1.1                          A bill for an act 
  1.2             relating to housing; making technical and policy 
  1.3             changes to the low-income housing tax credit program; 
  1.4             modifying procedures for allocating bonding authority 
  1.5             to cities for single-family housing; making technical 
  1.6             corrections; amending Minnesota Statutes 1994, 
  1.7             sections 462A.222, subdivisions 1, 1a, 3, and 4; 
  1.8             462A.223, subdivision 2; 462C.05, by adding a 
  1.9             subdivision; 474A.061, subdivision 2b; 474A.131, 
  1.10            subdivisions 1 and 1a; and 474A.14; Minnesota Statutes 
  1.11            1995 Supplement, sections 474A.061, subdivisions 2a 
  1.12            and 2c; and 474A.091, subdivision 3; proposing coding 
  1.13            for new law in Minnesota Statutes, chapter 474A. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1994, section 462A.222, 
  1.16  subdivision 1, is amended to read: 
  1.17     Subdivision 1.  [CREDIT RESERVATIONS.] The agency shall 
  1.18  reserve a portion of the annual state ceiling for low-income 
  1.19  housing credits provided under section 42 of the Internal 
  1.20  Revenue Code of 1986, as amended, to (1) cities with a 
  1.21  population of at least 50,000 that have a housing and 
  1.22  redevelopment authority; (2) cities located in three or more 
  1.23  counties that have a housing and redevelopment authority; and 
  1.24  (3) counties with a population of 100,000 or more that have a 
  1.25  housing and redevelopment authority.  A city or county is 
  1.26  eligible to receive a reserved portion of the state ceiling 
  1.27  under this subdivision if it submits a written request to the 
  1.28  agency within 45 days after June 2, 1987, to act as a designated 
  1.29  housing credit agency as provided in section 42 of the Internal 
  2.1   Revenue Code of 1986, as amended.  A city or county may 
  2.2   designate its housing and redevelopment authority as the agency 
  2.3   to receive reserved low-income housing credits on behalf of the 
  2.4   city or county.  The city of Minneapolis or the city of Saint 
  2.5   Paul may designate the Minneapolis/Saint Paul housing finance 
  2.6   board to receive reserved low-income housing credits on behalf 
  2.7   of each city. 
  2.8      Sec. 2.  Minnesota Statutes 1994, section 462A.222, 
  2.9   subdivision 1a, is amended to read: 
  2.10     Subd. 1a.  [DETERMINATION OF REGIONAL CREDIT POOLS.] The 
  2.11  agency shall divide the annual per capita amount used in 
  2.12  determining the state ceiling for low-income housing tax credits 
  2.13  provided under section 42 of the Internal Revenue Code of 1986, 
  2.14  as amended ~~through December 31, 1989~~, into a metropolitan pool 
  2.15  and a greater Minnesota pool.  The metropolitan pool shall serve 
  2.16  the metropolitan area as defined in section 473.121, subdivision 
  2.17  2.  The greater Minnesota pool shall serve the remaining 
  2.18  counties of the state.  The percentage of the annual per capita 
  2.19  amount allotted to each pool must be determined as follows: 
  2.20     (a) The percentage set-aside for projects involving a 
  2.21  qualified nonprofit organization as provided in section 42 of 
  2.22  the Internal Revenue Code of 1986, as amended ~~through December~~ 
  2.23  ~~31, 1989~~, must be deducted from the annual per capita amount 
  2.24  used in determining the state ceiling. 
  2.25     (b) Of the remaining amount, the metropolitan pool must be 
  2.26  allotted a percentage equal to the metropolitan counties' 
  2.27  percentage of the total number of state recipients of:  aid to 
  2.28  families with dependent children, general assistance, Minnesota 
  2.29  supplemental aid, and supplemental security income in the state, 
  2.30  as reported annually by the department of human services.  The 
  2.31  greater Minnesota pool must be allotted the amount remaining 
  2.32  after the metropolitan pool's percentage has been allotted. 
  2.33     The set-aside for qualified nonprofit organizations must be 
  2.34  divided between the two regional pools in the same percentage as 
  2.35  determined for the credit amounts above. 
