To amend chapter 215, RSMo, by adding two new sections relating to the Missouri housing development commission.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Chapter 215, RSMo, is amended by adding thereto two new sections, to be known as sections 215.064 and 215.066, to read as follows:

215.064. 1. The general assembly may appropriate state funds to the Missouri housing development commission, or its successor agency, for the purposes provided in this section.

2. Such appropriated funds shall be utilized by the commission to provide grants to qualifying neighborhood housing agencies for the purpose of paying basic operating expenses. "Basic operating expenses" may include, but not be limited to, compensation of agency staff, agency facility expenses and agency staff training. "Basic operating expenses" shall not include expenditures for specific housing improvements.

3. The commission shall only make grants under this section to those neighborhood housing agencies which:

(1) Have been declared tax exempt organizations under section 501(c)(3) of the 1986 Internal Revenue Code, as amended;

(2) Have as their primary activity the construction and rehabilitation of residential dwellings affordable to households which have income of eighty percent or less of the median income of the geographic area in which the activity occurs. "Geographic area" means the metropolitan area or county designated as an area by the federal Department of Housing and Urban Development under the United States Housing Act of 1937, U.S.C. Title 42, Section 1401, et seq., as amended, for purposes of determining fair market rental rates; and

(3) Have an independent board of directors which predominantly consists of representatives of the community in which the activity occurs.

215.066. The general assembly may appropriate state funds to the Missouri housing development commission for the purpose of assisting local community housing development organizations, recognized by the Missouri housing development commission, in obtaining and administering federal grant funds under the federal Home Investment Partnerships program of the National Affordable Housing Act of 1990, U.S.C. Title 42, Section 12701, et seq., as amended.