1.1 A bill for an act
1.2 relating to housing; modifying certain housing policy provisions; modifying
1.3 eligibility and funding provisions for certain housing programs; modifying the
1.4 high-rise sprinkler system program; authorizing housing and redevelopment
1.5 authorities to create public corporations; amending Minnesota Statutes 2024,
1.6 sections 15.082; 462A.051, subdivision 2; 462A.07, by adding a subdivision;
1.7 462A.202, subdivision 3a; 462A.2095, subdivision 3; 462A.33, subdivision 9;
1.8 462A.37, subdivision 2; 462A.39, subdivision 5; 462A.40, subdivisions 2, 3;
1.9 462C.02, subdivision 6; 462C.16, subdivision 1; 469.012, subdivision 2j; 477A.35,
1.10 subdivision 5; 477A.36, subdivision 5; Laws 2023, chapter 37, article 1, section
1.11 2, subdivision 21; article 2, section 10; proposing coding for new law in Minnesota
1.12 Statutes, chapter 469.
1.13BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.14 ARTICLE 1
1.15 MINNESOTA HOUSING FINANCE AGENCY
1.16 Section 1. Minnesota Statutes 2024, section 462A.051, subdivision 2, is amended to read:
1.17 Subd. 2.Application.This section applies to all forms of financial assistance provided
1.18by the Minnesota Housing Finance Agency, as well as the allocation and award of federal
1.19low-income housing credits by all allocating agencies as defined under section 462A.221,
1.20for the development, construction, rehabilitation, renovation, or retrofitting of multiunit
1.21residential multifamily housing, including loans, grants, tax credits, loan guarantees, loan
1.22insurance, and other financial assistance.
1Article 1 Section 1.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT
162
Printed
Page No.State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2309
NINETY-FOURTH SESSION
Authored by Rehrauer03/13/2025
The bill was read for the first time and referred to the Committee on Housing Finance and Policy
Adoption of Report: Placed on the General Register as Amended04/10/2025
Read for the Second Time 2.1 Sec. 2. Minnesota Statutes 2024, section 462A.07, is amended by adding a subdivision to
2.2read:
2.3 Subd. 21.Promotion of materials on rights and obligations of landlords and
2.4residential tenants.The commissioner shall publish information on the rights and obligations
2.5of landlords and residential tenants, including promotion of the statement required under
2.6section 504B.275. The commissioner must prominently display this information on the
2.7agency website.
2.8 Sec. 3. Minnesota Statutes 2024, section 462A.2095, subdivision 3, is amended to read:
2.9 Subd. 3.Grants to program administrators.(a) The agency may make grants to
2.10program administrators to provide rental assistance for eligible households. Notwithstanding
2.11section 16C.06, the commissioner may use a formula to determine award amounts to program
2.12administrators. For both tenant-based and project-based assistance, program administrators
2.13shall pay assistance directly to housing providers. Rental assistance may be provided in the
2.14form of tenant-based assistance or project-based assistance. Notwithstanding the amounts
2.15awarded under subdivision 1, paragraph (b), and to the extent practicable, the agency must
2.16make grants statewide in proportion to the number of households eligible for assistance in
2.17each county according to the most recent American Community Survey of the United States
2.18Census Bureau. The agency may, at its discretion, redistribute unused or underutilized funds
2.19among eligible program administrators to increase program efficiency and effectiveness.
2.20 (b) The program administrator may use its existing procedures to administer the rent
2.21assistance program or may develop alternative procedures with the goals of reaching
2.22households most in need and incentivizing landlord participation. The agency must approve
2.23a program administrator's alternative procedures. Priority for rental assistance shall be given
2.24to households with children 18 years of age and under, and annual incomes of up to 30
2.25percent of the area median income. Program administrators may establish additional priority
2.26populations based on local need.
