Preservation

The preservation of properties with federal project based rental assistance is one of Minnesota Housing’s key strategic priorities. Federal project-based assistance allows more than 60,000 lower income renter households to spend no more than 30% of their income on housing. Most of these Section 8, USDA Rural Development, NAHDSDA (tribal housing), and other units were built in the 1970s and 1980s and are in need of recapitalization. 

In the annual Request for Proposals (RFP) funding round, Minnesota Housing is prioritizing properties for preservation that are at risk of losing federal rental assistance due to poor physical condition, diminished owner capacity or owner commitment, or at risk of conversion to market (opting out of the rental assistance program). 

Required RFP Pre-Application

Projects applying for 9% tax credits that intend to claim preservation points or the preservation strategic priority in the 2019 QAP must submit a preservation pre-application. For 2019 HTC Round 1, the application must be submitted on or before 4:30 p.m. on Tuesday, May 15, 2018.  For 2019 HTC Round 2, the deadline is 30 days before the Round 2 deadline

The preservation pre-application must be submitted in its entirety, with all required documentation. No subsequent submissions will be considered in determining whether the project meets the preservation criteria. Applications that are determined to meet the preservation criteria will receive a Determination of Preservation Eligibility letter, that should be submitted as part of the RFP application. If it is determined that a project does not meet the preservation criteria, submits an incomplete pre-application, or does not complete the pre-application process, it will not be eligible to claim preservation points or the preservation strategic priority.

Preservation pre-application materials are now available in the Multifamily Customer Portal. To learn more about the Portal and to request a user account, visit  our  Multifamily Customer Portal Resources web page.

Please note: Preservation pre-applicants claiming Market Conversion Risk of Loss can request to have Minnesota Housing order an as-is appraisal by Monday, April 2, to include in your pre-application submission materials. Visit the Multifamily Customer Portal for more information.

Projects that have received a Preservation Determination letter in 2019 HTC Round 1 do not need a new letter if they resubmit in 2019 HTC Round 2.

Dual Application

If a project applies for 9% credits and claims preservation points, and the property has 40 or more units, a dual bond/4% application must also be submitted.

Technical Assistance

We strongly encourage setting up a technical assistance (TA) meeting.  In order to make the technical assistance meeting productive, we recommend applicants submit the Multifamily Workbook and the information on the selected Risk of Loss in advance of the scheduled TA session to adam.connell@state.mn.us. (If using Firefox to open the Workbook, you may be prompted to open the file or save the file. Please use "Save As" option to download these files, rather than "Open").

Questions?

Anne Heitlinger, Preservation Manager at 651.296.9841. To set up a technical assistance meeting, contact Adam Connell at 651.296.4452.