Community Stabilization: Distressed Multifamily Rental Building Program Request for Proposals Application
Application deadline: Wednesday, November 19, 2025, at noon Central Time.
Instructions
•	Refer to the Community Stabilization: Distressed Multifamily Rental Building Program Guide (Program Guide) and the Community Stabilization: Distressed Multifamily Rental Building Request For Proposal Application Instructions when completing this application.
•	Unless otherwise stated, capitalized terms have the meaning ascribed to them in Appendix A of the Program Guide.
•	In any section where a narrative is requested, the Applicant may use the text box following the question or attach a narrative to this application. If the Applicant attaches a narrative, please clearly identify which question the attached narrative is answering.
•	In any section where the Supplementary Application Spreadsheet is referenced, the Applicant may use their own form. If the Applicant uses their own form, please clearly identify which question the Applicant’s form is answering.
Contents
1. Project Information
2. Existing Financing
3. Minimum Eligibility Requirements
4. Existing Supportive Housing Information
5. Property Stabilization Plan
6. Funding Request and Proposed Uses
7. Funding Structure Selection (Grant or Loan)
8. Eligible Use Prioritization and Application Prioritization
1.	Project Information
A.	Project Information
Project Ownership Entity Name:      	Check box if this is the Applicant 
Project Name:      
Project Address:      
Project City, State and Zip Code:      
Project County:      
For projects with existing funding from Minnesota Housing, include the Development Number: D     
B.	Sponsor Information
A Sponsor is an individual, legal entity, or other organization that exercises decision-making control over the project.
Sponsor:      	Check box if this is the Applicant 
Sponsor Address:      
Sponsor City, State, and Zip Code:      
Sponsor Contact:      
Sponsor Contact Title/Organizational Role:      
Sponsor Contact Phone Number:      
Sponsor Contact Email Address:      
C.	Project Description
Describe the project, including when it was constructed or last rehabilitated, unit mix, and populations served. 
     
What is the total number of units in the project?      
What is the total number of occupied units?      
What is the vacancy rate at time of application?      
2.	Existing Financing
A.	Has the property ever previously received federal Low Income Housing Tax Credits (HTCs)? 
If the Applicant answered yes in question 2.A regarding HTCs:
i.	Who was the HTC allocator? 
ii.	What year(s) was the property placed in service?      
iii.	Is the investor still part of the ownership? 
i.	If yes, name of the investor:      
B.	Provide a list of all existing loans and grants associated with the property using the Community Stabilization: Distressed Multifamily Rental Building Program Supplementary Application Spreadsheet or by attaching a list. If attaching a list, include all required information such as original principal amount, current principal amount, interest rate, term, maturity date and rent and/or income restrictions, if applicable. Also include status such as in good standing, forbearance, default, foreclosure, etc. 
     
