Housing Infrastructure Bonds

Housing Infrastructure Bonds (HIB) are limited obligation tax-exempt bonds issued by Minnesota Housing and authorized by appropriations from the General Fund of the Minnesota Legislature. The proceeds of HIBs may be used to fund loans that finance specific multifamily housing development purposes. Projects must meet one of the following eligible uses:
  • Permanent supportive housing for individuals and families experiencing homelessness, including housing for people with behavioral health needs
  • Affordable housing for seniors 55 and older with a preference for serving seniours at the lowest incomes
  • Preservation of federally subsidized rental housing

Applying for HIB

HIBs are typically awarded once per year through the Multifamily Consolidated Request for Proposals (RFP). Projects applying for HIBs are required to meet at least one strategic priority and RFP eligibility and feasibility requirements. 
 
At the Intent to Apply stage of the RFP application process, applicants must indicate the intent to apply for HIBs and itemize the number of units in the project that will meet the specific requirements of the eligible use being applied for.
 
Loans funded with HIB proceeds can be structured either with volume-limited private activity bonds, potentially qualifying the development for 4% tax credits, or as deferred only loans. As volume-limited bonds are limited, having the flexibility to structure HIB loans without 4% tax credits allows Minnesota Housing to deploy more funding during the RFP. Applicants are encouraged, where feasible, to leverage 4% tax credits with a request for HIB proceeds.

More Information

For more information on the eligible uses and requirements of HIB, see the following:

Contact

William Price at 651.296.9440