SF2659

Purpose of the Bill

The purpose of this bill is to facilitate the creation and operation of public corporations by housing and redevelopment authorities. These corporations are intended to manage properties converted through the federal Rental Assistance Demonstration (RAD) program.

Main Provisions

• Public Corporations: Housing and redevelopment authorities are authorized to create public corporations. These entities will be responsible for buying, owning, and operating properties that have been converted under the RAD program.
• Funding Access: These public corporations can access certain types of funding from the Minnesota Housing Finance Agency to support their activities.

Significant Changes to Existing Law

• Amended Statutes: Updates are made to several sections of Minnesota Statutes, including provisions that relate to the obligations of public corporations. Notably, public corporations related to housing are being incorporated under chapter 469.
• State Liability: Clarification that the state is not liable for the obligations of public corporations, except under specific conditions as outlined in the amendments.

Relevant Terms

• Housing and Redevelopment Authorities
• Public Corporations
• Federal Rental Assistance Demonstration (RAD) program
• Minnesota Housing Finance Agency
• State Liability