3.	Minimum Eligibility Requirements
To be considered for Program funding, the property must meet all the following requirements:
A.	The building(s) is owned or controlled by an Eligible Recipient. Select one of the following:
 A private for-profit developer, which includes but is not limited to a Limited Liability Company (LLC), Limited Partnership (LP), or other similar ownership entity with approval from Minnesota Housing at its sole discretion
 A Federally recognized American Indian Tribe located in Minnesota or its Tribally Designated Housing Entity
 A tax-exempt Nonprofit Organization established under section 501(c)(3) of the Internal Revenue Code. A Nonprofit Organization may apply on behalf of the LLC, LP, or other similar organization provided the Nonprofit Organization controls at least 50% of the combined ownership of all general partners in the ownership entity of the property
 Local unit of government (subject to the limitations described in section 2.01 of the Program Guide)
B.	The building(s) was placed in service on or before December 31, 2023. 
C.	The building(s) has 8 or more housing units available for rent. 
D.	At the time of application, all units are restricted to households with incomes at or below 60% of the area median income (AMI), adjusted for household size, as determined by the United States Department of Housing and Urban Development (HUD). 
Include a copy of the recorded declaration, covenant, land use restrictive agreement, or other similar recorded document that includes the applicable rent and income restrictions with the application. If more than one document is necessary to show that 100% of the units are restricted to households at or below 60% of AMI, please include a cover memo demonstrating how all units meet the income requirement.
E.	To be considered a Distressed Building, the subject property must meet at least one of the following requirements. Check all that apply.
	 Be at imminent risk of foreclosure, closure or sale that would result in permanent loss of affordability
	 Have two or more years of negative net operating income (NOI), exclusive of financial or in-kind operating support from the owner of the property
	 Have two or more years with a debt service coverage ratio less than one
	 Have necessary costs of repair, replacement, or maintenance that exceed the project reserves available for those purpose
Documentation requirement: Please provide documentation that supports the selected Distressed Building characteristic(s) listed above.
4.	Existing Supportive Housing Information
If any Supportive Housing units are listed in Section 2 of the Self-Scoring Worksheet, complete this section.
Supportive Service Provider(s), if applicable:      
Supportive Service Provider Contact Name:      
Supportive Service Provider Contact Title or Organizational Role:      
Supportive Service Provider Contact Phone Number:      
Supportive Service Provider Contact Email Address:      
If Supportive Services are provided at the Property:
A.	Identify the existing populations served in the Supportive Housing units and the on-site service partner(s).      
B.	Describe the existing service model(s) and services provided to people in the Supportive Housing units.      
C.	Provide the total full-time equivalent (FTE) count and breakdown for all staff, including services and front desk.      
D.	Please detail the property’s public (federal, state, local) source(s) of financial, contractual, or legal obligation to provide Supportive Housing. If it is not a public source, please detail the kind of source. This might include City or County capital commitments, project-based HUD VASH, Section 811, project-based Housing Support, HUD Continuum of Care rental assistance, service funding, or capital, etc.      
Include documentation of these sources as described in the Application Checklist (Section: Required Documents for Claiming Points in the Self-Scoring Worksheet item 5).
5.	Property Stabilization Plan
This Program was established to provide funding to help stabilize and preserve Distressed Buildings. The legislation that established the Program prioritizes (but does not require) applications that have a path to achieve neutral or positive net operating income within five years. 
The Property Stabilization Plan will be evaluated by Minnesota Housing and will be eligible for up to 50 points that, along with the Self-Scoring Worksheet, will calculate a total application score.
If the Applicant is selected for funding, the Property Stabilization Plan will be finalized in partnership with Minnesota Housing. A final version of the Property Stabilization Plan may be incorporated into the Loan Agreement or Grant Contract Agreement.
There is no required format for the Property Stabilization Plan due to the variety and combination of building types, funding structures, needs, and approaches to using the requested funds that may come through in applications. 
All applications must include a proposed Property Stabilization Plan that includes, at a minimum, concise narrative responses to the below questions. Applicants may use the text boxes or attach a separate narrative. See Chapter 7 of Program RFP Application Instructions for details on Property Stabilization Plan evaluation criteria. 
A.	Project History: Describe circumstances of the building, the causes of financial distress, and measures already taken to remedy the distress.
     
B.	Planned Use of Funds:	 Describe proposed uses and how these funds will positively contribute to remedying the primary causes of building distress (for example, rent collection and reduction of bad debt, staffing, vacancy loss, security, physical needs). All proposed uses of the Program funds must be addressed in narrative.
     
C.	For projects that include Supportive Housing, describe how funds will improve the quality of Supportive Services and/or fill gaps in the Supportive Services. Describe any projected changes to the service model with this funding and how the change supports stabilization.
     
D.	Attach a five-year cash flow projection demonstrating how the requested funds help stabilize cash flow. For example, the projection may incorporate using requested reserves, support for property operations, and/or reduced expenses related to resolving deferred maintenance. The cash flow projection can be provided using the Applicant’s own form or by completing the sample template in the Community Stabilization: Distressed Multifamily Rental Building Program Supplementary Application Spreadsheet. Explain how the requested funds will help stabilize the building and achieve, or work to achieve, neutral or positive net operating income within five years.
     
E.	Describe how the proposed uses will improve the overall quality of the housing for tenants (such as access to services, housing longevity), and presence in the community.
     
