1.1                          A bill for an act 
  1.2             relating to housing; providing funding to retain 
  1.3             certain federally assisted affordable housing; 
  1.4             providing for affordable rental housing; appropriating 
  1.5             money; amending Minnesota Statutes 1997 Supplement, 
  1.6             section 462A.05, subdivision 39. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.9   462A.05, subdivision 39, is amended to read: 
  1.10     Subd. 39.  [EQUITY TAKE-OUT LOANS.] The agency may make 
  1.11  equity take-out loans to owners of section 8 project-based and 
  1.12  section 236 federally assisted rental property upon which the 
  1.13  agency holds a first mortgage.  The owner of a section 8 
  1.14  project-based federally assisted rental property must agree to 
  1.15  participate in the section 8 federal assistance program and 
  1.16  extend the low-income affordability restrictions on the housing 
  1.17  for the maximum term of the section 8 federal assistance 
  1.18  contract.  The owner of section 236 rental property must agree 
  1.19  to participate in the section 236 interest reduction payments 
  1.20  program, to extend any existing low-income affordability 
  1.21  restrictions on the housing, and to extend any rental assistance 
  1.22  payments for the maximum term permitted under the agreement for 
  1.23  rental assistance payments.  The equity take-out loan must be 
  1.24  secured by a subordinate loan on the property and may include 
  1.25  additional appropriate security determined necessary by the 
  1.26  agency. 
  2.1      Sec. 2.  [FEDERALLY ASSISTED HOUSING; APPROPRIATION.] 
  2.2      $10,000,000 is appropriated from the general fund in fiscal 
  2.3   year 1999 for transfer to the housing development fund for the 
  2.4   affordable rental investment fund program under Minnesota 
  2.5   Statutes, section 462A.21, subdivision 8b, for the purpose of 
  2.6   financing the acquisition, rehabilitation, and debt 
  2.7   restructuring of federally assisted rental property, and for 
  2.8   making equity take-out loans under Minnesota Statutes, section 
  2.9   462A.05, subdivision 39.  In order to be eligible for assistance 
  2.10  from this appropriation, the owner of a rental property must 
  2.11  agree to participate in the applicable federally assisted 
  2.12  housing program and to extend any existing low-income 
  2.13  affordability restrictions on the housing for the maximum term 
  2.14  permitted.  Priority must be given to properties with the 
  2.15  longest remaining term under an agreement for federal rental 
  2.16  assistance.  Of this amount, up to $1,500,000 is available for 
  2.17  pilot projects which combine housing finance agency and 
  2.18  department of human services resources to retain affordable 
  2.19  housing for the frail elderly and to make facility improvements 
  2.20  to further extend the residents' ability to remain in the 
  2.21  federally assisted housing.  The housing finance agency and the 
  2.22  department of human services shall jointly review proposals for 
  2.23  pilot projects. 
  2.24     Sec. 3.  [AFFORDABLE RENTAL INVESTMENT; APPROPRIATION.] 
  2.25     $10,000,000 is appropriated from the general fund in fiscal 
  2.26  year 1999 for transfer to the housing development fund for the 
  2.27  affordable rental investment fund program under Minnesota 
  2.28  Statutes, section 462A.21, subdivision 8b.  To the extent 
  2.29  practicable, this appropriation shall be used so that an 
  2.30  approximately equal number of housing units are financed in the 
  2.31  metropolitan area, as defined in Minnesota Statutes, section 
  2.32  473.121, subdivision 2, and in the nonmetropolitan area. 
  2.33     Sec. 4.  [COMMUNITY REHABILITATION PROGRAM; APPROPRIATION.] 
  2.34     $5,000,000 is appropriated from the general fund in fiscal 
  2.35  year 1999 for transfer to the housing development fund for the 
  2.36  community rehabilitation program under Minnesota Statutes, 
  3.1   section 462A.206, for grants to acquire, demolish, and remove 
  3.2   substandard multiple-unit residential rental property or 
  3.3   acquire, rehabilitate, and reconfigure multiple-unit residential 
  3.4   rental property.