Minnesota 2023-2024 Regular Session

Minnesota House Bill HF743 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; creating various grant programs to fund municipal housing
3	3		1.3 projects and initiatives; creating an excise tax imposed on the sale of residential
4	4		1.4 property when the buyer is a corporate entity; increasing the maximum amount a
5	5		1.5 housing and redevelopment authority may levy; authorizing housing infrastructure
6	6		1.6 bonds to finance affordable housing to low-income households; authorizing the
7	7		1.7 issuance of additional housing infrastructure bonds; adding workforce housing as
8	8		1.8 an eligible project for housing and redevelopment authorities; creating standards
9	9		1.9 and procedures for municipal relocation assistance programs; modifying regulations
10	10		1.10 on revenue derived from tax increments in tax increment financing districts;
11	11		1.11 authorizing the sale and issuance of bonds; appropriating money; amending
12	12		1.12 Minnesota Statutes 2022, sections 462A.37, subdivisions 2, 5, by adding a
13	13		1.13 subdivision; 469.002, subdivision 12, by adding a subdivision; 469.033, subdivision
14	14		1.14 6; 469.1763, subdivision 2; proposing coding for new law in Minnesota Statutes,
15	15		1.15 chapters 116J; 462A; 471; proposing coding for new law as Minnesota Statutes,
16	16		1.16 chapter 287A.
17	17		1.17BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
18	18		1.18 Section 1. [116J.4315] GREATER MINNESOTA HOUSING INFRASTRUCTURE
19	19		1.19GRANT PROGRAM.
20	20		1.20 Subdivision 1.Grant program established.The commissioner may make grants to
21	21		1.21cities to provide up to 50 percent of the capital costs of public infrastructure necessary for
22	22		1.22an eligible workforce housing development project. The commissioner may make a grant
23	23		1.23award only after determining that nonstate resources are committed to complete the project.
24	24		1.24The nonstate contribution may be either cash or in kind. In-kind contributions may include
25	25		1.25the value of the site, whether the site is prepared before or after the law appropriating money
26	26		1.26for the grant is enacted.
27	27		1.27 Subd. 2.Definitions.(a) For the purposes of this section, the following terms have the
28	28		1.28meanings given.
29	29		1Section 1.
30		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~
	30	+	REVISOR MS/NS 23-0148201/06/23
31	31		State of Minnesota
32	32		This Document can be made available
33	33		in alternative formats upon request
34	34		HOUSE OF REPRESENTATIVES
35	35		H. F. No. 743
36		-	NINETY-THIRD SESSION
37		-	Authored by Norris, Howard, Smith and Hemmingsen-Jaeger01/23/2023
38		-	The bill was read for the first time and referred to the Committee on Housing Finance and Policy
39		-	Adoption of Report: Amended and re-referred to the Committee on Taxes03/13/2023 2.1 (b) "City" means a statutory or home rule charter city located outside the metropolitan
	36	+	NINETY-THIRD SESSION 2.1 (b) "City" means a statutory or home rule charter city located outside the metropolitan
40	37		2.2area, as defined in section 473.121, subdivision 2.
41	38		2.3 (c) "Housing infrastructure" means publicly owned physical infrastructure necessary to
42	39		2.4support housing development projects, including but not limited to sewers, water supply
43	40		2.5systems, utility extensions, streets, wastewater treatment systems, stormwater management
44	41		2.6systems, and facilities for pretreatment of wastewater to remove phosphorus.
45	42		2.7 Subd. 3.Eligible projects.Housing projects eligible for a grant under this section may
46	43		2.8be single-family or multifamily housing developments, and either owner-occupied or a
47	44		2.9rental.
48	45		2.10 Subd. 4.Application.(a) The commissioner must develop forms and procedures for
49	46		2.11soliciting and reviewing applications for grants under this section. At a minimum, a city
50	47		2.12must include in its application a resolution of the city council certifying that the required
51	48		2.13nonstate match is available. The commissioner must evaluate complete applications for
52	49		2.14funding for eligible projects to determine that:
53	50		2.15 (1) the project is necessary to increase sites available for housing development that will
54	51		2.16provide adequate housing stock for the current or future workforce; and
55	52		2.17 (2) the increase in workforce housing will result in substantial public and private capital
56	53		2.18investment in the city in which the project would be located.
57	54		2.19 (b) The determination of whether to make a grant for a site is within the discretion of
58	55		2.20the commissioner, subject to this section. The commissioner's decisions and application of
59	56		2.21the criteria are not subject to judicial review, except for abuse of discretion.
60	57		2.22 Subd. 5.Maximum grant amount.A city may receive no more than $30,000 per lot
61	58		2.23for single-family, duplex, triplex, or fourplex housing developed and no more than $60,000
62	59		2.24per lot for multifamily housing with more than four units per building. A city may receive
63	60		2.25no more than $500,000 in two years for one or more housing developments.
64	61		2.26 Subd. 6.Cancellation of grant; return of grant money.If, after five years, the
65	62		2.27commissioner determines that a project has not proceeded in a timely manner and is unlikely
66	63		2.28to be completed, the commissioner must cancel the grant and require the grantee to return
67	64		2.29all grant money awarded for that project.
68	65		2.30 Subd. 7.Appropriation.Grant money returned to the commissioner is appropriated to
69	66		2.31the commissioner to make additional grants under this section.
70	67		2.32 EFFECTIVE DATE.This section is effective the day following final enactment.
71	68		2Section 1.
72		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 3.1 Sec. 2. [287A.03] REAL ESTATE EXCISE TAX.
	69	+	REVISOR MS/NS 23-0148201/06/23 3.1 Sec. 2. [287A.03] REAL ESTATE EXCISE TAX.
73	70		3.2 Subdivision 1.Imposition.(a) A tax is imposed on the sale of real property classified
74	71		3.3as class 1a under section 273.13, subdivision 22, when the buyer is a corporate entity. For
75	72		3.4the purposes of this section, "corporate entity" means any partnership, corporation, or limited
76	73		3.5liability company.
77	74		3.6 (b) Payment of the tax is due and payable immediately at the time of sale and must be
78	75		3.7collected with the taxes imposed under chapter 287. The tax is the obligation of the buyer.
