Subd. 3.

Capacity building grants.

Grants may be made under section 462A.21,
subdivision 3bdeleted text begin,deleted text endnew text begin:
new text end

new text begin (1) new text endto local units of government, including regional consortia, in the disaster area deleted text beginanddeleted text endnew text begin;
new text end

new text begin (2) tonew text end nonprofit organizationsnew text begin; and
new text end

new text begin (3) to federally recognized American Indian tribes or subdivisions located in Minnesota,
and tribal housing corporations
new text end

working in the disaster area to assess housing and related needs, develop and implement
community or regional plans to meet those needs, and provide capacity to implement recovery
plans.

Subd. 2.

Technical assistance; residential housing.

It may provide general technical
servicesnew text begin and supportnew text end to assist in the planning, processing, design, construction or
rehabilitation, and inspection of residential housing for occupancy by persons and families
of low and moderate incomenew text begin and to increase the capacity of entities to meet the housing
needs in the statenew text end.

Subd. 3.

Set aside.

At least one grant must be awarded in an area located outside of the
metropolitan area. A county, a group of contiguous counties jointly acting together, a tribe,
a group of tribes, or a community-based nonprofit organization deleted text beginwith a sponsoring resolution
from each of the county boards of the counties located within its operating jurisdictiondeleted text end may
apply for and receive grants deleted text beginfor areas located outside the metropolitan areadeleted text end.

Subdivision 1.

Establishment.

A workforce and affordable homeownership development
program is established to award homeownership development grants tonew text begin:
new text end

new text begin (1) new text endcitiesdeleted text begin,deleted text endnew text begin;
new text end

new text begin (2) counties;
new text end

new text begin (3) new text endtribal governmentsdeleted text begin,deleted text endnew text begin;
new text end

new text begin (4) new text endnonprofit organizationsdeleted text begin,deleted text endnew text begin;
new text end

new text begin (5) new text endcooperatives created under chapter 308A or 308Bdeleted text begin,deleted text endnew text begin;new text end and

new text begin (6) new text endcommunity land trusts created for the purposes outlined in section 462A.31,
subdivision 1,

for development of workforce and affordable homeownership projects. The purpose of the
program is to increase the supply of workforce and affordable, owner-occupied multifamily
or single-family housing throughout Minnesota.

Subd. 2.

Definitions.

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

(b) "Eligible project area" means a home rule charter or statutory city located outside
of the metropolitan area as defined in section 473.121, subdivision 2, with a population
exceeding 500; a community that has a combined population of 1,500 residents located
within 15 miles of a home rule charter or statutory city located outside the metropolitan
area as defined in section 473.121, subdivision 2; new text beginfederally recognized tribal reservations;
new text end or an area served by a joint county-city economic development authority.

(c) "Joint county-city economic development authority" means an economic development
authority formed under Laws 1988, chapter 516, section 1, as a joint partnership between
a city and county and excluding those established by the county only.

(d) "Market rate residential rental properties" means properties that are rented at market
value, including new modular homes, new manufactured homes, and new manufactured
homes on leased land or in a manufactured home park, and may include rental developments
that have a portion of income-restricted units.

(e) "Qualified expenditure" means expenditures for market rate residential rental
properties including acquisition of property; construction of improvements; and provisions
of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related financing
costs.

Subd. 5.

Allocation.

The amount of a grant or deferred loans may not exceed 25 percent
of the rental housing development project cost. The commissioner shall not award a grant
or deferred loans to deleted text begina citydeleted text end new text beginan eligible project area new text endwithout certification by the deleted text begincitydeleted text end new text begineligible
project area new text endthat the amount of the grant or deferred loans shall be matched bynew text begin:
new text end

new text begin (1) new text enda local unit of governmentdeleted text begin,deleted text endnew text begin;
new text end

new text begin (2) a new text endbusinessdeleted text begin, ordeleted text endnew text begin;
new text end

new text begin (3) a new text endnonprofit organizationnew text begin; or
new text end

new text begin (4) a federally recognized tribe
new text end

with $1 for every $2 provided in grant or deferred loans funds.

Subd. 14.

Rehabilitation loans.

It may agree to purchase, make, or otherwise participate
in the making, and may enter into commitments for the purchase, making, or participation
in the making, of eligible loans for rehabilitation, with terms and conditions as the agency
deems advisable, to persons and families of low and moderate income, and to owners of
existing residential housing for occupancy by such persons and families, for the rehabilitation
of existing residential housing owned by them. The loans may be insured or uninsured and