FIRST REGULAR SESSION
94TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE COX.
Read 1st time February 8, 2007 and copies ordered printed.
D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To repeal sections 33.571, 67.974, 215.033, 215.050, 215.311, and 215.347, RSMo, and to enact in lieu thereof four new sections relating to housing funds.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 33.571, 67.974, 215.033, 215.050, 215.311, and 215.347, RSMo, are repealed and four new sections enacted in lieu thereof, to be known as sections 33.571, 67.974, 215.311, and 215.347, to read as follows:
33.571. 1. The attorney general's court costs fund established by section 27.080, RSMo; the microfilming service revolving fund established by section 28.085, RSMo; the central check mailing service revolving fund established by section 30.245, RSMo; the revenue sharing trust fund established by section 30.900, RSMo; the Missouri veterans home fund and the Missouri state rehabilitation center fund established by section 31.010, RSMo; the state institutions gift trust fund established by section 33.563; the Missouri state surplus property clearing fund established by section 37.090, RSMo; [the tort defense fund established by section 105.710, RSMo;] the grade crossing fund established by section 152.032, RSMo; the handicapped children's trust fund established by section 162.790, RSMo; the state guaranty student loan fund established by section 173.120, RSMo; the special fund for the vocational rehabilitation of persons established by section 178.630, RSMo; the library service fund established by section 181.025, RSMo; the medical services fund established by section 192.255, RSMo; the crippled children's service fund established by section 201.090, RSMo; the Missouri clean water fund established by section 644.051, RSMo; [the housing development fund established by section 215.050, RSMo;] the national historic preservation fund established by section 253.022, RSMo; the state park board building fund established by section 253.230, RSMo; [the Missouri federal water projects recreation fund established by section 640.510, RSMo;] the marketing development fund established by section 261.035, RSMo; the state fair fees fund established by section 262.260, RSMo; the state fair trust fund established by section 262.262, RSMo; [the abandoned fund account established by section 362.395, RSMo;] the public service commission fund established by section 386.370, RSMo; the escheats fund established by section 470.020, RSMo; [the professional liability review board fund established by section 538.055, RSMo;] and the highway patrol academy fund established by section 590.145, RSMo, are abolished. All balances in any of those funds on September 28, 1983, may be, as deemed necessary by the state treasurer and commissioner of administration, transferred to the general revenue fund. Prior to such date, any of the funds listed in this section which may be determined to be required for the continued custody or receipt of money or property under the terms of any testamentary instrument or indenture of trust, or from which repayment of any bonded indebtedness is to be made, shall be certified by the commissioner of administration to the state treasurer and upon such certification, shall be exempted from the provisions of this section. He shall notify the revisor of statutes if such changes are made so that appropriate notations may be made in the revised statutes.
2. The state treasurer and the commissioner of administration shall establish appropriate accounts within the state treasury and in accordance with the state's accounting methods, and those accounts shall be the successors to the enumerated funds. Any receipt required to be deposited in the treasury to the credit of a particular fund which is abolished shall be deposited in the general revenue fund instead and shall be credited to the successor account. Any disbursement required to be made from a particular fund which is abolished shall be made from the general revenue fund and shall be charged to the successor account, but no disbursement from the general revenue fund shall be approved whenever such disbursement exceeds the balance available in the designated successor account. When enacting appropriations, the general assembly may establish such accounts within the general revenue fund as it deems necessary and appropriate to control expenditures, and any appropriation authorizing an expenditure from the general revenue fund shall specify the appropriate account within the general revenue fund.
3. The state treasurer, the director of revenue, the commissioner of administration and others are specifically empowered to make necessary changes and adjustments so as to properly reflect state receipts and disbursements which may be received or expended for particular purposes, but it is the intent of the general assembly by this enactment to transfer moneys affected thereby to the general revenue fund for handling and investment. The revisor of statutes shall prepare necessary bills to change the revised statutes so as to reflect this intent.
