MN HF3678

Appropriates $2,400,000 in fiscal year 2011 from the general fund for the economic development and housing challenge program, with a base appropriation of $6,993,000 annually for fiscal years 2012 and 2013.

Authorizes the issuance of up to $30,000,000 in challenge program bonds for grants and loans to economic development and housing challenge program projects and neighborhood land trusts for land acquisition.

Establishes a challenge program bond account within the housing development fund to hold proceeds from bond sales and allows transfer of bond proceeds to other accounts within the fund as determined appropriate by the agency.

Requires the commissioner of management and budget to transfer up to $2,400,000 annually from July 15, 2010 through 2032 to the challenge program bond account to pay debt service on outstanding bonds.

Specifies that challenge program bonds are not public debt of the state and the state's full faith, credit, and taxing powers are not pledged to their payment.