  2.36     Sec. 3.  Minnesota Statutes 1994, section 462A.222, 
  3.1   subdivision 3, is amended to read: 
  3.2      Subd. 3.  [ALLOCATION PROCEDURE.] (a) Projects will be 
  3.3   awarded tax credits in three competitive rounds on an annual 
  3.4   basis.  The date for applications for each round must be 
  3.5   determined by the agency.  No allocating agency may award tax 
  3.6   credits prior to the application dates established by the agency.
  3.7      (b) Each allocating agency must meet the requirements of 
  3.8   section 42(m) of the Internal Revenue Code of 1986, as amended 
  3.9   through December 31, 1989, for the allocation of tax credits and 
  3.10  the selection of projects. 
  3.11     (c) For projects that are eligible for an allocation of 
  3.12  credits pursuant to section 42(h)(4) of the Internal Revenue 
  3.13  Code of 1986, as amended, tax credits may only be allocated if 
  3.14  the project satisfies the requirements of the allocating 
  3.15  agency's qualified allocation plan.  For projects that are 
  3.16  eligible for an allocation of credits pursuant to section 
  3.17  42(h)(4) of the Internal Revenue Code of 1986, as amended, for 
  3.18  which the agency is the issuer of the bonds for the project, or 
  3.19  the issuer of the bonds for the project is located outside the 
  3.20  jurisdiction of a city or county that has received reserved tax 
  3.21  credits, the applicable allocation plan is the agency's 
  3.22  qualified allocation plan. 
  3.23     (d) For applications submitted for the first round, an 
  3.24  allocating agency may allocate tax credits only to the following 
  3.25  types of projects: 
  3.26     (1) in the metropolitan area: 
  3.27     (i) new construction or substantial rehabilitation of 
  3.28  projects in which, for the term of the extended use period, at 
  3.29  least 75 percent of the total tax credit units are single-room 
  3.30  occupancy, efficiency, or one bedroom units and which are 
  3.31  affordable by households whose income does not exceed 30 percent 
  3.32  of the median income; 
  3.33     (ii) new construction or substantial rehabilitation family 
  3.34  housing projects that are not restricted to persons who are 55 
  3.35  years of age or older and in which, for the term of the extended 
  3.36  use period, at least 75 percent of the tax credit units contain 
  4.1   two or more bedrooms and at least one-third of the 75 percent 
  4.2   contain three or more bedrooms; or 
  4.3      (iii) substantial rehabilitation projects in neighborhoods 
  4.4   targeted by the city for revitalization; 
  4.5      (2) outside the metropolitan area, projects which meet a 
  4.6   locally identified housing need and which are in short supply in 
  4.7   the local housing market as evidenced by credible data submitted 
  4.8   with the application; 
  4.9      (3) projects that are not restricted to persons of a 
  4.10  particular age group and in which, for the term of the extended 
  4.11  use period, a percentage of the units are set aside and rented 
  4.12  to persons: 
  4.13     (i) with a serious and persistent mental illness as defined 
  4.14  in section 245.462, subdivision 20, paragraph (c); 
  4.15     (ii) with a developmental disability as defined in United 
  4.16  States Code, title 42, section 6001, paragraph (5), as amended 
  4.17  through December 31, 1990; 
  4.18     (iii) who have been assessed as drug dependent persons as 
  4.19  defined in section 254A.02, subdivision 5, and are receiving or 
  4.20  will receive care and treatment services provided by an approved 
  4.21  treatment program as defined in section 254A.02, subdivision 2; 
  4.22     (iv) with a brain injury as defined in section 256B.093, 
  4.23  subdivision 4, paragraph (a); or 
  4.24     (v) with permanent physical disabilities that substantially 
  4.25  limit one or more major life activities, if at least 50 percent 
  4.26  of the units in the project are accessible as provided under 
  4.27  Minnesota Rules, chapter 1340; 
  4.28     (4) projects which preserve existing subsidized housing 
  4.29  which is subject to prepayment if the use of tax credits is 
  4.30  necessary to prevent conversion to market rate use; or 
  4.31     (5) projects financed by the Farmers Home Administration, 
  4.32  or its successor agency, which meet statewide distribution goals.
  4.33     ~~(d)~~ (e) Before the date for applications for the second 
  4.34  round, the allocating agencies other than the agency shall 
  4.35  return all uncommitted and unallocated tax credits to the pool 
  4.36  from which they were allocated, along with copies of any 
  5.1   allocation or commitment.  In the second round, the agency shall 
  5.2   allocate the remaining credits from the regional pools to 
  5.3   projects from the respective regions.  
