State Housing Tax Credit Program and Contribution Fund
The State Housing Tax Credit Program and Contribution Fund is a new way to help finance multifamily and single-family housing that is affordable throughout the state of Minnesota. Eligible Minnesota taxpayers can contribute to the contribution fund and, in return, receive a state Tax Credit Certificate (TCC). Contributions will provide funding for loans for eligible housing projects in communities through the state. The loans provided through the program are funded entirely by taxpayer contributions. There are no state appropriations or other funding sources for the program. This program does not mirror the Federal Low Income Housing Tax Credit program.
Program Contributions Now Being Accepted
Eligible Minnesota taxpayers can contribute between $1,000 and $2 million to the Contribution Fund and receive a state tax credit certificate (TCC) that equals 85% of their contribution, which may be used to reduce their Minnesota state tax obligation. Taxpayer information, including taxpayer social security number or taxpayer ID, must be provided in the application. Taxpayers have the option in the application to designate their contribution to a specific Qualified Project or the General Contribution Pool. If the contribution is a designation for a Qualified Project, information about the project and developer must be provided. Minnesota Housing may issue up to $9.9 million in TCCs in 2023. TCCs are issued on a first come, first served basis in 2023, based on the submission time of the online application.
The contribution process for 2023 is as follows:
- Eligible taxpayers complete the online application by December 8, 2023
- Minnesota Housing reviews the application
- Minnesota Housing sends the taxpayer payment instructions and a signature document via Docusign
- Taxpayer submits and Minnesota Housing receives signature document and contribution funds within 30 days, or by December 29, 2023, whichever is sooner
- Minnesota Housing issues TCC to the taxpayer within 30 days of receiving the signature document and funds
Minnesota Housing encourages all contributors to review the program guide to understand how their contribution will be used. Contributions are irrevocable. If a Designated Contribution cannot be used as intended, it will be added to the General Contribution Pool to fund eligible projects across the state. Minnesota Housing cannot provide tax advice and recommends consulting with a tax professional.
Eligible Recipients
Minnesota Housing may award loans to a city, federally recognized American Indian Tribe, a Tribal housing corporation, a private developer, a nonprofit organization, a housing and redevelopment authority, a public housing authority, or the owner of the housing.
Usage of Funds
Eligible uses of funds include gap financing, new construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, and permanent financing.
The program also has set-asides for single family housing, housing in a township or city with a population of 2,500 or less that is outside of the metro area and housing for people earning 50 percent or less of area median income.
Availability of Funds
Since this program is entirely funded from eligible taxpayer contributions, no funds are available until after contributions have been made. Contributions to the General Contribution Pool will be available via a Request for Proposals (RFP) process in 2024. Funding for the program is expected to be offered separately from Minnesota Housing’s 2024 Consolidated RFP. This page will be updated as program development continues.
Designated Contributions for Qualified Projects can be requested by the Designee by submitting the State Housing Tax Credit Contribution Program Due Diligence Checklist and required items. The checklist will be posted to the website at a future date.
Get the word out about the contribution fund!
If someone in your community may be interested in supporting housing for Minnesotans, help us spread the word. You can download and share the following marketing material about the program:
Program Guide and Frequently Asked Questions
Additional Resources
New Construction Rehabilitation Due Diligence Checklist: for Qualified Projects with Designated Contributions requesting disbursements during construction or rehabilitation.
Program End Loan Due Diligence Checklist: for all other Qualified Projects with Designated Contributions.
Tax Credit Contribution Application (for reference purposes only)
Taxpayer Certification and Signature Form (for reference purposes only)
Minnesota Housing Tax Credit Contribution Account (Minnesota Statutes 462A.40)
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