79	76		3.8 Subd. 2.Rates.The tax imposed under subdivision 1 is at the following rates:
80	77		3.9 (1) ... percent of the portion of the selling price less than or equal to $200,000;
81	78		3.10 (2) ... percent of the portion of the selling price above $200,000 and less than or equal
82	79		3.11to $350,000;
83	80		3.12 (3) ... percent of the portion of the selling price above $350,000 and less than or equal
84	81		3.13to $500,000; and
85	82		3.14 (4) ... percent of the portion of the selling price above $500,000.
86	83		3.15 Subd. 3.Deposit of funds.(a) All taxes paid to the county treasurer must be apportioned,
87	84		3.16with 97 percent to the general fund of the state and three percent to the county revenue fund.
88	85		3.17 (b) On or before the 20th day of each month, the county treasurer shall determine and
89	86		3.18pay to the commissioner of revenue for deposit in the state treasury and credit to the general
90	87		3.19fund the state's portion of the receipts from this tax during the preceding month subject to
91	88		3.20the electronic payment requirements of section 270C.42. The county treasurer shall provide
92	89		3.21any related reports requested by the commissioner of revenue.
93	90		3.22 Subd. 4.Violations; civil penalties.(a) A buyer liable for the tax imposed by this section
94	91		3.23who fails to pay the full amount of tax owed, unless the failure is shown to be due to
95	92		3.24reasonable cause, is liable for a civil penalty of $....... or 100 percent of the tax for each
96	93		3.25failure, whichever is less.
97	94		3.26 (b) A person or entity who willfully attempts to evade or defeat the tax imposed under
98	95		3.27this section or the payment thereof is, in addition to the penalty provided in subdivision 1,
99	96		3.28liable for a penalty of 50 percent of the total amount of the underpayment of the tax.
100	97		3.29 Subd. 5.Exemptions.The following entities are exempt from the tax imposed under
101	98		3.30this section:
102	99		3.31 (1) a corporate entity that owns fewer than five class 1a nonhomesteaded residential
103	100		3.32properties;
104	101		3Sec. 2.
105		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 4.1 (2) a corporate entity that is a community land trust under section 462A.31; and
	102	+	REVISOR MS/NS 23-0148201/06/23 4.1 (2) a corporate entity that is a community land trust under section 462A.31; and
106	103		4.2 (3) a nonprofit corporation under chapter 317A.
107	104		4.3 EFFECTIVE DATE.This section is effective July 1, 2023.
108	105		4.4 Sec. 3. Minnesota Statutes 2022, section 462A.37, subdivision 2, is amended to read:
109	106		4.5 Subd. 2.Authorization.(a) The agency may issue up to $30,000,000 in aggregate
110	107		4.6principal amount of housing infrastructure bonds in one or more series to which the payment
111	108		4.7made under this section may be pledged. The housing infrastructure bonds authorized in
112	109		4.8this subdivision may be issued to fund loans, or grants for the purposes of clause (4), on
113	110		4.9terms and conditions the agency deems appropriate, made for one or more of the following
114	111		4.10purposes:
115	112		4.11 (1) to finance the costs of the construction, acquisition, and rehabilitation of supportive
116	113		4.12housing for individuals and families who are without a permanent residence;
117	114		4.13 (2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
118	115		4.14housing to be used for affordable rental housing and the costs of new construction of rental
119	116		4.15housing on abandoned or foreclosed property where the existing structures will be demolished
120	117		4.16or removed;
121	118		4.17 (3) to finance that portion of the costs of acquisition of property that is attributable to
122	119		4.18the land to be leased by community land trusts to low- and moderate-income home buyers;
123	120		4.19 (4) to finance the acquisition, improvement, and infrastructure of manufactured home
124	121		4.20parks under section 462A.2035, subdivision 1b;
125	122		4.21 (5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
126	123		4.22of senior housing;
127	124		4.23 (6) to finance the costs of acquisition and rehabilitation of federally assisted rental
128	125		4.24housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
129	126		4.25of federally assisted rental housing, including providing funds to refund, in whole or in part,
130	127		4.26outstanding bonds previously issued by the agency or another government unit to finance
131	128		4.27or refinance such costs; and
132	129		4.28 (7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
133	130		4.29of single-family housing.; and
134	131		4.30 (8) to finance the costs of construction, acquisition, and rehabilitation of permanent
135	132		4.31housing that is affordable to households with incomes at or below 50 percent of the area
136	133		4.32median income. For purposes of this section, "area median income" means the area median
137	134		4Sec. 3.
138		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 5.1income for the applicable county or metropolitan area as published by the United States
	135	+	REVISOR MS/NS 23-0148201/06/23 5.1income for the applicable county or metropolitan area as published by the United States
139	136		5.2Department of Housing and Urban Development, as adjusted for household size.
140	137		5.3 (b) Among comparable proposals for permanent supportive housing, preference shall
141	138		5.4be given to permanent supportive housing for veterans and other individuals or families
142	139		5.5who:
143	140		5.6 (1) either have been without a permanent residence for at least 12 months or at least four
144	141		5.7times in the last three years; or
145	142		5.8 (2) are at significant risk of lacking a permanent residence for 12 months or at least four
146	143		5.9times in the last three years.
147	144		5.10 (c) Among comparable proposals for senior housing, the agency must give priority to
148	145		5.11requests for projects that:
149	146		5.12 (1) demonstrate a commitment to maintaining the housing financed as affordable to
150	147		5.13seniors;
151	148		5.14 (2) leverage other sources of funding to finance the project, including the use of
152	149		5.15low-income housing tax credits;
153	150		5.16 (3) provide access to services to residents and demonstrate the ability to increase physical
154	151		5.17supports and support services as residents age and experience increasing levels of disability;
155	152		5.18 (4) provide a service plan containing the elements of clause (3) reviewed by the housing
156	153		5.19authority, economic development authority, public housing authority, or community
157	154		5.20development agency that has an area of operation for the jurisdiction in which the project
158	155		5.21is located; and
159	156		5.22 (5) include households with incomes that do not exceed 30 percent of the median
160	157		5.23household income for the metropolitan area.
161	158		5.24 (d) Of comparable proposals for permanent housing, the agency must give preference
162	159		5.25to projects that will provide housing that is affordable to households at or below 30 percent
163	160		5.26of the area median income.
