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<br /> <br />Offices in 470 U.S. Bank Plaza <br /> <br /> <br />200 South Sixth Street <br />Kennedy <br />Minneapolis <br />Minneapolis MN 55402 <br /> <br /> <br /> <br />& <br /> <br />(612) 337-9300 telephone <br />Saint Paul <br /> <br />(612) 337-9310 fax <br /> <br />Graven <br />www.kennedy-graven.com <br />St. Cloud <br />Affirmative Action Equal Opportunity Employer <br />CHARTERED <br /> <br /> <br /> <br /> <br /> <br />MEMORANDUM <br /> <br /> <br />TO: Elk River HRA Chair and Commissioners <br />FROM: Gina Fiorini <br />DATE: January 7, 2019 <br />RE: Housing and Redevelopment Authority Legislative Update <br /> <br /> <br />The HRA has historically received an annual update of legislative changes to the Municipal <br />Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 to 469.047 and other <br />legislative changes that are relevant to the HRA. Legislative changes enacted in 2018 pertinent to <br />the HRA are outlined below. <br /> <br /> There were no legislative changes to the Housing and Redevelopment Act. <br /> <br /> Tax Increment Financing (TIF). There were no modifications to Minnesota Statutes, <br />Sections 469.174 through 469.1794 in the 2018 legislative session. <br /> <br /> Public Housing Rehabilitation and Housing Infrastructure Bonds. Chapter 214 (HF <br />4425/SF 4021) is the capital investment “bonding” bill. In it, the Minnesota Housing <br />Finance Agency (“MHFA”) was authorized to issue $10 million in general obligation bonds <br />for public housing rehabilitation, $30 million in housing infrastructure bonds to provide <br />financing for permanent housing for those with behavioral health needs, and $50 million in <br />housing infrastructure bonds to provide financing for non-profit housing projects. Effective <br />July 1, 2018. <br /> <br /> Low Income Housing Tax Credit Priorities. Article 3, section 1 of Chapter 214 amends <br />Minnesota Statutes, Section 462A.222, subdivision 3 to change MHFA’s low income <br />housing tax credit award process to favor residential rental housing projects financed with <br />multifamily housing revenue bonds. For projects eligible for MHFA’s qualified allocation <br />plan, MHFA will now prioritize projects that have received an allocation of tax-exempt <br />multifamily housing revenue bonds ahead of other projects to the extent possible. In <br />addition, MHFA’s qualified allocation plan may not have selection criteria beyond what is <br />in federal law, must exclude per-unit cost limitations, cost reasonableness, or other similar <br />restrictions, and must not adopt or impose any additional rules, requirements, regulations, or <br />restrictions other than those required in federal law regarding the allocation of credits. <br />Effective July 1, 2018. <br />550914v2 GAF EL185-13 <br />