Bill Text: MN HF2971 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Bond allocation carryforward rules modified.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-03-27 - Introduction and first reading, referred to Taxes [HF2971 Detail]
Download: Minnesota-2011-HF2971-Introduced.html
1.2relating to tax-exempt bonding; modifying the bond allocation carryforward
1.3rules;amending Minnesota Statutes 2010, sections 474A.04, subdivision 1a;
1.4474A.062; 474A.091, subdivision 3a.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 474A.04, subdivision 1a, is amended to
1.7read:
1.8 Subd. 1a. Entitlement reservations; carryforward; deduction. Any amount
1.9returned by an entitlement issuer before July 15 shall be reallocated through the housing
1.10pool. Any amount returned on or after July 15 shall be reallocated through the unified
1.11pool. An amount returned after the last Monday in November shall be reallocated to the
1.12Minnesota housing finance agency.Any amount of bonding authority that an entitlement
1.13issuer carries forward under federal tax law that is not permanently issued or for which
1.14the governing body of the entitlement issuer has not enacted a resolution electing to use
1.15the authority for mortgage credit certificates and has not provided a notice of issue to the
1.16commissioner before 4:30 p.m. on the last business day in December of the succeeding
1.17calendar year shall be deducted from the entitlement allocation for that entitlement issuer
1.18in the next succeeding calendar year. Any amount deducted from an entitlement issuer's
1.19allocation under this subdivision shall be reallocated to other entitlement issuers, the
1.20housing pool, the small issue pool, and the public facilities pool on a proportional basis
1.21consistent with section
474A.03.
1.22EFFECTIVE DATE.This section is effective the day following final enactment
1.23and applies to any bonding authority allocated in 2011 and subsequent years.
2.1 Sec. 2. Minnesota Statutes 2010, section 474A.062, is amended to read:
2.2474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY
2.3ISSUANCE EXEMPTION.
2.4The Minnesota Office of Higher Education is exempt from the 120-day issuance
2.5requirements in this chapter and may carry forward allocations for student loan bonds
2.6into one successive calendar year, subject to carryforward notice requirements of section
2.7474A.131, subdivision 2
.
2.8EFFECTIVE DATE.This section is effective the day following final enactment
2.9and applies to any bonding authority allocated in 2011 and subsequent years.
2.10 Sec. 3. Minnesota Statutes 2010, section 474A.091, subdivision 3a, is amended to read:
2.11 Subd. 3a. Mortgage bonds. (a) Bonding authority remaining in the unified pool on
2.12October 1 is available for single-family housing programs for cities that applied in January
2.13and received an allocation under section474A.061, subdivision 2a , in the same calendar
2.14year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
2.15bonds pursuant to this section, minus any amounts for a city or consortium that intends to
2.16issue bonds on its own behalf under paragraph (c).
2.17(b) The agency may issue bonds on behalf of participating cities. The agency shall
2.18request an allocation from the commissioner for all applicants who choose to have the
2.19agency issue bonds on their behalf and the commissioner shall allocate the requested
2.20amount to the agency. Allocations shall be awarded by the commissioner each Monday
2.21commencing on the first Monday in October through the last Monday in November for
2.22applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
2.23For cities who choose to have the agency issue bonds on their behalf, allocations
2.24will be made loan by loan, on a first-come, first-served basis among the cities. The
2.25agency shall submit an application fee pursuant to section474A.03, subdivision 4 , and an
2.26application deposit equal to two percent of the requested allocation to the commissioner
2.27when requesting an allocation from the unified pool. After awarding an allocation and
2.28receiving a notice of issuance for mortgage bonds issued on behalf of the participating
2.29cities, the commissioner shall transfer the application deposit to the Minnesota Housing
2.30Finance Agency.
2.31For purposes of paragraphs (a) to (d), "city" means a county or a consortium of
2.32local government units that agree through a joint powers agreement to apply together
2.33for single-family housing programs, and has the meaning given it in section462C.02,
2.34subdivision 6 . "Agency" means the Minnesota Housing Finance Agency.
3.1(c) Any city that received an allocation pursuant to section474A.061, subdivision
3.22a, paragraph (f) , in the current year that wishes to receive an additional allocation from
3.3the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement
3.4shall notify the Minnesota Housing Finance Agency by the third Monday in September.
3.5The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its
3.6own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount
3.7requested, or (ii) the product of the total amount available for mortgage bonds from the
3.8unified pool, multiplied by the ratio of the population of each city that applied in January
3.9and received an allocation under section474A.061, subdivision 2a , in the same calendar
3.10year, as determined by the most recent estimate of the city's population released by the
3.11state demographer's office to the total of the population of all the cities that applied in
3.12January and received an allocation under section474A.061, subdivision 2a , in the same
3.13calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers
3.14agreement is located within a county that has also chosen to issue bonds on its own behalf
3.15or through a joint powers agreement, the city's population will be deducted from the
3.16county's population in calculating the amount of allocations under this paragraph.