164	161		5.27 (e) To the extent practicable, the agency shall balance the loans made between projects
165	162		5.28in the metropolitan area and projects outside the metropolitan area. Of the loans made to
166	163		5.29projects outside the metropolitan area, the agency shall, to the extent practicable, balance
167	164		5.30the loans made between projects in counties or cities with a population of 20,000 or less,
168	165		5.31as established by the most recent decennial census, and projects in counties or cities with
169	166		5.32populations in excess of 20,000.
170	167		5Sec. 3.
171		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 6.1 EFFECTIVE DATE.This section is effective the day following final enactment.
	168	+	REVISOR MS/NS 23-0148201/06/23 6.1 EFFECTIVE DATE.This section is effective the day following final enactment.
172	169		6.2 Sec. 4. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
173	170		6.3read:
174	171		6.4 Subd. 2i.Additional authorization.In addition to the amounts authorized in subdivisions
175	172		6.52 to 2h, the agency may issue up to $400,000,000 in housing infrastructure bonds in one or
176	173		6.6more series to which the payments under this section may be pledged.
177	174		6.7 EFFECTIVE DATE.This section is effective the day following final enactment.
178	175		6.8 Sec. 5. Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:
179	176		6.9 Subd. 5.Additional appropriation.(a) The agency must certify annually to the
180	177		6.10commissioner of management and budget the actual amount of annual debt service on each
181	178		6.11series of bonds issued under this section.
182	179		6.12 (b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
183	180		6.13bonds issued under subdivision 2a remain outstanding, the commissioner of management
184	181		6.14and budget must transfer to the housing infrastructure bond account established under section
185	182		6.15462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000
186	183		6.16annually. The amounts necessary to make the transfers are appropriated from the general
187	184		6.17fund to the commissioner of management and budget.
188	185		6.18 (c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
189	186		6.19bonds issued under subdivision 2b remain outstanding, the commissioner of management
190	187		6.20and budget must transfer to the housing infrastructure bond account established under section
191	188		6.21462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000
192	189		6.22annually. The amounts necessary to make the transfers are appropriated from the general
193	190		6.23fund to the commissioner of management and budget.
194	191		6.24 (d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
195	192		6.25bonds issued under subdivision 2c remain outstanding, the commissioner of management
196	193		6.26and budget must transfer to the housing infrastructure bond account established under section
197	194		6.27462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000
198	195		6.28annually. The amounts necessary to make the transfers are appropriated from the general
199	196		6.29fund to the commissioner of management and budget.
200	197		6.30 (e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
201	198		6.31bonds issued under subdivision 2d remain outstanding, the commissioner of management
202	199		6.32and budget must transfer to the housing infrastructure bond account established under section
203	200		6Sec. 5.
204		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 7.1462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	201	+	REVISOR MS/NS 23-0148201/06/23 7.1462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
205	202		7.2to make the transfers are appropriated from the general fund to the commissioner of
206	203		7.3management and budget.
207	204		7.4 (f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
208	205		7.5bonds issued under subdivision 2e remain outstanding, the commissioner of management
209	206		7.6and budget must transfer to the housing infrastructure bond account established under section
210	207		7.7462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
211	208		7.8to make the transfers are appropriated from the general fund to the commissioner of
212	209		7.9management and budget.
213	210		7.10 (g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
214	211		7.11bonds issued under subdivision 2f remain outstanding, the commissioner of management
215	212		7.12and budget must transfer to the housing infrastructure bond account established under section
216	213		7.13462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
217	214		7.14to make the transfers are appropriated from the general fund to the commissioner of
218	215		7.15management and budget.
219	216		7.16 (h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
220	217		7.17bonds issued under subdivision 2g remain outstanding, the commissioner of management
221	218		7.18and budget must transfer to the housing infrastructure bond account established under section
222	219		7.19462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
223	220		7.20to make the transfers are appropriated from the general fund to the commissioner of
224	221		7.21management and budget.
225	222		7.22 (i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
226	223		7.23bonds issued under subdivision 2h remain outstanding, the commissioner of management
227	224		7.24and budget must transfer to the housing infrastructure bond account established under section
228	225		7.25462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
229	226		7.26to make the transfers are appropriated from the general fund to the commissioner of
230	227		7.27management and budget.
231	228		7.28 (j) Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
232	229		7.29bonds issued under subdivision 2i remain outstanding, the commissioner of management
233	230		7.30and budget must transfer to the housing infrastructure bond account established under section
234	231		7.31462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
235	232		7.32to make the transfers are appropriated from the general fund to the commissioner of
236	233		7.33management and budget.
237	234		7Sec. 5.
238		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 8.1 (j) (k) The agency may pledge to the payment of the housing infrastructure bonds the
	235	+	REVISOR MS/NS 23-0148201/06/23 8.1 (j) (k) The agency may pledge to the payment of the housing infrastructure bonds the
239	236		8.2payments to be made by the state under this section.
240	237		8.3 EFFECTIVE DATE.This section is effective the day following final enactment.
241	238		8.4 Sec. 6. [462A.41] HOUSING COST REDUCTION INCENTIVE PROGRAM.
242	239		8.5 Subdivision 1.Grant program established.The agency must establish and administer
243	240		8.6the housing cost reduction incentive program for the purpose of reimbursing cities for fee
244	241		8.7waivers or reductions provided to qualified multifamily housing developments and
245	242		8.8single-family, owner-occupied housing developments through local fee waiver and
246	243		8.9inclusionary housing programs.
247	244		8.10 Subd. 2.Definitions.(a) For the purposes of this section, the following terms have the
248	245		8.11meanings given.
249	246		8.12 (b) "Applicant" means any statutory or home rule charter city and any county.
250	247		8.13 (c) "Inclusionary housing program" means a program that requires at least ... percent of
251	248		8.14new construction to be affordable to households with incomes at or below 80 percent of the
252	249		8.15area median income for multifamily housing developments or 115 percent of the area median
253	250		8.16income for single-family, owner-occupied housing developments.
254	251		8.17 (d) "Local fee waiver program" means a program established by a statutory or home
255	252		8.18rule charter city that waives or reduces fees for developers of qualified multifamily housing
256	253		8.19developments and single-family, owner-occupied housing developments.
