Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2659 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	25-03854 as introduced03/03/25 REVISOR MS/BM
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 2659NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: PORT and Boldon)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading03/17/2025
32	32	Referred to Housing and Homelessness Prevention 2.1are subject to the restrictions of subdivision 7. In making loans under this subdivision, the
33	33	2.2agency shall give priority to projects that increase the supply of affordable family housing.
34	34	2.3 Sec. 3. Minnesota Statutes 2024, section 462C.02, subdivision 6, is amended to read:
35	35	2.4 Subd. 6.City."City" means any statutory or home rule charter city, a county housing
36	36	2.5and redevelopment authority created by special law or authorized by its county to exercise
37	37	2.6its powers pursuant to section 469.004, or any public body which (a) is the housing and
38	38	2.7redevelopment authority in and for a statutory or home rule charter city, the port authority
39	39	2.8of a statutory or home rule charter city, or an economic development authority of a city
40	40	2.9established under sections 469.090 to 469.108, or a public corporation created pursuant to
41	41	2.10section 469.0121, and (b) is authorized by ordinance to exercise, on behalf of a statutory or
42	42	2.11home rule charter city, the powers conferred by sections 462C.01 to 462C.10.
43	43	2.12 Sec. 4. Minnesota Statutes 2024, section 469.012, subdivision 2j, is amended to read:
44	44	2.13 Subd. 2j.May be in LLP, LLC, or corporation; bound as if HRA.(a) An authority
45	45	2.14may become a member or shareholder in and enter into or form limited partnerships, limited
46	46	2.15liability companies, or corporations for the purpose of developing, constructing, rehabilitating,
47	47	2.16managing, supporting, or preserving housing projects and housing development projects,
48	48	2.17including low-income housing tax credit projects. These limited partnerships, limited liability
49	49	2.18companies, or corporations are subject to all of the provisions of sections 469.001 to 469.047
50	50	2.19and other laws that apply to housing and redevelopment authorities, as if the limited
51	51	2.20partnership, limited liability company, or corporation were a housing and redevelopment
52	52	2.21authority.
53	53	2.22 (b) An authority may create a public corporation in accordance with section 469.0121
54	54	2.23for the purpose of purchasing, owning, and operating real property converted through the
55	55	2.24federal Rental Assistance Demonstration program under Public Law 112-55, as amended.
56	56	2.25 EFFECTIVE DATE.This section is effective July 1, 2025.
57	57	2.26 Sec. 5. [469.0121] PUBLIC CORPORATION; RENTAL ASSISTANCE
58	58	2.27DEMONSTRATION PROGRAM.
59	59	2.28 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
60	60	2.29the meanings given.
61	61	2.30 (b) "Authority" has the meaning given under section 469.002, subdivision 2.
62	62	2.31 (c) "Board" means the board of directors of a corporation created under this section.
63	63	2Sec. 5.
64	64	25-03854 as introduced03/03/25 REVISOR MS/BM 3.1 (d) "Corporation" means a public corporation created under this section.
65	65	3.2 (e) "RAD" means the federal Rental Assistance Demonstration program under Public
66	66	3.3Law 112-55, as amended.
67	67	3.4 Subd. 2.Public corporation created.An authority may create a public corporation to
68	68	3.5purchase, own, and operate real property that has been converted through RAD to preserve
69	69	3.6and improve public housing properties. A public corporation created under this section is
70	70	3.7also a political subdivision of the state and is limited to the powers in this section.
