HF4901

Purpose

To authorize a new source of funding for the redevelopment of the Glendale Townhomes in Minneapolis by allowing the state housing agency to issue housing infrastructure bonds and provide the bond proceeds as a grant to the Minneapolis Public Housing Authority (MPHA) or to MPHA-affiliated entities.

Main Provisions

• Enables the agency to issue up to $7,000,000 in housing infrastructure bonds, in one or more series, with payments on the bonds pledged as part of the financing.
• Proceeds from the sale of these bonds must be awarded as a grant to MPHA or to one or more MPHA-affiliated entities (including affiliates, limited partnerships, limited liability companies, or other entities in which MPHA has an ownership interest or serves as managing member or general partner).
• The purpose of the grant is the redevelopment of the Glendale Townhomes in the city of Minneapolis.
• This authorization is added as a new subdivision (Subd. 2l) to Minnesota Statutes 2024 section 462A.37.
• The new subdivision is in addition to existing authorizations in subdivisions 1.x, 2 through 2k, and 3a.

Changes to Existing Law

• Adds Subdivision 2l (Additional authorization) to Minnesota Statutes 2024 section 462A.37.
• Explicitly creates a new, capped bond authorization up to $7,000,000 and directs the bond proceeds to be grants for MPHA and its eligible partner entities for the Glendale Townhomes redevelopment.
• Expands the mechanisms for using housing infrastructure bonds to support public housing redevelopment in Minneapolis.

What It Means (Impact)

• Provides a new tool to finance redevelopment of public housing through grants funded by bond sales.
• Strengthens MPHA’s financing options by allowing grants to MPHA and its partner entities involved in the Glendale Townhomes project.
• Could accelerate redevelopment efforts by securing dedicated grant funding via bond proceeds.

Relevant Terms

housing infrastructure bonds; grant; Minneapolis Public Housing Authority (MPHA); Glendale Townhomes; affiliates; limited partnerships; limited liability companies (LLCs); general partner; managing member; one or more series; payments pledged; Minnesota Statutes 2024 section 462A.37; Subdivision 2l; additional authorization; redevelopment; city of Minneapolis.