2.27 Sec. 4. Minnesota Statutes 2024, section 462A.33, subdivision 9, is amended to read:
2.28 Subd. 9.Grant funding to schools.A school district; a cooperative unit, as defined in
2.29section 123A.24, subdivision 2; or a charter school may receive funding under this section
2.30in the form of a grant less than $100,000. A school district, intermediate district, or charter
2.31school that uses a grant under this section to construct a home for owner occupancy must
2.32require the future occupant to participate in the homeownership education counseling and
2.33training program under section 462A.209. A nonprofit organization contracted by a school
2Article 1 Sec. 4.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 3.1district; a cooperative unit, as defined in section 123A.24, subdivision 2; or a charter school
3.2may receive funding under the requirements of this subdivision.
3.3 Sec. 5. Minnesota Statutes 2024, section 462A.37, subdivision 2, is amended to read:
3.4 Subd. 2.Authorization.(a) The agency may issue up to $30,000,000 in aggregate
3.5principal amount of housing infrastructure bonds in one or more series to which the payment
3.6made under this section may be pledged. The housing infrastructure bonds authorized in
3.7this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and
3.8(7), on terms and conditions the agency deems appropriate, made for one or more of the
3.9following purposes:
3.10 (1) to finance the costs of the construction, acquisition, adaptive reuse, and rehabilitation
3.11of supportive housing where at least 50 percent of units are set aside for individuals and
3.12families who are without a permanent residence;
3.13 (2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
3.14housing to be used for affordable rental housing or for affordable home ownership and the
3.15costs of new construction of rental housing on abandoned or foreclosed property where the
3.16existing structures will be demolished or removed;
3.17 (3) to finance that portion of the costs of acquisition of property that is attributable to
3.18the land to be leased by community land trusts to low- and moderate-income home buyers;
3.19 (4) to finance the acquisition, improvement, and infrastructure of manufactured home
3.20parks under section 462A.2035, subdivision 1b;
3.21 (5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
3.22of senior housing;
3.23 (6) to finance the costs of acquisition, rehabilitation, and replacement of federally assisted
3.24rental housing and for the refinancing of costs of the construction, acquisition, and
3.25rehabilitation of federally assisted rental housing, including providing funds to refund, in
3.26whole or in part, outstanding bonds previously issued by the agency or another government
3.27unit to finance or refinance such costs;
3.28 (7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
3.29of single-family housing;
3.30 (8) to finance the costs of construction, acquisition, adaptive reuse, and rehabilitation
3.31of permanent housing that is affordable to households with incomes at or below 50 percent
3Article 1 Sec. 5.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 4.1of the area median income for the applicable county or metropolitan area as published by
4.2the Department of Housing and Urban Development, as adjusted for household size; and
4.3 (9) to finance the costs of construction, acquisition, rehabilitation, conversion, and
4.4development of cooperatively owned housing created under chapter 308A, 308B, or 308C
4.5that is affordable to low- and moderate-income households.
4.6 (b) Among comparable proposals for permanent supportive housing, preference shall
4.7be given to permanent supportive housing for veterans and other individuals or families
4.8who:
4.9 (1) either have been without a permanent residence for at least 12 months or at least four
4.10times in the last three years; or
4.11 (2) are at significant risk of lacking a permanent residence for 12 months or at least four
4.12times in the last three years.
4.13 (c) Among comparable proposals for senior housing, the agency must give priority to
4.14requests for projects that:
4.15 (1) demonstrate a commitment to maintaining the housing financed as affordable to
4.16senior households;
4.17 (2) leverage other sources of funding to finance the project, including the use of
4.18low-income housing tax credits;
4.19 (3) provide access to services to residents and demonstrate the ability to increase physical
4.20supports and support services as residents age and experience increasing levels of disability;
4.21and
4.22 (4) include households with incomes that do not exceed 30 percent of the median
4.23household income for the metropolitan area.
4.24 (d) To the extent practicable, the agency shall balance the loans made between projects
4.25in the metropolitan area and projects outside the metropolitan area. Of the loans made to
4.26projects outside the metropolitan area, the agency shall, to the extent practicable, balance
4.27the loans made between projects in counties or cities with a population of 20,000 or less,
4.28as established by the most recent decennial census, and projects in counties or cities with
4.29populations in excess of 20,000.
