Governor Dayton’s bonding proposal released on January 31, includes a little something for housing. Picking up a housing bonding proposal that didn’t make it last year, the Governor’s $1 billion bonding proposal includes $10 million in non-profit bonds to acquire and rehab foreclosed properties. The bonds, to be issued by Minnesota Housing, would be used for two purposes:
- to acquire and rehab foreclosed properties to be used for rental housing for low- and moderate-income households
- for community land trusts to acquire the land portion of foreclosed properties. This land would be leased to low- and moderate-income homebuyers.
Annual debt service for the bonds is $800,000 for 20 years and would come from the general fund.
This proposal is part of Dayton’s $1 billion bonding proposal designed to create jobs and address important infrastructure projects. In an interesting approach, Dayton specified $531 million in proposed projects, but left the other $470 million for the Legislature to decide upon.
Click here for full details of the bonding proposal.