Housing Tax Credits Statement of Election of Gross Rent Floor
(HTC from state credit ceiling)
Instructions: Owners of qualified housing tax credit (HTC) projects must complete this form to notify Minnesota Housing of the date the gross rent floor in Section 42(g)(2)(A) of the Internal Revenue Code (IRC) takes effect.

IRS Revenue Procedure 94-57 allows the owner to fix the date of the gross rent floor to be either:
1.	The date of the initial allocation for HTC projects (allocation), or 
2.	The placed-in-service date. 

In past years, some county median incomes have decreased during the years between these dates, thereby reducing the maximum allowable rent. Note, however, that the Housing and Economic Recovery Act of 2008 also holds HTC projects harmless against certain decreases in allowable rent. Before making this election, consult with a knowledgeable tax professional.

Except for a low-income building described in IRC Section 42(h)(4)(B) (a bond-financed building), the Internal Revenue Service (IRS) will treat the gross rent floor in IRC Section 42(g)(2)(A) as taking effect on the first option above: the date an agency initially allocates an HTC dollar amount to the building under IRC Section 42(h)(1). This is the default.

However, if the owner designates it as such on the Gross Rent Floor Election Form (this document), the IRS will treat the gross rent floor as taking effect on the second option: a building's placed-in-service date. To choose this option, the owner must make the election by submitting the Gross Rent Floor Election Form to the agency that made the initial HTC allocation no later than the building’s placed-in-service date.

Submission
The statement should be submitted electronically via the Multifamily Customer Portal. Minnesota Housing must receive this election form by the date the project is placed-in-service. If no election is made, or if the election form(s) are not received by that deadline, then the gross rent floor date will automatically default to the date that Minnesota Housing made the initial allocation with the issuance of a Carryover Agreement or an 8609.

Election
The owner hereby irrevocably elects, pursuant to IRS Revenue Procedure 94-57, to fix the gross rent floor for the building at the allowable rents on the elected date identified below. The owner acknowledges that this election is binding upon the owner and all successors in interest to the owner.

The owner elects the gross rent floor for the building(s) described as:

Project Name _____________________________________

BIN (Building Identification Number)			Address
     					     
     					     
     					     
     					     
     					     
     					     
     					     

(Attach a separate sheet(s) if more space is required.)

To be fixed as taking effect on the elected date of (check only one option):
 The allocation date (the date of the initial allocation for the HTC project)
 The Placed-In-Service date

Acknowledged, agreed, and accepted this       day of      ,      .

	Owner: 						

						By: 						
Signature

		     
Type/Print Name and Title

STATE OF      	)
	)  ss
COUNTY OF      )

Subscribed and sworn to before me, a notary public, this       day of                         , 20__ by ________________________________________of ________________________________ on behalf of said partnership.
																			_____________________________________
										Notary Public