  5.4      ~~(e)~~ (f) In the third round, all unallocated tax credits 
  5.5   must be transferred to a unified pool for allocation by the 
  5.6   agency on a statewide basis. 
  5.7      ~~(f)~~ (g) Unused portions of the state ceiling for low-income 
  5.8   housing tax credits reserved to cities and counties for 
  5.9   allocation may be returned at any time to the agency for 
  5.10  allocation. 
  5.11     (h) If an allocating agency determines, at any time after 
  5.12  the initial commitment or allocation for a specific project, 
  5.13  that a project is no longer eligible for all or a portion of the 
  5.14  low-income housing tax credits committed or allocated to the 
  5.15  project, the credits must be transferred to the agency to be 
  5.16  reallocated pursuant to the procedures established in paragraphs 
  5.17  (e) to (g); provided that if the tax credits for which the 
  5.18  project is no longer eligible are from the current year's annual 
  5.19  ceiling and the allocating agency maintains a waiting list, the 
  5.20  allocating agency may continue to commit or allocate the credits 
  5.21  until not later than October 1, at which time any uncommitted 
  5.22  credits must be transferred to the agency. 
  5.23     Sec. 4.  Minnesota Statutes 1994, section 462A.222, 
  5.24  subdivision 4, is amended to read: 
  5.25     Subd. 4.  [DISTRIBUTION PLAN.] (a) By October 1, 1990, the 
  5.26  metropolitan council, in consultation with the agency and 
  5.27  representatives of local government and housing and 
  5.28  redevelopment authorities, shall develop and submit to the 
  5.29  agency a plan for allocating tax credits in 1991 and thereafter 
  5.30  in the metropolitan area, based on regional housing needs and 
  5.31  priorities.  The agency may amend the distribution plan after 
  5.32  consultation with the metropolitan council, representatives of 
  5.33  local governments, and housing and redevelopment authorities. 
  5.34     (b) By October 1, 1990, the agency, in consultation with 
  5.35  representatives of local government and housing and 
  5.36  redevelopment authorities, shall develop a plan for allocating 
  6.1   tax credits in 1991 and thereafter in greater Minnesota, based 
  6.2   on regional housing needs and priorities.  The agency may amend 
  6.3   the distribution plan after consultation with representatives of 
  6.4   local governments and housing and redevelopment authorities. 
  6.5      (c) In preparing the distribution plans, the metropolitan 
  6.6   council and the agency shall estimate the number of households 
  6.7   in the metropolitan area and in greater Minnesota, respectively, 
  6.8   who are paying more than 50 percent of their income for rent and 
  6.9   the cost of providing sufficient rental or other assistance so 
  6.10  that no household pays more than 50 percent of its income for 
  6.11  rent.  In addition, the metropolitan council and the agency 
  6.12  shall identify the nature and scope of existing programs which 
  6.13  primarily serve families at 60 percent of the median income and 
  6.14  individuals at 30 percent of the median income.  ~~In preparing~~ 
  6.15  ~~the estimate, the metropolitan council and the agency shall rely~~ 
  6.16  ~~on existing and available data and shall report the results to~~ 
  6.17  ~~the legislature no later than January 31, 1991.~~ 
  6.18     Sec. 5.  Minnesota Statutes 1994, section 462A.223, 
  6.19  subdivision 2, is amended to read: 
  6.20     Subd. 2.  [DESIGNATED AGENCY.] The agency is designated as 
  6.21  a housing credit agency to allocate the portion of the state 
  6.22  ceiling for low-income housing tax credits (1) not reserved to 
  6.23  cities and counties under section 462A.222; (2) not accepted for 
  6.24  allocation by eligible cities and counties; (3) returned to the 
  6.25  agency for allocation; and (4) not otherwise reserved to the 
  6.26  agency for allocation under subdivision 1.  Low-income housing 
  6.27  tax credits shall be allocated by the agency as provided in 
  6.28  section 462A.222.  The agency shall make no allocation for 
  6.29  projects located within the jurisdiction of the cities or 
  6.30  counties that have received tax credits under section 462A.222, 
  6.31  subdivision 1, except from the percentage set-aside for projects 
  6.32  involving a qualified nonprofit organization as provided under 
  6.33  section 42 of the Internal Revenue Code of 1986, as amended 
  6.34  through December 31, 1989, until the amounts reserved to the 
  6.35  cities and counties for allocation have been allocated or 
  6.36  committed or returned to the agency for allocation.  In order 
  7.1   that all of a project's credits are allocated by a single 
  7.2   allocating agency, the agency may reserve additional tax credits 
  7.3   to a city or county that has received tax credits under section 
  7.4   462A.222, subdivision 1, for a project that has already received 
  7.5   a commitment or allocation of tax credits from an eligible city 
  7.6   or county, if all of the tax credits reserved to the eligible 
  7.7   city or county have been committed or allocated. 