71	71	3.8 Subd. 3.Corporation powers.(a) The corporation has the following general powers:
72	72	3.9 (1) to have succession until dissolved by law;
73	73	3.10 (2) to sue and be sued in its corporate name;
74	74	3.11 (3) to adopt, alter, and use a corporate seal which shall be judicially noticed;
75	75	3.12 (4) to accept, hold, and administer gifts and bequests of money, securities, or other
76	76	3.13personal property of whatsoever character, absolutely or in trust, for the purposes for which
77	77	3.14the corporation is created. Unless otherwise restricted by the terms of the gift or bequest,
78	78	3.15the corporation is authorized to sell, exchange, or otherwise dispose of and to invest or
79	79	3.16reinvest in such investments as the corporation may determine with the money, securities,
80	80	3.17or other property given or bequeathed to the corporation. The principal of and income from
81	81	3.18the corporate funds and all other revenues received by the corporation from any source
82	82	3.19whatsoever shall be placed in such depositories as the board of directors shall determine
83	83	3.20and shall be subject to expenditure for corporate purposes;
84	84	3.21 (5) to enter into contracts generally and to execute all instruments necessary or appropriate
85	85	3.22to carry out the corporate purposes;
86	86	3.23 (6) to appoint and prescribe the duties of officers, agents, and employees as may be
87	87	3.24necessary to carry out the work of the corporation and to compensate officers, agents, and
88	88	3.25employees;
89	89	3.26 (7) to purchase all supplies and materials necessary for carrying out the purposes of the
90	90	3.27corporation;
91	91	3.28 (8) to accept from the United States, the state of Minnesota, or any of their agencies
92	92	3.29money or other assistance whether by gift, loan, or otherwise to carry out the purposes of
93	93	3.30the corporation, and enter into contracts with the United States, the state of Minnesota, any
94	94	3.31of the agencies of either, or any of the political subdivisions of the state as it may deem
95	95	3.32proper and consistent with the purposes of this section;
96	96	3Sec. 5.
97	97	25-03854 as introduced03/03/25 REVISOR MS/BM 4.1 (9) to contract and make cooperative agreements with federal, state, and municipal
98	98	4.2departments and agencies and private corporations, associations, and individuals for the use
99	99	4.3of the corporation property, including but not limited to rental agreements; and
100	100	4.4 (10) to acquire real or personal property or any interest therein in any manner authorized
101	101	4.5under section 469.012, subdivision 1g, including by the exercise of eminent domain.
102	102	4.6 (b) A corporation may acquire properties converted under RAD, subject to restrictions
103	103	4.7and conditions compatible with funding acquisitions of and improvements to real property
104	104	4.8with state general obligation bond proceeds. The commissioner of management and budget
105	105	4.9must determine the necessary restrictions and conditions under this paragraph.
106	106	4.10 Subd. 4.Board of directors.(a) A corporation is governed by a board of directors, with
107	107	4.11each commissioner of the authority that created the corporation serving as a member.
108	108	4.12 (b) The term of a director shall coincide with their term as a commissioner of the authority
109	109	4.13that created the corporation, except that a director's term shall continue after their term as
110	110	4.14a commissioner is complete until a successor commissioner is duly appointed and qualified.
111	111	4.15 (c) Board members must not be compensated for their service as board members but
112	112	4.16may receive reimbursement for reasonable expenses incurred in connection with their duties
113	113	4.17as board members. The state auditor must review the reimbursements to board members
114	114	4.18each year.
115	115	4.19 (d) The board must annually elect from among its members a chair and other officers
116	116	4.20necessary for the performance of its duties.
117	117	4.21 Subd. 5.Bylaws.The board of directors must adopt bylaws and rules as it deems
118	118	4.22necessary for the administration of its functions and the accomplishment of its purpose,
119	119	4.23including among other matters the establishment of a business office and the rules, the use
120	120	4.24of the project-based rental assistance properties, and the administration of corporation funds.
121	121	4.25 Subd. 6.Place of business.The board must locate and maintain the corporation's place
122	122	4.26of business in the city in which the authority that created the corporation is located.
123	123	4.27 Subd. 7.Open meetings; data practices.Meetings of the board are subject to chapter
124	124	4.2813D and meetings of the board conducted by interactive technology are subject to section
125	125	4.2913D.02. The board is subject to chapter 13, the Minnesota Government Data Practices Act,
126	126	4.30and shall protect data classified as not public from unlawful disclosure.
127	127	4.31 Subd. 8.Compliance.The corporation must comply with all federal, state, and local
128	128	4.32laws, rules, ordinances, and other regulations required to own and operate properties as
129	129	4.33project-based rental assistance properties.
130	130	4Sec. 5.
131	131	25-03854 as introduced03/03/25 REVISOR MS/BM 5.1 Subd. 9.Dissolution.Upon dissolution of the corporation for any reason, its wholly
132	132	5.2owned assets become property of the authority that created the corporation.
133	133	5.3 EFFECTIVE DATE.This section is effective July 1, 2025.
134	134	5Sec. 5.
135	135	25-03854 as introduced03/03/25 REVISOR MS/BM