HRSR INFORMATION 10-04-2004 - Laserfiche WebLink

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LEONARD STREET AND Powers and Duties of HRAs DEINARD • 2. A county or multicounty may not undertake a project in a city within its area of operation without the adoption of a resolution of the city and any city HRA declaration that there is a need for the county or multicounty HRA to act within the city. 3. Cities with city HRA's created before June 8, 1971, may not be included in the area of operation of any county or multicounty HRA unless the city HRA is assumed by the County HRA. B. Almost Anywhere With A Joint Powers Agreement. Any two governmental units that have the same powers, or similar powers, including powers which are the same except for the jurisdiction in which they may be exercised, may exercise the power jointly pursuant to a joint powers agreement. 1. The statute sets out elements which must be included in the agreement, including a statement of the purpose; the method for exercising the power; and how the activities will be funded. 2. There is an exception to the requirement that both parties to a joint powers agreement have common powers when a county is a party to the agreement. In that case a county may agree to perform for the other governmental unit any power that the other governmental unit could perform for itself. III. FINANCING. A. Corporate Purpose Financing. Under Section 469.034, Subd. 1, an HRA is authorized to issue bonds to finance any of its corporate purposes. It may issue revenue bonds, which are p ayable only from the revenue o f t he project financed o r otherwise pledged t o the bond. It may also issue its general obligation bonds to which the HRA pledges its full faith and credit. B. General Obligation Housing Development Bonds. A city HRA may pledge full faith and credit of its city, and a county or multicounty HRA may pledge the full faith and credit of its county or counties to its bonds issued to finance housing development project if the following conditions are met: 1. The HRA must find that the revenues pledged to the bonds will equal or exceed 110% of debt service in each year; 2. The HRA and its city or county must each h old public hearings with respect to the issuance of the bonds, and the city or county must approve the issuance of the bonds; 3. The maximum amount of general obligation bonds that may be issued and outstanding is the greater of (a) 1/2 of 1% of the taxable market value of the city our county whose general obligation is pledged, and(b) $3,000,000; 2519777v1 4