3.17The Minnesota Housing Finance Agency shall notify each city choosing to issue
3.18bonds on its own behalf or pursuant to a joint powers agreement of the amount of its
3.19allocation by October 15. Upon determining the amount of the allocation of each choosing
3.20to issue bonds on its own behalf or through a joint powers agreement, the agency shall
3.21forward a list specifying the amounts allotted to each city.
3.22A city that chooses to issue bonds on its own behalf or through a joint powers
3.23agreement may request an allocation from the commissioner by forwarding an application
3.24with an application fee pursuant to section474A.03, subdivision 4 , and an application
3.25deposit equal to two percent of the requested amount to the commissioner no later than
3.264:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that
3.27choose to issue bonds on their own behalf shall be awarded by the commissioner on
3.28the first Monday after October 15 through the last Monday in November. No city may
3.29receive an allocation from the commissioner after the last Monday in November. The
3.30commissioner shall allocate the requested amount to the city or cities subject to the
3.31limitations under this subdivision.
3.32If a city issues mortgage bonds from an allocation received under this paragraph,
3.33the issuer must provide for the recycling of funds into new loans. If the issuer is not
3.34able to provide for recycling, the issuer must notify the commissioner in writing of the
3.35reason that recycling was not possible and the reason the issuer elected not to have the
3.36Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money
4.1generated from the repayment and prepayment of loans for further eligible loans or for the
4.2redemption of bonds and the issuance of current refunding bonds.
4.3(d) No entitlement city or county or city in an entitlement county may apply for or
4.4be allocated authority to issue mortgage bonds or use mortgage credit certificates from
4.5the unified pool.
4.6(e) An allocation awarded to the agency for mortgage bonds under this section
4.7may be carried forward by the agencyinto the next succeeding calendar year subject to
4.8notice requirements under section474A.131 and is available until the last business day in
4.9December of that succeeding calendar year.
4.10EFFECTIVE DATE.This section is effective the day following final enactment
4.11and applies to any bonding authority allocated in 2011 and subsequent years.
4.12 Sec. 4. CARRYFORWARD OF BONDING AUTHORITY FOR 2008, 2009, AND
4.132010; NO DEDUCTION FROM ENTITLEMENT ALLOCATION.
4.14Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, and Laws
4.152009, chapter 88, article 6, section 27, bonding authority that was allocated to an
4.16entitlement issuer in 2008, 2009, and 2010 and that was carried forward under federal
4.17tax law, but for which the entitlement issuer did not provide a notice of issue to the
4.18commissioner of management and budget before 4:30 p.m. on the last business day of
4.19December 2011 must not be deducted from the entitlement allocation for that entitlement
4.20issuer in 2012.
4.21EFFECTIVE DATE.This section is effective the day following final enactment
4.22and applies retroactively to rescind any reallocation by the commissioner of management
4.23and budget under Minnesota Statutes, section 474A.04, subdivision 1a, of any amounts so
4.24deducted.
1.3rules;amending Minnesota Statutes 2010, sections 474A.04, subdivision 1a;
1.4474A.062; 474A.091, subdivision 3a.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 474A.04, subdivision 1a, is amended to
1.7read:
1.8 Subd. 1a. Entitlement reservations
1.9returned by an entitlement issuer before July 15 shall be reallocated through the housing
1.10pool. Any amount returned on or after July 15 shall be reallocated through the unified
1.11pool. An amount returned after the last Monday in November shall be reallocated to the
1.12Minnesota housing finance agency.
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22EFFECTIVE DATE.This section is effective the day following final enactment
1.23and applies to any bonding authority allocated in 2011 and subsequent years.
2.1 Sec. 2. Minnesota Statutes 2010, section 474A.062, is amended to read:
2.2474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY
2.3ISSUANCE EXEMPTION.
2.4The Minnesota Office of Higher Education is exempt from the 120-day issuance
2.5requirements in this chapter and may carry forward allocations for student loan bonds
2.6
2.8EFFECTIVE DATE.This section is effective the day following final enactment
2.9and applies to any bonding authority allocated in 2011 and subsequent years.
2.10 Sec. 3. Minnesota Statutes 2010, section 474A.091, subdivision 3a, is amended to read:
2.11 Subd. 3a. Mortgage bonds. (a) Bonding authority remaining in the unified pool on
2.12October 1 is available for single-family housing programs for cities that applied in January
2.13and received an allocation under section
2.14year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
2.15bonds pursuant to this section, minus any amounts for a city or consortium that intends to
2.16issue bonds on its own behalf under paragraph (c).
