1.1.................... moves to amend H.F. No. 2341 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 287.22, is amended to read:
1.4287.22 EXEMPTIONS.
1.5    The tax imposed by section 287.21 does not apply to:
1.6    (1) an executory contract for the sale of real property under which the purchaser is
1.7entitled to or does take possession of the real property, or any assignment or cancellation
1.8of the contract;
1.9    (2) a mortgage or an amendment, assignment, extension, partial release, or
1.10satisfaction of a mortgage;
1.11    (3) a will;
1.12    (4) a plat;
1.13    (5) a lease, amendment of lease, assignment of lease, or memorandum of lease;
1.14    (6) a deed, instrument, or writing in which the United States or any agency or
1.15instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee;
1.16    (7) a deed for a cemetery lot or lots;
1.17    (8) a deed of distribution by a personal representative;
1.18    (9) a deed to or from a co-owner partitioning their undivided interest in the same
1.19piece of real property;
1.20    (10) a deed or other instrument of conveyance issued pursuant to a permanent school
1.21fund land exchange under section 92.121 and related laws;
1.22    (11) a referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale;
1.23    (12) a referee's, sheriff's, or certificate holder's certificate of redemption from a
1.24mortgage or lien foreclosure sale issued under section 580.23 or other statute applicable to
1.25redemption by an owner of real property;
1.26    (13) a deed, instrument, or writing which grants, creates, modifies, or terminates
1.27an easement;
2.1    (14) a decree of marriage dissolution, as defined in section 287.01, subdivision 4,
2.2or a deed or other instrument between the parties to the dissolution made pursuant to the
2.3terms of the decree; and
2.4    (15) a transfer on death deed under section 507.071.; and
2.5(16) A second mortgage under section 462A.2091 that secures repayment of a tax
2.6credit advance loan for first-time homebuyers.
2.7EFFECTIVE DATE.This section is effective the day following final enactment.

2.8    Sec. 2. [462A.2094] TAX CREDIT ADVANCE LOAN PROGRAM FOR
2.9FIRST-TIME HOMEBUYERS.
2.10(a) The agency must develop the tax credit advance loan program for first-time
2.11homebuyers. The program provides loans to first-time homebuyers who are eligible for
2.12the federal first-time homebuyer credit. The maximum tax credit advance loan is the lesser
2.13of (i) 8.5 percent of the purchase price of the home, or (ii) $6,750. The agency may charge
2.14reasonable servicing fees associated with issuing and administering tax credit advance
2.15loans. The agency shall require the first-time homebuyer to execute a promissory note
2.16secured by a second mortgage on the property being purchased to secure repayment of the
2.17loan as referenced in paragraph (e). The agency must issue taxable or tax-exempt bonds to
2.18fund the tax credit advance loan program. The agency may only issue loans under this
2.19program when the federal first-time homebuyer credit is in effect.
2.20(b) For purposes of this section, "federal first-time homebuyer credit" means the
2.21credit allowed under section 36 of the Internal Revenue Code, and "first-time homebuyer"
2.22has the meaning given in section 36 of the Internal Revenue Code.
2.23(c) To be eligible for a tax credit advance loan, a first-time homebuyer must:
2.24(i) meet the eligibility requirements for the federal first-time homebuyer credit;
2.25(ii) use the tax credit advance loan in conjunction with a conventional loan at a
2.2630-year fixed rate mortgage to buy a home; and
2.27(iii) agree to apply for the federal first-time homebuyer credit and use the credit
2.28refund to repay the tax credit advance loan.
2.29(d) The tax credit advance loan agreement between the agency and the homebuyer
2.30must include:
2.31(i) a statement of servicing fees associated with the loan; and
2.32(ii) a schedule of principal and interest payments that will be due over a ten-year
2.33period if the homebuyer does not repay the loan by June 30 of the calendar year following
2.34the year in which the loan is received.
3.1(e) If the homebuyer applies for a federal first-time homebuyer credit and repays
3.2the tax credit advance loan on or before June 30 of the calendar year following the year
3.3in which the tax credit advance loan is received, there is no interest on the loan. If the
3.4homebuyer does not repay the tax credit advance loan on or before June 30 of the calendar
3.5year following the calendar year in which the tax credit advance loan is received, the
3.6homebuyer must make principal and interest payments over a ten-year period to repay the
3.7loan, with the interest rate equal to the rate in the 30-year conventional mortgage entered
3.8into in conjunction with the tax credit advance loan. The agency may submit claims for
3.9debts owed due to failure to make principal and interest payments as provided under
3.10the revenue recapture act in chapter 270A.
3.11EFFECTIVE DATE.This section is effective following final enactment."