1.1                          A bill for an act 
  1.2             relating to housing; housing finance agency; providing 
  1.3             funding for and creating a senior assisted housing 
  1.4             grant program; authorizing bonds; appropriating money; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 462A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [462A.34] [SENIOR ASSISTED HOUSING GRANT 
  1.9   PROGRAM.] 
  1.10     Subdivision 1.  [CREATION.] The commissioner of the housing 
  1.11  finance agency shall administer a program to provide grants to 
  1.12  local units of government for senior assisted housing projects, 
  1.13  from money appropriated to the commissioner for that purpose.  
  1.14  The commissioner may enter into contracts with public or private 
  1.15  parties to carry out the commissioner's duties under this 
  1.16  section.  
  1.17     Subd. 2.  [ELIGIBLE PROJECTS.] Grants may be made for the 
  1.18  purpose of constructing or rehabilitating publicly owned 
  1.19  housing.  All or part of a construction or rehabilitation 
  1.20  project may be financed under this section.  The residents of a 
  1.21  project or building constructed or rehabilitated in whole or in 
  1.22  part by funds granted under this section must be in need of 
  1.23  services that assist the residents with daily living such as 
  1.24  congregate dining service and facilities, medication monitoring, 
  1.25  and physical therapy.  There must be an agreement between the 
  1.26  board of aging, department of human services, or other public 
  2.1   agency and the county to fund the services provided at the 
  2.2   project before a grant can be made.  The board, department, or 
  2.3   agency is authorized to enter into an agreement with up to a 
  2.4   30-year term related to the provision of resident services under 
  2.5   this section.  Rents for a unit financed in whole or in part 
  2.6   under this section must be no higher than 30 percent of the unit 
  2.7   renter's income. 
  2.8      Subd. 3.  [ELIGIBLE RESIDENTS.] A resident of an assisted 
  2.9   housing project must be eligible for services under chapter 144A 
  2.10  or 144D.  
  2.11     Subd. 4.  [APPLICATION PROCESS.] The commissioner shall 
  2.12  develop a separate application process for the program or use a 
  2.13  combined application process that involves other programs.  The 
  2.14  commissioner shall attempt to award an approximately equal 
  2.15  amount of grant dollars for projects located outside the 
  2.16  metropolitan area, as defined in section 473.121, subdivision 2, 
  2.17  as are awarded in the metropolitan area unless there are not 
  2.18  sufficient applications from an area.  An application must 
  2.19  include some local match with preference given to projects 
  2.20  equally rated with a higher percentage local match.  For 
  2.21  projects that involve an existing nursing home, preference shall 
  2.22  be given to projects that close an entire nursing home over 
  2.23  those that simply involve a reduction in the number of nursing 
  2.24  home beds.  An application involving a nursing home must include 
  2.25  a copy of the service agreement required under subdivision 2.  
  2.26  The nursing home provider must be given an opportunity to bid to 
  2.27  provide services to residents in a project. 
  2.28     Sec. 2.  [BOND SALE AUTHORIZATION.] 
  2.29     To provide the money appropriated in this act from the 
  2.30  state bond proceeds fund, the commissioner of finance on request 
  2.31  of the governor shall sell and issue bonds of the state in an 
  2.32  amount up to $....... in the manner, upon the terms, and with 
  2.33  the effect prescribed by Minnesota Statutes, sections 16A.631 to 
  2.34  16A.675, and by the Minnesota Constitution, article XI, sections 
  2.35  4 to 7. 
  2.36     Sec. 3.  [APPROPRIATION.] 
  3.1      $....... is appropriated from the bond proceeds fund to the 
  3.2   commissioner of the housing finance agency for transfer to the 
  3.3   housing development fund for the purposes of section 1.