Minnesota Administrative Rules
Agency 148 - Housing Finance Agency
Chapter 4900 - HOUSING LOANS AND GRANTS
Part 4900.0010 - DEFINITIONS
Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1. Scope.
The terms defined in the act, known as the Minnesota housing finance agency law of 1971, have the same meanings when used in these rules as are ascribed to them in the act.
Subp. 2. Act.
"Act" means the Minnesota Housing Finance Agency Law of 1971 in Minnesota Statutes 1971, chapter 462A, as now in effect and as from time to time amended.
Subp. 3. Adjusted income.
"Adjusted income" means the gross annual income, from all sources and before taxes or withholding, of all residents age 18 and over, of a housing unit, after deducting the following:
Subp. 4. Administering entity.
"Administering entity" means a nonprofit or governmental entity, including but not limited to an incorporated county or municipality, a housing redevelopment authority, and a community action organization, which enters into a contract with the agency for the local administration of the home improvement grant or rehabilitation loan program pursuant to parts 4900.0610 to 4900.0700.
Subp. 5. Approved mortgagee.
"Approved mortgagee" means an individual, partnership, corporation, or other business entity that has been approved by the United States Department of Housing and Urban Development.
Subp. 6. Builder.
"Builder" means a person or entity engaged in the business of housing construction who meets all licensing and other requirements of applicable laws, ordinances, and regulations; who possesses satisfactory experience and credit worthiness; and who will enter into an agreement satisfactory to the agency to sell or rent the residential housing constructed in whole or in part from the proceeds of an agency loan to persons and families of low and moderate income.
Subp. 7. Capital contribution of the investors.
have sustained an average occupancy of rent paying tenants of 95 percent or more for the prior 24 months, and have reserves equal to or exceeding the sum that is the greater of $5,000 per dwelling unit or 30 percent of the outstanding principal balance of the mortgage; or
have reserves equal to or exceeding the sum that is the greater of 40 percent of the outstanding principal balance of the mortgage or $5,000 per unit;
as to Section 8 assisted housing, to the date which is the later of:
Subp. 7a. Commissioner.
"Commissioner" means the commissioner employed by the agency, who is the chief administrative officer of the agency.
Subp. 8. Cooperative housing corporation.
"Cooperative housing corporation" means and refers to those corporations which qualify as cooperative housing corporations pursuant to section 216 of the Internal Revenue Code of 1954, as amended.
Subp. 9. Development cost loan.
"Development cost loan" means a loan, or participation in a loan, with or without interest in the discretion of the members, authorized by resolution of the members and made or to be made to a housing sponsor from the housing development fund created by the act, for the purpose of defraying development costs, commonly referred to as a "seed money loan."
Subp. 10. Developmentally disabled.
"Developmentally disabled" means an individual who has a severe, chronic disability which:
Subp. 11. [Repealed by amendment, L 1987 c 187 s 15]
Subp. 11a. Federally subsidized mortgages.
"Federally subsidized mortgages" means loans funded or acquired with the proceeds of bonds or notes the income from which is exempt from taxation under federal law except, where applicable, for federal alternative minimum tax laws, including federally insured mortgages, and loans that are benefited by payments under interest reduction, rental assistance, housing assistance, or other similar programs from agencies or instrumentalities of the federal government to assist persons and families of low and moderate income in obtaining decent, safe, and sanitary housing.
Subp. 12. Gross annual income from self-employment.
"Gross annual income from self-employment" shall be deemed to be the net profit from said self-employment as declared by the applicant in Schedule C, F, or E, Part III, as appropriate, of the United States Internal Revenue Service Form 1040, or such other schedule as may be hereafter promulgated, but including as income all depreciation.
Subp. 12a. HUD.
"HUD" means the United States Department of Housing and Urban Development.
Subp. 13. Housing sponsor.
"Housing sponsor" means an individual, a nonprofit entity, a limited dividend entity, or a cooperative housing corporation engaged in sponsoring a housing project for occupancy by persons and families of low and moderate income.
Subp. 14. Limited dividend or limited dividend entity.
"Limited dividend" or "limited dividend entity" means and refers to those individuals, partnerships, joint ventures, and corporations: which, by their organizational documents or by agreement or otherwise, comply with limitations established by the agency or by other governmental agencies, on the rate of return which such individuals, partnerships, joint ventures, or corporations may realize on investments in proposed housing projects; and which, in the case of corporations, are in compliance with all the provisions of Minnesota Statutes, chapter 301 or 303, whichever is applicable.
Subp. 15. Limited-unit development.
