1.1                          A bill for an act 
  1.2             relating to housing; providing for community 
  1.3             rehabilitation and affordable rental investment 
  1.4             programs; requiring local approval for certain housing 
  1.5             projects; providing for the renewal of blighted 
  1.6             multiunit residential property; authorizing bonds; 
  1.7             providing for homeless assistance; appropriating 
  1.8             money; proposing coding for new law in Minnesota 
  1.9             Statutes, chapter 462A. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [462A.061] [LEGISLATIVE FINDINGS; PURPOSE.] 
  1.12     The legislature finds that concentration of poverty, 
  1.13  including the concentration of low-income rental housing, in a 
  1.14  few neighborhoods in the cities has led to deteriorating 
  1.15  property values and increased crime in those neighborhoods, to 
  1.16  the detriment of their residents.  The legislature also finds 
  1.17  that greater economic and housing diversity in those 
  1.18  neighborhoods would help stabilize and revitalize them. 
  1.19     Sec. 2.  [462A.062] [DEFINITIONS.] 
  1.20     Subdivision 1.  [SCOPE.] For the purposes of sections 
  1.21  462A.061 to 462A.063, the terms defined in this section have the 
  1.22  meanings given them. 
  1.23     Subd. 2.  [CITY.] "City" means Minneapolis or Saint Paul. 
  1.24     Subd. 3.  [LOW-INCOME RENTAL HOUSING.] "Low-income rental 
  1.25  housing" means multifamily rental housing with five or more 
  1.26  units for which a family with a household income of 70 percent 
  1.27  or less of the median household income for the Minneapolis and 
  2.1   Saint Paul metropolitan statistical area as determined and 
  2.2   adjusted from time to time by the United States Department of 
  2.3   Housing and Urban Development spends no more than 30 percent of 
  2.4   its gross monthly household income. 
  2.5      Subd. 4.  [NEW CONSTRUCTION.] "New" means housing that has 
  2.6   never been occupied. 
  2.7      Subd. 5.  [PROJECT.] "Project" means the construction of 
  2.8   new low-income rental housing in a targeted neighborhood. 
  2.9      Subd. 6.  [TARGETED NEIGHBORHOOD.] "Targeted neighborhood" 
  2.10  means a neighborhood in Minneapolis or Saint Paul designated by 
  2.11  city council resolution after adoption of detailed findings that 
  2.12  the neighborhood is in a census tract with more than 700 housing 
  2.13  units in structures of five or more units. 
  2.14     Sec. 3.  [462A.063] [LOW-INCOME RENTAL HOUSING; 
  2.15  RESTRICTIONS.] 
  2.16     Subdivision 1.  [LIMITATION.] A city may approve 
  2.17  construction of new low-income rental housing in a targeted 
  2.18  neighborhood only if the requirements of this section are 
  2.19  satisfied prior to the commencement of construction of the 
  2.20  housing. 
  2.21     Subd. 2.  [COMMUNITY IMPACT STATEMENT.] A project proposer 
  2.22  must file a community impact statement with the city council of 
  2.23  the city where the project is located.  The impact statement 
  2.24  must include details of the proposed low-income rental project, 
  2.25  including the eligibility criteria for tenants, the number of 
  2.26  units, and the sources of financing for the project.  The 
  2.27  statement must be filed before the city may provide notice of 
  2.28  the public hearing required under subdivision 3. 
  2.29     Subd. 3.  [LOCAL HEARINGS; CITY APPROVAL.] A project 
  2.30  requires city council approval.  The city council may approve 
  2.31  the project only after a public hearing.  The public hearing 
  2.32  must be held in the affected neighborhood.  The city shall 
  2.33  provide notice of the hearing in a newspaper of general 
  2.34  circulation in the city and in the most widely circulated 
  2.35  community newspaper in the targeted neighborhood not less than 
  2.36  ten days nor more than 30 days before the date of the hearing.  