  7.8      Sec. 6.  Minnesota Statutes 1994, section 462C.05, is 
  7.9   amended by adding a subdivision to read: 
  7.10     Subd. 6a.  [QUALIFIED ALLOCATION PLAN 
  7.11  REQUIREMENT.] Multifamily housing developments described in 
  7.12  subdivision 1 for which an application is submitted for 
  7.13  low-income housing tax credits provided under section 42 of the 
  7.14  Internal Revenue Code of 1986, as amended, must also satisfy the 
  7.15  qualified allocation plan applicable to the area in which the 
  7.16  project is located. 
  7.17     Sec. 7.  [474A.025] [DEADLINE DATES AND TIMES.] 
  7.18     All applications, notices, and other materials required to 
  7.19  be filed or submitted to the department pursuant to this chapter 
  7.20  must be received by the department no later than 4:30 p.m. on 
  7.21  the deadline day or date.  When an application, notice, or other 
  7.22  required material is required to be filed or submitted to the 
  7.23  department on or before a prescribed day or date and the 
  7.24  prescribed day or date falls on a Saturday, Sunday, or legal 
  7.25  holiday, it is timely filed or submitted if it is received by 
  7.26  the department by 4:30 p.m. on the next succeeding day which is 
  7.27  not a Saturday, Sunday, or legal holiday. 
  7.28     Sec. 8.  Minnesota Statutes 1995 Supplement, section 
  7.29  474A.061, subdivision 2a, is amended to read: 
  7.30     Subd. 2a.  [HOUSING POOL ALLOCATION.] (a) On the first 
  7.31  business day that falls on a Monday of the calendar year and the 
  7.32  first Monday in February, the commissioner shall allocate 
  7.33  available bonding authority in the housing pool to applications 
  7.34  received by the Monday of the previous week for residential 
  7.35  rental projects that are not restricted to persons who are 55 
  7.36  years of age or older and that meet the eligibility criteria 
  8.1   under section 474A.047.  If an issuer that receives an 
  8.2   allocation under this paragraph does not issue obligations equal 
  8.3   to all or a portion of the allocation received within 120 days 
  8.4   of the allocation or returns the allocation to the commissioner, 
  8.5   the amount of the allocation is canceled and returned for 
  8.6   reallocation through the housing pool. 
  8.7      (b) After February 1, and through February 15, the 
  8.8   Minnesota housing finance agency may accept applications from 
  8.9   cities for single-family housing programs which meet program 
  8.10  requirements as follows:  
  8.11     (1) the housing program must meet a locally identified 
  8.12  housing need and be economically viable; 
  8.13     (2) the adjusted income of home buyers may not exceed the 
  8.14  greater of the agency's income limits or 80 percent of the area 
  8.15  median income as published by the Department of Housing and 
  8.16  Urban Development; 
  8.17     (3) house price limits may not exceed: 
  8.18     (i) the greater of agency house price limits or the federal 
  8.19  price limits for housing up to a maximum of $95,000; or 
  8.20     (ii) for a new construction affordability initiative, the 
  8.21  greater of 115 percent of agency house price limits or 90 
  8.22  percent of the median purchase price in the city for which the 
  8.23  bonds are to be sold up to a maximum of $95,000. 
  8.24     Data establishing the median purchase price in the city 
  8.25  must be included in the application by a city requesting house 
  8.26  price limits higher than the housing finance agency's house 
  8.27  price limits; and 
  8.28     (4) an application deposit equal to one percent of the 
  8.29  requested allocation must be submitted ~~with the city's signed~~ 
  8.30  ~~allocation agreement~~ before the agency forwards the list 
  8.31  specifying the amounts allocated to the commissioner under 
  8.32  paragraph (c).  The agency shall submit the city's application 
  8.33  and application deposit to the commissioner when requesting an 
  8.34  allocation from the housing pool. 