67.974. Each residential renovation loan commission may:
(1) Receive, hold and convey title to real estate on projects carried out by the commission [and receive and use for the purposes described in sections 67.970 to 67.983 any grants or loans made by the Missouri housing development commission pursuant to section 215.035 or 215.050, RSMo];
(2) Approve all proposed purchases of residences for renovation;
(3) Approve the workmen who will perform the renovation and reconstruction work; the workmen, to be selected from the local labor force, shall be capable of performing the work for which they will be hired, and shall be, as far as practicable, persons who are not employed on a regular basis and who are indigenous to the areas which are selected for renovation activity;
(4) Contract and be contracted with;
(5) Seek such legal and other professional and staff assistance deemed necessary to carry out the purposes of this section;
(6) Sell the residences renovated, but such sales shall be subject to the following requirements:
(a) All residences sold which were acquired from a land reutilization authority pursuant to section 92.810, RSMo, and at least seventy-five percent of all residences sold shall be sold to persons who qualify for low-income housing ownership benefits under federal or state law, or both, as determined annually by the residential renovation loan commission;
(b) Each residence shall be sold only to a person who will be the actual owner of record of the residence and will actually occupy the residence for a period of not less than five years;
(c) Each residence shall be sold at a price which will allow the commission to recover all costs incurred by it in acquiring, renovating, and selling such residence, including, but not limited to, the purchase price paid for such residence, labor, materials, and other renovation expenses and any reimbursement of expenses made to a land reutilization authority for property acquired pursuant to section 92.810, RSMo;
(7) Do all other things necessary to implement and administer the residential renovation program authorized by sections 67.970 to 67.983.
215.311. 1. An owner of a multifamily rental housing project seeking additional subsidies for the property shall file with the Missouri housing development commission a request for subsidies in such form and manner as the Missouri housing development commission shall prescribe. Upon receipt of a notice of intent, the Missouri housing development commission shall provide the owner with such information as the owner needs to prepare a plan to expand affordability, which information shall include a description of the state incentives authorized under sections 215.300 to 215.318 and the affordability restrictions placed on properties whose owners are granted the additional subsidies. The owner may submit the plan to expand affordability to the Missouri housing development commission in such form and manner as the Missouri housing development commission shall prescribe.
2. The plan to expand affordability shall include:
(1) A description of any incentive that the owner is requesting from the state or local government agencies as determined by prior consultation between the owner and any appropriate state or local agencies;
(2) An assessment of the effect of the grant of the proposed incentives on present and future tenants dwelling at the property, including, but not limited to, affordability and maintenance of units of the property;
(3) Any other information that the Missouri housing development commission determines is necessary to achieve the purposes of sections 215.300 to 215.318.
3. The owner may from time to time revise and amend the plan of action as may be necessary to obtain approval of the plan under this section.
4. After receiving a plan of action from an owner of a multifamily rental housing project, the Missouri housing development commission may enter into such agreements as are necessary to satisfy the criteria for approval under section 215.314.
5. Such agreements may include the provision to the owner by the state or local government of one or more of the following incentives that the Missouri housing development commission determines to be necessary including:
(1) State income tax credits, pursuant to section 32.115, RSMo;
(2) Recommendations to local governments to grant property tax abatements;
[(3) Financing for second mortgages from the housing development fund as established by section 215.050;
(4) Grants from the housing development fund as established by section 215.050.]
215.347. 1. The workfare renovation project shall have the following goals:
(1) To assist low-income individuals in learning a trade by providing them with an opportunity to participate in the renovation of urban core property; and
(2) To create tax-producing property for the participating cities out of existing urban core city property.
2. The governing body of any city defined in section 215.345, by enacting the appropriate ordinances, may participate in the workfare renovation project by donating existing inner-city property to the project, submitting a plan for renovation in the city to the commission and establishing an agency to administer the project in such city pursuant to any authority delegated to such agency by the commission. In any city not within a county or any city with at least three hundred fifty thousand inhabitants which is located in more than one county, the Missouri housing development commission using available state resources shall assign, either directly or through contract, staff to oversee each respective city's project. In any city not within a county, such staff shall annually report the progress of the project to the mayor and the board of aldermen.
