Purpose of the Bill

The goal of this bill is to grant housing and redevelopment authorities in Minnesota the ability to form public corporations. These entities would be specifically created to handle properties involved with the federal Rental Assistance Demonstration (RAD) program.

Main Provisions

• Formation of Public Corporations: Housing authorities can create public corporations to manage properties converted through the RAD program. This expands their capability to not just oversee but also purchase, own, and operate these properties.

• Funding Access: These corporations will be eligible to receive certain types of funding through the Minnesota Housing Finance Agency. This would provide them with financial resources to effectively manage and maintain the properties under their control.

Significant Changes to Existing Law

• Amendments to Existing Statutes: Changes are proposed to several Minnesota Statutes sections, including section 15.082 and sections 462A.202 subdivision 3a, 462C.02 subdivision 6, and 469.012 subdivision 2j. These amendments will facilitate the operation of public corporations for housing purposes.

• State Liability Clarification: The bill specifies that the state of Minnesota will not be liable for obligations incurred by these public corporations. Upon dissolution, assets owned entirely by the public corporation will become state property. Partially owned assets will also become state property, proportional to state funding used for their acquisition.

Relevant Terms

public corporations, Rental Assistance Demonstration program, housing authorities, Minnesota Housing Finance Agency, state liability, property management, federal program, RAD, housing finance, statute amendments, asset ownership.