Housing Tax Credits

The Low-Income Housing Tax Credit (HTC) Program is a financing program for qualified residential rental properties. The HTC program offers investors a 10-year reduction in tax liability in exchange for capital to build eligible affordable rental housing units in new construction, rehabilitation, or acquisition with rehabilitation.

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Housing Tax Credit Extensions During COVID-19

Thank you for your partnership and dedication to providing rental homes that are affordable to those that need it most during these uncertain times. Read this eNews for more information about Housing Tax Credit extensions that can requested by eligible projects.

Apply for Housing Tax Credits

HTCs (9%) are allocated twice per year - the Consolidated RFP with much of our other funding, and during a Round 2 RFP that is also competitive. 4% HTCs are also available year round. You must apply for HTCs using our Multifamily Common Application in the Multifamily Customer Portal.  Documents are listed for reference on the Application Resources web page.

Draft 2022-2023 HTC Qualified Allocation Plan (QAP)

The final proposed changes to the 2022-2023 QAP are currently being reviewed.

Note: The documents below include the draft changes to the 2022-2023 QAP and supporting documents. These changes have not yet been approved by the Minnesota Housing’s Board of Directors or the Governor.

2022-2023 QAP Summary of Proposed Content Changes

Proposed 2022-2023 QAP

Proposed 2022-2023 Self-Scoring Worksheet

Proposed 2022-2023 Methodologies:

Proposed Tenant Selection Plan (TSP) Guidance

  • The TSP guidance is updated to reduce tenant screening barriers for all supportive housing units, units at 30% MTSP rent limits, and units with rental assistance.
  • We requested specific public comments on expanding the proposed TSP guidance to all affordable units financed with HTCs and deferred funding by Minnesota Housing. The public comment period is now closed.

High Priority Homeless (HPH) Proposed Change

The proposed QAP includes a recommended prioritization process for filling an HPH unit(s) with the next highest need household when there is not an eligible household on the coordinated entry waitlist for supportive housing. The proposed change is included in the HPH Performance Requirement Relief Provisions on pages 47-48 of the proposed QAP. The prioritization process is outlined in our proposed occupancy guidance.

2021 HTC Program Procedural Manual and Documents

2021 Estimated HTC Distribution

2021 QAP Summary of Approved Content Changes

2021 HTC Program Procedural Manual

2021 QAP

2021 Methodologies:

Please visit our Community Profiles webpage for an interactive geographic scoring map.

2021 HTC Self-Scoring Worksheet (xlsm)
The table of contents feature was removed in the 2021 HTC Self-Scoring Worksheet because of compatibility issues across Microsoft versions. Hit Ctrl +F to use Excel’s search feature to jump to section headers instead. We apologize for the inconvenience.

2021 HTC and 2020 Deferred Scoring Guide

2021 HTC Self-Scoring Worksheet - Competitive Funding Round (pdf) Not for submittal. Document is for reference only.

2021 HTC Self-Scoring Worksheet - 4% Only (pdf) Not for submittal. Document is for reference only.

Underwriting Standards - will be posted early 2021

Underwriting Standards (revised 2.2020) - Effective for applications submitted after 4.2.2020

2021 HTC Design and Construction Standards

2021 Cost Containment Thresholds - will be posted in the fall of 2020

2021 Final Point Ranges - will be posted after selections

2021 HTC Declaration of Land use Restrictive Convenants (LURA) - coming soon

2021 HPH Rider - coming soon

2020 HTC Program Procedural Manual and Documents
Additional HTC Application Reference Materials

Previous Years Manuals, Qualified Allocation Plans, Declarations, Scoresheets, Design Standards and Important Dates

2008 through 2019 Procedural Manuals and Documents

Compliance Monitoring

Housing Tax Credit Compliance - Overview, Dates, Manual, Owner and Tenant Certification Forms

Changes in Ownership or Proposed Development

Minnesota Housing strongly discourages the transfer of ownership or any material project or building design changes for developments that have been awarded tax credits. Any unapproved transfers or changes could be penalized by the complete or partial loss of tax credits as well as the assessment of penalty points. If an owner wishes to change or transfer ownership, contact Minnesota Housing’s Request for Action (RFA) team for more information. To contact the RFA team, visit the Servicing Requests webpage.

Returns of Housing Tax Credits