4.30 (e) Among comparable proposals for permanent housing, the agency must give preference
4.31to projects that will provide housing that is affordable to households at or below 30 percent
4.32of the area median income.
4Article 1 Sec. 5.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 5.1 (f) If a loan recipient uses the loan for new construction as defined by the agency on a
5.2building containing more than four units, the loan recipient must construct, convert, or
5.3otherwise adapt the building to include:
5.4 (1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
5.5accessible units, and each accessible unit includes at least one roll-in shower, water closet,
5.6and kitchen work surface meeting the requirements of section 1002 of the current State
5.7Building Code Accessibility Provisions for Dwelling Units in Minnesota; and
5.8 (2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are
5.9sensory-accessible units that include:
5.10 (A) soundproofing between shared walls for first and second floor units;
5.11 (B) no florescent lighting in units and common areas;
5.12 (C) low-fume paint;
5.13 (D) low-chemical carpet; and
5.14 (E) low-chemical carpet glue in units and common areas.
5.15Nothing in this paragraph relieves a project funded by the agency from meeting other
5.16applicable accessibility requirements.
5.17 Sec. 6. Minnesota Statutes 2024, section 462A.39, subdivision 5, is amended to read:
5.18 Subd. 5.Allocation.The amount of a grant or deferred loans may not exceed 50 percent
5.19of the rental housing development project cost. The commissioner shall not award a grant
5.20or deferred loans to an eligible project area without certification by the eligible project area
5.21that the amount of the grant or deferred loans shall be matched by a local unit of government,
5.22business, nonprofit organization, or federally recognized Tribe, with $1 for every $2 provided
5.23in grant or deferred loans funds. If an eligible project area is selected for an award of a grant
5.24or loan under section 462A.40 and the award is funded by contributions to the Minnesota
5.25housing tax credit account that are intended for a specific project in the eligible project area,
5.26the amount of the award may count toward the matching requirement of this subdivision.
5.27 Sec. 7. Minnesota Statutes 2024, section 462A.40, subdivision 2, is amended to read:
5.28 Subd. 2.Use of funds; grant and loan program.(a) The agency may award grants and
5.29loans to be used for workforce housing and for multifamily and single family developments
5.30for persons and families of low and moderate income. Allowable use of the funds include:
5.31gap financing, as defined in section 462A.33, subdivision 1; new construction; acquisition;
5Article 1 Sec. 7.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 6.1rehabilitation; demolition or removal of existing structures; construction financing; permanent
6.2financing; interest rate reduction; and refinancing.
6.3 (b) The agency may give preference for grants and loans to comparable proposals that
6.4include regulatory changes or waivers that result in identifiable cost avoidance or cost
6.5reductions, including but not limited to increased density, flexibility in site development
6.6standards, or zoning code requirements.
6.7 Sec. 8. Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:
6.8 Subd. 3.Eligible recipients; definitions; restrictions; use of funds.(a) The agency
6.9may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency
6.10must not award a grant or a loan to a disqualified individual or disqualified business.
6.11 (b) For the purposes of this subdivision disqualified individual means:
6.12 (1) an individual who or an individual whose immediate family member made a
6.13contribution to the account in the current or prior taxable year and received a credit certificate;
6.14 (2) an individual who or an individual whose immediate family member owns the housing
6.15for which the grant or loan will be used;
6.16 (3) an individual who meets the following criteria:
6.17 (i) the individual is an officer or principal of a business entity; and
6.18 (ii) that business entity made a contribution to the account in the current or previous
6.19taxable year and received a credit certificate; or
6.20 (4) an individual who meets the following criteria:
6.21 (i) the individual directly owns, controls, or holds the power to vote 20 percent or more
6.22of the outstanding securities of a business entity; and
6.23 (ii) that business entity made a contribution to the account in the current or previous
6.24taxable year and received a credit certificate.