  8.35     Applications by a consortium shall include the name of each 
  8.36  member of the consortium and the amount of allocation requested 
  9.1   by each member. 
  9.2      The Minnesota housing finance agency may accept 
  9.3   applications from June 15 through June 30 from cities for 
  9.4   single-family housing programs which meet program requirements 
  9.5   specified under clauses (1) to (4) if bonding authority is 
  9.6   available in the housing pool.  The agency must allot available 
  9.7   bonding authority.  For purposes of paragraphs (a) to ~~(d)~~ (g), 
  9.8   "city" means a county or a consortium of local government units 
  9.9   that agree through a joint powers agreement to apply together 
  9.10  for single-family housing programs, and has the meaning given it 
  9.11  in section 462C.02, subdivision 6.  "Agency" means the Minnesota 
  9.12  housing finance agency.  
  9.13     (c) The total amount of allocation for mortgage bonds for 
  9.14  one city is limited to the lesser of:  (i) the amount requested, 
  9.15  or (ii) the product of the total amount available for mortgage 
  9.16  bonds from the housing pool, multiplied by the ratio of each 
  9.17  applicant's population as determined by the most recent estimate 
  9.18  of the city's population released by the state demographer's 
  9.19  office to the total of all the applicants' population, except 
  9.20  that each applicant shall be allocated a minimum of $100,000 
  9.21  regardless of the amount requested or the amount determined 
  9.22  under the formula in clause (ii).  If a city applying for an 
  9.23  allocation is located within a county that has also applied for 
  9.24  an allocation, the city's population will be deducted from the 
  9.25  county's population in calculating the amount of allocations 
  9.26  under this paragraph. 
  9.27     Upon determining the amount of each applicant's allocation, 
  9.28  the agency shall forward a list specifying the amounts allotted 
  9.29  to each application and application deposit checks to the 
  9.30  commissioner. 
  9.31     (d) The agency may issue bonds on behalf of participating 
  9.32  cities.  The agency shall request an allocation from the 
  9.33  commissioner for all applicants who choose to have the agency 
  9.34  issue bonds on their behalf and the commissioner shall allocate 
  9.35  the requested amount to the agency.  The agency may request an 
  9.36  allocation at any time after the first Monday in February and 
 10.1   through the last Monday in July, but may request an allocation 
 10.2   no later than the last Monday in July.  The commissioner shall 
 10.3   return any application deposit to a city that paid an 
 10.4   application deposit under paragraph ~~(a)~~ (b), clause (4), but was 
 10.5   not part of the ~~agreement~~ list forwarded to the commissioner 
 10.6   under ~~this~~ paragraph (c). 
 10.7      (e) A city may choose to issue bonds on its own behalf or 
 10.8   through a joint powers agreement or may use bonding authority 
 10.9   for mortgage credit certificates and may request an allocation 
 10.10  from the commissioner.  If the total amount requested by all 
 10.11  applicants exceeds the amount available in the pool, the city 
 10.12  may not receive a greater allocation than the amount it would 
 10.13  have received under the ~~agreement~~ list forwarded by the 
 10.14  Minnesota housing finance agency to the commissioner.  No city 
 10.15  may request or receive an allocation from the commissioner until 
 10.16  the list under paragraph (c) has been forwarded to the 
 10.17  commissioner.  A city must request an allocation from the 
 10.18  commissioner no later than 14 days before the unified pool is 
 10.19  created pursuant to section 474A.091, subdivision 1.  On and 
 10.20  after the first Monday in February and through the last Monday 
 10.21  in July, no city may receive an allocation from the housing pool 
 10.22  which has not first applied to the Minnesota housing finance 
 10.23  agency.  The commissioner shall allocate the requested amount to 
 10.24  the city or cities subject to the limitations under this 
 10.25  paragraph.  
 10.26     If a city issues mortgage bonds from an allocation received 
 10.27  under this paragraph ~~(d)~~, the issuer must provide for the 
 10.28  recycling of funds into new loans.  If the issuer is not able to 
 10.29  provide for recycling, the issuer must notify the commissioner 
 10.30  in writing of the reason that recycling was not possible and the 
 10.31  reason the issuer elected not to have the Minnesota housing 
 10.32  finance agency issue the bonds.  "Recycling" means the use of 
 10.33  money generated from the repayment and prepayment of loans for 
 10.34  further eligible loans or for the redemption of bonds and the 
 10.35  issuance of current refunding bonds. 
