4% Housing Tax Credits for Use with Tax-Exempt Volume Limited Bonds (4% HTC Only)

Minnesota has different allocating agencies for the distribution of tax-exempt volume limited bonding authority and 4% housing tax credits (HTC). The primary allocating agency for tax-exempt volume limited bonding authority is Minnesota Management and Budget (MMB), and the primary housing credit agency for 4% HTC is Minnesota Housing.

Section 42 of the Internal Revenue Code establishes that 4% HTC may be available under certain circumstances for projects that receive an allocation of tax-exempt volume limited bonding authority. Minnesota Housing’s Qualified Allocation Plan (QAP) is the agency’s plan for the distribution of HTCs. The QAP and corresponding documents are published annually. The year in which tax-exempt volume limited bonds are issued in an amount sufficient to meet the 50% test for 4% HTC determines which year’s QAP applies to the project.

Apply for Housing Tax Credits

Minnesota Housing is currently accepting pre-applications and beginning on January 11, 2022, will also be accepting full applications for an allocation of 2022 4% HTCs (42M) for projects anticipated to be financed with tax-exempt volume limited bonding authority from MMB. Pre-applications and applications must be submitted using Minnesota Housing's online Multifamily Customer Portal. Application resources include the following:

4% HTC Only Webinar

Minnesota Housing is pleased to offer an informational training session for developers, bond counsel, financial advisors, local government staff and others who work with developers on applications for private activity bonds and intend to apply to Minnesota Housing for 4% HTC. The training will provide information on Minnesota Housing's review process and an overview of requirements of the 2022-2023 HTC Qualified Allocation Plan and new Tenant Selection Plan Guidelines.
 
When: Monday, November 29, 2021, 1:00 - 2:30 p.m.
Click here to register.

eNews Information

  • Sign up for our eNews list to receive timely updates about 4% HTCs available for projects financed with tax-exempt volume limited bonds.

Technical Assistance

  • Technical assistance with Minnesota Housing staff is available and strongly encouraged throughout the process. For more information or tax credit questions, contact William Price at william.price@state.mn.us or 651.296.9440.