6.	Funding Request and Proposed Uses
Review section 2.03 of the Program Guide for additional information on eligible uses for each category. 
If selected for funding, a detailed work plan with final sources and uses, and project timing will be required prior to signing a Loan Agreement or Grant Contract Agreement. Due to limited funding availability, it is unlikely that additional funding will be available after selection to assist with gaps. 
All requested uses must be incorporated into the Property Stabilization Plan with an explanation of how the proposed use(s) will help stabilize the property. For the purposes of the application, it is acceptable to provide reasonable estimates. The total request cannot exceed $40,000 per unit and 20% of available funding to any one Eligible Recipient.
Select all that Apply	Proposed Uses of Program Funding	Requested Amount
(round to the nearest $1,000)	If selected, complete section(s):	
	Debt Restructure	     	6A	
	Deferred Maintenance and Rehabilitation (and related soft costs)	     	6B	
	Property Operating Costs	     	6C	
	Capitalized Reserves: Replacement, Operating, Supportive Services, or Other	     	6D	
	Financing to Sell or Transfer Ownership of the Property	     	6E	
	Costs Associated with Required Reporting, Compliance and Monitoring (includes third-party auditors and accountants)	     	6F	
	Other Uses that Support the Physical and Financial Needs of the Property	     	6F	
	Total	     		
A.	Debt Restructure
If selected for funding, Applicants must be able to secure meaningful loan concessions from the Private Debt lender as further described in section 4.03 of the Program Guide. The concessions do not need to be secured prior to submitting the application; however, the concessions must be secured before the loan closes or Grant Contract Agreement can be signed.
i.	What type of Debt Restructure is the Applicant requesting (select all that apply)
	 Restructure and forgiveness of amortizing or deferred debt
	 Principal and interest paydown
	 Interest rate write-down
	 Deferral of debt payment
	 Mortgage payment forbearance
ii.	Describe the proposed Debt Restructure transaction, the anticipated value of the Private Debt concessions; and how the funding needed to restructure the debt was calculated. 
     
If the proposed restructuring includes more than one source of debt, attach responses to each of the below questions for each source of debt to be restructured. 
iii.	Who is the lender for the loan?      
iv.	Is the loan secured by the property? 
v.	What is the original principal amount of the loan?      
vi.	What is the current balance of the loan?      
a. Is there any accrued interest on this loan? If yes, what is the amount?      
vii.	What is the current interest rate?      
viii.	What is the loan type? (amortizing, deferred, forgivable or other)      
ix.	What is or what was the maturity date of the loan?      
x.	What is the status of the loan? Is the loan in default, forbearance or other similar status? If so, explain the status of the loan:      
xi.	Is there anything else we should know about this loan?      
B.	Deferred Maintenance and Rehabilitation
Review section 2.03 of the Program Guide for eligible uses that may be included in this category.
Describe the proposed scope of work, how the costs were estimated, and the timeline to complete the work. Final work plans and costs are not required when submitting the application. Applicants are encouraged to consult with contractors when estimating deferred maintenance and rehabilitation costs. 
     
C.	Property Operating Costs
Review section 2.03 of the Program Guide for Eligible Property operating costs. Detail in the table below the property operating costs being proposed.
Type of Operating Cost	Requested Amount	Indicate whether this is a new expense or a request to fund an existing one.	
Property Insurance	     	     	
Front Desk Staffing	     	     	
Program and Services Staffing: tenant service coordination, case management, Supportive Services	     	     	
Security and Safety	     	     	
Staff Retention Incentives	     	     	
Unit Turn Costs	     	     	
Compliance and Monitoring	     	     	
Other	     	     	
Total	     		
Explain how the operating costs were calculated. Explain how this may be different than historic operating expenses.      
D.	Capitalized Reserves
The Eligible Uses allow for creating or replenishing capitalized reserves. Review section 2.03 of the Program Guide for eligible uses of the reserves. The entity holding the reserves and the process to approve withdrawals from the reserves is subject to Minnesota Housing’s sole discretion. 
Please note the following parameters if requesting this use:
A.	Replacement Reserves: The requested amount cannot exceed $5,000 per unit.
B.	Operating Reserves: The requested amount should not exceed the amount necessary to achieve and sustain for five years a 1.05 expense coverage ratio or 1.15 debt coverage ratio, as applicable. The Applicant may propose alternative ratios with justification but are subject to approval at Minnesota Housing’s sole discretion. This operating reserve may be separate and distinct from operating reserves held by a housing tax credit investor, if applicable. 
C.	Supportive Services Reserves: The reserve should be sized only to cover short-term deficits and not long-term subsidy needs. The short-term deficit calculation must not exceed five years, the need should be demonstrable and backed up by data (i.e.: gaps in staffing, staff turnover, caseload size, tenant satisfaction, loss of service finding, performance data on eviction prevention, case management services, etc.).
Type of Reserve	Requested Amount	Indicate whether this is a new reserve or a request to replenish an existing one.	
Replacement	     	     	
Operating	     	     	
Supportive Services	     	     	
Other	     	     	
Total	     		
What is the status of existing reserves at the property? Are the reserves held by the owner or by another entity?
     
For a Replacement, Operating, and/or Supportive Services reserve, explain how the requested reserve amount was calculated.
     
If requesting an “Other” reserve, explain the purpose of the reserve and how it was calculated.
     