 10.36     (f) No entitlement city or county or city in an entitlement 
 11.1   county may apply for or be allocated authority to issue bonds or 
 11.2   use mortgage credit certificates from the housing pool. 
 11.3      (g) A city that does not use at least 50 percent of their 
 11.4   allotment by the date applications are due for the first 
 11.5   allocation that is made from the housing pool for single-family 
 11.6   housing programs in the immediately succeeding calendar year may 
 11.7   not apply to the housing pool for a single-family mortgage bond 
 11.8   or mortgage credit certificate program allocation or receive an 
 11.9   allotment from the housing pool in the succeeding two calendar 
 11.10  years.  Each local government unit in a consortium must meet the 
 11.11  requirements of this paragraph. 
 11.12     Sec. 9.  Minnesota Statutes 1994, section 474A.061, 
 11.13  subdivision 2b, is amended to read: 
 11.14     Subd. 2b.  [SMALL ISSUE POOL ALLOCATION.] ~~From the~~ 
 11.15  ~~beginning of the calendar year~~ On the first Monday in January 
 11.16  that is a business day through the last Monday in July, the 
 11.17  commissioner shall allocate available bonding authority from the 
 11.18  small issue pool on Monday of each week to applications received 
 11.19  on or before the Monday of the preceding week.  The amount of 
 11.20  allocation provided to an issuer for a specific manufacturing 
 11.21  project will be based on the number of points received for the 
 11.22  proposed project under the scoring system under section 
 11.23  474A.045.  Proposed projects that receive 50 points or more are 
 11.24  eligible for all of the proposed allocation.  Proposed projects 
 11.25  that receive less than 50 points are eligible to receive a 
 11.26  proportionally reduced share of the proposed authority, based 
 11.27  upon the number of points received. 
 11.28     If there are two or more applications for manufacturing 
 11.29  projects from the small issue pool and there is insufficient 
 11.30  bonding authority to provide allocations for all projects in any 
 11.31  one week, the available bonding authority shall be awarded based 
 11.32  on the number of points awarded a project under section 
 11.33  474A.045, with those projects receiving the greatest number of 
 11.34  points receiving allocation first.  If two or more applications 
 11.35  receive an equal number of points, available bonding authority 
 11.36  shall be awarded by lot unless otherwise agreed to by the 
 12.1   respective issuers. 
 12.2      Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 12.3   474A.061, subdivision 2c, is amended to read: 
 12.4      Subd. 2c.  [PUBLIC FACILITIES POOL ALLOCATION.] From the 
 12.5   beginning of the calendar year and continuing for a period of 
 12.6   120 days, the commissioner shall reserve $5,000,000 of the 
 12.7   available bonding authority from the public facilities pool for 
 12.8   applications for public facilities projects to be financed by 
 12.9   the Western Lake Superior Sanitary District.  ~~From the beginning~~ 
 12.10  ~~of the calendar year~~ On the first Monday in January that is a 
 12.11  business day through the last Monday in July, the commissioner 
 12.12  shall allocate available bonding authority from the public 
 12.13  facilities pool on Monday of each week to applications for 
 12.14  eligible public facilities projects received on or before the 
 12.15  Monday of the preceding week.  If there are two or more 
 12.16  applications for public facilities projects from the pool and 
 12.17  there is insufficient available bonding authority to provide 
 12.18  allocations for all projects in any one week, the available 
 12.19  bonding authority shall be awarded by lot unless otherwise 
 12.20  agreed to by the respective issuers. 
 12.21     Sec. 11.  Minnesota Statutes 1995 Supplement, section 
 12.22  474A.091, subdivision 3, is amended to read: 
 12.23     Subd. 3.  [ALLOCATION PROCEDURE.] (a) The commissioner 
 12.24  shall allocate available bonding authority under this section on 
 12.25  the Monday of every other week beginning with the first Monday 
 12.26  in August through and on the last Monday in November.  
 12.27  Applications for allocations must be received by the department 
 12.28  by the Monday preceding the Monday on which allocations are to 
 12.29  be made.  If a Monday falls on a holiday, the allocation will be 
 12.30  made or the applications must be received by the next business 
 12.31  day after the holiday.  
