Subdivision 1. Fort Snelling bonding authority allocation. Notwithstanding any law, rule, or policy to the contrary, the commissioner shall reserve $29,000,000 in bonding authority allocated under section 474A.03 to the Minnesota Housing Finance Agency and $29,000,000 in bonding authority allocated under section 474A.03 to the small issue pool in 2019, and in 2020 if bonds are not permanently issued in 2019 subject to subdivision 3, for issuance of residential rental project bonds for purposes of the rehabilitation and renovation of the Fort Snelling Upper Post as a qualified residential rental project as provided in this section and section 474A.047. The qualified residential rental project shall be required to enter into a minimum 25-year agreement with the issuer to provide the applicable rental rates and incomes. Notwithstanding section 474A.091, subdivision 1, the amount reserved from the small issue pool in each year shall not be transferred to the unified pool but shall continue to be available under this section.

Subd. 2. Issuance; other issuer. Upon application by an eligible issuer on forms prescribed by the department and payment of the required application fee, the commissioner shall allocate the bonding authority under subdivision 1. An issuer receiving this allocation shall be authorized to act as the issuer regardless of its geographical area. In no event shall the bonds issued under this section be guaranteed as to payment by the state or the issuer. An issuer shall not be required to pay a refundable application deposit.

Subd. 3. Failure to permanently issue. In the event the bonds reserved or allocated under this section are not permanently issued by December 1, 2019, or December 1, 2020, as applicable, the bonding authority shall be reallocated to the Minnesota Housing Finance Agency for issuance for a qualified residential rental project.

Subd. 4. Low-income housing tax credits. The redevelopment of the Fort Snelling Upper Post shall be a strategic priority of the state and the Minnesota Housing Finance Agency. If the allocation of bonding authority under subdivision 2 makes the Fort Snelling Upper Post development preliminarily eligible for an allocation of low-income housing tax credits under section 42(h)(4) of the Internal Revenue Code of 1986, as amended, the Minnesota Housing Finance Agency shall promptly process any application or preapplication for low-income housing tax credits submitted under this subdivision pursuant to the qualified allocation plan and shall not require or impose additional criteria, requirements, regulations, or restrictions upon the Fort Snelling Upper Post project that would otherwise undermine the priorities of this section other than as required under section 42 of the Internal Revenue Code of 1986, as amended. The issuer of the bonds under this section and not the Minnesota Housing Finance Agency shall determine the financial feasibility and the reasonableness of the development costs for the project and the Minnesota Housing Finance Agency shall not include in its review of the project any per-unit cost limitations or other similar restrictions. The Minnesota Housing Finance Agency shall consider the legislature's determinations in evaluating the project and granting any requests or making any determinations related to the Fort Snelling Upper Post project to facilitate an allocation of low-income housing tax credits in light of the importance to the state of this unique and historic development.

Subd. 5. State historic structure rehabilitation tax credit. Notwithstanding the provisions of section 290.0681 or section 47(a)(2) of the Internal Revenue Code of 1986, as amended, to the extent the Fort Snelling Upper Post project qualifies for the credit as provided in section 290.0681, the amount of the credit shall be 100 percent of the credit allowed under section 47(a)(2) of the Internal Revenue Code of 1986, as amended, but shall be taken in full in the taxable year in which the qualified rehabilitation expenditures are placed in service for the Fort Snelling Upper Post project rather than ratably as described in section 47(a) of the Internal Revenue Code of 1986, as amended.

History: 2018 c 214 art 3 s 2

NOTE: This section, as added by Laws 2018, chapter 214, article 3, section 2, expires December 31, 2020. Laws 2018, chapter 214, article 3, section 2, the effective date.