E.	Financing to Sell or Transfer Ownership of the Property 
i.	Proposed Ownership Entity:      
ii.	Proposed Sponsor:      
Describe the proposed owner’s experience with owning and managing affordable rental housing:
     
If the seller is the Applicant, describe how the funding request will facilitate the sale of the property:
     
F.	Other Uses
Minnesota Housing may approve, at its sole discretion, other uses that support the physical and financial needs of the property. In the following text box or by attaching a narrative, explain in detail why another use(s) should be approved and how it supports stabilizing the property.
     
7.	Funding Structure Selection (Grant or Loan)
The requested funding can be structured as a loan or as a grant. A funding selection for a single project/development cannot be split between a loan and a grant.
Before completing this section, review Chapters 8 and 9 of the Program Guide and sections 7A and 7B of this application.
The Applicant should select the funding structure that best suits the needs of the project, which may include but are not limited to such factors as: the type of ownership entity, type of Sponsor (non-profit or for-profit organization, etc.), housing tax credit investor requirements, and any other existing financing. Minnesota Housing cannot advise on the funding structure that is best suited for a project or Applicant. 
Prior to signing the Grant Contract Agreement, it will be necessary to prepare a work plan that includes all proposed uses, costs and timelines. 
If the funding is structured as a grant, eligible costs incurred before the Grant Contract Agreement is fully signed are not eligible for reimbursement. If the funding is structure as a loan, the Recipient may be reimbursed for costs of eligible uses incurred prior to executing a Loan Agreement with Minnesota Housing’s approval at its sole discretion. 
The type of funding structure selected by the Applicant does not affect the application scoring or evaluation. 
Requested Funding Structure (select one):
 Grant (complete section 7A of this Application)
 Loan (complete section 7B of this Application)
A.	Proposed Grant Structure Information
i.	Grantee 
Will the Grantee be the property ownership entity or the Sponsor in Section 1 of this Application? 
If the property ownership entity will not be the Grantee, describe in detail how the funds are anticipated to be contributed to the property in the following text box or by attaching a narrative. Subgrantees are not permitted per section 9.04 of the Program Guide.
     
ii.	Contracting and Bidding
The contracting and bidding requirements summarized in the Community Stabilization: Distressed Multifamily Rental Building Request for Proposal Application Instructions will be incorporated into the Grant Contract Agreement. Grantees must follow these contracting and bidding requirements when selecting a vendor that will be paid using Program funding. If a Grantee selected a vendor before applying, the Grantee may be able to continue working with that vendor without conducting a new contracting and bidding process at Minnesota Housing’s sole discretion provided:
•	The vendor was originally selected through a process consistent with the contracting and bidding requirements; and
•	A list of the vendor(s) is submitted with this application.
Examples of existing vendor relationships may include but are not limited to property management services, supportive service providers, security, maintenance, accounting services and auditors.
For the purposes of this application, only the name of the vendor is required at this time. Additional supporting documentation may be necessary if the Applicant is selected to receive Program funds.
New vendors cannot be added to the list after the Program RFP due date. New or additional vendors may be subject to the contracting and bidding requirements included in the Grant Contract Agreement. The Application Instructions include a summary of the contracting and bidding requirements.
List the vendors in the below text box or attach a list:
     
B.	Proposed Loan Structure Information
This Program allows for flexibility when structuring the loan to best fit the needs of the property, the ownership entity, the Sponsor, and existing financing. For planning purposes, please select the terms that are anticipated to best meet the needs of the project. The terms may be adjusted during feasibility review and after funding selection, subject to Minnesota Housing’s approval.
A.	Borrower: Will the Borrower be the property ownership entity or the Sponsor? 
If the Borrower will not be the property ownership entity itself, describe in detail how the funds are anticipated to be contributed to the property in the following text box or by attaching a narrative.
     
B.	Loan Type: What is the proposed Program loan type? (Select all that apply; a loan may be split between different structure)
	 Deferred
	 Forgivable
	 Amortizing
	 Other; explain      
C.	Interest Rate: What is the requested interest rate for the Program loan? The Program does not require an interest rate.
     
D.	What is the requested loan term in years? 
8.	Eligible Use Prioritization and Application Prioritization
A.	Eligible Use Prioritization: 
If insufficient funds are available to fully fund this application, please rank or describe the requested uses (or portions thereof) in this application that would most support stabilization.
     
B.	Application Prioritization:
If the Sponsor in Section 1 of this application is applying for more than one project, either attach a list or use the following text box to list all the other applications and rank the applications in the order of priority.