257	254		8.20 (e) "Multifamily housing development" has the meaning given in section 462C.02,
258	255		8.21subdivision 5, except that only new construction qualifies.
259	256		8.22 (f) "Program" means the housing cost reduction incentive program established in this
260	257		8.23section.
261	258		8.24 (g) "Single-family, owner-occupied housing" has the meaning given in section 462C.02,
262	259		8.25subdivision 4, except that only new construction qualifies.
263	260		8.26 Subd. 3.Application.(a) The agency must develop forms and procedures for soliciting
264	261		8.27and reviewing applications for grants under this section. An application of a city must
265	262		8.28include, at a minimum, information about the local fee waiver and inclusionary housing
266	263		8.29programs under which the city issued fee waivers or reductions.
267	264		8.30 (b) The agency must evaluate complete applications for funding for reimbursement for
268	265		8.31eligible fee waivers or reductions to determine whether the fee waiver or reduction is
269	266		8Sec. 6.
270		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 9.1necessary to increase the number of multifamily housing developments and single-family,
	267	+	REVISOR MS/NS 23-0148201/06/23 9.1necessary to increase the number of multifamily housing developments and single-family,
271	268		9.2owner-occupied housing developments within the applicant's boundaries.
272	269		9.3 (c) The determination of whether to award a grant for reimbursement of fee waivers or
273	270		9.4reductions is within the discretion of the agency, subject to this section. The agency's decision
274	271		9.5and application of the criteria are not subject to judicial review, except for abuse of discretion.
275	272		9.6 Subd. 4.Grant amount.The commissioner may award grants to applicants in an amount
276	273		9.7up to 50 percent of the amount of the development impact fee waived or reduced by a city
277	274		9.8for a qualified rental housing development. A city may receive no more than $....... per
278	275		9.9multifamily housing development or single-family, owner-occupied housing.
279	276		9.10 Sec. 7. Minnesota Statutes 2022, section 469.002, subdivision 12, is amended to read:
280	277		9.11 Subd. 12.Project."Project" means a housing project, a housing development project,
281	278		9.12a workforce housing project, or a redevelopment project, or any combination of those
282	279		9.13projects. The term "project" also may be applied to all real and personal property, assets,
283	280		9.14cash, or other funds, held or used in connection with the development or operation of the
284	281		9.15project. The term "project" also includes an interest reduction program authorized by section
285	282		9.16469.012, subdivision 7.
286	283		9.17 Sec. 8. Minnesota Statutes 2022, section 469.002, is amended by adding a subdivision to
287	284		9.18read:
288	285		9.19 Subd. 25.Workforce housing project.(a) "Workforce housing project" means any
289	286		9.20work or undertaking by an authority located in an eligible project area to develop market
290	287		9.21rate residential rental properties, as defined in section 462A.39, subdivision 2, paragraph
291	288		9.22(d), or single-family housing, as defined under section 462C.02, subdivision 4.
292	289		9.23 (b) For the purposes of this paragraph, "eligible project area" means an area that meets
293	290		9.24the criteria under section 462A.39, subdivisions 2, paragraph (b), and 4, paragraph (a).
294	291		9.25 Sec. 9. Minnesota Statutes 2022, section 469.033, subdivision 6, is amended to read:
295	292		9.26 Subd. 6.Operation area as taxing district, special tax.All of the territory included
296	293		9.27within the area of operation of any authority shall constitute a taxing district for the purpose
297	294		9.28of levying and collecting special benefit taxes as provided in this subdivision. All of the
298	295		9.29taxable property, both real and personal, within that taxing district shall be deemed to be
299	296		9.30benefited by projects to the extent of the special taxes levied under this subdivision. Subject
300	297		9.31to the consent by resolution of the governing body of the city in and for which it was created,
301	298		9.32an authority may levy a tax upon all taxable property within that taxing district. The tax
302	299		9Sec. 9.
303		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 10.1shall be extended, spread, and included with and as a part of the general taxes for state,
	300	+	REVISOR MS/NS 23-0148201/06/23 10.1shall be extended, spread, and included with and as a part of the general taxes for state,
304	301		10.2county, and municipal purposes by the county auditor, to be collected and enforced therewith,
305	302		10.3together with the penalty, interest, and costs. As the tax, including any penalties, interest,
306	303		10.4and costs, is collected by the county treasurer it shall be accumulated and kept in a separate
307	304		10.5fund to be known as the "housing and redevelopment project fund." The money in the fund
308	305		10.6shall be turned over to the authority at the same time and in the same manner that the tax
309	306		10.7collections for the city are turned over to the city, and shall be expended only for the purposes
310	307		10.8of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by the chair of
311	308		10.9the authority or an authorized representative. The amount of the levy shall be an amount
312	309		10.10approved by the governing body of the city, but shall not exceed 0.0185 0.037 percent of
313	310		10.11estimated market value. The authority shall each year formulate and file a budget in
314	311		10.12accordance with the budget procedure of the city in the same manner as required of executive
315	312		10.13departments of the city or, if no budgets are required to be filed, by August 1. The amount
316	313		10.14of the tax levy for the following year shall be based on that budget.
317	314		10.15Sec. 10. Minnesota Statutes 2022, section 469.1763, subdivision 2, is amended to read:
318	315		10.16 Subd. 2.Expenditures outside district.(a) For each tax increment financing district,
319	316		10.17an amount equal to at least 75 percent of the total revenue derived from tax increments paid
320	317		10.18by properties in the district must be expended on activities in the district or to pay bonds,
321	318		10.19to the extent that the proceeds of the bonds were used to finance activities in the district or
322	319		10.20to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
323	320		10.21than redevelopment districts for which the request for certification was made after June 30,
324	321		10.221995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
325	322		10.23more than 25 percent of the total revenue derived from tax increments paid by properties
326	323		10.24in the district may be expended, through a development fund or otherwise, on activities
327	324		10.25outside of the district but within the defined geographic area of the project except to pay,
328	325		10.26or secure payment of, debt service on credit enhanced bonds. For districts, other than
329	326		10.27redevelopment districts for which the request for certification was made after June 30, 1995,
330	327		10.28the pooling percentage for purposes of the preceding sentence is 20 percent. The revenues
331	328		10.29derived from tax increments paid by properties in the district that are expended on costs
332	329		10.30under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating
333	330		10.31the percentages that must be expended within and without the district.