"Limited-unit development" means a loan or grant to a person or family of low or moderate income for new or existing residential housing intended for occupancy by such person or family and by not more than five other families.
Subp. 16. Local community.
"Local community" means and refers to a city, village, or borough, however organized, in the state of Minnesota, and any housing and redevelopment authority created pursuant to the provisions of Minnesota Statutes, sections 469.001 to 469.047.
Subp. 17. [Repealed, 24 SR 1332]
Subp. 18. Members.
"Members" means those persons appointed to the agency pursuant to section 4 of the act.
Subp. 19. Mortgage loan.
"Mortgage loan" means a loan authorized by resolution of the members and made or to be made to a housing sponsor, or to a person or family of low or moderate income, or to a low income purchaser, from the proceeds of sale of the agency's bonds or notes, or from appropriations, for the purpose of providing construction financing, long-term financing, or both, for residential housing, and the payment of which is secured or to be secured.
Subp. 20. Multiunit development.
"Multiunit development" means a loan or grant for new or existing residential housing which is intended for occupancy by more than one family, and the mortgagor of which is a nonprofit or limited dividend entity.
Subp. 21. Nonprofit or nonprofit entity.
"Nonprofit" or "nonprofit entity" means and refers to: housing and redevelopment authorities established under and pursuant to the provisions of Minnesota Statutes, sections 469.001 to 469.047; and those partnerships, joint ventures, corporations, and associations which are established for a purpose not involving pecuniary gain to the members, partners, or shareholders thereof, pay no dividends or other pecuniary remuneration, directly or indirectly, to the members, partners, or shareholders thereof, and in the case of private, nonprofit corporations, are established under and pursuant to Minnesota Statutes, chapter 317A and are in compliance with all the provisions thereof; provided, however, that in no event shall a limited dividend entity be deemed a nonprofit entity.
Subp. 22. Planning grant.
"Planning grant" means a grant authorized by resolution of the members and made or to be made to a local community from the housing development fund, for the purpose of providing funds to assist the local community in planning for land and building acquisition, improvements, renewal, relocation, or conservation on specific sites upon which housing is or will be situated, for occupancy by persons and families of low and moderate income.
Subp. 23. Persons and families of low and moderate income.
"Persons and families of low and moderate income" means:
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $37,500 |
10.01 - 10.50% | $38,500 |
10.51 - 11.00% | $39,500 |
11.01 - 11.50% | $40,500 |
11.51% and over | $41,500 |
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $32,000 |
10.01 - 10.50% | $33,000 |
10.51 - 11.00% | $34,000 |
11.01 - 11.50% | $35,000 |
11.51% and over | $36,000 |
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $28,000 |
10.01 - 10.50% | $29,000 |
10.51 - 11.00% | $30,000 |
11.01 - 11.50% | $31,000 |
11.51% and over | $32,000 |
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $28,000 |
10.01 - 10.50% | $29,000 |
10.51 - 11.00% | $30,000 |
11.01 - 11.50% | $31,000 |
11.51% and over | $32,000 |
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $33,000 |
10.01 - 10.50% | $34,000 |
10.51 - 11.00% | $35,000 |
11.01 - 11.50% | $36,000 |
11.51% and over | $37,000 |
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $26,000 |
10.01 - 10.50% | $27,000 |
10.51 - 11.00% | $28,000 |
11.01 - 11.50% | $29,000 |
11.51% and over | $30,000 |
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $24,000 |
10.01 - 10.50% | $25,000 |
10.51 - 11.00% | $26,000 |
11.01 - 11.50% | $27,000 |
11.51% and over | $28,000 |
Mortgage Interest Rate | Maximum Adjusted Income |
0 - 10.00% | $22,000 |
10.01 - 10.50% | $23,000 |
10.51 - 11.00% | $24,000 |
11.01 - 11.50% | $25,000 |
11.51% and over | $26,000 |
In addition to the requirements in subitems (1) and (2), assuming occupancy of at least 1.5 persons per bedroom:
The members may allow higher rents for units in a structure if the members determine that higher rents are necessary because of prevailing levels of construction costs, unusually high or low family incomes, or similar factors relating to income available for housing or housing costs.
Subp. 24. Section 8.
"Section 8" means Section 8 of the United States Housing Act of 1937, codified at United States Code, title 42, section 1437f.
Subp. 25. Section 236.
"Section 236" means Section 236 of the National Housing Act, codified at United States Code, title 12, section 1715z-1.
Statutory Authority: MS s 14.05; 462A.03; 462A.06