Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2480 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to housing; authorizing housing and redevelopment authorities to create
3	3	1.3 public corporations for the purpose of purchasing, owning, and operating properties
4	4	1.4 converted under the federal Rental Assistance Demonstration program; permitting
5	5	1.5 corporations of authorities to receive certain funding through the Minnesota
6	6	1.6 Housing Finance Agency; amending Minnesota Statutes 2024, sections 15.082;
7	7	1.7 462A.202, subdivision 3a; 462C.02, subdivision 6; 469.012, subdivision 2j;
8	8	1.8 proposing coding for new law in Minnesota Statutes, chapter 469.
9	9	1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
10	10	1.10 Section 1. Minnesota Statutes 2024, section 15.082, is amended to read:
11	11	1.11 15.082 OBLIGATIONS OF PUBLIC CORPORATIONS.
12	12	1.12 Notwithstanding any other law, the state is not liable for obligations of a public
13	13	1.13corporation created by statute. Upon dissolution of the public corporation, its wholly owned
14	14	1.14assets become state property. Partially owned assets become state property to the extent
15	15	1.15that state money was used to acquire them.
16	16	1.16 This section does not apply to a public corporation governed by chapter 119 or section
17	17	1.17469.0121.
18	18	1.18 EFFECTIVE DATE.This section is effective July 1, 2025.
19	19	1.19 Sec. 2. Minnesota Statutes 2024, section 462A.202, subdivision 3a, is amended to read:
20	20	1.20 Subd. 3a.Permanent rental housing.The agency may make loans, with or without
21	21	1.21interest, to cities and counties to finance the construction, acquisition, or rehabilitation of
22	22	1.22affordable, permanent, and publicly owned rental housing, including housing owned by a
23	23	1.23public corporation created pursuant to section 469.0121. Loans made under this subdivision
24	24	1Sec. 2.
25	25	REVISOR MS/BM 25-0385403/03/25
26	26	State of Minnesota
27	27	This Document can be made available
28	28	in alternative formats upon request
29	29	HOUSE OF REPRESENTATIVES
30	30	H. F. No. 2480
31	31	NINETY-FOURTH SESSION
32	32	Authored by Howard; Lee, F., and Igo03/17/2025
33	33	The bill was read for the first time and referred to the Committee on Housing Finance and Policy 2.1are subject to the restrictions of subdivision 7. In making loans under this subdivision, the
34	34	2.2agency shall give priority to projects that increase the supply of affordable family housing.
35	35	2.3 Sec. 3. Minnesota Statutes 2024, section 462C.02, subdivision 6, is amended to read:
36	36	2.4 Subd. 6.City."City" means any statutory or home rule charter city, a county housing
37	37	2.5and redevelopment authority created by special law or authorized by its county to exercise
38	38	2.6its powers pursuant to section 469.004, or any public body which (a) is the housing and
39	39	2.7redevelopment authority in and for a statutory or home rule charter city, the port authority
40	40	2.8of a statutory or home rule charter city, or an economic development authority of a city
41	41	2.9established under sections 469.090 to 469.108, or a public corporation created pursuant to
42	42	2.10section 469.0121, and (b) is authorized by ordinance to exercise, on behalf of a statutory or
43	43	2.11home rule charter city, the powers conferred by sections 462C.01 to 462C.10.
44	44	2.12 Sec. 4. Minnesota Statutes 2024, section 469.012, subdivision 2j, is amended to read:
45	45	2.13 Subd. 2j.May be in LLP, LLC, or corporation; bound as if HRA.(a) An authority
46	46	2.14may become a member or shareholder in and enter into or form limited partnerships, limited
47	47	2.15liability companies, or corporations for the purpose of developing, constructing, rehabilitating,
48	48	2.16managing, supporting, or preserving housing projects and housing development projects,
49	49	2.17including low-income housing tax credit projects. These limited partnerships, limited liability
50	50	2.18companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
51	51	2.19and other laws that apply to housing and redevelopment authorities, as if the limited
52	52	2.20partnership, limited liability company, or corporation were a housing and redevelopment
53	53	2.21authority.
54	54	2.22 (b) An authority may create a public corporation in accordance with section 469.0121
55	55	2.23for the purpose of purchasing, owning, and operating real property converted through the
56	56	2.24federal Rental Assistance Demonstration program under Public Law 112-55, as amended.
57	57	2.25 EFFECTIVE DATE.This section is effective July 1, 2025.
58	58	2.26 Sec. 5. [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE
59	59	2.27DEMONSTRATION PROGRAM.
60	60	2.28 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
61	61	2.29the meanings given.
62	62	2.30 (b) "Authority" has the meaning given under section 469.002, subdivision 2.
63	63	2.31 (c) "Board" means the board of directors of a corporation created under this section.
64	64	2Sec. 5.
65	65	REVISOR MS/BM 25-0385403/03/25 3.1 (d) "Corporation" means a public corporation created under this section.
66	66	3.2 (e) "RAD" means the federal Rental Assistance Demonstration program under Public
67	67	3.3Law 112-55, as amended.
