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Background <br /> <br />Minnesota Laws 1979, Chapter 306 requires the Council to review <br />municipal tax-exempt revenue bond proposal's aimed at providing <br />reduced mortgage interest rates for single and multi-family <br />housing. The law limits the income levels to be served, the <br />selling prices and rents of the units, and the total amount of <br />bonds that can be issued by the state, a county, or a municipality. <br />The law also requires municipalities to prepare a housing plan <br />which should include data on local and regional housing needs, <br />and on how the bond issue will help meet the need. The Metropolitan <br />Council must review and comment on local bond plans, and the <br />Minnesota Housing Finance Agency must review and approve the <br />financial aspects of the local bond programs. <br /> <br />On the .federal level, the U.S. House of Representatives is <br />considering the Ullman Bill, which contains provisions to inhibit <br />the ability of state and local government to issue tax-exempt <br />bonds for housing. The Ullman Bill, as reported out of the House <br />Co~m~Littee, permits bond issues approved prior to April 25, 1979 <br />to proceed without the constraints of the proposed legislation. <br />If signed into law, any bond issues not officially authorized <br />before April 25 will not be able to go forward. <br /> <br />Bond issues that have received local (or state) 'approval prior to <br />April 25, 1979, in Minnesota are now covered by the 1979 <br />Minnesota law. <br /> <br />Relationship to Other Council Plan Reviews <br /> <br />The Metropolitan Council has adopted review guidelines for the <br />review of local three-year Housing Assistance Plans-(HAP's)and <br />local housing elements of ten-year comprehensive ptans~-under-the <br />Metropolitan Land Planning Act. The purpose of both reviews is _~ <br />to determine whether the municipality plans to meet its fair share <br />of the Areawide need for low- and moderate-income and modest cost <br />housing on a short or long-term basis. Specific programs to <br />carry out the plans are also reviewed. <br /> <br />Chapter 306 mandates Council review of the following aspects of <br />the local bond plan: <br /> <br />Whether the plan furthers local and regional ~ousing policies. <br /> <br />The compatibility of the housing plan with the housing poFtion <br />of the comprehensive plan of the city, if any. <br /> <br />Whether the plan adequately meets the stated housing needs <br />of the city. <br /> <br />-1- <br /> <br /> <br />