Multifamily Frequently Asked Questions

The majority of funding for development affordable rental housing is available through the Minnesota Multifamily Rental Housing Common Application Process. The Multifamily RFP is offered once a year. The RFP is typically published in April. Applications are typically due on the 3rd week of June.

The Minnesota Multifamily Rental Housing Common Application represents the consolidation of approximately 15 sources of funding (from Minnesota Housing and other private, local, and philanthropic organizations). The RFP is a one-stop-shop in which the applicant does not apply for funding from a specific program, but requests funding for a housing proposal that meets an identified need in the area in which the housing is proposed. This allows the applicant to focus on housing needs rather than focusing on program requirements.  Minnesota Housing reviews the applications, presents them to a selection committee consisting of representatives from Minnesota Housing and funding partners, and determines which source(s) of funding make the most sense for each selected development.

This is a very competitive process. We receive applications for 3-4 times the amount of funding we have available.

The Minnesota Multifamily Rental Housing Common Application funding partners include: Family Housing Fund, Metropolitan Council, Minneapolis Public Housing Authority, St. Paul PHA, Metro HRA, and Greater Minnesota Housing Fund.

The types of programs offered through the Multifamily RFP are deferred loans, first mortgage financing and project based rental assistance.

The deferred loans are typically 0%, 30 year deferred loans. This means that there is no interest or payments, but the loan is due in full at the end of the mortgage term. If used in conjunction with housing tax credits, the interest rate is at 1%.

Project based rental assistance is currently available for developments located in city of St. Paul through the St. Paul PHA, and in developments located within the jurisdiction of the Metro HRA (counties of Anoka, Carver, Hennepin (excluding the cities of Bloomington, Minneapolis, Plymouth, Richfield and St. Louis Park), and Ramsey (excluding the city of St. Paul).

First mortgage financing is available through the RFP Process, or on an open pipeline basis. Refer to the Low and Moderate Income Rental Program Guide for further details.

You can apply to the Multifamily Request for Proposals/Housing Tax Credit process during the annual funding cycle. See the Minnesota Multifamily Rental Housing Common Application Process on our web site.

There are many types of federally assisted housing. The universe includes, but may not be limited to, Rural Housing Development financed properties, Section 236 and Section 221(d)(3) interest reduction payments, Below Market Interest Rate (BMIR) mortgages as well as developments with the benefit of a project-based Section 8 or Rental Assistance Contract. Whether an owner has the right to prepay its mortgage and/or cancel the housing assistance contract depends on the Regulatory Agreement for the mortgage and the regulating agreement for the housing assistance contract, the date the agreement(s) was/were entered into, and whether or not there was any subsequent financial assistance provided to the development that has resulted in additional use restrictions. Generally speaking, a development owned by a non-profit may not prepay a HUD-insured mortgage without HUD approval, and if approval is granted, continued use restrictions will be required.

Minnesota Housing uses many tools to encourage continued participation in federally assisted housing programs. Mark up to Market is a HUD program that allows an eligible owner to mark below market rents up to the lower of comparable market rents or 150% of FMR on an expiring Section 8 contract in exchange for a five year commitment to renew the contract. HUD also allows the income stream from a Section 236 Interest Reduction Payments contract to be decoupled and used to support new debt on a preservation debt restructure when a Section 236 mortgage is prepaid or has its HUD insurance terminated. This approval is given in exchange for an additional five-year use restriction and a new IRP Contract and requires state agency or local
Government oversight of the new IRP Contract.

Minnesota Housing offers Redefined Equity for eligible Minnesota Housing-financed
developments. Minnesota Housing also offers equity take out loans and zero interest deferred loans to help fill the gap for substantial rehabilitation or to facilitate a transfer of ownership. HOME funds are also available to rehabilitate eligible developments that are at risk of losing their federal assistance due to deteriorating physical conditions or life safety issues. The Qualified Allocation Plan for the Housing Tax Credit program gives a priority to the preservation of eligible federally assisted housing. These tax credits generate substantial equity for an acquisition/rehabilitation of a development. All of the Minnesota Housing programs require the Owner to enter into a covenant running with the land agreeing to continue renewals of existing project based housing subsidy payment contract for as long as the assistance is available.

Should an owner of a federally assisted development be granted the right to prepay its Section 221(d)(3), Section 221(d)(3) BMIR or Section 236 mortgage and/or does not renew its expiring Section 8 or rental assistance contract, all income eligible tenants will be provided a tenant-based Enhanced Voucher that will allow them to continue to pay rent at the same level as they were paying prior to the prepayment or the cancellation. This voucher is portable. On Rural Development mortgages that are prepaid, the rental assistance contract expires upon mortgage prepayment. Existing tenants are allowed to remain in that unit, at the same level of rent as they paid prior to the prepayment, for as long as they choose. If they leave the development, they are not provided with any further rental assistance.

A list of FHPAP grantees can be found on the Minnesota Housing web site.

In the Twin Cities Metropolitan are, visit HousingLink's website for a list of vacancies.. For assistance outside the metropolitan area, try the First Call for Help in your area, or contact the FHPAP grantee closest to the county you live in. Also, see our other housing resources that may offer some assistance.

Minnesota Housing issues a Request for Proposals every two-years. In the metropolitan area, a county or group of contiguous counties is eligible to apply. In greater Minnesota, a county or group of contiguous counties, or community based nonprofit can apply for funding. Learn more about the FHPAP Program.