.................... moves to amend H.F. No. 1298 as follows:
Page .., after line .., insert:
"Sec. .... Minnesota Statutes 2008, section 287.04, is amended to read:
The tax imposed by section
does not apply to:
(a) A decree of marriage dissolution or an instrument made pursuant to it.
(b) A mortgage given to correct a misdescription of the mortgaged property.
(c) A mortgage or other instrument that adds additional security for the same debt
for which mortgage registry tax has been paid.
(d) A contract for the conveyance of any interest in real property, including a
contract for deed.
(e) A mortgage secured by real property subject to the minerals production tax of
(f) The principal amount of a mortgage loan made under a low and moderate
income or other affordable housing program, if the mortgagee is a federal, state, or local
(g) Mortgages granted by fraternal benefit societies subject to section
(h) A mortgage amendment or extension, as defined in section
(i) An agricultural mortgage if the proceeds of the loan secured by the mortgage are
used to acquire or improve real property classified under section
273.13, subdivision 23
paragraph (a), or (b), clause (1), (2), or (3).
(j) A mortgage on an armory building as set forth in section
1.23(k) A second mortgage under section 462A.2091 that secures repayment of a tax
1.24credit advance loan for first-time homebuyers.
1.25EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. .... [462A.2094] TAX CREDIT ADVANCE LOAN PROGRAM FOR
2.3(a) The agency may develop the tax credit advance loan program for first-time
2.4homebuyers. The program provides loans to first-time homebuyers who are eligible for
2.5the federal first-time homebuyer credit. The maximum tax credit advance loan is the lesser
2.6of (i) 8.5 percent of the purchase price of the home, or (ii) $6,750. The agency may charge
2.7reasonable servicing fees associated with issuing and administering tax credit advance
2.8loans. The agency shall require the first-time homebuyer to execute a promissory note
2.9secured by a second mortgage on the property being purchased to secure repayment of the
2.10loan as referenced in paragraph (e). The agency may issue taxable or tax-exempt bonds to
2.11fund the tax credit advance loan program. The agency may only issue loans under this
2.12program when the federal first-time homebuyer credit is in effect.
2.13(b) For purposes of this section, "federal first-time homebuyer credit" means the
2.14credit allowed under section 36 of the Internal Revenue Code, and "first-time homebuyer"
2.15has the meaning given in section 36 of the Internal Revenue Code.
2.16(c) To be eligible for a tax credit advance loan, a first-time homebuyer must:
2.17(i) meet the eligibility requirements for the federal first-time homebuyer credit;
2.18(ii) use the tax credit advance loan in conjunction with a conventional loan at a
2.1930-year fixed rate mortgage to buy a home; and
2.20(iii) agree to apply for the federal first-time homebuyer credit and use the credit
2.21refund to repay the tax credit advance loan.
2.22(d) The tax credit advance loan agreement between the agency and the homebuyer
2.24(i) a statement of servicing fees associated with the loan; and
2.25(ii) a schedule of principal and interest payments that will be due over a ten-year
2.26period if the homebuyer does not repay the loan by June 30 of the calendar year following
2.27the year in which the loan is received.
2.28(e) If the homebuyer applies for a federal first-time homebuyer credit and repays
2.29the tax credit advance loan on or before June 30 of the calendar year following the year
2.30in which the tax credit advance loan is received, there is no interest on the loan. If the
2.31homebuyer does not repay the tax credit advance loan on or before June 30 of the calendar
2.32year following the calendar year in which the tax credit advance loan is received, the
2.33homebuyer must make principal and interest payments over a ten-year period to repay the
2.34loan, with the interest rate equal to the rate in the 30-year conventional mortgage entered
2.35into in conjunction with the tax credit advance loan. The agency may submit claims for
3.1debts owed due to failure to make principal and interest payments as provided under
3.2the revenue recapture act in chapter 270A.
3.3EFFECTIVE DATE.This section is effective following final enactment.
Renumber the sections in sequence and correct the internal references
Amend the title accordingly