 12.32     (b) On or before September 1, allocations shall be awarded 
 12.33  from the unified pool in the following order of priority: 
 12.34     (1) applications for enterprise zone facility bonds; 
 12.35     (2) applications for small issue bonds; 
 12.36     (3) applications for ~~mortgage~~ residential rental project 
 13.1   bonds; 
 13.2      (4) applications for public facility projects funded by 
 13.3   public facility bonds; 
 13.4      (5) applications for redevelopment bonds; 
 13.5      (6) applications for ~~residential rental project~~ mortgage 
 13.6   bonds; and 
 13.7      (7) applications for governmental bonds. 
 13.8      Allocations for residential rental projects may only be 
 13.9   made during the first allocation in August.  The amount of 
 13.10  allocation provided to an issuer for a specific manufacturing 
 13.11  project will be based on the number of points received for the 
 13.12  proposed project under the scoring system under section 474A.045.
 13.13  Proposed manufacturing projects that receive 50 points or more 
 13.14  are eligible for all of the proposed allocation.  Proposed 
 13.15  manufacturing projects that receive less than 50 points under 
 13.16  section 474A.045 are only eligible to receive a proportionally 
 13.17  reduced share of the proposed authority, based upon the number 
 13.18  of points received.  If there are two or more applications for 
 13.19  manufacturing projects from the unified pool and there is 
 13.20  insufficient bonding authority to provide allocations for all 
 13.21  manufacturing projects in any one allocation period, the 
 13.22  available bonding authority shall be awarded based on the number 
 13.23  of points awarded a project under section 474A.045 with those 
 13.24  projects receiving the greatest number of points receiving 
 13.25  allocation first.  If two or more applications receive an equal 
 13.26  amount of points, available bonding authority shall be awarded 
 13.27  by lot unless otherwise agreed to by the respective issuers. 
 13.28     (c)(1) On the first Monday in August, $5,000,000 of bonding 
 13.29  authority is reserved within the unified pool for agricultural 
 13.30  development bond loan projects of the Minnesota rural finance 
 13.31  authority and $20,000,000 of bonding authority or an amount 
 13.32  equal to the total annual amount of bonding authority allocated 
 13.33  to the small issue pool under section 474A.03, subdivision 1, 
 13.34  less the amount allocated to issuers from the small issue pool 
 13.35  for that year, whichever is less, is reserved within the unified 
 13.36  pool for small issue bonds.  On the first Monday in 
 14.1   September through the last Monday in November, $2,500,000 of 
 14.2   bonding authority or an amount equal to the total annual amount 
 14.3   of bonding authority allocated to the public facilities pool 
 14.4   under section 474A.03, subdivision 1, less the amount allocated 
 14.5   to issuers from the public facilities pool for that year, 
 14.6   whichever is less, is reserved within the unified pool for 
 14.7   public facility bonds.  If sufficient bonding authority is not 
 14.8   available to reserve the required amounts for manufacturing 
 14.9   projects and agricultural development bond loan projects, the 
 14.10  remaining available bonding authority must be distributed 
 14.11  between the two reservations on a pro rata basis, based upon the 
 14.12  amounts each would have received if sufficient authority was 
 14.13  available. 
 14.14     (2) The total amount of allocations for mortgage bonds from 
 14.15  the housing pool and the unified pool may not exceed: 
 14.16     (i) $10,000,000 for any one city; or 
 14.17     (ii) $20,000,000 for any number of cities in any one county.
 14.18     An allocation for mortgage bonds may be used for mortgage 
 14.19  credit certificates. 
 14.20     (d) After September 1, allocations shall be awarded from 
 14.21  the unified pool only for the following types of qualified bonds:
 14.22  small issue bonds, public facility bonds to finance publicly 
 14.23  owned facility projects, residential rental project bonds, and 
 14.24  enterprise zone facility bonds. 
 14.25     ~~(d)~~ If there is insufficient bonding authority to fund all 
 14.26  projects within any qualified bond category, allocations shall 
 14.27  be awarded by lot unless otherwise agreed to by the respective 
 14.28  issuers.  If an application is rejected, the commissioner must 
 14.29  notify the applicant and return the application deposit to the 
 14.30  applicant within 30 days unless the applicant requests in 
 14.31  writing that the application be resubmitted.  The granting of an 
 14.32  allocation of bonding authority under this section must be 
 14.33  evidenced by issuance of a certificate of allocation. 
