Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF1094 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2		-	1.2 relating to housing; authorizing the sale and issuance of state bonds; appropriating
3		-	1.3 money.
4		-	1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
5		-	1.5 Section 1. PUBLIC HOUSING REHABILITATION.
6		-	1.6 Subdivision 1.Appropriations.$250,000,000 is appropriated from the bond proceeds
7		-	1.7fund to the Minnesota Housing Finance Agency for transfer to the housing development
8		-	1.8fund to finance the costs of rehabilitation to preserve public housing under Minnesota
9		-	1.9Statutes, section 462A.202, subdivision 3a. For purposes of this section, "public housing"
10		-	1.10means housing for low-income persons and households financed by the federal government
11		-	1.11and publicly owned. The agency may give priority to proposals that maximize federal or
12		-	1.12local resources to finance the capital costs and requests that prioritize health, safety, and
13		-	1.13energy improvements. The priority in Minnesota Statutes, section 462A.202, subdivision
14		-	1.143a, for projects to increase the supply of affordable housing and the restrictions of Minnesota
15		-	1.15Statutes, section 462A.202, subdivision 7, do not apply to this appropriation.
16		-	1.16 Subd. 2.Bond sale.To provide the money appropriated in this section from the bond
17		-	1.17proceeds fund, the commissioner of management and budget shall sell and issue bonds of
18		-	1.18the state in an amount up to $250,000,000 in the manner, upon the terms, and with the effect
19		-	1.19prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
20		-	1.20Constitution, article XI, sections 4 to 7.
21		-	1.21 EFFECTIVE DATE.This section is effective the day following final enactment.
22		-	1Section 1.
23		-	S1094-1 1st EngrossmentSF1094 REVISOR MS
	2	+	1.2 relating to housing; adding an eligible use of housing infrastructure bonds;
	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
	24	+	1Sec. 2.
	25	+	23-00984 as introduced12/15/22 REVISOR MS/BM
24	26		SENATE
25	27		STATE OF MINNESOTA
26	28		S.F. No. 1094NINETY-THIRD SESSION
27	29		(SENATE AUTHORS: PORT, Dziedzic and Boldon)
28	30		OFFICIAL STATUSD-PGDATE
29		-	Introduction and first reading58602/02/2023
30		-	Referred to Housing and Homelessness Prevention
31		-	Comm report: To pass as amended and re-refer to Capital Investment02/13/2023
	31	+	Introduction and first reading02/02/2023
	32	+	Referred to Housing and Homelessness Prevention 2.1housing on abandoned or foreclosed property where the existing structures will be demolished
	33	+	2.2or removed;
	34	+	2.3 (3) to finance that portion of the costs of acquisition of property that is attributable to
	35	+	2.4the land to be leased by community land trusts to low- and moderate-income home buyers;
	36	+	2.5 (4) to finance the acquisition, improvement, and infrastructure of manufactured home
	37	+	2.6parks under section 462A.2035, subdivision 1b;
	38	+	2.7 (5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
	39	+	2.8of senior housing;
	40	+	2.9 (6) to finance the costs of acquisition and rehabilitation of federally assisted rental
	41	+	2.10housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
	42	+	2.11of federally assisted rental housing, including providing funds to refund, in whole or in part,
	43	+	2.12outstanding bonds previously issued by the agency or another government unit to finance
	44	+	2.13or refinance such costs; and
	45	+	2.14 (7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
	46	+	2.15of single-family housing.; and
	47	+	2.16 (8) to finance the costs of construction, acquisition, and rehabilitation of permanent
	48	+	2.17housing that is affordable to households with incomes at or below 50 percent of the area
	49	+	2.18median income for the applicable county or metropolitan area as published by the Department
	50	+	2.19of Housing and Urban Development, as adjusted for household size.
	51	+	2.20 (b) Among comparable proposals for permanent supportive housing, preference shall
	52	+	2.21be given to permanent supportive housing for veterans and other individuals or families
	53	+	2.22who:
	54	+	2.23 (1) either have been without a permanent residence for at least 12 months or at least four
	55	+	2.24times in the last three years; or
	56	+	2.25 (2) are at significant risk of lacking a permanent residence for 12 months or at least four
	57	+	2.26times in the last three years.
	58	+	2.27 (c) Among comparable proposals for senior housing, the agency must give priority to
	59	+	2.28requests for projects that:
	60	+	2.29 (1) demonstrate a commitment to maintaining the housing financed as affordable to
	61	+	2.30seniors;
	62	+	2.31 (2) leverage other sources of funding to finance the project, including the use of
	63	+	2.32low-income housing tax credits;
	64	+	2Sec. 2.
