State Housing Tax Credit Contribution Fund Program

Program Overview

The State Housing Tax Credit Program and Contribution Fund is a new program established to help finance multifamily and single family housing that is affordable throughout the state of Minnesota. This state program is a separate program from the Federal Low Income Housing Tax Credit program.  

Beginning in 2023, eligible Minnesota taxpayers will be able to contribute to the contribution fund, and in return, receive a state tax credit. The contributions will provide funding for loans or grants for eligible housing projects in communities through the state. There are no state appropriations or other funding sources for the program; the program relies solely on contributions from eligible Minnesota taxpayers.

Program Funding

Eligible Minnesota taxpayers can contribute to the fund and receive a state tax credit. The tax credit equals 85% of the amount the taxpayer contributed to the fund during the taxable year. The minimum single contribution amount is $1,000 and the maximum is $2 million. The maximum aggregate amount of tax credits allowed to all eligible contributors is $9.9 million annually. Information on how to contribute to the fund and how to receive the state tax credit will be published on this page prior to the fund opening for contributions.

Eligible Uses

Eligible uses of funds include gap financing for new construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction and refinancing.

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% or less of area median income.  Uses of funds include gap financing for new construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, and refinancing.

Availability of Funds

Since this program is entirely funded from eligible taxpayer contributions, no funds will be available until after contributions have been made and Minnesota Housing has assessed the amounts to determine funding availability. The process to request funding from the program will be available after the fund has received adequate contributions, as determined by Minnesota Housing. Funding for the program is expected to be offered separately from Minnesota Housing’s 2023 Consolidated Request for Proposals (RFP).

Note: the program guide and procedures are currently being developed. This page will be updated as program development continues.

Resources

Sign up to receive the State Housing Tax Credit Program and Contribution Fund eNews alerts.

Minnesota Housing Tax Credit Contribution Account (Minnesota Statutes 462A.40)

Minnesota Housing Tax Credit  [290.0683]

Questions?

Contact Krissi Mills at krissi.mills@state.mn.us or 651.297.3121.