4.11 HRSR 02-02-2015
Request for Action
To Item Number
Housing and Redevelopment Authority 4.11
Agenda Section Meeting Date Prepared by
ConsentFebruary 2, 2015Jeremy Barnhart, Deputy Director, CODD
Item Description Reviewed by
Receive report on Modifications/Amendments to
Statute and/or Enabling Resolution
Reviewed by
Action Requested
Receive report
Background/Discussion
Housing and Redevelopment Authority Bylaws suggest the periodic review of any modifications or
amendments to the Statute and/or Enabling Resolution. The HRA attorney has provided a brief
summary, attached.
These updates will be reflected in ongoing processes and policies. If there are any questions on the
update, please inform staff beforehand, as the Attorney will not be present.
Financial Impact
N/A
Attachments
HRA attorney memo dated December 31, 2014
MEMORANDUM
TO:
Elk River HRA Chair and Commissioners
FROM:
Andrea McDowell Poehler
DATE:
Wednesday, December 31, 2014
RE:
Municipal Housing and Redevelopment Legislative Update
__________________________________________________________________
The bylaws for the HRA require an annual update of legislative changes to the Municipal
Housing and Redevelopment Act, Minn. Stat. § 469.001 to § 469.047.
There were no legislative changes to the Housing and Redevelopment Authority Act.
Other housing and redevelopment legislative changes included the following:
Low Income Home Energy Assistance Program (LIHEAP) supplemental
appropriation.
Chapter 145 (HF 2374*/SF 1961) appropriated $20 million to LIHEAP.
The provisions of this bill are summarized in the Utilities and Energy sections.
Minnesota Housing Finance Agency (MHFA) provisions amended and repealed.
Chapter 161 (HF 2763/SF 2569*) is the state housing finance agency “Unsession” bill. It
repealed Minn. Stat. § 462C.04, subds. 3 and 4, which required local units of government
to send MHFA and the Met Council, if the bonds were located in the Twin Cities, the
information about housing bonds they have issued. It also repeals the housing preservation
program, rent assistance for family stabilization program, community rehabilitation fund
account, and employer housing contributions and matching grants in ch. 462A as those
programs have all been absorbed into similar programs operated under MHFA’s,
economic development and housing challenge program (Minn. Stat. § 462A.33) or
housing trust fund. Effective Aug. 1, 2014.
Housing Opportunities Made Equitable (HOME) pilot project.
Chapter 188 (HF
859*/SF 771), section 4 established a HOME pilot project; the project did not receive an
appropriation in the budget. The HOME pilot project is established to support closing the
disparity gap in affordable homeownership for all communities of color and American
Indians in Minnesota. The pilot project may also support the redevelopment and
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rebuilding of challenged neighborhoods affected by the foreclosure crisis. It calls upon the
Minnesota Housing Finance Agency to work with state councils on underrepresented
populations to design the implementation of the pilot project. Effective Aug. 1, 2014
Mortgage small servicer definition and foreclosure curative act clarified
. Chapter 191
(HF 2213*/SF 2445) makes the definition of a small servicer permanent and clarifies the
statute of limitations for validating or invalidating a mortgage foreclosure. Section 1
makes permanent a definition of small servicer that would have sunset on Aug. 1, 2014.
The provisions required in Minn. Stat. § 582.043 related to dual-tracking and loss
mitigation do not apply to mortgage services that conduct 125 or fewer foreclosure sales
in the 12-month period. Section 2 states that the statute of limitations for validating or
invalidating a mortgage foreclosure will apply regardless of a court decision requiring
strict compliance with foreclosure procedure. Effective May 2, 2014.
Housing provisions in the 2014 Omnibus Capital Investment (Bonding) Act.
Chapter
294 (HF 2490*/SF 2605) is the 2014 Omnibus Capital Investment (Bonding) Act. It
authorizes approximately $893 million in capital improvement projects. It includes the
following funding for the rehabilitation of public housing units:
Public housing rehabilitation funding provided
. Section 23 provides for $20
o
million to the housing development fund within the Minnesota Housing Finance
Agency (MHFA) to finance costs of rehabilitation to preserve public housing
under Minn. Stat. § 462A.202, subd. 3a. Chapter 294 defines “public housing” as
housing for low-income persons and households financed by the federal
government and owned and, operated by the public housing authorities and
agencies formed by cities and counties. Public housing authorities receiving a
public housing assessment composite score of 80 or above are eligible to receive
funding. Priority must be given to proposals that maximize federal or local
resources to finance the capital costs. The priority in Minn. Stat. § 462A.202, subd.
3a for projects to increase the supply of affordable housing, and the restrictions of
Minn. Stat. § 462A.202, subd. 7, do not apply to this appropriation. Effective May
21, 2014.
