14populations in excess of 20,000.
3.15 (e) Among comparable proposals for permanent housing, the agency must give preference
3.16to projects that will provide housing that is affordable to households at or below 30 percent
3.17of the area median income.
3.18 (f) If a loan recipient uses the loan for any of the purposes in paragraph (a) on a building
3.19containing more than four units, the loan recipient must construct, convert, or otherwise
3.20adapt the building to include:
3.21 (1) the greater of (i) at least one unit, or (ii) at least five percent of units that are accessible
3.22units, as defined by section 1002 of the current State Building Code Accessibility Provisions
3.23for Dwelling Units in Minnesota, and include at least one roll-in shower; and
3.24 (2) the greater of (i) at least one unit, or (ii) at least five percent of units that are
3.25sensory-accessible units that include:
3.26 (A) soundproofing between shared walls for first and second floor units;
3.27 (B) no florescent lighting in units and common areas;
3.28 (C) low-fume paint;
3.29 (D) low-chemical carpet; and
3.30 (E) low-chemical carpet glue in units and common areas.
3.31Nothing in this paragraph will relieve a project funded by the agency from meeting other
3.32applicable accessibility requirements.
3Sec. 2.
REVISOR MS H0302-1HF302 FIRST ENGROSSMENT 4.1 EFFECTIVE DATE.This section is effective the day following final enactment.
4.2 Sec. 3. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
4.3read:
4.4 Subd. 2i.Additional authorization.In addition to the amounts authorized in subdivisions
4.52 to 2h, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
4.6more series to which the payments under this section may be pledged.
4.7 EFFECTIVE DATE.This section is effective the day following final enactment.
4.8 Sec. 4. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
4.9read:
4.10 Subd. 2j.Additional authorization.In addition to the amounts authorized in subdivisions
4.112 to 2i, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
4.12more series to which the payments under this section may be pledged.
4.13 EFFECTIVE DATE.This section is effective January 1, 2024.
4.14 Sec. 5. Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:
4.15 Subd. 5.Additional appropriation.(a) The agency must certify annually to the
4.16commissioner of management and budget the actual amount of annual debt service on each
4.17series of bonds issued under this section.
4.18 (b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
4.19bonds issued under subdivision 2a remain outstanding, the commissioner of management
4.20and budget must transfer to the housing infrastructure bond account established under section
4.21462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000
4.22annually. The amounts necessary to make the transfers are appropriated from the general
4.23fund to the commissioner of management and budget.
4.24 (c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
4.25bonds issued under subdivision 2b remain outstanding, the commissioner of management
4.26and budget must transfer to the housing infrastructure bond account established under section
4.27462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000
4.28annually. The amounts necessary to make the transfers are appropriated from the general
4.29fund to the commissioner of management and budget.
4.30 (d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
4.31bonds issued under subdivision 2c remain outstanding, the commissioner of management
4Sec. 5.
REVISOR MS H0302-1HF302 FIRST ENGROSSMENT 5.1and budget must transfer to the housing infrastructure bond account established under section
5.2462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000
5.3annually. The amounts necessary to make the transfers are appropriated from the general
5.4fund to the commissioner of management and budget.
5.5 (e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
5.6bonds issued under subdivision 2d remain outstanding, the commissioner of management
5.7and budget must transfer to the housing infrastructure bond account established under section
5.8462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
5.9to make the transfers are appropriated from the general fund to the commissioner of
5.10management and budget.
5.11 (f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
5.12bonds issued under subdivision 2e remain outstanding, the commissioner of management
5.13and budget must transfer to the housing infrastructure bond account established under section
5.14462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
5.15to make the transfers are appropriated from the general fund to the commissioner of
5.16management and budget.
5.17 (g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
5.18bonds issued under subdivision 2f remain outstanding, the commissioner of management
5.19and budget must transfer to the housing infrastructure bond account established under section
5.20462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
5.21to make the transfers are appropriated from the general fund to the commissioner of
5.22management and budget.
5.23 (h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
5.24bonds issued under subdivision 2g remain outstanding, the commissioner of management
5.25and budget must transfer to the housing infrastructure bond account established under section
5.26462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
5.27to make the transfers are appropriated from the general fund to the commissioner of
5.28management and budget.
5.29 (i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
5.30bonds issued under subdivision 2h remain outstanding, the commissioner of management
5.31and budget must transfer to the housing infrastructure bond account established under section
5.32462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
5.33to make the transfers are appropriated from the general fund to the commissioner of
5.34management and budget.
5Sec. 5.
REVISOR MS H0302-1HF302 FIRST ENGROSSMENT 6.1 (j) Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
6.2bonds issued under subdivision 2i remain outstanding, the commissioner of management
6.3and budget must transfer to the housing infrastructure bond account established under section
6.4462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
6.5to make the transfers are appropriated from the general fund to the commissioner of
6.6management and budget.
6.7 (k) Each July 15, beginning in 2025 and through 2046, if any housing infrastructure
6.8bonds issued under subdivision 2j remain outstanding, the commissioner of management
6.9and budget must transfer to the housing infrastructure bond account established under section
6.10462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
6.11to make the transfers are appropriated from the general fund to the commissioner of
6.12management and budget.
6.13 (l) The agency may pledge to the payment of the housing infrastructure bonds the
6.14payments to be made by the state under this section.
6.15 EFFECTIVE DATE.This section is effective the day following final enactment.
6Sec. 5.
REVISOR MS H0302-1HF302 FIRST ENGROSSMENT