3. The commission may:
(1) Receive, hold and convey title to real estate on the workfare renovation project carried out by the participating city and receive [and use for the purposes described in sections 215.340 to 215.355 any grants or loans made by the commission pursuant to section 215.035 or section 215.050];
(2) Approve all proposed inner-city property for renovation;
(3) Approve the workers who will perform the renovation and reconstruction work. The workers, to be selected from the local labor force, shall be capable of performing the work for which they will be hired, and shall be, as far as practicable, persons who are classified as low income or receiving public assistance and who are indigenous to the areas which are selected for renovation activity;
(4) Contract and be contracted with;
(5) Seek such legal and other professional and staff assistance deemed necessary to carry out the purposes of sections 215.340 to 215.355;
(6) Sell the properties renovated, but such sales shall be subject to the following requirements:
(a) Each property shall be sold only to a person who will be the actual owner of record of the property and will actually occupy the property for a period of not less than five years; and
(b) Each property shall be sold at a price which will allow the commission to recover all costs incurred by it in renovating and selling such property, including, but not limited to, the labor, materials and other renovation expenses;
(7) Do all other things necessary to implement and administer the residential renovation program authorized by sections 215.340 to 215.355, including administering a revolving fund for continued funding and operations of the program, and submitting an annual report on expenditures made in the previous fiscal year by December first, beginning in 1999, to the state auditor, the speaker of the house and the president pro tem of the senate;
(8) Utilize all appropriate tax credit and wage diversion programs offered through state departments to assist low-income residents of this state in becoming self-sufficient through the workfare renovation project.
4. No rule or portion of a rule promulgated pursuant to the authority of sections 215.340 to 215.355 shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo. The provisions of this section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, including the ability to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule, are subsequently held unconstitutional, then the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.
[215.033. 1. The Missouri housing development commission is hereby granted all powers necessary to create a nonprofit corporation to promote one or more housing equity funds to serve the state of Missouri. The nonprofit corporation shall be known as the "Missouri Equity Fund Support Corporation". The purpose of the housing equity fund is to receive annual capital investments from investors and to invest those funds in the construction or renovation of affordable housing units for low-income families throughout the state of Missouri. The nonprofit corporation shall not be deemed to be a political subdivision of the state and shall not be subject to the requirements of chapter 610, RSMo.
2. As used in this section, the following terms mean:
(1) "Developer", any entity responsible for a tax credit development;
(2) "Housing equity fund", the fund or funds established to receive and invest moneys invested by the investors in tax credit developments;
(3) "Investors", individuals, profit-making private corporations, partnerships or other entities which invest money in the housing equity fund and who generally pay Missouri income taxes;
(4) "Nonprofit corporation", the "Missouri Equity Fund Support Corporation";
(5) "Tax credit development", a development which constructs or rehabilitates affordable housing in the state of Missouri which is eligible for state and federal low-income housing tax credits, or federal rehabilitation tax credits. 3. The nonprofit corporation shall establish and operate, or assist and advise in the establishment and operation of the housing equity fund which receives investments from investors and invest such funds in tax credit developments.
4. The nonprofit corporation shall have the following powers:
(1) To contract with corporations and partnerships operating or intending to operate a housing equity fund, to provide to them in exchange for reasonable compensation the following services:
(a) Legal counsel and representation;
(b) Technical assistance;
(c) Administrative assistance;
(d) Marketing of the housing equity fund to potential investors;
(e) Investment underwriting assistance;
(2) To sue and be sued;
(3) To engage in and contract for any and all types of services, actions or endeavors, not contrary to the law, necessary to the successful and efficient operation and continuation of the business and purposes for which it is created;
(4) To purchase, receive, lease or otherwise acquire, own, hold, improve, use, sell, convey, exchange, transfer and otherwise dispose of real and personal property, or any interest therein, or other assets wherever situated; and
(5) To incur liabilities and borrow money at rates of interest up to the market rate.