Housing provisions in the Omnibus General Fund Capital Investment Act
. Chapter
295 (HF 1068*/SF 882) provides approximately $199 million in general fund money for a
variety of capital investments.
Housing infrastructure bonds authorization provided
. Section 19 amends
o
Minn. Stat. § 462A.37 to authorize up to an additional $80 million of housing
infrastructure bonds. Housing infrastructure bonds can be used to finance the
acquisition, construction, and rehabilitation of supportive housing, and federally
assisted rental housing. The bonds may also be used to finance acquisition of land
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to be leased by community land trusts to low and moderate-income families.
Effective May 21, 2014.
Housing infrastructure bonds on loans for “abandoned or foreclosed”
o
property modified
. Section 18 modifies Minn. Stat. § 462A.37, subd. 2, which
lists the allowable uses of housing infrastructure bonds issued by the Minnesota
Housing Finance Agency (MHFA). The loans can now be used to finance that
portion of the costs of acquisition of property that is attributable to the land to be
leased by community land trusts to low and moderate-income homebuyers. The
prior law limited the use of such loans to “abandoned or foreclosed” property. This
section is effective May 21, 2014, and only applies to housing infrastructure bonds
authorized in 2014 and thereafter.
Housing infrastructure bonds proposal preference for veterans.
Section 18
o
modifies Minn. Stat. § 462A.37, subd. 2 to specify preferences that MHFA shall
give when reviewing proposals for housing infrastructure bonds. Preference shall
be given to permanent supportive housing for veterans and other individuals who
(1) either have been without a permanent residence for at least 12 months or at
least four times in the last three years; or (2) were at significant risk of lacking a
permanent residence for 12 months or at least four times in the last three years.
Effective May 21, 2014.
Housing provisions in the omnibus supplemental appropriations bill.
Chapter 312
(HF 3172*/SF 2785) is the omnibus supplemental budget bill, which included some
housing provisions.
Housing assistance to families with a disabled child.
Article 2, section 10
o
amends 2013 Minn. Laws ch. 85, article 1, section 4, subd. 2, which is the 2013
appropriation to the economic development and housing challenge program. The
law is amended to state that of the $28.4 million allocated to FY 2014-2015,
$500,000 is for homeownership opportunities for families who have been evicted
or been given notice of an eviction due to a disabled child in the home, including
adjustments for the incremental increase in costs of addressing the unique housing
needs of those households. Any funds not expended for this purpose may be
returned to the challenge fund after Oct. 31, 2014. Effective July 1, 2014
Veterans Housing Study Grants.
Article 4, section 2 appropriates $250,000 for
o
at least five grants of up to $50,000 each to conduct a housing needs assessment
for veterans in any community within the state. The grants may be awarded to any
government or nongovernment organization. The assessment must be started by
July 30, 2015, and completed by July 30, 2016. The report must be shared with the
Legislature no later than Jan. 1, 2017. Effective July 1, 2014
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Community-based homes (group homes) ratio restrictions.
Article 27, section
o
70 amends Minn. Stat. § 256B.492 to include individuals “who receive services
under a home and community-based waiver occupy” along with individuals with
disabilities that may reside in all of the units in a building of four or fewer units in
the description of the setting where individuals under a home and community-
based waiver may reside. The law did not change in regard to the existing limit of
no more than the greater of four or 25 percent of the units in a multifamily
building of more than four units, unless required by the Housing Opportunities for
Persons with AIDS program, may receive a home and community-based waiver.
Effective July 1, 2014.
Additional funding for Safe Harbor and Homeless Youth funding provided.
o
Article 30, sec 2, subd. 4 appropriates $500,000 in FY 2015 to the Safe Harbor
program for housing and supportive services for sexually exploited youth. It also
provides for $1 million in FY 2015 to the Homeless Youth Act (Minn. Stat. §
256K.45). Homeless Youth Act grants are administered by the Department of
Human Services. Effective July 1, 2014.
Lead poisoning prevention and healthy housing grants
. Article 30, Section 3,
o
subd. 4 allocates $60,000 in FY 2015 for lead poisoning prevention and healthy
homes activities (Minn. Stat. §144.9501-9513). It also appropriates $240,000 in
FY 2015 for healthy housing implementation grants (Minn. Stat. § 144.9513, subd.
3). Local boards of health, community action agencies under section 256E.31, and
nonprofit organizations with expertise in providing outreach, education, and
training on healthy housing subjects and in providing comprehensive healthy
housing assessments and interventions shall be eligible for the grants through the
Department of Health. The commissioner of Health is encouraged to
geographically balance the distribution of the grant funding between the seven-
county metropolitan area and nonmetropolitan communities. Effective July 1,
2014. Effective dates vary and are noted at the end of each section.
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