 14.34     Sec. 12.  Minnesota Statutes 1994, section 474A.131, 
 14.35  subdivision 1, is amended to read: 
 14.36     Subdivision 1.  [NOTICE OF ISSUE.] Each issuer that issues 
 15.1   bonds with an allocation received under this chapter shall 
 15.2   provide a notice of issue to the department on forms provided by 
 15.3   the department stating: 
 15.4      (1) the date of issuance of the bonds; 
 15.5      (2) the title of the issue; 
 15.6      (3) the principal amount of the bonds; 
 15.7      (4) the type of qualified bonds under federal tax law; and 
 15.8      (5) the dollar amount of the bonds issued that were subject 
 15.9   to the annual volume cap.  
 15.10     For obligations that are issued as a part of a series of 
 15.11  obligations, a notice must be provided for each series.  Any 
 15.12  issue of obligations for which a notice of issue is not provided 
 15.13  to the department within five days after issuance or before the 
 15.14  last Monday in December, whichever occurs first, is deemed not 
 15.15  to have received an allocation under this law or under federal 
 15.16  tax law.  Within 30 days after receipt of a notice of issue the 
 15.17  department shall refund a portion of the application deposit 
 15.18  equal to one percent of the amount of the bonding authority 
 15.19  actually issued if a one percent application deposit was made, 
 15.20  or equal to two percent of the amount of the bonding authority 
 15.21  actually issued if a two percent application deposit was made. 
 15.22     Sec. 13.  Minnesota Statutes 1994, section 474A.131, 
 15.23  subdivision 1a, is amended to read: 
 15.24     Subd. 1a.  [CERTIFICATE OF NOTICE.] If an allocation 
 15.25  received under this chapter is used for mortgage credit 
 15.26  certificates, a certificate notice must be submitted to the 
 15.27  department on forms provided by the department stating the date 
 15.28  of the filing of the election not to issue bonds as provided 
 15.29  under section 25, paragraph (c), of the Internal Revenue Code 
 15.30  and the amount of allocation authority to be used under the 
 15.31  program. 
 15.32     A mortgage credit certificate program for which a 
 15.33  certificate notice is not provided to the department within five 
 15.34  days of the date of the filing of the election not to issue 
 15.35  bonds or before the last Monday in December, whichever occurs 
 15.36  first, is considered not to have received an allocation under 
 16.1   this law or under federal tax law.  Within 30 days after receipt 
 16.2   of a certificate notice the department shall refund a portion of 
 16.3   the application deposit equal to one percent of the amount of 
 16.4   the bonding authority to be used for the mortgage credit 
 16.5   certificate program. 
 16.6      Sec. 14.  Minnesota Statutes 1994, section 474A.14, is 
 16.7   amended to read: 
 16.8      474A.14 [NOTICE OF AVAILABLE AUTHORITY.] 
 16.9      The department shall publish in the State Register a notice 
 16.10  of the amount of bonding authority in the housing, small issue, 
 16.11  and public facilities pools as soon after January 1 as 
 16.12  possible.  The department shall publish in the State Register a 
 16.13  notice of the amount of bonding authority available for 
 16.14  allocation in the unified pool as soon after ~~September~~ August 1 
 16.15  as possible. 
 16.16     Sec. 15.  [EXCEPTION TO SINGLE-FAMILY MORTGAGE BOND 
 16.17  ALLOCATION USAGE TEST.] 
 16.18     Notwithstanding Minnesota Statutes, section 474A.061, 
 16.19  subdivision 2a, paragraph (g), a city that received an allotment 
 16.20  of bonding authority from the housing pool in 1995 and had not 
 16.21  used at least 50 percent of its allotment by January 31, 1996, 
 16.22  may apply to the housing pool for a single-family mortgage bond 
 16.23  or mortgage credit certificate program allocation or receive an 
 16.24  allotment from the housing pool in 1997.  This section applies 
 16.25  to each local government unit in a consortium which received an 
 16.26  allotment in 1995 from the housing pool. 
 16.27     Sec. 16.  [EFFECTIVE DATE.] 
 16.28     Sections 1 to 6 are effective the day following final 
 16.29  enactment.