1.1                          A bill for an act 
  1.2             relating to housing; requiring a report on providing 
  1.3             residential rehabilitation loans in fully developed 
  1.4             cities. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [REPORT.] 
  1.7      The Minnesota housing finance agency must submit a report 
  1.8   to the legislature by December 15, 1997.  The report must 
  1.9   describe how the agency will provide funding for no fewer than 
  1.10  2,000 residential rehabilitation loans per year for no fewer 
  1.11  than ten years from its community fix-up fund for homes located 
  1.12  anywhere in fully developed cities.  A fully developed city 
  1.13  includes any city, except cities of the first class, within the 
  1.14  fully developed area described in Pub. No. 78-94-022, February 
  1.15  15, 1994, titled "Keeping the Twin Cities Vital:  Regional 
  1.16  Strategies for Change in the Fully Developed Area," prepared by 
  1.17  the Metropolitan Council.  The terms of the loans and the income 
  1.18  limits for loans available in fully developed cities must be 
  1.19  consistent with other fix-up fund loans except that the interest 
  1.20  rate must not exceed an actuarial percentage rate of five 
  1.21  percent per annum.  The agency must include in its report any 
  1.22  additional costs of administrating this loan program and 
  1.23  providing loans within the interest rate ceiling in this section.