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RELEVANT LINKS: <br />Minn. Stat. ch. 462A. For <br />more information about <br />MHFA programs, contact <br />MHFA at 400 Sibley Street <br />Suite 300, St. Paul, MN <br />55101-1998 (651) 296-7608 <br />or (800) 657-3769. <br />Minn. Stat. § 462A.073 et <br />seq. <br />MHFA: Minnesota City <br />Participation Program. <br />Minn. Stat. ch. 116J. <br />Minnesota Department of <br />Employment and Economic <br />Development. <br />A city may issue bonds or other obligations to provide an amount equal to <br />the sum of the abatements granted for a specific property. The maximum <br />principal amount of these bonds may not exceed the estimated sum of the <br />abatements for the property for the years authorized. The bonds may be <br />general obligations of the city if the city council chooses to pledge the full <br />faith and credit of the city in the resolution issuing the bonds. The law <br />limits property tax abatements to 15 years. School districts and counties <br />have similar abatement powers. A city, county, and school district can <br />agree to abate their taxes on the same property. <br />IV. State-sponsored development tools <br />A. Minnesota Housing Finance Agency <br />The goals of the Minnesota Housing Finance Agency (MHFA) are to <br />provide decent, affordable housing to low- and moderate -income people; <br />preserve the existing housing stock in Minnesota; preserve existing <br />neighborhoods and prevent them from deteriorating; and prevent mortgage <br />foreclosures while promoting energy conservation in residential housing. <br />The Minnesota Legislature created the MHFA in response to a shortage of <br />affordable housing for low- and moderate -income people. Private <br />enterprise and private investment were unable, without public assistance, <br />to provide an adequate supply of safe, sanitary, and decent housing at <br />affordable prices and rents. <br />The sale of state tax-exempt bonds is the primary financing for MFHA <br />programs. Through the Minnesota City Participation Program, Minnesota <br />Housing sells mortgage revenue bonds on behalf of cities to meet locally <br />identified housing needs. The proceeds of these bonds provide below- <br />market interest rate home mortgage loans for low- and moderate -income, <br />first-time homebuyers, or for the construction or rehabilitation of single - <br />and multi -family housing. Appropriations from the Legislature provide <br />additional funding for programs, including the promotion of energy <br />conservation; an increase in home ownership opportunities for first time <br />homebuyers; home improvement grants to very low-income homeowners; <br />and programs to improve the housing available to Native Americans, large <br />families, and people with disabilities. <br />B. Department of Employment and Economic <br />Development (DEED) <br />The Minnesota Department of Employment and Economic Development is <br />the primary development agency for Minnesota. <br />League of Minnesota Cities Handbook for Minnesota Cities 11/4/2014 <br />Community Development and Redevelopment Chapter 151 Page 20 <br />