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S.F. No. 3700 - Minnesota Bond Allocation Act; Housing Bonds
 
Author: Senator Rich Draheim
 
Prepared By: Greg Knopff, Senate Analyst (651/296-9399)
 
Date: March 27, 2018



 

Sections 1 to 7 [Definitions] define “preservation project,” “30 percent AMI residential rental project,” “50 percent AMI residential rental project,” “100 percent LIHTC project,” “20 percent LIHTC project,” “AMI” (area median income), and “aggregate bond limitation” for the purpose of issuing housing bonds under the Minnesota Bond Allocation Act.

Section 8 [Single-family housing allocation reservation] moves up the date for the single-family housing allocation reserved of the bond allocations to the last Monday in June instead of the last Monday of July.

Section 9 [Entitlement reservations] moves up the date for return of an entitlement issuer amounts returned to be reallocated to the housing pool to July 1 from July 15. Any amounts returned by an entitlement issuer on or after July 1 will be allocated through the unified pool.

Section 10 [Allocation application; small issue and public facilities pools] makes the allocation application process apply only to the small issue and public facilities pools and modifies the dates to reflect the change in the single-family housing allocation reservation.  This section also eliminates any reference to the housing pool that is being created separately in the next section and the requirement to specify if it will be senior housing.

Section 11 [Allocation application; housing pool] establishes a separate process for applying for allocations from the housing pool for preservation projects, 30 percent AMI residential rental projects, 50 percent AMI residential rental projects, 100 percent LIHTC projects, and 20 percent LIHTC projects.

Section 12 [Housing pool allocation] moves up the date for housing pool allocations for residential rental housing to the end of June from July 1, and eliminates the prohibition on allocations to senior housing prior to May 15.  This section also provides for random award of allocation when there is insufficient bonding authority for two or more projects in the allocation at the same priority level, and increases the time period to 180 days or 18 months from 120 days for use of the allocation. To increase the time period to 18 months, the issuer must submit one percent of the allocation amount within 180 days after the allocation date.

Sections 13 and 14 [Small issue and public facilities pool allocations] modify the dates for small issue and public facilities pool allocations to reflect the change in the single-family housing allocation reservation.

Section 15 [Return of allocation; small issue and public facilities pools] makes the return of allocations apply only to the small issue and public facilities pools and modifies the dates to reflect the change in the single-family housing allocation reservation.  This section also eliminates any reference to the housing pool that is covered separately in the next section.

Section 16 [Return of allocation; housing pool] provides a separate process for return of a housing pool allocation.

Section 17 [Higher education bonds] clarifies that none of the time limitations on bonds apply to higher education bonds, even when it is not a 120-day period.

Section 18 [Unified pool amount] modifies the dates to reflect the change in the single-family housing allocation reservation.

Section 19 [Application for residential rental projects; unified pool] modifies the general application process for the unified pool to apply to residential housing projects and moves the general process, other than residential rental, to the next section.

Section 20 [Application process for all other types of qualified bond; unified pool] move the general application process for the unified pool to a new subdivision.

Section 21 [Allocation procedure; unified pool] moves up the unified pool allocation to the first Monday in July to reflect the change in the single- family housing allocation reservation.  This section also removes the lack of priority for nonsenior housing projects and provides a priority for housing projects based on whether it is a:  (1) preservation project; (2) 30 percent AMI residential rental project; (3) 50 percent AMI residential rental project; (4) 100 percent LIHTC project; (5) 20 percent LIHTC project; or (6) other residential rental project.

Section 22 [Return of allocation; unified pool] updates this section to reflect that residential rental housing have longer than 120 days to be issued and provides for a portion of the application deposit for residential rental project allocation based on when the bonding authority is returned.

Section 23 [Note of issue] makes technical changes related to the application deposit.

Section 24 [Deadline for issuance of qualified bonds] establishes a separate process for deadlines for residential rental projects requiring that the Housing Finance Agency reserve any carryforward for the residential rental project described in the original application.

Sections 25 and 26 [Technical] are technical changes related to other changes in the bill.

 
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