4.11 HRSR 02-01-2016 hti ,�,, Request for Action
River
To Item Number
Housing and Redevelopment Authority 4.11
Agenda Section Meeting Date Prepared by
Consent February 1,2016 Amanda Othoudt,EDD
Item Description Reviewed by
Receive report on Modifications/Amendments to Cal Portner, City Administrator
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 January 27,2015
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° 200 South Sixth Street
Vev '-^iltYlf Minneapolis Minneapolis MN 55402
Saint Paul (612)337-9300 telephone
(612)337-9310 fax
www.kennedy-graven.com
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CHARTERED Affirmative Action Equal Opportunity Employer
MEMORANDUM
TO: Elk River HRA Chair and Commissioners
FROM: Jenny Boulton
DATE: January 27, 2016
RE: Housing and Redevelopment Authority Legislative Update
The bylaws for the EDA require an annual update of legislative changes to the Municipal Housing
and Redevelopment Act, Minnesota Statutes, Sections 469.001 to 469.047. Outlined below are
legislative changes enacted in 2015 that are relevant to the EDA.
• There were no legislative changes to the Housing and Redevelopment Authority Act.
Other legislative changes impacting the HRA included the following:
• Housing and redevelopment provisions in the omnibus bonding bill. First Special
Session Chapter 5 (HF 2/SF 4) is the 2015 omnibus bonding bill. Article 1, Section 14,
subd. 2 provides $10 million for housing infrastructure bonds through the Minnesota
Housing Finance Agency. Effective July 1, 2015.
• Housing and redevelopment provisions in the jobs and energy act. First Special Session
Chapter 1 (HF 3/SF 2) is the omnibus jobs and energy act. Art. 1, sec. 3 appropriates
approximately $54.3 million in fiscal year 2016 and $50.3 million in fiscal year 2017 to
MHFA for its operations and grant programs. The legislation specifically provides for the
following:
o $14.9 million in fiscal year 2016 and $12.9 million in fiscal year 2017 for the
Economic Development and Housing Challenge Program under Minnesota Statutes,
Section 462A.33. More specifically,the legislation appropriates the funds as set forth
below:
• $2 million for the continuation of the housing and job growth initiative under
Minnesota Statutes, Section 462A.33. Eligible communities and regions must
have (i) low housing vacancy rates; (ii) cooperatively developed a plan that
identifies current and future housing needs; (iii) evidence of anticipated job
expansion; or(iv) a significant portion of area employees who commute more
than 30 miles between their residence and their employment. When deciding
which proposals to fund, preference must be given to proposals that: (i)
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include a meaningful contribution from area employers that reduces the need
for deferred loan or grant funds from state resources; or (ii) provide housing
opportunities for an expanded range of household incomes within a
community or that provide housing opportunities for a wide range of incomes
within the development. Comparable proposals with contributions from local
units of government or private philanthropic, religious, or charitable
organizations must be given preference in awarding grants or loans. In
addition, qualifying projects must meet the overall challenge income limits.
o $ 13.5 million in fiscal year 2016 and $11.5 million in fiscal year 2017 for the
housing trust fund under Minnesota Statutes, Section 462A.201. MHFA is required
to give funding priority to projects that focus on creating safe and stable housing for
homeless youth or projects that provide housing to trafficked women and children.
$2 million of the appropriation is allocated for temporary rental assistance for
families with school-age children who have changed their school or home at least
once in the last school year.
o $4 million each year for rental housing assistance for persons with a mental illness or
families with an adult family member with a mental illness pursuant to Minnesota
Statutes, Section 462A.2097.
o $8.5 million each year for family homeless prevention and assistance programs
pursuant to Minnesota Statutes, Section 462A.204.
o $885,000 each year to the home ownership assistance program under Minnesota
Statutes, Section 462A.21, subd. 8. The agency was further directed to continue to
strengthen its efforts to address the disparity gap in the homeownership rate between
white households and indigenous American Indians and communities of color.
o $4.2 million each year to the affordable rental investment fund under Minnesota
Statutes, Section 462A.21 subd. 8b to finance the acquisition, rehabilitation and debt
restricting of federally assisted rental property and for making equity take-out loans
under section 462A.05, subd. 39. The owner of any participating federally assisted
rental property must agree to participate in the applicable federally assisted housing
program and to extend any existing low-income affordability restrictions on the
housing for the maximum term permitted. The owner must also enter into an
agreement that gives local units of government, housing and redevelopment
authorities, and nonprofit housing organizations the right of first refusal if the rental
property is offered for sale.
o $6.5 million each year to housing rehabilitation pursuant to Minnesota Statutes,
Section 462A.05, subd. 14. Of that amount, $2.7 million each year is set aside for the
rehabilitation of owner-occupied housing and $3.7 million each year is for the
rehabilitation of eligible rental housing. The process and priorities under the
challenge program set forth in Minnesota Statutes, Section 462A.33 are used for this
program.
o $857,000 each year toward homeownership education, counseling, and training
program pursuant to Minnesota Statutes, Section 462A.209. Priority may be given to
funding programs that are aimed at culturally specific groups who are providing
services to members of their communities.
o $375,000 each year is appropriated toward capacity building grants pursuant to
Minnesota Statutes, Section 462A.21, subd 3b. Of this amount, $125,000 each year
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is specifically for support of the Homeless Management Information System
(HMIS).
o All Effective July 1, 2015.
• HRA provisions in the omnibus education fmance bill. First Special Session Chapter 3
(HF1*/SF3) is the omnibus education finance bill. Article 6, Section 7 amends Minnesota
Statutes, Section 297a.70, subd. 2 to delay the date on which the sales tax exemption for
government purchases will go into effect for special districts, instrumentalities of cities,
counties, and townships, and all joint powers boards and organizations, including housing
and redevelopment authorities, by one year, from Jan. 1, 2016, to Jan. 1, 2017. The
exemption was originally granted during the 2014 legislative session but included a delayed
effective date. Effective June 14, 2015.
• Home and community-based settings for people with disabilities
o Chapter 71 (HF 1638/ SF 1458) is the omnibus health and human services finance
bill. Article 7, sec. 43 amends Minnesota Statutes, Section 256B.492 covering the
home and community-based settings for people with disabilities to comply with a
court decision. It also provides program settings as required by the Housing
Opportunities for Persons with AIDS Program. It requires that group housing
settings must not have the qualities of an institution which include, but are not
limited to regimented meal and sleep times, limitations on visitors, and lack of
privacy. It removes all other provisions in that section. Effective July 1, 2016.
• Location of community-residential programs
o Chapter 78 (HF 1535/ SF 1356) is the omnibus health and human services policy
bill. Article 4, sec. 13 amends Minnesota Statutes, Section 245A.11, subd. 4, to allow
the commissioner of human services to approve a license for a community residential
setting defined under Minnesota Statutes, Section 245D.02, subd. 4a even if it will be
within 1,320 feet of an existing residential program. Effective Aug. 1, 2015.
• Tax increment fmancing (TIF). There were no changes to the tax increment financing act,
Minnesota Statutes, Sections 469.174 through 469.1794.
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