	65	+	23-00984 as introduced12/15/22 REVISOR MS/BM 3.1 (3) provide access to services to residents and demonstrate the ability to increase physical
	66	+	3.2supports and support services as residents age and experience increasing levels of disability;
	67	+	3.3 (4) provide a service plan containing the elements of clause (3) reviewed by the housing
	68	+	3.4authority, economic development authority, public housing authority, or community
	69	+	3.5development agency that has an area of operation for the jurisdiction in which the project
	70	+	3.6is located; and
	71	+	3.7 (5) include households with incomes that do not exceed 30 percent of the median
	72	+	3.8household income for the metropolitan area.
	73	+	3.9 (d) To the extent practicable, the agency shall balance the loans made between projects
	74	+	3.10in the metropolitan area and projects outside the metropolitan area. Of the loans made to
	75	+	3.11projects outside the metropolitan area, the agency shall, to the extent practicable, balance
	76	+	3.12the loans made between projects in counties or cities with a population of 20,000 or less,
	77	+	3.13as established by the most recent decennial census, and projects in counties or cities with
	78	+	3.14populations in excess of 20,000.
	79	+	3.15 (e) Among comparable proposals for permanent housing, the agency must give preference
	80	+	3.16to projects that will provide housing that is affordable to households at or below 30 percent
	81	+	3.17of the area median income.
	82	+	3.18 (f) If a loan recipient uses the loan for any of the purposes in paragraph (a) on a building
	83	+	3.19containing more than four units, the loan recipient must construct, convert, or otherwise
	84	+	3.20adapt the building to include:
	85	+	3.21 (1) the greater of (i) at least one unit, or (ii) at least five percent of units that are accessible
	86	+	3.22units, as defined by section 1002 of the current State Building Code Accessibility Provisions
	87	+	3.23for Dwelling Units in Minnesota, and include at least one roll-in shower; and
	88	+	3.24 (2) the greater of (i) at least one unit, or (ii) at least five percent of units that are
	89	+	3.25sensory-accessible units that include:
	90	+	3.26 (A) soundproofing between shared walls for first and second floor units;
	91	+	3.27 (B) no florescent lighting in units and common areas;
	92	+	3.28 (C) low-fume paint;
	93	+	3.29 (D) low-chemical carpet; and
	94	+	3.30 (E) low-chemical carpet glue in units and common areas.
	95	+	3.31Nothing in this paragraph will relieve a project funded by the agency from meeting other
	96	+	3.32applicable accessibility requirements.
	97	+	3Sec. 2.
	98	+	23-00984 as introduced12/15/22 REVISOR MS/BM 4.1 EFFECTIVE DATE.This section is effective the day following final enactment.
	99	+	4.2 Sec. 3. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
	100	+	4.3read:
	101	+	4.4 Subd. 2i.Additional authorization.In addition to the amounts authorized in subdivisions
	102	+	4.52 to 2h, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
	103	+	4.6more series to which the payments under this section may be pledged.
	104	+	4.7 EFFECTIVE DATE.This section is effective the day following final enactment.
	105	+	4.8 Sec. 4. Minnesota Statutes 2022, section 462A.37, is amended by adding a subdivision to
	106	+	4.9read:
	107	+	4.10 Subd. 2j.Additional authorization.In addition to the amounts authorized in subdivisions
	108	+	4.112 to 2i, the agency may issue up to $375,000,000 in housing infrastructure bonds in one or
	109	+	4.12more series to which the payments under this section may be pledged.
	110	+	4.13 EFFECTIVE DATE.This section is effective January 1, 2024.
	111	+	4.14 Sec. 5. Minnesota Statutes 2022, section 462A.37, subdivision 5, is amended to read:
	112	+	4.15 Subd. 5.Additional appropriation.(a) The agency must certify annually to the
	113	+	4.16commissioner of management and budget the actual amount of annual debt service on each
	114	+	4.17series of bonds issued under this section.
	115	+	4.18 (b) Each July 15, beginning in 2015 and through 2037, if any housing infrastructure
	116	+	4.19bonds issued under subdivision 2a remain outstanding, the commissioner of management
	117	+	4.20and budget must transfer to the housing infrastructure bond account established under section
	118	+	4.21462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $6,400,000
	119	+	4.22annually. The amounts necessary to make the transfers are appropriated from the general
	120	+	4.23fund to the commissioner of management and budget.
	121	+	4.24 (c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
	122	+	4.25bonds issued under subdivision 2b remain outstanding, the commissioner of management
	123	+	4.26and budget must transfer to the housing infrastructure bond account established under section
	124	+	4.27462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000
	125	+	4.28annually. The amounts necessary to make the transfers are appropriated from the general
	126	+	4.29fund to the commissioner of management and budget.
	127	+	4.30 (d) Each July 15, beginning in 2019 and through 2040, if any housing infrastructure
	128	+	4.31bonds issued under subdivision 2c remain outstanding, the commissioner of management
	129	+	4Sec. 5.
