Subpart 1.
Eligibility.
No corporation shall be designated an eligible
community development corporation unless it conforms to the following
requirements.
Subp. 2.
Form of organization.
A community development corporation
must be incorporated under the Minnesota Nonprofit Corporations Act, Minnesota
Statutes, chapter 317A.
Subp.
3.
Designated community.
A community development
corporation must identify in its articles of incorporation or its bylaws a
defined geographic area within which it will operate, called its designated
community.
A. At least ten percent of
the population of the designated community must have incomes below the existing
federal poverty level at the time of incorporation.
B. No more than one community development
corporation shall be designated within any one outstate economic development
region, with the exception of economic development regions in which a community
development corporation was in existence at the time of promulgation of these
rules.
C. Within the metropolitan
area, the designated community shall be an identifiable neighborhood or
combination of neighborhoods where designated by the Metropolitan Council.
Elsewhere in region eleven, the designated community shall be townships,
cities, unincorporated areas or combinations thereof.
Subp. 4.
Membership.
Voting
membership in a community development corporation shall be limited to residents
of the corporation's designated community.
Subp. 5.
Board of
directors.
The articles of incorporation or bylaws of a community
development corporation shall conform to the following requirements concerning
its board of directors:
A. Size: the
board shall be composed of not less than 15 and not more than 30 directors,
unless the corporation can demonstrate to the satisfaction of the assistant
commissioner that the disadvantages of a smaller or larger board will be
overcome.
B. Not less than 60
percent of the directors of a community development corporation shall be low
income members of the corporation.
C. The remaining directors shall be members
of the business, financial, and general communities who, to the maximum extent
possible, shall be residents of the designated community.
D. Election of directors: The low income
directors shall be elected by the members of the community development
corporation. The remaining directors shall be elected either by the members of
the corporation or by the low income directors.
Subp. 6.
Employees.
Nonmanagerial and nonprofessional employees of a
community development corporation shall be hired from among the low income
residents of the designated community.