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• CHAPTER 17 M;iu,. stet. ; 1 I6J.99a, S~~M. 3. Once the criteria are established, the grantor and the recipient must enter into subsidy agreements that meet the statutory requirements. The agreement must include an obligation to repay part or all of the subsidy if the recipient does not meet its obligations. Mann. Stat. ~ 1167.993, subs 3. Types of assistance meeting the defmition of a business subsidy include grants, contributions of real or personal properly or infrastructure; the principal amount of a loan at rates below those commercially available to the recipient; any reduction or deferral of any tax or any fee; any guarantee of any payment under any loan, lease or other obligation; or any preferential use of government facilities given to a business. Minn. Stat. § 1167.993, subd 3. There are several exceptions this definition, including a business subsidy of less than $25,000, and subsidies for redevelopment, pollution control and land clean up, housing, industrial revenue bonds and other similar programs. Mann. Stat. § 11 GJ.994, subtle 7 Recipients must provide grantors with information on their progress toward and s. the goals outlined in the agreement. Grantors must submit the annual Minnesota Business Assistance Form (MBAF) to the Dept. of Tourism and Economic Development (DYED) for each business subsidy agreement. Local government agencies in cities with a population of 2,5000 or more must submit an MBAF regardless of whether they have awarded business • subsidies. Local government agencies in cities with a population of 2,500 or less are exempt from filing the MBAF if they have not awarded a subsidy in the past five years. II. Structures A. Housing and redevelopment authorities The predominant method of delivering and administering housing and redevelopment programs in Minnesota is through a legal public agency, accountable to city government. A city may establish this public agency, which is often the housing and redevelopment authority (HRA). There are over 230 HRAs in Minnesota. 1. Elements of an HRA Mann. Sint. y~§ 469.001 to ,~ j~A is a public corporation with power to undertake certain types of 469.047. housing and redevelopment or renewal activities. While state legislation "creates" a housing and redevelopment authority in each city, it is up to the city council to formally establish an HRA before it can do business and use Mann. stint. § ar,9.oo3' its powers. Once a council legally establishes an HRA, it may undertake certain types of planning and community development activities on its own with council approval. • 17-2 HANDBOOK FOR MINNESOTA CITIES /~