5.6. HRSR 02-04-2019
Request for Action
To Item Number
Housing and Redevelopment Authority 5.6
Agenda Section Meeting Date Prepared by
Consent February 4, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
Modifications/Amendments to the Municipal Cal Portner, City Administrator
Housing and Redevelopment Act
Reviewed by
Action Requested
Receive report on modifications or amendments to the Municipal Housing and Redevelopment Act.
Background/Discussion
The HRA attorney has provided a review of the modifications or amendments to the Municipal Housing
and Redevelopment Act.
These updates will be reflected in ongoing processes and policies.
Financial Impact
N/A
Attachments
EDA attorney memo dated January 7, 2019
The Elk River Vision
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Minneapolis MN 55402
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CHARTERED
MEMORANDUM
TO: Elk River HRA Chair and Commissioners
FROM: Gina Fiorini
DATE: January 7, 2019
RE: Housing and Redevelopment Authority Legislative Update
The HRA has historically received an annual update of legislative changes to the Municipal
Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 to 469.047 and other
legislative changes that are relevant to the HRA. Legislative changes enacted in 2018 pertinent to
the HRA are outlined below.
There were no legislative changes to the Housing and Redevelopment Act.
Tax Increment Financing (TIF). There were no modifications to Minnesota Statutes,
Sections 469.174 through 469.1794 in the 2018 legislative session.
Public Housing Rehabilitation and Housing Infrastructure Bonds. Chapter 214 (HF
4425/SF 4021) is the capital investment “bonding” bill. In it, the Minnesota Housing
Finance Agency (“MHFA”) was authorized to issue $10 million in general obligation bonds
for public housing rehabilitation, $30 million in housing infrastructure bonds to provide
financing for permanent housing for those with behavioral health needs, and $50 million in
housing infrastructure bonds to provide financing for non-profit housing projects. Effective
July 1, 2018.
Low Income Housing Tax Credit Priorities. Article 3, section 1 of Chapter 214 amends
Minnesota Statutes, Section 462A.222, subdivision 3 to change MHFA’s low income
housing tax credit award process to favor residential rental housing projects financed with
multifamily housing revenue bonds. For projects eligible for MHFA’s qualified allocation
plan, MHFA will now prioritize projects that have received an allocation of tax-exempt
multifamily housing revenue bonds ahead of other projects to the extent possible. In
addition, MHFA’s qualified allocation plan may not have selection criteria beyond what is
in federal law, must exclude per-unit cost limitations, cost reasonableness, or other similar
restrictions, and must not adopt or impose any additional rules, requirements, regulations, or
restrictions other than those required in federal law regarding the allocation of credits.
Effective July 1, 2018.
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Developer Challenge: Article 3, section 1 of Chapter 214 amends Minnesota Statutes,
Section 462A.222 to provide a residential rental housing project developer who has received
an allocation of tax-exempt multifamily housing revenue bonds standing to challenge
MHFA’s qualified allocation plan. Effective July 1, 2018.
New Uses for Housing Infrastructure Bonds: Article 2, section 17 of Chapter 214
broadens Minnesota Statutes, Section 462A.37, subdivision 2 to authorize MHFA to issue
housing infrastructure bonds for new uses including:
o Affordable housing for seniors age 55 and older with annual incomes not greater
than 50% of the metropolitan median income for persons in the metropolitan area or
50% of the statewide median for persons outside the metropolitan area. 80% of units
must be occupied by at least one senior per unit. Senior projects serving households
at 30% of the metropolitan median will be given a priority.
o Manufactured home park improvements and infrastructure for land leased by low-
and moderate-income manufactured home owners.
o The above uses are in addition to current uses which include preservation of
federally subsidized rental housing, permanent supportive housing for persons or
families experiencing or at risk of homelessness, and land acquisition by community
land trusts for single family homes for homeownership. Effective May 31, 2018.
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