|SB 0051||Requires Department of Economic Development to establish six rural housing development programs|
|LR Number:||0318S.01I||Fiscal Note:||0318-01|
|Committee:||Insurance and Housing|
|Last Action:||01/24/01 - Hearing Conducted S Insurance and Housing Committee||Journal page:|
SB 51 - This act requires the Department of Economic Development to establish six rural housing development loan programs. Three pilot programs shall provide loans for single family houses within incorporated communities (with a population of 5,000 or less) in third classification counties. The remaining three programs shall provide loans for the construction of single family homes in urban areas (incorporated communities with a population of 50,000 or more).
All of the programs authorize no-interest loans for the construction of single family homes. The maximum amount per loan is $70,000.
TAX CREDIT - Under this act, a taxpayer who provides funds to the Department of Economic Development to support rural development housing programs may take a tax credit up to 50%. The taxpayer may claim a tax credit up to $50,000 per year and any amount over that may be carried over to the next 4 taxable years. The cumulative amount of such tax credits shall not exceed $420,000. The effective date of the tax credit is January 1, 2003.
APPLICATIONS - Any non-profit organization may apply to the Department of Economic Development for funding. The Department or MHDC will make the loans according to need.
REVOLVING FUND - Loans are to be put in a revolving fund to build homes one at a time, as they are sold.
CONSTRUCTION - Homes shall be constructed on sites where water and sewer services are available. All homes are to be constructed according to rural development building standards of the USDA or to the urban building codes established in those areas.
SALE - Homes are to be sold at cost plus a $2,500 fee for any construction supervisor hired. Priority shall be given to low and moderate income families. Every sales contract shall contain an anti-speculation clause to deter buyers from reselling the home to make a profit.
RURAL HOUSING DEVELOPMENT REVOLVING LOAN FUND - This act creates a fund for the moneys donated for the program. The moneys deposited in the fund will be used to administer the housing programs.
This act is similar to SB 588 (2000), SB 109 (1999) and SB