1.1    .................... moves to amend .... as follows:
1.2Page .., after line .., insert:

1.3"ARTICLE ...

1.6    The amounts shown in this section summarize direct appropriations, by fund, made
1.7in this article.

Sec. 2. HOUSING.
1.13    The sums shown in the columns marked "Appropriations" are appropriated to the
1.14agencies and for the purposes specified. The appropriations are from the general fund, or
1.15another named fund, and are available for the fiscal years indicated for each purpose. The
1.16figures "2008" and "2009" used in this act mean that the appropriations listed under them
1.17are available for the fiscal year ending June 30, 2008, or June 30, 2009, respectively. "The
1.18first year" is fiscal year 2008. "The second year" is fiscal year 2009. "The biennium" is
1.19fiscal years 2008 and 2009. Appropriations for the fiscal year ending June 30, 2007, are
1.20effective the day following final enactment.
Available for the Year
Ending June 30

Subdivision 1.Total Appropriation
Appropriations by Fund
2.5This appropriation is for transfer to the
2.6housing development fund. The amounts
2.7that may be spent from this appropriation
2.8for certain programs are specified in the
2.9following subdivisions. Except as otherwise
2.10indicated, this transfer is part of the agency's
2.11permanent budget base.
2.12Of this amount, $3,075,000 the first year
2.13and $3,075,000 the second year are onetime
2.14appropriations from the state's federal TANF
2.15block grant under Title I of Public Law
2.16Number 104-193 to the commissioner of
2.17human services, to reimburse the housing
2.18development fund for assistance under
2.19the programs for families receiving TANF
2.20assistance under the MFIP program. The
2.21commissioner of human services shall make
2.22monthly reimbursements to the housing
2.23development fund. The commissioner
2.24of human services shall not make any
2.25reimbursement which the commissioner
2.26determines would be subject to a penalty
2.27under Code of Federal Regulations, section
2.28262.1. If the appropriation in either year is
2.29insufficient, the appropriation for the other
2.30year is available.
Subd. 2.Economic Development and Housing
2.33(a) $21,308,000 the first year and $9,622,000
2.34the second year are for the economic
2.35development and housing challenge program
3.1under Minnesota Statutes, section 462A.33,
3.2for housing that:
3.3(i) conserves energy and utilizes sustainable,
3.4healthy building materials;
3.5(ii) preserves sensitive natural areas and
3.6open spaces and minimizes the need for new
3.8(iii) is accessible to jobs and services through
3.9integration with transportation or transit
3.10systems; and
3.11(iv) expands the mix of housing choices in
3.12a community by diversifying the levels of
3.13housing affordability.
3.14The agency may fund demonstration projects
3.15that have unique approaches to achieving the
3.16housing described above.
3.17(b) The base is reduced by $3,407,000 each
3.18year in fiscal year 2010 and fiscal year 2011.
Subd. 3.Housing Trust Fund
3.20$15,195,000 the first year and $11,945,000
3.21the second year are for the housing trust fund
3.22account created under Minnesota Statutes,
3.23section 462A.201, for the purposes of that
3.24section. Of this amount, $1,500,000 the first
3.25year and $1,500,000 in the second year is a
3.26onetime appropriation from the state's federal
3.27TANF block grant. The base is reduced by
3.28$3,390,000 each year in fiscal year 2010 and
3.29fiscal year 2011.
Subd. 4.Bridges Rental Assistance for
Mentally Ill
3.32$3,400,000 the first year and $3,400,000
3.33the second year are for a rental housing
3.34assistance program for persons with a mental
4.1illness or families with an adult member with
4.2a mental illness under Minnesota Statutes,
4.3section 462A.2097.
Subd. 5.Family Homeless Prevention
4.5$7,565,000 the first year and $7,565,000
4.6the second year are for family homeless
4.7prevention and assistance programs under
4.8Minnesota Statutes, section 462A.204. Of
4.9this amount, $1,575,000 in the first year
4.10and $1,575,000 in the second year is a
4.11onetime appropriation from the state's federal
4.12TANF block grant. The base is reduced by
4.13$3,800,000 each year in fiscal year 2010 and
4.14fiscal year 2011.
Subd. 6.Home Ownership Assistance Fund
4.16$1,885,000 the first year and $1,885,000
4.17the second year are for the home ownership
4.18assistance program under Minnesota
4.19Statutes, section 462A.21, subdivision 8.
4.20The base is reduced by $1,000,000 each year
4.21in fiscal year 2010 and fiscal year 2011.
Subd. 7.Affordable Rental Investment Fund
4.23$11,496,000 the first year and $8,996,000
4.24the second year are for the affordable rental
4.25investment fund program under Minnesota
4.26Statutes, section 462A.21, subdivision 8b.
4.27Of this amount, $2,500,000 the first year is a