  3.1   The notice must identify the community impact statement and 
  3.2   advise where copies of the statement may be obtained.  Copies of 
  3.3   the community impact statement must be available at the public 
  3.4   hearing.  The project proposer must pay the costs associated 
  3.5   with the notice of public hearing and the public hearing.  The 
  3.6   city council may approve the project only if it finds that the 
  3.7   project will contribute to the stabilization and revitalization 
  3.8   of the targeted neighborhood, that the proposer has shown cause 
  3.9   why the project was not located in a nontargeted neighborhood, 
  3.10  and that the proposer made significant efforts to locate the 
  3.11  project in an area other than a targeted neighborhood. 
  3.12     Subd. 4.  [COORDINATION WITH METROPOLITAN COUNCIL.] Before 
  3.13  approving a project, the city shall facilitate the project 
  3.14  proposer's consultation with the metropolitan council to 
  3.15  identify other opportunities and locations in the metropolitan 
  3.16  area for siting low-income rental housing consistent with the 
  3.17  housing policies in the council's metropolitan development 
  3.18  guide, adopted pursuant to section 473.145. 
  3.19     Sec. 4.  [APPROPRIATIONS; HOUSING FINANCE AGENCY.] 
  3.20     Subdivision 1.  [SCOPE.] $12,000,000 is appropriated from 
  3.21  the general fund for transfer to the housing development fund 
  3.22  for the programs or purposes specified in this section for the 
  3.23  fiscal year ending June 30, 1997. 
  3.24     Subd. 2.  [FAMILY HOMELESS PREVENTION AND ASSISTANCE 
  3.25  PROGRAM.] $2,000,000 is for the family homeless prevention and 
  3.26  assistance program. 
  3.27     Subd. 3.  [MULTIUNIT BLIGHTED PROPERTY RENEWAL.] $5,000,000 
  3.28  is for the community rehabilitation program for the purpose of 
  3.29  acquiring, demolishing, and removing multiple-unit residential 
  3.30  rental property to reduce blight by reducing concentrations of 
  3.31  multiple-unit rental housing.  The appropriation must be used in 
  3.32  areas that have a plan to reduce blight by eliminating 
  3.33  overconcentration of multiple-unit rental housing. 
  3.34     Subd. 4.  [COMMUNITY REHABILITATION PROGRAM.] $2,500,000 is 
  3.35  added to the appropriation in Laws 1995, chapter 224, section 6, 
  3.36  for the community rehabilitation program. 
  4.1      Subd. 5.  [AFFORDABLE RENTAL INVESTMENT 
  4.2   PROGRAM.] $2,500,000 is added to the appropriation in Laws 1995, 
  4.3   chapter 224, section 6, for the affordable rental investment 
  4.4   program. 
  4.5      Sec. 5.  [APPROPRIATION; NEIGHBORHOOD LAND TRUST PROGRAM.] 
  4.6      $2,500,000 is appropriated from the bond proceeds fund to 
  4.7   the Minnesota housing finance agency's local government unit 
  4.8   housing account established in Minnesota Statutes, section 
  4.9   462A.202, for loans with or without interest to a city to 
  4.10  purchase or acquire land and buildings for purposes of the 
  4.11  neighborhood land trust program under Minnesota Statutes, 
  4.12  sections 462A.30 and 462A.31, upon terms and conditions the 
  4.13  agency determines. 
  4.14     Sec. 6.  [BONDS.] 
  4.15     To provide the money appropriated in this act from the bond 
  4.16  proceeds fund, the commissioner of finance, on request of the 
  4.17  governor, shall sell and issue bonds of the state in an amount 
  4.18  up to $2,500,000 in the manner, upon the terms, and with the 
  4.19  effect prescribed by Minnesota Statutes, sections 16A.631 to 
  4.20  16A.675, and by the Minnesota Constitution, article XI, sections 
  4.21  4 to 7.