68	68	3.4 Subd. 2.Public corporation created.An authority may create a public corporation to
69	69	3.5purchase, own, and operate real property that has been converted through RAD to preserve
70	70	3.6and improve public housing properties. A public corporation created under this section is
71	71	3.7also a political subdivision of the state and is limited to the powers in this section.
72	72	3.8 Subd. 3.Corporation powers.(a) The corporation has the following general powers:
73	73	3.9 (1) to have succession until dissolved by law;
74	74	3.10 (2) to sue and be sued in its corporate name;
75	75	3.11 (3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
76	76	3.12 (4) to accept, hold, and administer gifts and bequests of money, securities, or other
77	77	3.13personal property of whatsoever character, absolutely or in trust, for the purposes for which
78	78	3.14the corporation is created. Unless otherwise restricted by the terms of the gift or bequest,
79	79	3.15the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or
80	80	3.16reinvest in such investments as the corporation may determine with the money, securities,
81	81	3.17or other property given or bequeathed to the corporation. The principal of and income from
82	82	3.18the corporate funds and all other revenues received by the corporation from any source
83	83	3.19whatsoever shall be placed in such depositories as the board of directors shall determine
84	84	3.20and shall be subject to expenditure for corporate purposes;
85	85	3.21 (5) to enter into contracts generally and to execute all instruments necessary or appropriate
86	86	3.22to carry out the corporate purposes;
87	87	3.23 (6) to appoint and prescribe the duties of officers, agents, and employees as may be
88	88	3.24necessary to carry out the work of the corporation and to compensate officers, agents, and
89	89	3.25employees;
90	90	3.26 (7) to purchase all supplies and materials necessary for carrying out the purposes of the
91	91	3.27corporation;
92	92	3.28 (8) to accept from the United States, the state of Minnesota, or any of their agencies
93	93	3.29money or other assistance whether by gift, loan, or otherwise to carry out the purposes of
94	94	3.30the corporation, and enter into contracts with the United States, the state of Minnesota, any
95	95	3.31of the agencies of either, or any of the political subdivisions of the state as it may deem
96	96	3.32proper and consistent with the purposes of this section;
97	97	3Sec. 5.
98	98	REVISOR MS/BM 25-0385403/03/25 4.1 (9) to contract and make cooperative agreements with federal, state, and municipal
99	99	4.2departments and agencies and private corporations, associations, and individuals for the use
100	100	4.3of the corporation property, including but not limited to rental agreements; and
101	101	4.4 (10) to acquire real or personal property or any interest therein in any manner authorized
102	102	4.5under section 469.012, subdivision 1g, including by the exercise of eminent domain.
103	103	4.6 (b) A corporation may acquire properties converted under RAD, subject to restrictions
104	104	4.7and conditions compatible with funding acquisitions of and improvements to real property
105	105	4.8with state general obligation bond proceeds. The commissioner of management and budget
106	106	4.9must determine the necessary restrictions and conditions under this paragraph.
107	107	4.10 Subd. 4.Board of directors.(a) A corporation is governed by a board of directors, with
108	108	4.11each commissioner of the authority that created the corporation serving as a member.
109	109	4.12 (b) The term of a director shall coincide with their term as a commissioner of the authority
110	110	4.13that created the corporation, except that a director's term shall continue after their term as
111	111	4.14a commissioner is complete until a successor commissioner is duly appointed and qualified.
112	112	4.15 (c) Board members must not be compensated for their service as board members but
113	113	4.16may receive reimbursement for reasonable expenses incurred in connection with their duties
114	114	4.17as board members. The state auditor must review the reimbursements to board members
115	115	4.18each year.
116	116	4.19 (d) The board must annually elect from among its members a chair and other officers
117	117	4.20necessary for the performance of its duties.
118	118	4.21 Subd. 5.Bylaws.The board of directors must adopt bylaws and rules as it deems
119	119	4.22necessary for the administration of its functions and the accomplishment of its purpose,
120	120	4.23including among other matters the establishment of a business office and the rules, the use
121	121	4.24of the project-based rental assistance properties, and the administration of corporation funds.
122	122	4.25 Subd. 6.Place of business.The board must locate and maintain the corporation's place
123	123	4.26of business in the city in which the authority that created the corporation is located.
124	124	4.27 Subd. 7.Open meetings; data practices.Meetings of the board are subject to chapter
125	125	4.2813D and meetings of the board conducted by interactive technology are subject to section
126	126	4.2913D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act,
127	127	4.30and shall protect data classified as not public from unlawful disclosure.
128	128	4.31 Subd. 8.Compliance.The corporation must comply with all federal, state, and local
129	129	4.32laws, rules, ordinances, and other regulations required to own and operate properties as
130	130	4.33project-based rental assistance properties.
131	131	4Sec. 5.
132	132	REVISOR MS/BM 25-0385403/03/25 5.1 Subd. 9.Dissolution.Upon dissolution of the corporation for any reason, its wholly
133	133	5.2owned assets become property of the authority that created the corporation.
134	134	5.3 EFFECTIVE DATE.This section is effective July 1, 2025.
135	135	5Sec. 5.
136	136	REVISOR MS/BM 25-0385403/03/25