HB2240--RURALWORKFORCEHOUSING
SPONSOR: Sharpe(4)
COMMITTEEACTION:Voted"DoPass"bytheStandingCommitteeon
RuralCommunityDevelopmentbyavoteof8to0.
Thisbillestablishesthe"RuralWorkforceHousingInvestmentAct".
Aworkforcehousinggrantprogramshallbecreatedinthe
DepartmentofEconomicDevelopment(DED)tofosterandsupportthe
developmentofworkforcehousinginruralcommunities. Nonprofit
developmentorganizationsmayapplytoDEDforapprovalofa
workforcehousinggrantforaworkforcehousinginvestmentfund.
Grantsshallbeawardedonacompetitivebasisthrough2027.Grant
maximumsshallnotexceed$1milliontoanyonenonprofit
developmentorganizationoveratwo-yearperiod,withnomorethan
$2millioncumulativeforanysinglegranteethroughFY2027.
Grantsshallbeawardedinthefollowingmanner:
(1)Ademonstratedandongoinghousingneedasidentifiedbya
recenthousingstudy;
(2)Acommunityorregionthathasalowunemploymentrateandis
havingdifficultyattractingworkersandfillingemployment
positions;
(3)Acommunityorregionthatexhibitsademonstratedcommitment
togrowingitshousingstock;
(4)Projectsthatcanreasonablybereadyforoccupancyina
periodof24months;and
(5)Ademonstratedabilitytogrowandmanageaworkforcehousing
investmentfund.
Anonprofitdevelopmentorganizationshall:
(1)Investorintendtoinvestinworkforcehousingeligible
activities;
(2)Useanyfees,interest,loanrepayments,orotherfundsit
receivesasaresultoftheadministration ofthegranttosupport
qualifiedactivities;and
(3)Haveanactiveboardofdirectorswithexpertisein
development,construction,andfinancethatmeetsatleast
quarterlytoapproveallqualifiedinvestmentsmadebythe nonprofitdevelopmentorganization. Anonprofitdevelopment
organizationshallhaveaformalplanandprovenexpertiseto
investunusedworkforcehousinginvestmentfundbalancesandshall
haveanannualauditofallfinancialrecordsconductedbyan
independentcertifiedpublicaccountant.
Thisbillcreatesthe"RuralWorkforceHousingInvestmentFund".
Intheeventthatanonprofitdevelopmentorganizationfailsto
engageinactivitywithin24monthsafterreceivinggrantfunding,
suchfundsshallbereturnedtoDEDforcredittotheMissouri
HousingTrustFund.Ifanonprofitdevelopmentorganizationfails
toallocateanyremaininggrantfundingwithin24monthsafter
engagingininitialqualifiedactivity,suchunallocatedfunds
shallbereturnedtoDEDforcredittotheRuralWorkforceHousing
InvestmentFund.
TheDirectorofDEDshallhavediscretiontotransferanyunused
FundstoanyqualifyingtrustorfundbeforeAugust28,2029.
BeginningAugust28,2029,anyfundsheldbyDEDandnotdesignated
bytheDirectortobedisbursedtoanalternatefundshallbe
transferredtotheMissouriHousingTrustFund.
EachnonprofitshallsubmitanannualreporttotheDirectorof
DED.Suchannualreportshallincludethefollowing:
(1)Thenameandgeographicallocationofthereportingnonprofit
developmentorganization;
(2)Thenumber,amount,andtypeofworkforcehousinginvestment
fundsinvestedinqualifiedactivities;
(3)Thenumber,geographicallocation,type,andamountof
investmentsmade;
(4)Asummaryofmatchingfundsandwheresuchmatchingfundswere
generated;and
(5)Theresultsoftheannualaudit.
Ifanonprofitdevelopmentorganizationceasesadministration ofa
WorkforceHousingInvestmentFund,itshallfileafinalreport.
IfanonprofitfailstofileacompleteannualreportbyFebruary
15th,theDirectormayimposeacivilpenaltyof$5,000forsucha
violation.
TheDEDshallalsobeexpectedtocommititselfto: (1)Ensurethatgrantfundsawardedtononprofitdevelopment
organizationsaretargetedtothegeographiccommunitiesorregions
withthemostpressingeconomicandemploymentneeds;and
(2)Ensurethattheallocationofgrantfundsprovidesequitable
accesstothebenefitsprovidedinthebilltoalleligible
geographicalareas;
TheDepartmentshallsubmitanannualreporttotheGeneral
AssemblyandtheGovernorthatincludes:
(1)Thenumberandgeographicallocationofnonprofitdevelopment
organizationsestablishingworkforcehousinginvestmentfunds;
(2)Thenumber,amount,andtypeofworkforcehousinginvestment
fundsinvestedinqualifiedactivities;and
(3)Thenumber,geographicallocation,type,andamountof
investmentsmadebyeachnonprofitdevelopmentorganization.
PROPONENTS: SupporterssaythatcurrentlyinruralMissouri,there
isashortageofworkforcehousing,whichmakesithardtoattract
economicdevelopmentopportunities. Astudyofhousing
availabilityinnortheastMissourishowedthatthereisalackof
housinginthe$150,000to$250,000pricerange.Thisbillwould
allownonprofitstobuildhousesinthispricerangeintherural
area.
TestifyinginpersonforthebillwereRepresentative Sharpe;
NortheastMissouriEconomicDevelopmentCouncil;Associationof
MissouriElectricCooperatives; MissouriEconomicDevelopment
Council;DerekWeber;andMichaelScheib,Tri-CountyElectric
Cooperative.
OPPONENTS: Thosewhoopposethebillsaythatnonprofitsareeasy
toestablishandthisbillwouldhavethegovernmentpicking
winnersandlosersinthefundingofworkforcehousing. In
addition,itdoesnotprohibitgrantrecipientsfromsellingto
illegalaliens.
TestifyinginpersonagainstthebillwasArmorvine.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.