6.25 (c) For the purposes of this subdivision disqualified business means a business entity
6.26that:
6.27 (1) made a contribution to the account in the current or prior taxable year and received
6.28a credit certificate;
6.29 (2) has an officer or principal who is an individual who made a contribution to the
6.30account in the current or previous taxable year and received a credit certificate; or
6Article 1 Sec. 8.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 7.1 (3) meets the following criteria:
7.2 (i) the business entity is directly owned, controlled, or is subject to the power to vote 20
7.3percent or more of the outstanding securities by an individual or business entity; and
7.4 (ii) that controlling individual or business entity made a contribution to the account in
7.5the current or previous taxable year and received a credit certificate.
7.6 (d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,
7.7parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married
7.8couple filing a joint return, the limitations in this subdivision apply collectively to the
7.9taxpayer and spouse.
7.10 (e) For purposes of this subdivision, "officer or principal" excludes an individual serving
7.11as a volunteer board member of a nonprofit organization governed by chapter 317A.
7.12 (e) (f) Before applying for a grant or loan, all recipients must sign a disclosure that the
7.13disqualifications under this subdivision do not apply. The Minnesota Housing Finance
7.14Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency
7.15may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
7.16 (f) (g) The agency may award grants or loans to a city as defined in section 462A.03,
7.17subdivision 21; a federally recognized American Indian tribe or subdivision located in
7.18Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a
7.19housing and redevelopment authority under sections 469.001 to 469.047; a public housing
7.20authority or agency authorized by law to exercise any of the powers granted by sections
7.21469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
7.22paragraphs (a) to (e) (f) and (g) (h) of this subdivision, regarding the use of funds and eligible
7.23recipients apply to grants and loans awarded under this paragraph.
7.24 (g) (h) Eligible recipients must use the funds to serve households that meet the income
7.25limits as provided in section 462A.33, subdivision 5. This requirement does not apply to a
7.26project meeting the requirements of section 462A.39, subdivision 4, paragraph (a).
7.27 Sec. 9. Minnesota Statutes 2024, section 462C.16, subdivision 1, is amended to read:
7.28 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
7.29the meanings given to them.
7.30 (b) "Commissioner" means the commissioner of the Minnesota Housing Finance Agency.
7.31 (c) "Fund" means a local housing trust fund or a regional housing trust fund.
7Article 1 Sec. 9.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 8.1 (d) "Local government" means any statutory or home rule charter city, a housing and
8.2redevelopment authority, or a county.
8.3 (e) "Local housing trust fund" means a fund established by a local government with one
8.4or more dedicated sources of public revenue for housing.
8.5 (f) "Regional housing trust fund" means a fund established and administered under a
8.6joint powers agreement entered into by two or more local governments with one or more
8.7dedicated sources of public revenue for housing.
8.8 Sec. 10. Minnesota Statutes 2024, section 477A.35, subdivision 5, is amended to read:
8.9 Subd. 5.Use of proceeds.(a) Any funds distributed under this section must be spent on
8.10a qualifying project. Funds are considered spent on a qualifying project if:
8.11 (1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that
8.12the city or county cannot expend funds on a qualifying project by the deadline imposed by
8.13paragraph (b) due to factors outside the control of the city or county; and
8.14 (2) the funds are transferred to a local housing trust fund.
8.15Funds transferred to a local housing trust fund under this paragraph must be spent on a
8.16project or household that meets the affordability requirements of subdivision 4, paragraph
8.17(a).
8.18 (b) Funds must be spent by December 31 in the third year following the year after the
8.19aid was received. The requirements of this paragraph are satisfied if funds are:
8.20 (1) committed to a qualifying project by December 31 in the third year following the
8.21year after the aid was received; and
8.22 (2) expended by December 31 in the fourth year following the year after the aid was
8.23received.
8.24 (c) An aid recipient may not use aid money to reimburse itself for prior expenditures.
8.25 (d) Any program income generated from funds distributed under this section must be
8.26used on a qualifying project.