5. The governor shall appoint a board of directors to oversee the nonprofit corporation. The board shall consist of a total of sixteen members, who have demonstrated knowledge of housing and related issues. Such board shall include the following:
(1) A representative of real estate brokers and agents;
(2) A representative of residential appraisers;
(3) A representative of affordable housing advocates, which include homeless service providers, not-for-profit social service organizations and not-for-profit housing providers;
(4) A representative of the home construction industry;
(5) A representative of banking and savings and loan institutions;
(6) Five representatives of investors who have made capital investments in housing equity funds which have entered, or can reasonably be expected to enter, into service contracts with the nonprofit corporation, or representatives of the investment partners of such investors. If unable to select suitable members in this category, the governor may instead select additional representatives from subdivisions (1) to (5) of this subsection;
(7) By virtue of the office, the treasurer shall be a member of the board;
(8) By virtue of the office, the lieutenant governor shall be a member of the board;
(9) By virtue of the office, the governor shall be a member of the board;
(10) By virtue of the office, the secretary of state shall be a member of the board;
(11) By virtue of the office, the director of the department of economic development shall be a member of the board; and
(12) By virtue of the office, the director of the Missouri housing development commission shall be a member of the board.
6. Except for members serving by virtue of the office, the members' term of office shall be four years and until their successors are appointed, except that of the members first appointed, four shall be appointed for a term of two years, three shall be appointed for a term of three years, and three shall be appointed for a term of four years. Vacancies on the board shall be filled in the same manner as the original appointments, except that, if the vacancy occurs during an unexpired term, the appointment shall be for only the unexpired portion of that term.
7. Board members of the nonprofit corporation shall not be compensated for their services while serving on the board; however, board members may receive reimbursement for their actual and necessary expenses incurred in the performance of their duties.
8. The board shall elect chair and other such officers as it deems necessary for the conduct of its business. If so required by the board, an officer shall give bond, in such form and amounts and with such sureties as the board may provide, for the faithful discharge of such officer's duties, but the premiums for any such bond shall be borne by the nonprofit corporation.
9. The board shall employ all necessary personnel, fix their compensation, and provide suitable quarters and equipment for the operation of the housing equity fund.
10. The Missouri housing development commission may provide the necessary start-up costs for the nonprofit corporation by grant or loan and may provide subsequent operating funds as it determines.
11. The nonprofit corporation shall publish an annual report which shall include, but not be limited to, a description of its efforts in establishing and maintaining the operation of the housing equity fund, the types of projects invested in and fund expenditures made by the housing equity fund. Copies of such annual reports shall be submitted to the governor, the members of the general assembly and the Missouri housing development commission on or before February fifteenth of each year.]
[215.050. 1. The commission shall establish a fund to be known as the "Housing Development Fund". There shall be paid into the housing development fund:
(1) Any moneys appropriated and made available to the commission to carry out the purposes of this fund;
(2) Any moneys which the commission receives in repayment of advances or loans made from the fund; and
(3) Any other moneys which may be made available to the commission for the purpose of such fund from any other source or sources.
2. Moneys held in the housing development fund may be used to make noninterest-bearing advances to nonprofit corporations to defray development costs of constructing or rehabilitating residential housing if such housing complies with the standards set by the commission under sections 215.010 to 215.250. No noninterest-bearing advances may be made unless the commission may reasonably anticipate that permanent financing of the residential housing may be obtained.
3. Each advance shall be repaid in full concurrent with the receipt by the nonprofit corporation of the proceeds of the permanent financing or of the construction loan, unless the commission shall extend the period for the repayment of such advance, provided that no such extension shall be granted beyond the date of final payment under the permanent financing.
4. If the commission shall determine at any time that permanent financing may not be obtained, the advance shall become immediately due and payable and shall be paid from any assets of the residential housing project.]
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