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LEONARD
<br /> STREET
<br /> AND
<br /> Powers and Duties of HRAs DEINARD
<br /> •
<br /> I. WHAT POWERS CAN HOUSING AND REDEVELOPMENT AUTHORITIES
<br /> EXERCISE?
<br /> A. Only What is Written. HRAs are creature of state law, created either by special law
<br /> or generally by a city or county under Minnesota Statutes, Section 469.001 through 469.047 (the
<br /> "Act"). They may exercise the powers, and only the powers, granted under state law.
<br /> B. Undertake Projects. HRAs are authorized to "undertake, prepare, carry out and
<br /> operate projects, and to provide for the construction, reconstruction, improvement, extension,
<br /> alteration or repair of any project or part thereof'under Section 469 Subd. 1(4).
<br /> 1. Redevelopment Project. Any work or undertaking to acquire and clear land;
<br /> install or construct public improvements; to conduct an "urban renewal project" as
<br /> defined in the statute.
<br /> 2. Housing Project. Any work or undertaking to provide decent, safe and
<br /> sanitary housing for low income persons. Such work may include the acquisition or
<br /> provision of buildings, land, equipment, facilities, and other property necessary or
<br /> convenient appurtenances, streets, sewers, water service, utilities, site preparation,
<br /> landscaping and other purposes.
<br /> 3. Housing Development Project. Any work or undertaking to provide housing
<br /> for persons of moderate income and their families. This work may include the planning
<br /> of buildings and improvements, the acquisition of real property needed immediately or in
<br /> the future for housing, the construction, reconstruction, alteration and repair of new or
<br /> existing buildings and the provisions of all equipment, facilities and other real or personal
<br /> property for necessary or convenient appurtenances, streets, sewers, etc., site preparation,
<br /> landscaping, administrative, community health,recreation or welfare or other purposes.
<br /> 4. Interest R eduction Program. A p rogram t o write d own the interest rate o n
<br /> financing for the construction, rehabilitation and purchase of housing units intended
<br /> primarily for occupancy by low or moderate income individuals. An HRA may use the
<br /> program to pay interest on its housing bonds, financing from a private developer. Interest
<br /> reduction may also be used for a commercial rehabilitation program for small and
<br /> medium sized buildings. There are income limits for tenants or owner-occupants of the
<br /> housing assisted, and a requirement that the HRA receive a share of the equity of the
<br /> assisted property upon its sale.
<br /> C. Scattered Site Acquisition. Minnesota Statutes, Section 469.012, subd. 1(7),
<br /> provides that an HRA may undertake, without adoption of an urban renewal plan, the acquisition
<br /> of real property and the demolition, removal, rehabilitation, or reconstruction of buildings and
<br /> improvements are substandard, and the power of eminent domain may be used to acquire land
<br /> only if the land contains buildings and improvements which are vacated and substandard.
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