8.27 Sec. 11. Minnesota Statutes 2024, section 477A.36, subdivision 5, is amended to read:
8.28 Subd. 5.Use of proceeds.(a) Any funds distributed under this section must be spent on
8.29a qualifying project. If a tier I city or county demonstrates to the Minnesota Housing Finance
8.30Agency that the tier I city or county cannot expend funds on a qualifying project by the
8Article 1 Sec. 11.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 9.1deadline imposed by paragraph (b) due to factors outside the control of the tier I city or
9.2county, funds shall be considered spent on a qualifying project if the funds are transferred
9.3to a local housing trust fund. Funds transferred to a local housing trust fund must be spent
9.4on a project or household that meets the affordability requirements of subdivision 4,
9.5paragraph (a).
9.6 (b) Funds must be spent by December 31 in the third year following the year after the
9.7aid was received. The requirements of this paragraph are satisfied if funds are:
9.8 (1) committed to a qualifying project by December 31 in the third year following the
9.9year after the aid was received; and
9.10 (2) expended by December 31 in the fourth year following the year after the aid was
9.11received.
9.12 (c) An aid recipient may not use aid funds to reimburse itself for prior expenditures.
9.13 (d) Any program income generated from funds distributed under this section must be
9.14used on a qualifying project.
9.15 Sec. 12. Laws 2023, chapter 37, article 1, section 2, subdivision 21, is amended to read:
-0-4,800,0009.16Subd. 21.Local Housing Trust Fund Grants
9.17(a) This appropriation is for deposit in the
9.18housing development fund for grants to local
9.19housing trust funds established under
9.20Minnesota Statutes, section 462C.16, to
9.21incentivize local funding. This is a onetime
9.22appropriation.
9.23(b) A grantee is eligible to receive a grant
9.24amount equal to 100 percent of the public
9.25revenue committed to the local housing trust
9.26fund from any source other than the state or
9.27federal government, up to $150,000, and in
9.28addition, an amount equal to 50 percent of the
9.29public revenue committed to the local housing
9.30trust fund from any source other than the state
9.31or federal government that is more than
9.32$150,000 but not more than $300,000.
9Article 1 Sec. 12.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 10.1(c) A grantee must use grant funds within eight
10.2five years of receipt for purposes (1)
10.3authorized under Minnesota Statutes, section
10.4462C.16, subdivision 3, and (2) benefiting
10.5households with incomes at or below 115
10.6percent of the state median income. A grantee
10.7must return any grant funds not used for these
10.8purposes within eight years of receipt to the
10.9commissioner of the Minnesota Housing
10.10Finance Agency for deposit into the housing
10.11development fund.
10.12Sec. 13. Laws 2023, chapter 37, article 2, section 10, is amended to read:
10.13Sec. 10. HIGH-RISE SPRINKLER SYSTEM GRANT AND LOAN PROGRAM.
10.14 Subdivision 1.Definitions.(a) The definitions in this subdivision apply to this section.
10.15 (b) "Eligible building" means an existing residential building in which:
10.16 (1) at least one story used for human occupancy is the building is seven stories or more
10.17in height or 75 feet or more above the lowest level of fire department vehicle access; and
10.18 (2) at least two-thirds of its units are affordable to households with an annual income at
10.19or below 50 60 percent of the area median income as determined by the United States
10.20Department of Housing and Urban Development, adjusted for family size, that is paying
10.21no more than 30 percent of annual income on rent.
10.22 (c) "Sprinkler system" means the same as the term "fire protection system" as defined
10.23in Minnesota Statutes, section 299M.01.
10.24 Subd. 2.Grant program Use of funds.The commissioner of the Housing Finance
10.25Agency must make grants or loans to owners of eligible buildings for installation of sprinkler
10.26systems and, if necessary, for relocation of residents during the installation of sprinkler
10.27systems. Priority shall be given to nonprofit applicants. The maximum grant per eligible
10.28building shall be $2,000,000. Each grant to a nonprofit organization shall require a 25
10.29percent match. Each grant to a for-profit organization shall require a 50 percent match.
10Article 1 Sec. 13.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 11.1 ARTICLE 2
11.2 PUBLIC CORPORATION FOR RENTAL PROPERTY
11.3 Section 1. Minnesota Statutes 2024, section 15.082, is amended to read:
11.4 15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.