334	331		10.32 (b) In the case of a housing district, a housing project, as defined in section 469.174,
335	332		10.33subdivision 11, is an activity in the district. The following are considered activities in the
336	333		10.34district:
337	334		10Sec. 10.
338		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 11.1 (1) a housing project, as defined in section 469.174, subdivision 11; and
	335	+	REVISOR MS/NS 23-0148201/06/23 11.1 (1) a housing project, as defined in section 469.174, subdivision 11; and
339	336		11.2 (2) a transfer of increments to an affordable housing trust fund established pursuant to
340	337		11.3section 462C.16 for expenditures made in conformity with the political subdivision's
341		-	11.4ordinance and policy establishing the trust fund. Any expenditures of transfers made pursuant
342		-	11.5to this clause are not subject to the annual reporting requirements imposed by section
343		-	11.6469.175.
344		-	11.7 (c) All administrative expenses are for activities outside of the district, except that if the
345		-	11.8only expenses for activities outside of the district under this subdivision are for the purposes
346		-	11.9described in paragraph (d), administrative expenses will be considered as expenditures for
347		-	11.10activities in the district.
348		-	11.11 (d) The authority may elect, in the tax increment financing plan for the district, to increase
349		-	11.12by up to ten 15 percentage points the permitted amount of expenditures for activities located
350		-	11.13outside the geographic area of the district under paragraph (a). As permitted by section
351		-	11.14469.176, subdivision 4k, the expenditures, including the permitted expenditures under
352		-	11.15paragraph (a), need not be made within the geographic area of the project. Expenditures
353		-	11.16that meet the requirements of this paragraph are legally permitted expenditures of the district,
354		-	11.17notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
355		-	11.18under this paragraph, the expenditures must:
356		-	11.19 (1) be used exclusively to assist housing that meets the requirement for a qualified
357		-	11.20low-income building, as that term is used in section 42 of the Internal Revenue Code; and
358		-	11.21 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
359		-	11.22Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
360		-	11.23Revenue Code; and
361		-	11.24 (3) be used to:
362		-	11.25 (i) acquire and prepare the site of the housing;
363		-	11.26 (ii) acquire, construct, or rehabilitate the housing; or
364		-	11.27 (iii) make public improvements directly related to the housing; or
365		-	11.28 (4) be used to develop housing:
366		-	11.29 (i) if the market value of the housing does not exceed the lesser of:
367		-	11.30 (A) 150 percent of the average market value of single-family homes in that municipality;
368		-	11.31or
	338	+	11.4ordinance and policy establishing the trust fund. Any transfers made pursuant to this clause
	339	+	11.5are not subject to the annual reporting requirements imposed by section 469.175.
	340	+	11.6 (c) All administrative expenses are for activities outside of the district, except that if the
	341	+	11.7only expenses for activities outside of the district under this subdivision are for the purposes
	342	+	11.8described in paragraph (d), administrative expenses will be considered as expenditures for
	343	+	11.9activities in the district.
	344	+	11.10 (d) The authority may elect, in the tax increment financing plan for the district, to increase
	345	+	11.11by up to ten 25 percentage points the permitted amount of expenditures for activities located
	346	+	11.12outside the geographic area of the district under paragraph (a). As permitted by section
	347	+	11.13469.176, subdivision 4k, the expenditures, including the permitted expenditures under
	348	+	11.14paragraph (a), need not be made within the geographic area of the project. Expenditures
	349	+	11.15that meet the requirements of this paragraph are legally permitted expenditures of the district,
	350	+	11.16notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
	351	+	11.17under this paragraph, the expenditures must:
	352	+	11.18 (1) be used exclusively to assist housing that meets the requirement for a qualified
	353	+	11.19low-income building, as that term is used in section 42 of the Internal Revenue Code; and
	354	+	11.20 (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
	355	+	11.21Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
	356	+	11.22Revenue Code; and
	357	+	11.23 (3) be used to:
	358	+	11.24 (i) acquire and prepare the site of the housing;
	359	+	11.25 (ii) acquire, construct, or rehabilitate the housing; or
	360	+	11.26 (iii) make public improvements directly related to the housing; or
	361	+	11.27 (4) be used to develop housing:
	362	+	11.28 (i) if the market value of the housing does not exceed the lesser of:
	363	+	11.29 (A) 150 percent of the average market value of single-family homes in that municipality;
	364	+	11.30or
	365	+	11.31 (B) $200,000 for municipalities located in the metropolitan area, as defined in section
	366	+	11.32473.121, or $125,000 for all other municipalities; and
369	367		11Sec. 10.
370		-	REVISOR MS H0743-1HF743 FIRST ENGROSSMENT 12.1 (B) $200,000 for municipalities located in the metropolitan area, as defined in section
371		-	12.2473.121, or $125,000 for all other municipalities; and
372		-	12.3 (ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
373		-	12.4of existing structures, site preparation, and pollution abatement on one or more parcels, if
374		-	12.5the parcel contains a residence containing one to four family dwelling units that has been
375		-	12.6vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
376		-	12.77, but without regard to whether the residence is the owner's principal residence, and only
377		-	12.8after the redemption period has expired; or
378		-	12.9 (5) for transfer to a housing trust fund established pursuant to section 462C.16; or
379		-	12.10 (5) (6) to assist owner-occupied housing that meets the requirements of section 469.1761,
380		-	12.11subdivision 2.
381		-	12.12 (e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
382		-	12.13Increments may continue to be expended under this authority after that date, if they are used
383		-	12.14to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
384		-	12.15December 31, 2016, is considered to be the last date of the five-year period after certification
385		-	12.16under that provision.
386		-	12.17 EFFECTIVE DATE.This section is effective the day following final enactment.
387		-	12.18Sec. 11. [471.9994] RELOCATION ASSISTANCE FOR AFFORDABLE HOUSING
388		-	12.19UNIT TENANTS.
389		-	12.20 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
390		-	12.21the meanings given.
