Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

(d) "Debt service" means the amount payable in any fiscal year of principal, premium,
if any, and interest on housing infrastructure bonds and the fees, charges, and expenses
related to the bonds.

(e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.

(f) "Housing infrastructure bonds" means bonds issued by the agency under this chapter
that:

(1) are qualified 501(c)(3) bonds, within the meaning of section 145(a) of the Internal
Revenue Code;

(2) finance qualified residential rental projects within the meaning of section 142(d) of
the Internal Revenue Code; or

(3) are tax-exempt bonds that are not private activity bonds, within the meaning of
section 141(a) of the Internal Revenue Code, for the purpose of financing or refinancing
affordable housing authorized under this chapter.

(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

new text begin (h) "Recapitalization" means financing to address the physical and financial needs of a
distressed building, including but not limited to restructuring and forgiveness of amortizing
and deferred debt, such as debt forgiveness, principal paydown, interest rate write-down,
debt deferral, mortgage forbearance, deferred maintenance, security services, property
insurance, renovations, supportive services reserves, or property reserves to ensure stable
property operations or extend the life of a building.
new text end

deleted text begin (h)deleted text end new text begin (i)new text end "Senior" means a person 55 years of age or older.

deleted text begin (i)deleted text end new text begin (j)new text end "Senior household" means a household with one or more senior members and with
an annual combined income not greater than 50 percent of:

(1) the metropolitan area median income for persons in the metropolitan area; or

(2) the statewide median income for persons outside the metropolitan area.

deleted text begin (j)deleted text end new text begin (k)new text end "Senior housing" means housing intended and operated for occupancy by senior
households with at least 80 percent of the units occupied by senior households, and for
which there is publication of, and adherence to, policies and procedures that demonstrate
an intent by the owner or manager to provide housing for seniors. Senior housing may be
developed in conjunction with and as a distinct portion of mixed-income senior housing
developments that use a variety of public or private financing sources.

new text begin (l) "Subsidized housing" means any residential property owned by a nonprofit entity
that:
new text end

new text begin (1) is subject to an agreement to restrict incomes of eligible residents or the rents charged
to residents; or
new text end

new text begin (2) received an initial construction or acquisition subsidy by the state of Minnesota,
including through allocations of federal funds by a state agency or political subdivision of
the state.
new text end

deleted text begin (k)deleted text end new text begin (m)new text end "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.

Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the payment
made under this section may be pledged. The housing infrastructure bonds authorized in
this subdivision may be issued to fund loans, or grants for the purposes of clauses (4) and
(7), on terms and conditions the agency deems appropriate, made for one or more of the
following purposes:

(1) to finance the costs of the construction, acquisition, deleted text begin anddeleted text end rehabilitation deleted text begin ofdeleted text end new text begin ,
recapitalization, and capitalization of property reserves that fundnew text end supportive deleted text begin housingdeleted text end new text begin services,
coordinated delivery of front desk services, and security services of supportive housing
where at least 50 percent of the units arenew text end for individuals and families who are without a
permanent residencenew text begin or are at risk of losing their permanent residencenew text end ;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or abandoned
housing to be used for affordable rental housingnew text begin , affordable home ownership,new text end and the costs
of new construction of rental housing on abandoned or foreclosed property where the existing
structures will be demolished or removed;

(3) 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 home buyers;

(4) to finance the acquisition, improvement, and infrastructure of manufactured home
parks under section 462A.2035, subdivision 1b;

(5) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of senior housing;

(6) to finance the costs of acquisition, rehabilitationnew text begin , recapitalizationnew text end , and replacement
of federally assisted rental housing and for the refinancing of costs of the construction,
acquisitionnew text begin , recapitalizationnew text end , and rehabilitation of federally assisted rental housing, including
providing funds to refund, in whole or in part, outstanding bonds previously issued by the
agency or another government unit to finance or refinance such costs;

(7) to finance the costs of acquisition, rehabilitation, adaptive reuse, or new construction
of single-family housing; deleted text begin and
deleted text end

(8) to finance the costs of construction, acquisitionnew text begin , recapitalizationnew text end , and rehabilitation
of permanent housing that is affordable to households with incomes at or below 50 percent
of the area median income for the applicable county or metropolitan area as published by
the Department of Housing and Urban Development, as adjusted for household sizedeleted text begin .deleted text end new text begin ;
new text end

new text begin (9) to finance the costs of construction, acquisition, recapitalization, rehabilitation,
conversion, and development of cooperatively owned housing created under chapter 308A
or 308B that is affordable to low- and moderate-income households; and
new text end

new text begin (10) to finance the costs of recapitalization of existing units of subsidized housing that
are restricted to households with incomes at or below 60 percent of the area median income,
to prevent displacement, stabilize communities, and avert the loss of affordable homes.
new text end

(b) Among comparable proposals for permanent supportive housing, preference shall
be given to permanent supportive housing for veterans and other individuals or families
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) are at significant risk of lacking a permanent residence for 12 months or at least four
times in the last three years.

(c) Among comparable proposals for senior housing, the agency must give priority to
requests for projects that:

(1) demonstrate a commitment to maintaining the housing financed as affordable to
senior households;