11.5 Notwithstanding any other law, the state is not liable for obligations of a public
11.6corporation created by statute. Upon dissolution of the public corporation, its wholly owned
11.7assets become state property. Partially owned assets become state property to the extent
11.8that state money was used to acquire them.
11.9 This section does not apply to a public corporation governed by chapter 119 or section
11.10469.0121.
11.11 EFFECTIVE DATE.This section is effective July 1, 2025.
11.12Sec. 2. Minnesota Statutes 2024, section 462A.202, subdivision 3a, is amended to read:
11.13 Subd. 3a.Permanent rental housing.The agency may make loans, with or without
11.14interest, to cities and counties to finance the construction, acquisition, or rehabilitation of
11.15affordable, permanent, and publicly owned rental housing, including housing owned by a
11.16public corporation created pursuant to section 469.0121. Loans made under this subdivision
11.17are subject to the restrictions of subdivision 7. In making loans under this subdivision, the
11.18agency shall give priority to projects that increase the supply of affordable family housing.
11.19Sec. 3. Minnesota Statutes 2024, section 462C.02, subdivision 6, is amended to read:
11.20 Subd. 6.City."City" means any statutory or home rule charter city, a county housing
11.21and redevelopment authority created by special law or authorized by its county to exercise
11.22its powers pursuant to section 469.004, or any public body which (a) is the housing and
11.23redevelopment authority in and for a statutory or home rule charter city, the port authority
11.24of a statutory or home rule charter city, or an economic development authority of a city
11.25established under sections 469.090 to 469.108, or a public corporation created pursuant to
11.26section 469.0121, and (b) is authorized by ordinance to exercise, on behalf of a statutory or
11.27home rule charter city, the powers conferred by sections 462C.01 to 462C.10.
11.28Sec. 4. Minnesota Statutes 2024, section 469.012, subdivision 2j, is amended to read:
11.29 Subd. 2j.May be in LLP, LLC, or corporation; bound as if HRA.(a) An authority
11.30may become a member or shareholder in and enter into or form limited partnerships, limited
11.31liability companies, or corporations for the purpose of developing, constructing, rehabilitating,
11Article 2 Sec. 4.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 12.1managing, supporting, or preserving housing projects and housing development projects,
12.2including low-income housing tax credit projects. These limited partnerships, limited liability
12.3companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
12.4and other laws that apply to housing and redevelopment authorities, as if the limited
12.5partnership, limited liability company, or corporation were a housing and redevelopment
12.6authority.
12.7 (b) An authority may create a public corporation in accordance with section 469.0121
12.8for the purpose of purchasing, owning, and operating real property converted through the
12.9federal Rental Assistance Demonstration program under Public Law 112-55, as amended.
12.10 EFFECTIVE DATE.This section is effective July 1, 2025.
12.11Sec. 5. [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE
12.12DEMONSTRATION PROGRAM.
12.13 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
12.14the meanings given.
12.15 (b) "Authority" has the meaning given under section 469.002, subdivision 2.
12.16 (c) "Board" means the board of directors of a corporation created under this section.
12.17 (d) "Corporation" means a public corporation created under this section.
12.18 (e) "RAD" means the federal Rental Assistance Demonstration program under Public
12.19Law 112-55, as amended.
12.20 Subd. 2.Public corporation created.An authority may create a public corporation to
12.21purchase, own, and operate real property that has been converted through RAD to preserve
12.22and improve public housing properties. A public corporation created under this section is
12.23also a political subdivision of the state and is limited to the powers in this section.