391		-	12.22 (b) "Affordable housing unit" means a rental unit that rents for an amount that is
392		-	12.23affordable to households whose income at the time of initial occupancy does not exceed 50
393		-	12.24percent of the greater of area or state median income, adjusted for family size, as determined
394		-	12.25by the United States Department of Housing and Urban Development.
395		-	12.26 (c) "City" means a statutory or home rule charter city.
396		-	12.27 Subd. 2.Relocation assistance.(a) A city may by ordinance require a property owner
397		-	12.28to provide relocation assistance consistent with the provisions of Code of Federal Regulations,
398		-	12.29title 49, sections 24.201 to 24.209, to tenants of affordable housing units upon the:
399		-	12.30 (1) sale;
400		-	12.31 (2) demolition;
	368	+	REVISOR MS/NS 23-0148201/06/23 12.1 (ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
	369	+	12.2of existing structures, site preparation, and pollution abatement on one or more parcels, if
	370	+	12.3the parcel contains a residence containing one to four family dwelling units that has been
	371	+	12.4vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
	372	+	12.57, but without regard to whether the residence is the owner's principal residence, and only
	373	+	12.6after the redemption period has expired; or
	374	+	12.7 (5) to assist owner-occupied housing that meets the requirements of section 469.1761,
	375	+	12.8subdivision 2.
	376	+	12.9 (e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
	377	+	12.10Increments may continue to be expended under this authority after that date, if they are used
	378	+	12.11to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
	379	+	12.12December 31, 2016, is considered to be the last date of the five-year period after certification
	380	+	12.13under that provision.
	381	+	12.14 EFFECTIVE DATE.This section is effective the day following final enactment.
	382	+	12.15Sec. 11. [471.9994] RELOCATION ASSISTANCE FOR AFFORDABLE HOUSING
	383	+	12.16UNIT TENANTS.
	384	+	12.17 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
	385	+	12.18the meanings given.
	386	+	12.19 (b) "Affordable housing unit" means a rental unit that rents for an amount that is
	387	+	12.20affordable to households whose income at the time of initial occupancy does not exceed 50
	388	+	12.21percent of the greater of area or state median income, adjusted for family size, as determined
	389	+	12.22by the United States Department of Housing and Urban Development.
	390	+	12.23 (c) "City" means a statutory or home rule charter city.
	391	+	12.24 Subd. 2.Relocation assistance.(a) A city may by ordinance require a property owner
	392	+	12.25to provide relocation assistance consistent with the provisions of Code of Federal Regulations,
	393	+	12.26title 49, sections 24.201 to 24.209, to tenants of affordable housing units upon the:
	394	+	12.27 (1) sale;
	395	+	12.28 (2) demolition;
	396	+	12.29 (3) substantial rehabilitation, whether due to code enforcement or any other reason; or
	397	+	12.30 (4) change of use of the property in which the affordable housing units are located when
	398	+	12.31the property owner changes the units in the property from affordable housing units to market
	399	+	12.32rate units.
401	400		12Sec. 11.
402		-	REVISOR MS H0743-1HF743 FIRST ENGROSSMENT 13.1 (3) substantial rehabilitation, whether due to code enforcement or any other reason; or
403		-	13.2 (4) change of use of the property in which the affordable housing units are located when
404		-	13.3the property owner changes the units in the property from affordable housing units to market
405		-	13.4rate units.
406		-	13.5 (b) A city that adopts an ordinance under this subdivision must adopt policies, procedures,
407		-	13.6or regulations to implement the requirements of the ordinance. Such policies, procedures,
408		-	13.7or regulations must include provisions for an administrative hearing process to timely resolve
409		-	13.8disputes between tenants and property owners relating to relocation assistance or unlawful
410		-	13.9detainer actions during relocation. A party who feels aggrieved by a decision of an
411		-	13.10administrative hearing process may appeal within 15 days as provided for civil actions in
412		-	13.11district court.
413		-	13.12 Subd. 3.Notice of transfer of ownership.For property that includes an affordable
414		-	13.13housing unit, a city may by ordinance require an owner to provide a written notice of a
415		-	13.14transfer of ownership of the property to the tenant of each affordable housing unit.
416		-	13.15Sec. 12. APPROPRIATION; HOUSING COST REDUCTION INCENTIVE
417		-	13.16PROGRAM.
418		-	13.17 $....... in fiscal year 2024 is appropriated from the general fund to the commissioner of
419		-	13.18the Minnesota Housing Finance Agency for deposit in the housing development fund for
420		-	13.19grants to cities and counties under Minnesota Statutes, section 462A.41, for reimbursement
421		-	13.20of fee waivers or reductions to qualified housing developments. This is a onetime
422		-	13.21appropriation.
423		-	13.22Sec. 13. MINNESOTA HOUSING FINANCE AGENCY; CHALLENGE PROGRAM.
424		-	13.23 $22,425,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
425		-	13.24of the Minnesota Housing Finance Agency for deposit in the housing development fund for
426		-	13.25the economic development and housing challenge program under Minnesota Statutes, section
427		-	13.26462A.33.
428		-	13.27 EFFECTIVE DATE.This section is effective July 1, 2023.
429		-	13.28Sec. 14. HOUSING INFRASTRUCTURE GRANT PROGRAM.
430		-	13.29 $2,500,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
431		-	13.30of employment and economic development for grants under the greater Minnesota housing
432		-	13.31infrastructure grant program under Minnesota Statutes, section 116J.4315.
	401	+	REVISOR MS/NS 23-0148201/06/23 13.1 (b) A city that adopts an ordinance under this subdivision must adopt policies, procedures,
	402	+	13.2or regulations to implement the requirements of the ordinance. Such policies, procedures,
	403	+	13.3or regulations must include provisions for an administrative hearing process to timely resolve
	404	+	13.4disputes between tenants and property owners relating to relocation assistance or unlawful
	405	+	13.5detainer actions during relocation. A party who feels aggrieved by a decision of an
	406	+	13.6administrative hearing process may appeal within 15 days as provided for civil actions in
	407	+	13.7district court.
	408	+	13.8 Subd. 3.Notice of transfer of ownership.For property that includes an affordable
	409	+	13.9housing unit, a city may by ordinance require an owner to provide a written notice of a
	410	+	13.10transfer of ownership of the property to the tenant of each affordable housing unit.