4.28onetime appropriation.
4.29This appropriation is to finance the
4.30acquisition, rehabilitation, and debt
4.31restructuring of federally assisted rental
4.32property and for making equity take-out loans
4.33under Minnesota Statutes, section 462A.05,
4.34subdivision 39. The owner of the federally
5.1assisted rental property must agree to
5.2participate in the applicable federally assisted
5.3housing program and to extend any existing
5.4low-income affordability restrictions on the
5.5housing for the maximum term permitted.
5.6The owner must also enter into an agreement
5.7that gives local units of government,
5.8housing and redevelopment authorities,
5.9and nonprofit housing organizations the
5.10right of first refusal if the rental property
5.11is offered for sale. Priority must be given
5.12among comparable federally assisted rental
5.13properties to properties with the longest
5.14remaining term under an agreement for
5.15federal rental assistance. Priority must also
5.16be given among comparable rental housing
5.17developments to developments that are or
5.18will be owned by local government units, a
5.19housing and redevelopment authority, or a
5.20nonprofit housing organization.
5.21This appropriation may also be used to
5.22finance the acquisition, rehabilitation, and
5.23debt restructuring of existing supportive
5.24housing properties. For purposes of this
5.25subdivision, "supportive housing" means
5.26affordable rental housing with links to
5.27services necessary for individuals, youth, and
5.28families with children to maintain housing
5.30Of this amount, $2,500,000 is appropriated
5.31for the purposes of financing the
5.32rehabilitation and operating costs to preserve
5.33public housing. For purposes of this
5.34subdivision, "public housing" is housing for
5.35low-income persons and households financed
5.36by the federal government and owned and
6.1operated by public housing authorities and
6.2agencies. Eligible public housing authorities
6.3must have a public housing assessment
6.4system rating of standard or above. Priority
6.5among comparable proposals must be given
6.6to proposals that maximize federal or local
6.7resources to finance the capital and operating
Subd. 8.Housing Rehabilitation and
6.11$5,657,000 the first year and $4,287,000 the
6.12second year are for the housing rehabilitation
6.13and accessibility program under Minnesota
6.14Statutes, section 462A.05, subdivisions 14a
6.15and 15a. The base is reduced by $629,000
6.16each year in fiscal year 2010 and fiscal year
Subd. 9.Urban Indian Housing Program
6.19$187,000 in the first year and $187,000 in
6.20the second year are for the urban Indian
6.21housing program under Minnesota Statutes,
6.22section 462A.07, subdivision 15. The base is
6.23reduced by $52,000 each year in fiscal year
6.242010 and fiscal year 2011.
Subd. 10.Tribal Indian Housing Program
6.26$1,683,000 in the first year and $1,683,000
6.27in the second year are for the tribal Indian
6.28housing program under Minnesota Statutes,
6.29section 462A.07, subdivision 14. The base is
6.30reduced by $468,000 each year in fiscal year
6.312010 and fiscal year 2011.
Subd. 11.Home Ownership Education,
Counseling, and Training
6.34$2,135,000 the first year and $2,135,000
6.35the second year are appropriated for the
7.1home ownership education, counseling, and
7.2training program under Minnesota Statutes,
7.3section 462A.209. The base is reduced by
7.4$1,460,000 each year in fiscal year 2010 and
7.5fiscal year 2011. Of this amount, $630,000
7.6the first year is for:
7.7(1) foreclosure prevention and assistance
7.8activities in communities that have mortgage
7.9foreclosure rates that exceed the statewide
7.10average foreclosure rate for the most recent
7.11quarter for which data is available; and
7.12(2) home buyer education and counseling
7.13activities by organizations that have
7.14experience working with emerging markets
7.15or partner with organizations with experience
7.16working with emerging markets and that have
7.17demonstrated a commitment to increasing the
7.18homeownership rate of emerging markets.
Subd. 12.Capacity Building Grants
7.20$820,000 for the biennium is for capacity
7.21building grants under Minnesota Statutes
7.22section 462A.21, subdivision 3b. Of this
7.23amount, $140,000 is for continuum of
7.24care planning in greater Minnesota. This
7.25appropriation is the agency's base budget for
7.26this program.
Subd. 13.Grant for Hennepin County
7.28$50,000 is a onetime appropriation in the
7.29first year for a grant to Hennepin County
7.30for collaboration with the Center for Urban
7.31and Regional Affairs at the University
7.32of Minnesota for the development of a
7.33predictive, data-driven model that can be
7.34used to identify at-risk properties in order to
7.35target resources to prevent foreclosure.