2.17(b) The agency may issue bonds on behalf of participating cities. The agency shall
2.18request an allocation from the commissioner for all applicants who choose to have the
2.19agency issue bonds on their behalf and the commissioner shall allocate the requested
2.20amount to the agency. Allocations shall be awarded by the commissioner each Monday
2.21commencing on the first Monday in October through the last Monday in November for
2.22applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
2.23For cities who choose to have the agency issue bonds on their behalf, allocations
2.24will be made loan by loan, on a first-come, first-served basis among the cities. The
2.25agency shall submit an application fee pursuant to section
2.26application deposit equal to two percent of the requested allocation to the commissioner
2.27when requesting an allocation from the unified pool. After awarding an allocation and
2.28receiving a notice of issuance for mortgage bonds issued on behalf of the participating
2.29cities, the commissioner shall transfer the application deposit to the Minnesota Housing
2.30Finance Agency.
2.31For purposes of paragraphs (a) to (d), "city" means a county or a consortium of
2.32local government units that agree through a joint powers agreement to apply together
2.33for single-family housing programs, and has the meaning given it in section
2.34subdivision 6
3.1(c) Any city that received an allocation pursuant to section
3.22a, paragraph (f)
3.3the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement
3.4shall notify the Minnesota Housing Finance Agency by the third Monday in September.
3.5The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its
3.6own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount
3.7requested, or (ii) the product of the total amount available for mortgage bonds from the
3.8unified pool, multiplied by the ratio of the population of each city that applied in January
3.9and received an allocation under section
3.10year, as determined by the most recent estimate of the city's population released by the
3.11state demographer's office to the total of the population of all the cities that applied in
3.12January and received an allocation under section
3.13calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers
3.14agreement is located within a county that has also chosen to issue bonds on its own behalf
3.15or through a joint powers agreement, the city's population will be deducted from the
3.16county's population in calculating the amount of allocations under this paragraph.
3.17The Minnesota Housing Finance Agency shall notify each city choosing to issue
3.18bonds on its own behalf or pursuant to a joint powers agreement of the amount of its
3.19allocation by October 15. Upon determining the amount of the allocation of each choosing
3.20to issue bonds on its own behalf or through a joint powers agreement, the agency shall
3.21forward a list specifying the amounts allotted to each city.
3.22A city that chooses to issue bonds on its own behalf or through a joint powers
3.23agreement may request an allocation from the commissioner by forwarding an application
3.24with an application fee pursuant to section
3.25deposit equal to two percent of the requested amount to the commissioner no later than
3.264:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that
3.27choose to issue bonds on their own behalf shall be awarded by the commissioner on
3.28the first Monday after October 15 through the last Monday in November. No city may
3.29receive an allocation from the commissioner after the last Monday in November. The
3.30commissioner shall allocate the requested amount to the city or cities subject to the
3.31limitations under this subdivision.
3.32If a city issues mortgage bonds from an allocation received under this paragraph,
3.33the issuer must provide for the recycling of funds into new loans. If the issuer is not
3.34able to provide for recycling, the issuer must notify the commissioner in writing of the
3.35reason that recycling was not possible and the reason the issuer elected not to have the
3.36Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money
4.1generated from the repayment and prepayment of loans for further eligible loans or for the
4.2redemption of bonds and the issuance of current refunding bonds.
4.3(d) No entitlement city or county or city in an entitlement county may apply for or
4.4be allocated authority to issue mortgage bonds or use mortgage credit certificates from
4.5the unified pool.
4.6(e) An allocation awarded to the agency for mortgage bonds under this section
4.7may be carried forward by the agency
4.8notice requirements under section
4.9
4.10EFFECTIVE DATE.This section is effective the day following final enactment
4.11and applies to any bonding authority allocated in 2011 and subsequent years.
4.12 Sec. 4. CARRYFORWARD OF BONDING AUTHORITY FOR 2008, 2009, AND
4.132010; NO DEDUCTION FROM ENTITLEMENT ALLOCATION.
4.14Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, and Laws
4.152009, chapter 88, article 6, section 27, bonding authority that was allocated to an
4.16entitlement issuer in 2008, 2009, and 2010 and that was carried forward under federal
4.17tax law, but for which the entitlement issuer did not provide a notice of issue to the
4.18commissioner of management and budget before 4:30 p.m. on the last business day of
4.19December 2011 must not be deducted from the entitlement allocation for that entitlement
4.20issuer in 2012.
4.21EFFECTIVE DATE.This section is effective the day following final enactment
4.22and applies retroactively to rescind any reallocation by the commissioner of management
4.23and budget under Minnesota Statutes, section 474A.04, subdivision 1a, of any amounts so
4.24deducted.