	411	+	13.11Sec. 12. APPROPRIATION; HOUSING COST REDUCTION INCENTIVE
	412	+	13.12PROGRAM.
	413	+	13.13 $....... in fiscal year 2024 is appropriated from the general fund to the commissioner of
	414	+	13.14the Minnesota Housing Finance Agency for deposit in the housing development fund for
	415	+	13.15grants to cities and counties under Minnesota Statutes, section 462A.41, for reimbursement
	416	+	13.16of fee waivers or reductions to qualified housing developments. This is a onetime
	417	+	13.17appropriation.
	418	+	13.18Sec. 13. MINNESOTA HOUSING FINANCE AGENCY; CHALLENGE PROGRAM.
	419	+	13.19 $22,425,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
	420	+	13.20of the Minnesota Housing Finance Agency for deposit in the housing development fund for
	421	+	13.21the economic development and housing challenge program under Minnesota Statutes, section
	422	+	13.22462A.33.
	423	+	13.23 EFFECTIVE DATE.This section is effective July 1, 2023.
	424	+	13.24Sec. 14. HOUSING INFRASTRUCTURE GRANT PROGRAM.
	425	+	13.25 $2,500,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
	426	+	13.26of employment and economic development for grants under the greater Minnesota housing
	427	+	13.27infrastructure grant program under Minnesota Statutes, section 116J.4315.
	428	+	13.28 EFFECTIVE DATE.This section is effective the day following final enactment.
433	429		13Sec. 14.
434		-	REVISOR MS H0743-1HF743 FIRST ENGROSSMENT 14.1 EFFECTIVE DATE.This section is effective the day following final enactment.
435		-	14.2 Sec. 15. HOUSING FINANCE AGENCY; NOAH APPROPRIATION.
436		-	14.3 Subdivision 1.Naturally Occurring Affordable Housing; appropriation.$50,000,000
437		-	14.4in fiscal year 2024 is appropriated from the general fund to the commissioner of the
438		-	14.5Minnesota Housing Finance Agency: (1) to make loans or grants to owners of Naturally
439		-	14.6Occurring Affordable Housing (NOAH) preservation properties that have demonstrated
440		-	14.7experience and capacity in owning and operating quality and well-managed affordable
441		-	14.8housing; or (2) to make a grant to a statewide intermediary to make loans or grants for the
442		-	14.9same purposes. A loan or grant must be used to acquire and rehabilitate a NOAH property
443		-	14.10that the agency or the statewide intermediary determines is at risk of increased rents and
444		-	14.11that is occupied by tenants at risk of involuntary displacement. The agency must determine
445		-	14.12how much of the appropriation may be used for grants and how much may be used for loans.
446		-	14.13This appropriation is available until June 30, 2026.
447		-	14.14 Subd. 2.Requirements; terms.(a) A funding applicant must demonstrate that the
448		-	14.15applicant will have sufficient capital and capital reserves to improve and maintain the
449		-	14.16property for the term of the loan if funding is in the form of a loan, but in all cases for at
450		-	14.17least 15 years.
451		-	14.18 (b) A funding recipient must be contractually obligated by means of a deed restriction
452		-	14.19to maintain for at least 15 years one of the following three levels of affordability:
453		-	14.20 (1) at least 75 percent of the units must be at rents affordable to households with incomes
454		-	14.21at or less than 80 percent of the area median income, and at least 51 percent of units must
455		-	14.22be at rents affordable to households with incomes at or less than 60 percent of the area
456		-	14.23median income;
457		-	14.24 (2) at least 15 percent of the units or 15 units, whichever is fewer, must be at rents
458		-	14.25affordable to households with incomes at or less than 30 percent of the area median income,
459		-	14.26and at least 51 percent of the units must be at rents affordable to households with incomes
460		-	14.27at or less than 60 percent of the area median income; or
461		-	14.28 (3) at least 75 percent of the units must be at rents affordable to households with incomes
462		-	14.29at 50 percent or less of the area median income, and 100 percent of the units must be at
463		-	14.30rents affordable to households with incomes at or less than 80 percent of the area median
464		-	14.31income.
465		-	14.32 (c) A funding applicant must provide to the agency or statewide intermediary
466		-	14.33administering the grant and loan program the details of the total financing package.
	430	+	REVISOR MS/NS 23-0148201/06/23 14.1 Sec. 15. HOUSING FINANCE AGENCY; NOAH APPROPRIATION.
	431	+	14.2 Subdivision 1.Naturally Occurring Affordable Housing; appropriation.$50,000,000
	432	+	14.3in fiscal year 2024 is appropriated from the general fund to the commissioner of the
	433	+	14.4Minnesota Housing Finance Agency: (1) to make loans or grants to owners of Naturally
	434	+	14.5Occurring Affordable Housing (NOAH) preservation properties that have demonstrated
	435	+	14.6experience and capacity in owning and operating quality and well-managed affordable
	436	+	14.7housing; or (2) to make a grant to a statewide intermediary to make loans or grants for the
	437	+	14.8same purposes. A loan or grant must be used to acquire and rehabilitate a NOAH property
	438	+	14.9that the agency or the statewide intermediary determines is at risk of increased rents and
	439	+	14.10that is occupied by tenants at risk of involuntary displacement. The agency must determine
	440	+	14.11how much of the appropriation may be used for grants and how much may be used for loans.
	441	+	14.12This appropriation is available until June 30, 2026.
	442	+	14.13 Subd. 2.Requirements; terms.(a) A funding applicant must demonstrate that the
	443	+	14.14applicant will have sufficient capital and capital reserves to improve and maintain the
	444	+	14.15property for the term of the loan if funding is in the form of a loan, but in all cases for at
	445	+	14.16least 15 years.
	446	+	14.17 (b) A funding recipient must be contractually obligated by means of a deed restriction
	447	+	14.18to maintain for at least 15 years one of the following three levels of affordability:
	448	+	14.19 (1) at least 75 percent of the units must be at rents affordable to households with incomes
	449	+	14.20at or less than 80 percent of the area median income, and at least 51 percent of units must
	450	+	14.21be at rents affordable to households with incomes at or less than 60 percent of the area
	451	+	14.22median income;
	452	+	14.23 (2) at least 15 percent of the units or 15 units, whichever is fewer, must be at rents
	453	+	14.24affordable to households with incomes at or less than 30 percent of the area median income,
	454	+	14.25and at least 51 percent of the units must be at rents affordable to households with incomes
	455	+	14.26at or less than 60 percent of the area median income; or
	456	+	14.27 (3) at least 75 percent of the units must be at rents affordable to households with incomes
	457	+	14.28at 50 percent or less of the area median income, and 100 percent of the units must be at
	458	+	14.29rents affordable to households with incomes at or less than 80 percent of the area median
	459	+	14.30income.