8.1    Sec. 4. Minnesota Statutes 2006, section 462A.21, subdivision 8b, is amended to read:
8.2    Subd. 8b. Family rental housing. It may establish a family rental housing
8.3assistance program to provide loans or direct rental subsidies for housing for families
8.4with incomes of up to 80 percent of state median income, or to provide grants for the
8.5operating cost of public housing. Priority must be given to those developments with
8.6resident families with the lowest income. The development may be financed by the
8.7agency or other public or private lenders. Direct rental subsidies must be administered by
8.8the agency for the benefit of eligible families. Financial assistance provided under this
8.9subdivision to recipients of aid to families with dependent children must be in the form
8.10of vendor payments whenever possible. Loans, grants, and direct rental subsidies under
8.11this subdivision may be made only with specific appropriations by the legislature. The
8.12limitations on eligible mortgagors contained in section 462A.03, subdivision 13, do not
8.13apply to loans for the rehabilitation of existing housing under this subdivision.

8.14    Sec. 5. Minnesota Statutes 2006, section 462A.33, subdivision 3, is amended to read:
8.15    Subd. 3. Contribution requirement. Fifty percent of the funds appropriated for
8.16this section must be used for challenge grants or loans which meet the requirements of this
8.17subdivision for housing proposals with financial or in-kind contributions from nonstate
8.18resources that reduce the need for deferred loan or grant funds from state resources. These
8.19Challenge grants or loans must be used for economically viable homeownership or rental
8.20housing proposals that:
8.21    (1) include a financial or in-kind contribution from an area employer and either a unit
8.22of local government or a private philanthropic, religious, or charitable organization; and
8.23    (2) address the housing needs of the local work force.
8.24    Among comparable proposals, preference must be given to proposals that include
8.25contributions from nonstate resources for the greatest portion of the total development
8.26cost. Comparable proposals with contributions from local units of government or private
8.27philanthropic, religious, or charitable organizations must be given preference in awarding
8.28grants or loans.
8.29    For the purpose of this subdivision, an employer a contribution may consist partially
8.30or wholly of the premium paid for federal housing tax credits.
8.31    Preference for grants and loans shall also be given to comparable proposals that
8.32include a financial or in-kind contribution from a unit of local government, an area
8.33employer, and a private philanthropic, religious, or charitable organization.

8.34    Sec. 6. Minnesota Statutes 2006, section 469.021, is amended to read:
8.35469.021 PREFERENCES.
9.1    As between applicants equally in need and eligible for occupancy of a dwelling
9.2and at the rent involved, preference shall be given to disabled veterans, persons with
9.3disabilities, and families of service persons who died in service and to families of veterans.
9.4In admitting families of low income to dwelling accommodations in any housing project an
9.5authority shall, as far as is reasonably practicable, give consideration to applications from
9.6families to which aid for dependent children is payable receiving assistance under chapter
9.7256J, and to resident families to whom public assistance or supplemental security income
9.8for the aged, blind, and disabled is payable, when those families are otherwise eligible.

9.10    The commissioner of the Minnesota Housing Finance Agency, in consultation
9.11with the commissioner of commerce, the attorney general, the Minnesota Mortgage
9.12Bankers' Association, Legal Services of Minnesota, the Minnesota Mortgage Foreclosure
9.13Prevention Association, and the Minnesota Sheriffs' Association shall evaluate the
9.14provisions of Minnesota Statutes, sections 580.04 and 580.041, to determine if corrective
9.15actions could be taken by the 2008 legislature to reduce mortgage foreclosures in the state."
9.16Renumber the articles in sequence and correct the internal references
9.17Amend the title accordingly