Purpose of the Bill

The bill aims to give housing and redevelopment authorities in Minnesota the ability to establish public corporations to manage properties under the federal Rental Assistance Demonstration (RAD) program. This is designed to support local authorities in improving and maintaining affordable housing.

Main Provisions

• Authorization for Public Corporations: The bill allows housing and redevelopment authorities to create public corporations. These entities will specifically focus on purchasing, owning, and operating properties that have been converted under the RAD program.
• Funding Eligibility: The new public corporations are permitted to receive certain types of funding from the Minnesota Housing Finance Agency. This could enhance their ability to finance and manage housing properties effectively.

Significant Changes to Existing Law

• Public Corporation Status: The bill amends Minnesota Statutes 2024 section 15.082 to clarify that the state is not liable for the obligations of public corporations established under this legislation. It further stipulates that assets of a dissolved public corporation become state property, either fully or partially, depending on state financial involvement in their acquisition.

• Exemption Provisions: Certain existing statutes, such as chapter 119, and section 469.012, are exempt from the general provisions regarding public corporation dissolution.

Relevant Terms

• Housing and redevelopment authorities
• Public corporations
• Federal Rental Assistance Demonstration (RAD) program
• Minnesota Housing Finance Agency
• Affordable housing
• State liability and obligations