Minnesota Legislature
HF 939
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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A bill for an act
relating to housing; adjusting deed tax percentage; providing rental housing
assistance; establishing a housing account for leverage opportunity; appropriating
money; amending Minnesota Statutes 2006, sections 287.21, subdivision 1;
462A.201, by adding a subdivision; 462A.33, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 462A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin HOUSING SOLUTIONS ACT.
new text end
new text begin
Sections 2 to 6 shall be known as the Housing Solutions Act.
new text end
Sec. 2.
Minnesota Statutes 2006, section 287.21, subdivision 1, is amended to read:
Subdivision 1.
Determination of tax.
(a) A tax is imposed on each deed or
instrument by which any real property in this state is granted, assigned, transferred, or
otherwise conveyed. The tax applies against the net consideration. For purposes of the
tax, the conversion of a corporation to a limited liability company, a limited liability
company to a corporation, a partnership to a limited partnership, a limited partnership to
another limited partnership or other entity, or a similar conversion of one entity to another
does not grant, assign, transfer, or convey real property.
(b) The tax is determined in the following manner: (1) when transfers are made by
instruments pursuant to (i) consolidations or mergers, or (ii) designated transfers, the tax is
$1.65; (2) when there is no consideration or when the consideration, exclusive of the value
of any lien or encumbrance remaining thereon at the time of sale, is $500 or less, the tax is
$1.65; or (3) when the consideration, exclusive of the value of any lien or encumbrance
remaining at the time of sale, exceeds $500, the tax is deleted text begin .0033deleted text end new text begin .005new text end of the net consideration.
(c) If, within six months from the date of a designated transfer, an ownership interest
in the grantee entity is transferred by an initial owner to any person or entity with the
result that the designated transfer would not have been a designated transfer if made to
the grantee entity with its subsequent ownership, then a tax is imposed at .0033 of the
net consideration for the designated transfer. If the subsequent transfer of ownership
interests was reasonably expected at the time of the designated transfer, the applicable
penalty under section 287.31, subdivision 1, must be paid. The deed tax imposed under
this paragraph is due within 30 days of the subsequent transfer that caused the tax to be
imposed under this paragraph. Involuntary transfers of ownership shall not be considered
transfers of ownership under this paragraph. The commissioner may adopt rules defining
the types of transfers to be considered involuntary.
(d) The tax is due at the time a taxable deed or instrument is presented for
recording, except as provided in paragraph (c). The commissioner may require the tax
to be documented in a manner prescribed by the commissioner, and may require that the
documentation be attached to and recorded as part of the deed or instrument. The county
recorder or registrar of titles shall accept the attachment for recording as part of the deed or
instrument and may not require, as a condition of recording a deed or instrument, evidence
that a transfer is a designated transfer in addition to that required by the commissioner.
Such an attachment shall not, however, provide actual or constructive notice of the
information contained therein for purposes of determining any interest in the real property.
The commissioner shall prescribe the manner in which the tax due under paragraph (c) is
to be paid and may require grantees of designated transfers to file with the commissioner
subsequent statements verifying that the tax provided under paragraph (c) does not apply.
Sec. 3.
Minnesota Statutes 2006, section 462A.201, is amended by adding a
subdivision to read:
new text begin Subd. 8. new text end
new text begin Appropriation. new text end
new text begin
An amount equal to the proceeds of the deed tax
under section 287.21, subdivision 1, paragraph (b), clause (3), on .000709 of the net
consideration is appropriated from the general fund to the commissioner of finance for
transfer to the housing development fund and credit to the housing trust fund account to
be used for rental assistance. No more than ten percent of these funds may be used for
operations of rental housing under section 462A.201. This appropriation to the housing
trust fund account shall not supplant current funding levels for housing.
new text end
Sec. 4.
Minnesota Statutes 2006, section 462A.33, is amended by adding a subdivision
to read:
new text begin Subd. 9. new text end
new text begin Appropriation. new text end
new text begin
An amount equal to the proceeds of the deed tax
under section 287.21, subdivision 1, paragraph (b), clause (3), on .000566 of the net
consideration is appropriated from the general fund to the commissioner of finance for
transfer to the housing development fund to be used for the economic development and
housing challenge program. This appropriation to the housing development fund shall not
supplant current funding levels for housing.
new text end
Sec. 5.
new text begin
[462A.35] HOUSING ACCOUNT FOR LEVERAGE OPPORTUNITY.
new text end
new text begin Subdivision 1. new text end
new text begin Created. new text end
new text begin
The housing account for leverage opportunity is an account
created to be administered by the agency.
new text end
new text begin
(a) The fund shall provide matching grants to eligible recipients for preservation,
renovation, or development of affordable home ownership or rental housing.
new text end
new text begin
(b) Not less than 40 percent of the funds in the account are to be available for project
applications submitted by eligible recipients outside of the seven-county metropolitan area
as defined in section 473.121, subdivision 2, and outside of community development
entitlement areas as defined by the United States Department of Housing and Urban
Development.
new text end
new text begin
(c) In any biennial funding cycle, funds not committed to eligible recipients for
affordable housing projects by March 1 of any odd-numbered year shall be available to
provide matching funds for projects of eligible recipients without regard to the limitation
established in paragraph (b).
new text end
new text begin
(d) Only one matching grant may be awarded within the jurisdictional boundaries of
any eligible recipient in any year.
new text end
new text begin Subd. 2. new text end
new text begin Eligible recipients. new text end
new text begin
Matching grants may be made to a county; a city, as
defined in section 462A.03, subdivision 21; a housing and redevelopment authority or
public housing agency, established pursuant to sections 469.001 to 469.047; an economic
development authority, established pursuant to sections 469.090 to 469.1082; a community
development agency, established pursuant to section 383D.41; or a federally recognized
American Indian tribe located in Minnesota.
new text end
new text begin Subd. 3. new text end
new text begin Matching requirements. new text end
new text begin
(a) Grants from the incentive fund must be
matched on a dollar-for-dollar basis by funds or the value of the land provided by eligible
recipients.
new text end
new text begin
(b) The minimum incentive fund grant award is $50,000. The maximum incentive
fund grant award to any eligible recipient in any year is $1,000,000.
new text end
new text begin
(c) Local matching funds may not include funds secured from any other state or
federal program for the project for which eligible recipients submitted application to
the incentive fund.
new text end
new text begin Subd. 4. new text end
new text begin Income limits. new text end
new text begin
Households served through the incentive fund
matching grant must not have incomes at the time of initial occupancy that exceed, for
homeownership projects, 115 percent of the greater of state or area median income as
determined by the United States Department of Housing and Urban Development, and
for rental housing projects, 60 percent of the greater of state or area median income as
determined by the Department of Housing and Urban Development.
new text end
new text begin
Preference among comparable proposals shall be given to those that provide housing
opportunities for the broadest range of incomes within the development.
new text end
Sec. 6. new text begin APPROPRIATION.
new text end
new text begin
An amount equal to the proceeds of the deed tax under section 287.21, subdivision
1, paragraph (b), clause (3), on .000425 or the net consideration is appropriated from the
general fund to the commissioner of finance for transfer to the account established by
section 5.
new text end
new text begin
This appropriation to the housing account for leverage opportunity shall not supplant
current funding levels for housing.
new text end