Housing Tax Credit Round 2

Minnesota Housing is now accepting 2026 Housing Tax Credit (HTC) Round 2 applications. Round 2 makes available for allocation any HTCs remaining or returned since Round 1. All remaining or returned HTCs, excluding a return of HTCs for projects requesting a reallocation, will be combined into one unified pool for allocation by Minnesota Housing on a statewide basis, without regard to geographic distribution. We anticipate about $2.9 million in 9% HTCs to be available. Of this amount available, there is $74,334 remaining in the small cities/rural development set-aside which carries over to Round 2. The HTC Round 2 also establishes a waiting list for projects that do not receive an initial allocation. If additional HTCs become available, Minnesota Housing will pull projects from this list for a feasibility review to evaluate further allocations. New funding opportunities will be posted as additional HTCs become available.

We will also be accepting pre-applications for the U.S. Department of Housing and Urban Development (HUD) Section 811 Project-Based Rental Assistance (HUD Section 811 PRA) Program and the Innovative Construction Techniques (ICT) Selection Criterion. Pre-applications are optional; however, they must be submitted prior to submitting a full 2026 HTC Round 2 application if the applicant is interested in obtaining eligibility for the project-based rental assistance and/or selection criterion. Minnesota Housing will notify applicants of eligibility prior to the full application deadline.

Refer to the 2026-2027 Qualified Allocation Plan and the Application Materials webpage for details on Round 2 requirements and how to apply. Policy and guidance documents, including the Multifamily Request for Proposals (RFP) Standards, can be found under the Application Resources section of the Multifamily Consolidated Request for Proposals/Housing Tax Credit Funding Rounds webpage. Closed application resources and materials are for reference only.

We encourage you to stay informed about Round 2 and other funding opportunities by subscribing to our eNews.

Important Dates

Review the following important dates for the 2026 HTC Round 2:

• Monday, December 22, 2025: 2026 HTC Round 2 applications will open in the Multifamily Customer Portal. There is no Intent to Apply for Round 2.
• Thursday, January 29, 2026: Pre-applications for the HUD Section 811 PRA Program and ICT Selection Criterion are due via the Multifamily Customer Portal by noon Central time.
• Thursday, February 12, 2026: 2026 HTC Round 2 applications are due via the Multifamily Customer Portal by noon Central time.
• Thursday, May 28, 2026: Projects are expected to be recommended for selection at the Minnesota Housing board meeting.

Status of Other Funding for Round 2

• HUD Section 811 Project-Based Rental Assistance Program (HUD Section 811 PRA)

• Low and Moderate Income Rental (LMIR) First Mortgage Financing
• Additional deferred loan resources

Supplemental Priority

Projects that have previously received HTCs from Minnesota Housing or a suballocator and have an annual HTC shortfall of at least 5%—but not more than 33.33% of the total qualified annual HTC amount, subject to Minnesota Housing approval—will have priority over other applicants in Round 2 and those on the waiting list.

If more than one project qualifies under supplemental priority, Minnesota Housing will evaluate and rank eligible requests according to points claimed in the Self-Scoring Worksheet.

HUD Section 811 PRA

The HUD Section 811 PRA Program is designed to expand the supply of supportive housing that promotes and facilitates community integration for people with significant and long-term disabilities. HUD Section 811 PRA Program funds will be available for units for people with disabilities through the 2026 HTC Round 2.

New State Prevailing Wage Requirement

In the 2024 legislative session, the state prevailing wage statutes (Minnesota Statute 116J.871) were amended to include new reporting requirements and to broaden prevailing wage applicability for multifamily rental housing projects that receive funding from Minnesota Housing.

Projects selected for an award or allocation of federal low-income housing tax credits (Housing Tax Credits) on or after January 1, 2025: For purposes of an award, selection is defined as the issuance of the 42M preliminary determination letter by Minnesota Housing. For purposes of an allocation, selection is defined as Minnesota Housing board action to select a project for future reservation and allocation of LIHTC through Round 1 or Round 2.

Visit Minnesota Housing’s Prevailing Wage webpage and review the Frequently Asked Questions document for more information on the prevailing wage requirements, applicability, and reporting.

Technical Assistance

We offer, and strongly encourage, a technical assistance (TA) session to discuss your project with Minnesota Housing staff. To make the TA session productive, we recommend applicants begin by completing the Multifamily Workbook and preliminary scoring of the project. These items can be submitted to the TA team advance of the scheduled TA session. If you would like TA as you complete your funding application, complete, and submit the Technical Assistance Request Form to begin the process.

Questions regarding technical assistance should be directed to TechnicalAssistanceRequest.MHFA@state.mn.us.