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Housing Tax Credits

The Low Income Housing Tax Credit (HTC) Program awards and allocates federal tax credits to owners of qualified affordable rental housing projects. These HTCs, which offer a 10-year reduction in tax liability, are sold to investors in exchange for capital to build eligible affordable rental housing units in new construction, rehabilitation, or acquisition with rehabilitation.

Minnesota Housing offers two types of HTCs: 9% and 4% with Tax-Exempt Volume-Limited Bonds

The 9% HTCs are allocated twice a year through a competitive process:

  • During Round 1, also known as the annual Multifamily Consolidated RFP/HTC Round 1, when much of our other funding is also available, and
  • During Round 2, which is generally a smaller round allocating the remaining available HTCs for the year.

The 2024 Housing Tax Credit Round 2 is now closed. Visit the Consolidated RFP Round 2 webpage for more information. 

4% HTCs with Tax-Exempt Volume-Limited Bonds are available year-round. Minnesota Housing is currently accepting pre-applications for an award of 2024 4% HTCs (4% Only) for projects anticipated to be financed with tax-exempt volume limited bonding authority from Minnesota Management and Budget (MMB). Full applications will be accepted beginning Tuesday, January 9, 2024. Learn more about the 4% Housing Tax Credit (4% Only) program.

Applicants for HTCs must apply using our Multifamily Customer Portal. Resources and relevant documents are listed below and on the Multifamily Consolidated RFP/HTC Funding Rounds webpage. To receive notification of application updates and reminder via email, sign up to receive our eNews publications. 

2024-2025 HTC Documents

The following documents set forth the overall funding priorities for all the HTC funding rounds and the annual Multifamily Consolidated Request for Proposals (RFP). 
HTC Application Reference Materials

HTC Application Reference Materials

Eventual Tenant Ownership Guide

Eventual Tenant Ownership (ETO) Guide - Allows property owners to convert HTC rental units to homeownership units following an initial 15-year compliance period. For information on ETO, contact a member of the Housing Tax Credit Team at

Market Analyst List

Minnesota Housing is excited to announce a new process improvement to the market study requirements for HTC applications.

What's New:

  • Projects applying for funding for the 2024 Multifamily Consolidated RFP/2025 HTC Rounds 1 and 2, will no longer be required to submit a market study at application.  This applies to projects applying as a 9% HTC or deferred with a 4% HTC financial structure.
  • Market studies are now only required for selected projects and will be collected as a post selection checklist item.

NOTE: For projects applying through the 4% HTC Only round, the market study will still be required at application/42M.

The Internal Revenue Code Section 42(m)(1)(A)(iii) requires HTC projects to select an authorized market analyst to complete a market study when submitting an HTC project proposal for funding. Market analysts must be authorized by Minnesota Housing before developers can submit market studies for the 2024 Multifamily Consolidated RFP/2025 HTC Round 1, HTC Round 2, and 4% Only funding rounds.

Approved Market Analyst List Updates: Renewals and New Applications

Due to the change in the market study requirement for the 2024 MF Consolidated RFP/2025 HTC Rounds 1 and 2, Minnesota Housing is extending the market analyst renewal application due date. If your organization is currently on the approved Market Analyst List and due for renewal on March 1, 2024, your organization will remain on the list until further notice, and you do not need to submit a renewal application at this time. We will provide further updates in an upcoming eNews.

We are currently taking applications from market analysts who are not currently authorized and want to be considered for authorization to submit market studies in the 2024 Multifamily Consolidated RFP/2025 HTC Funding Rounds.

Application Materials

Questions? Contact the Housing Tax Credit Team at

Average Income Test (AIT)

The Consolidated Appropriations Act of 2018 established an Average Income Test (AIT) as a third minimum set-aside election for new Housing Tax Credits (HTC) projects. Under appropriate circumstances, this option can be elected by owners in lieu of the existing minimum set-aside elections of 40% of the units at 60% of Multifamily Tax Subsidy Project (MTSP), and 20% of the units at 50% of MTSP.

Census Data

To determine the census tract or census tract number for a particular address, visit the following:

Minnesota Statutes

Local Housing Tax Credit Suballocators

Current Applicable Percentage

Other HTC Information

Other HTC Information

Changes in Ownership or Proposed Development

Changes in Ownership or Proposed Development

Minnesota Housing strongly discourages the transfer of ownership or any material project or building design changes for developments that have been awarded tax credits. Any unapproved transfers or changes could be penalized by the complete or partial loss of tax credits as well as the assessment of penalty points. If an owner wishes to change or transfer ownership, visit the Minnesota Housing's Request for Action (RFA) webpage.

Qualified Contract

The Internal Revenue Code, Section 42(h)(6)(E)(i)(II) created a provision that housing credit agencies respond to the request for presentation of a qualified contract for HTC projects with expiring compliance periods. The request for presentation of a qualified contract is a request that the housing credit agency find a buyer (who will continue to operate the property as a qualified low-income property) to purchase the property for a qualified contract price pursuant to IRS regulations.

If the housing credit agency is unable to find a buyer within one year, the extended use period is terminated, subject to a three-year period following its termination. During this three-year period following termination, existing low-income tenants cannot be evicted or tenancy terminated for other than good cause and rents cannot exceed the allowable HTC rent limits.

Required Documents

Properties for Sale

Qualified Contract properties will be listed here as they become available.