	130	+	23-00984 as introduced12/15/22 REVISOR MS/BM 5.1and budget must transfer to the housing infrastructure bond account established under section
	131	+	5.2462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000
	132	+	5.3annually. The amounts necessary to make the transfers are appropriated from the general
	133	+	5.4fund to the commissioner of management and budget.
	134	+	5.5 (e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
	135	+	5.6bonds issued under subdivision 2d remain outstanding, the commissioner of management
	136	+	5.7and budget must transfer to the housing infrastructure bond account established under section
	137	+	5.8462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	138	+	5.9to make the transfers are appropriated from the general fund to the commissioner of
	139	+	5.10management and budget.
	140	+	5.11 (f) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
	141	+	5.12bonds issued under subdivision 2e remain outstanding, the commissioner of management
	142	+	5.13and budget must transfer to the housing infrastructure bond account established under section
	143	+	5.14462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	144	+	5.15to make the transfers are appropriated from the general fund to the commissioner of
	145	+	5.16management and budget.
	146	+	5.17 (g) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
	147	+	5.18bonds issued under subdivision 2f remain outstanding, the commissioner of management
	148	+	5.19and budget must transfer to the housing infrastructure bond account established under section
	149	+	5.20462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	150	+	5.21to make the transfers are appropriated from the general fund to the commissioner of
	151	+	5.22management and budget.
	152	+	5.23 (h) Each July 15, beginning in 2022 and through 2043, if any housing infrastructure
	153	+	5.24bonds issued under subdivision 2g remain outstanding, the commissioner of management
	154	+	5.25and budget must transfer to the housing infrastructure bond account established under section
	155	+	5.26462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	156	+	5.27to make the transfers are appropriated from the general fund to the commissioner of
	157	+	5.28management and budget.
	158	+	5.29 (i) Each July 15, beginning in 2023 and through 2044, if any housing infrastructure
	159	+	5.30bonds issued under subdivision 2h remain outstanding, the commissioner of management
	160	+	5.31and budget must transfer to the housing infrastructure bond account established under section
	161	+	5.32462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	162	+	5.33to make the transfers are appropriated from the general fund to the commissioner of
	163	+	5.34management and budget.
	164	+	5Sec. 5.
	165	+	23-00984 as introduced12/15/22 REVISOR MS/BM 6.1 (j) Each July 15, beginning in 2024 and through 2045, if any housing infrastructure
	166	+	6.2bonds issued under subdivision 2i remain outstanding, the commissioner of management
	167	+	6.3and budget must transfer to the housing infrastructure bond account established under section
	168	+	6.4462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	169	+	6.5to make the transfers are appropriated from the general fund to the commissioner of
	170	+	6.6management and budget.
	171	+	6.7 (k) Each July 15, beginning in 2025 and through 2046, if any housing infrastructure
	172	+	6.8bonds issued under subdivision 2j remain outstanding, the commissioner of management
	173	+	6.9and budget must transfer to the housing infrastructure bond account established under section
	174	+	6.10462A.21, subdivision 33, the amount certified under paragraph (a). The amounts necessary
	175	+	6.11to make the transfers are appropriated from the general fund to the commissioner of
	176	+	6.12management and budget.
	177	+	6.13 (l) The agency may pledge to the payment of the housing infrastructure bonds the
	178	+	6.14payments to be made by the state under this section.
	179	+	6.15 EFFECTIVE DATE.This section is effective the day following final enactment.
	180	+	6.16 Sec. 6. PUBLIC HOUSING REHABILITATION.
	181	+	6.17 Subdivision 1.Appropriations.$250,000,000 is appropriated from the bond proceeds
	182	+	6.18fund to the Minnesota Housing Finance Agency for transfer to the housing development
	183	+	6.19fund to finance the costs of rehabilitation to preserve public housing under Minnesota
	184	+	6.20Statutes, section 462A.202, subdivision 3a. For purposes of this section, "public housing"
	185	+	6.21means housing for low-income persons and households financed by the federal government
	186	+	6.22and publicly owned. The agency may give priority to proposals that maximize federal or
	187	+	6.23local resources to finance the capital costs and requests that prioritize health, safety, and
	188	+	6.24energy improvements. The priority in Minnesota Statutes, section 462A.202, subdivision
	189	+	6.253a, for projects to increase the supply of affordable housing and the restrictions of Minnesota
	190	+	6.26Statutes, section 462A.202, subdivision 7, do not apply to this appropriation.
	191	+	6.27 Subd. 2.Bond sale.To provide the money appropriated in this section from the bond
	192	+	6.28proceeds fund, the commissioner of management and budget shall sell and issue bonds of
	193	+	6.29the state in an amount up to $250,000,000 in the manner, upon the terms, and with the effect
	194	+	6.30prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
	195	+	6.31Constitution, article XI, sections 4 to 7.
	196	+	6.32 EFFECTIVE DATE.This section is effective the day following final enactment.
	197	+	6Sec. 6.
	198	+	23-00984 as introduced12/15/22 REVISOR MS/BM