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<br />community. The fund structure and requirements were modified, but not funded. Effective <br />July 1, 2017. <br /> Workforce Housing Development Grant Program. The omnibus jobs and economic <br />growth bill (Chapter 94, HF 1620/SF 1456) appropriates $2,000,000 in fiscal years 2017 and <br />2018 in ongoing funding to the workforce housing grant program and transfers <br />administration of the program from DEED to the MHFA. Other program requirements <br />remain the same except that preference is now given to applicants to cities with populations <br />under 30,000 instead of those with populations under 18,000. Effective July 1, 2018. <br /> <br /> Local Housing Trust Funds The omnibus jobs and economic growth bill (Chapter 94, <br />HF1620/SF 1456) establishes the ability for cities to create a local housing trust fund by <br />ordinance, or to participate in a joint powers agreement to establish a regional housing fund. <br />Potential sources of funds include appropriations by a local government, housing and <br />redevelopment authority levies, and other sources set forth in the law. Permitted uses of the <br />funds include administrative expenses, grants, loans for development, rehabilitation or <br />financing of housing to match other federal, state or private funds for housing, or down <br />payment assistance, rental assistance, and homebuyer counseling. If established, the local <br />housing trust fund must report annually to the local government that created it, and a report <br />must be posted on the local government’s website. This provision publicizes the authority <br />that already exists pursuant to Minnesota law. Effective July 1, 2017. <br /> <br /> Public Housing Rehabilitation and Housing Infrastructure Bonds. First Special Session <br />Chapter 8 (HF 5/no SF) is the omnibus bonding bill and authorizes the MHFA to issue <br />$35,000,000 in new housing infrastructure bonds and up to an extra $20,000,000 in housing <br />infrastructure bonds using existing debt service appropriations from the 2014 and 2015 <br />bonding authorizations. In addition, the bonding bill authorizes the issuance of $10,000,000 <br />in general obligation bonds for public housing rehabilitation which will be used to fund the <br />MHFA’s Publicly Owned Housing Program utilized by local housing and redevelopment <br />authorities. <br /> <br /> Tax Increment Financing (TIF). Modifications to Minnesota Statutes, Section 469.174 <br />through 469.1794 (the “TIF Act”) include the following: <br />o Workforce housing tax increment financing authority. The omnibus tax bill <br />(First Special Session, Chapter 1, HF 1/no SF) modifies the TIF Act to create new <br />tax increment financing (“TIF”) authority for workforce housing. Cities using <br />workforce housing TIF must make the \\following findings: (1) the city is located <br />outside the metropolitan area; (2) the average vacancy rate for rental housing in the <br />municipality and in any statutory or home rule charter city located within 15 miles or <br />less of the boundaries of the municipality has been 3% or less for at least the <br />immediately preceding 2 year period; (3) at least one business located in the <br />municipality that employs a minimum of 20 full-time equivalent employees in <br />aggregate has provided a written statement to the municipality indicating that the <br />lack of available rental housing has impeded the ability of the business to recruit and <br />hire employees; and (4) the municipality and the development authority intend to use <br />2 <br />514669v1 JSB EL185-13 <br />