1.1 A bill for an act
1.2 relating to housing; allowing use of housing infrastructure bonds on adaptive reuse
1.3 to develop supportive housing and permanent housing for households at or below
1.4 50 percent of the area median income; amending Minnesota Statutes 2024, section
1.5 462A.37, subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 462A.37, subdivision 2, is amended to read:
1.8 Subd. 2.Authorization.(a) The agency may issue up to $30,000,000 in aggregate
1.9principal amount of housing infrastructure bonds in one or more series to which the payment
1.10made under this section may be pledged. The housing infrastructure bonds authorized in
1.11this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and
1.12(7), on terms and conditions the agency deems appropriate, made for one or more of the
1.13following purposes:
1.14 (1) to finance the costs of the construction, acquisition, adaptive reuse, and rehabilitation
1.15of supportive housing where at least 50 percent of units are set aside for individuals and
1.16families who are without a permanent residence;
1.17 (2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
1.18housing to be used for affordable rental housing or for affordable home ownership and the
1.19costs of new construction of rental housing on abandoned or foreclosed property where the
1.20existing structures will be demolished or removed;
1.21 (3) to finance that portion of the costs of acquisition of property that is attributable to
1.22the land to be leased by community land trusts to low- and moderate-income home buyers;
1Section 1.
REVISOR MS/AC 25-0266201/23/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1340
NINETY-FOURTH SESSION 2.1 (4) to finance the acquisition, improvement, and infrastructure of manufactured home
2.2parks under section 462A.2035, subdivision 1b;
2.3 (5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
2.4of senior housing;
2.5 (6) to finance the costs of acquisition, rehabilitation, and replacement of federally assisted
2.6rental housing and for the refinancing of costs of the construction, acquisition, and
2.7rehabilitation of federally assisted rental housing, including providing funds to refund, in
2.8whole or in part, outstanding bonds previously issued by the agency or another government
2.9unit to finance or refinance such costs;
2.10 (7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
2.11of single-family housing;
2.12 (8) to finance the costs of construction, acquisition, adaptive reuse, and rehabilitation
2.13of permanent housing that is affordable to households with incomes at or below 50 percent
2.14of the area median income for the applicable county or metropolitan area as published by
2.15the Department of Housing and Urban Development, as adjusted for household size; and
2.16 (9) to finance the costs of construction, acquisition, rehabilitation, conversion, and
2.17development of cooperatively owned housing created under chapter 308A, 308B, or 308C
2.18that is affordable to low- and moderate-income households.
2.19 (b) Among comparable proposals for permanent supportive housing, preference shall
2.20be given to permanent supportive housing for veterans and other individuals or families
2.21who:
2.22 (1) either have been without a permanent residence for at least 12 months or at least four
2.23times in the last three years; or
2.24 (2) are at significant risk of lacking a permanent residence for 12 months or at least four
2.25times in the last three years.
2.26 (c) Among comparable proposals for senior housing, the agency must give priority to
2.27requests for projects that:
2.28 (1) demonstrate a commitment to maintaining the housing financed as affordable to
2.29senior households;
2.30 (2) leverage other sources of funding to finance the project, including the use of
2.31low-income housing tax credits;
2Section 1.
REVISOR MS/AC 25-0266201/23/25 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;
3.3and
3.4 (4) include households with incomes that do not exceed 30 percent of the median
3.5household income for the metropolitan area.
3.6 (d) To the extent practicable, the agency shall balance the loans made between projects
3.7in the metropolitan area and projects outside the metropolitan area. Of the loans made to
3.8projects outside the metropolitan area, the agency shall, to the extent practicable, balance
3.9the loans made between projects in counties or cities with a population of 20,000 or less,
3.10as established by the most recent decennial census, and projects in counties or cities with
3.11populations in excess of 20,000.
3.12 (e) Among comparable proposals for permanent housing, the agency must give preference
3.13to projects that will provide housing that is affordable to households at or below 30 percent
3.14of the area median income.
3.15 (f) If a loan recipient uses the loan for new construction as defined by the agency on a
3.16building containing more than four units, the loan recipient must construct, convert, or
3.17otherwise adapt the building to include:
3.18 (1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
3.19accessible units, and each accessible unit includes at least one roll-in shower, water closet,
3.20and kitchen work surface meeting the requirements of section 1002 of the current State
3.21Building Code Accessibility Provisions for Dwelling Units in Minnesota; and
3.22 (2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
3.23sensory-accessible units that include:
3.24 (A) soundproofing between shared walls for first and second floor units;
3.25 (B) no florescent lighting in units and common areas;
3.26 (C) low-fume paint;
3.27 (D) low-chemical carpet; and
3.28 (E) low-chemical carpet glue in units and common areas.
3.29Nothing in this paragraph relieves a project funded by the agency from meeting other
3.30applicable accessibility requirements.
3Section 1.
REVISOR MS/AC 25-0266201/23/25