12.24 Subd. 3.Corporation powers.(a) The corporation has the following general powers:
12.25 (1) to have succession until dissolved by law;
12.26 (2) to sue and be sued in its corporate name;
12.27 (3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
12.28 (4) to accept, hold, and administer gifts and bequests of money, securities, or other
12.29personal property of whatsoever character, absolutely or in trust, for the purposes for which
12.30the corporation is created. Unless otherwise restricted by the terms of the gift or bequest,
12.31the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or
12Article 2 Sec. 5.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 13.1reinvest in such investments as the corporation may determine with the money, securities,
13.2or other property given or bequeathed to the corporation. The principal of and income from
13.3the corporate funds and all other revenues received by the corporation from any source
13.4whatsoever shall be placed in such depositories as the board of directors shall determine
13.5and shall be subject to expenditure for corporate purposes;
13.6 (5) to enter into contracts generally and to execute all instruments necessary or appropriate
13.7to carry out the corporate purposes;
13.8 (6) to appoint and prescribe the duties of officers, agents, and employees as may be
13.9necessary to carry out the work of the corporation and to compensate officers, agents, and
13.10employees;
13.11 (7) to purchase all supplies and materials necessary for carrying out the purposes of the
13.12corporation;
13.13 (8) to accept from the United States, the state of Minnesota, or any of their agencies
13.14money or other assistance whether by gift, loan, or otherwise to carry out the purposes of
13.15the corporation, and enter into contracts with the United States, the state of Minnesota, any
13.16of the agencies of either, or any of the political subdivisions of the state as it may deem
13.17proper and consistent with the purposes of this section;
13.18 (9) to contract and make cooperative agreements with federal, state, and municipal
13.19departments and agencies and private corporations, associations, and individuals for the use
13.20of the corporation property, including but not limited to rental agreements; and
13.21 (10) to acquire real or personal property or any interest therein in any manner authorized
13.22under section 469.012, subdivision 1g, including by the exercise of eminent domain.
13.23 (b) A corporation may acquire properties converted under RAD, subject to restrictions
13.24and conditions compatible with funding acquisitions of and improvements to real property
13.25with state general obligation bond proceeds. The commissioner of management and budget
13.26must determine the necessary restrictions and conditions under this paragraph.
13.27 Subd. 4.Board of directors.(a) A corporation is governed by a board of directors, with
13.28each commissioner of the authority that created the corporation serving as a member.
13.29 (b) The term of a director shall coincide with their term as a commissioner of the authority
13.30that created the corporation, except that a director's term shall continue after their term as
13.31a commissioner is complete until a successor commissioner is duly appointed and qualified.
13.32 (c) Board members must not be compensated for their service as board members but
13.33may receive reimbursement for reasonable expenses incurred in connection with their duties
13Article 2 Sec. 5.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT 14.1as board members. The state auditor must review the reimbursements to board members
14.2each year.
14.3 (d) The board must annually elect from among its members a chair and other officers
14.4necessary for the performance of its duties.
14.5 Subd. 5.Bylaws.The board of directors must adopt bylaws and rules as it deems
14.6necessary for the administration of its functions and the accomplishment of its purpose,
14.7including among other matters the establishment of a business office and the rules, the use
14.8of the project-based rental assistance properties, and the administration of corporation funds.
14.9 Subd. 6.Place of business.The board must locate and maintain the corporation's place
14.10of business in the city in which the authority that created the corporation is located.
14.11 Subd. 7.Open meetings; data practices.Meetings of the board are subject to chapter
14.1213D and meetings of the board conducted by interactive technology are subject to section
14.1313D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act,
14.14and shall protect data classified as not public from unlawful disclosure.
14.15 Subd. 8.Compliance.The corporation must comply with all federal, state, and local
14.16laws, rules, ordinances, and other regulations required to own and operate properties as
14.17project-based rental assistance properties.
14.18 Subd. 9.Dissolution.Upon dissolution of the corporation for any reason, its wholly
14.19owned assets become property of the authority that created the corporation.
14.20 EFFECTIVE DATE.This section is effective July 1, 2025.
14Article 2 Sec. 5.
REVISOR MS H2309-1HF2309 FIRST ENGROSSMENT Page.Ln 1.14MINNESOTA HOUSING FINANCE AGENCY..................................ARTICLE 1
Page.Ln 11.1PUBLIC CORPORATION FOR RENTAL PROPERTY.......................ARTICLE 2
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APPENDIX
Article locations for H2309-1