	460	+	14.31 (c) A funding applicant must provide to the agency or statewide intermediary
	461	+	14.32administering the grant and loan program the details of the total financing package.
467	462		14Sec. 15.
468		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 15.1 (d) Properties that receive funds must accept vouchers under section 8 of the United
	463	+	REVISOR MS/NS 23-0148201/06/23 15.1 (d) Properties that receive funds must accept vouchers under section 8 of the United
469	464		15.2States Housing Act of 1937, as amended, if the subsidy payment standard is no more than
470	465		15.3five percent below marketplace rent levels.
471	466		15.4 (e) The agency or statewide intermediary may require other criteria and application
472	467		15.5information that will promote NOAH preservation.
473	468		15.6 (f) A loan or grant may be for up to 40 percent of the total acquisition cost of the NOAH
474	469		15.7property but no more than $50,000 per individual rental housing unit acquired.
475	470		15.8 (g) The agency, or the statewide intermediary making loans or grants under this section,
476	471		15.9may give priority to applications that reserve at least 15 units to provide homes for homeless
477	472		15.10households.
478	473		15.11 (h) A loan may have a term of up to 15 years at no- or low-interest rates at the discretion
479	474		15.12of the agency or statewide intermediary.
480	475		15.13 Subd. 3.Report.A recipient of a grant or loan under this section must report to the
481	476		15.14agency or statewide intermediary information required by the agency as a condition of the
482	477		15.15loan or grant.
483	478		15.16Sec. 16. PUBLIC HOUSING REHABILITATION.
484	479		15.17 Subdivision 1.Appropriation.$100,000,000 is appropriated from the bond proceeds
485	480		15.18fund to the commissioner of the Minnesota Housing Finance Agency for transfer to the
486	481		15.19housing development fund to finance the costs of rehabilitation to preserve public housing
487	482		15.20under Minnesota Statutes, section 462A.202, subdivision 3a. For the purposes of this section,
488	483		15.21"public housing" means housing for low-income persons and households financed by the
489	484		15.22federal government and publicly owned. The agency may give priority to proposals that
490	485		15.23maximize federal or local resources to finance the capital costs and requests that prioritize
491	486		15.24health, safety, and energy improvements. The priority in Minnesota Statutes, section
492	487		15.25462A.202, subdivision 3a, for projects to increase the supply of affordable housing and the
493	488		15.26restrictions of Minnesota Statutes, section 462A.202, subdivision 7, does not apply to this
494	489		15.27appropriation.
495	490		15.28 Subd. 2.Bond sale.To provide the money appropriated in this section from the bond
496	491		15.29proceeds fund, the commissioner of management and budget shall sell and issue bonds of
497	492		15.30the state in an amount up to $100,000,000 in the manner, upon the terms, and with the effect
498	493		15.31prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
499	494		15.32Constitution, article XI, sections 4 to 7.
500	495		15.33 EFFECTIVE DATE.This section is effective the day following final enactment.
501	496		15Sec. 16.
502		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~ 16.1 Sec. 17. LOCAL HOUSING TRUST FUND GRANTS.
	497	+	REVISOR MS/NS 23-0148201/06/23 16.1 Sec. 17. LOCAL HOUSING TRUST FUND GRANTS.
503	498		16.2 (a) $10,000,000 in fiscal year 2024 is appropriated from the general fund to the
504	499		16.3commissioner of the Minnesota Housing Finance Agency for deposit in the housing
505	500		16.4development fund for grants to local housing trust funds established under Minnesota
506	501		16.5Statutes, section 462C.16, to incentivize local funding. This is a onetime appropriation.
507	502		16.6 (b) A grantee is eligible to receive a grant amount equal to 100 percent of the public
508	503		16.7revenue committed to the local housing trust fund from any source other than the state or
509	504		16.8federal government, up to $150,000, and, in addition, an amount equal to 50 percent of the
510	505		16.9public revenue committed to the local housing trust fund from any source other than the
511	506		16.10state or federal government that is more than $150,000 but not more than $300,000.
512	507		16.11 (c) $100,000 of this appropriation is for technical assistance grants to local and regional
513	508		16.12housing trust funds. A housing trust fund may apply for a technical assistance grant at the
514	509		16.13time and in the manner and form required by the agency. The agency shall make grants on
515	510		16.14a first-come, first-served basis. A technical assistance grant must not exceed $5,000.
516	511		16.15 (d) A grantee must use grant funds within eight years of receipt for purposes (1)
517	512		16.16authorized under Minnesota Statutes, section 462C.16, subdivision 3, and (2) benefiting
518	513		16.17households with incomes at or below 115 percent of the state median income. A grantee
519	514		16.18must return any grant funds not used for these purposes within eight years of receipt to the
520	515		16.19commissioner of the Minnesota Housing Finance Agency for deposit into the housing
521	516		16.20development fund.
522	517		16.21 EFFECTIVE DATE.This section is effective July 1, 2023.
523	518		16.22Sec. 18. APPROPRIATION; PILOT PROGRAM FOR HOUSING
524	519		16.23INFRASTRUCTURE GRANTS.
525	520		16.24 $5,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
526	521		16.25of the Minnesota Housing Finance Agency for a pilot program to provide grants to
527	522		16.26municipalities for up to 50 percent of the costs of infrastructure that would otherwise be
528	523		16.27required to be paid by the developer for new housing developments. The grants shall be
529	524		16.28limited to 16 housing units in the municipality and a maximum of $12,000 per housing unit.
530	525		16.29This appropriation is onetime and is available until June 30, 2024.
531	526		16Sec. 18.
532		-	REVISOR MS ~~H0743-1~~~~HF743 FIRST ENGROSSMENT~~
	527	+	REVISOR MS/NS 23-0148201/06/23