Housing Tax Credits

The Low-Income Housing Tax Credit (HTC) Program is a financing program for qualified residential rental properties. The HTC program offers investors a 10-year reduction in tax liability in exchange for capital to build eligible affordable rental housing units in new construction, rehabilitation, or acquisition with rehabilitation.

Quick Links:

• Qualified Allocation Plan (QAP) - This page has basic information about the QAP process and history only. Scroll down for the current QAP and supporting documents.
• Income Averaging
• 4% Housing Tax Credits for Use with Projects Financed by Tax Exempt Volume Limited Bonds (4% Only)
• Carryover of Housing Tax Credits
• Final Housing Tax Credit Allocation or Award Certification (Form 8609)
• Qualified Contract
• eNews Archive for Tax Credits
• Current Applicants and Previous Awards 

Housing Tax Credit Extensions During COVID-19

Apply for Housing Tax Credits

Amended 2020 HTC Program Procedural Manual and Documents

Amended 2020 HTC Program Procedural Manual Amended 2020 QAP 2020 HTC Self-Scoring Worksheet - 4% Only Round - (.xlsm)   If using Firefox, you may be prompted to open the file or save the file. Please use “Save As” option to download these files, rather than “Open.” 2020 HTC Self-Scoring Worksheet - 4% Only Round - (pdf) - not for submittal. Document is for reference only.

2020 HTC Program Procedural Manual and Documents

2020 Important Dates 2020 Estimated HTC Distribution 2020 Content and Scoring Changes 2020 HTC Program Procedural Manual 2020 QAP 2020 Methodologies: Access to Higher Performing Schools Community Economic Integration Cost Containment Location Efficiency Rural/Tribal Designated Areas Qualified Census Tracts, Tribal Equivalent Areas Workforce Housing Communities Continuum of Care (COC) Priorities 2020 QAP Composite Map - Greater Minnesota 2020 QAP Composite Map - Metro 2020 HTC Self-Scoring Worksheet - Competitive Funding Round - (.xlsm) If using Firefox, you may be prompted to open the file or save the file. Please use “Save As” option to download these files, rather than “Open.” 2020 HTC Self Scoring Worksheet - Competitive Funding Round - (pdf). Not for submittal. Document is for reference only. 2020 HTC and 2019 Deferred Scoring Guide - Revised 3.11.2019. Please reference the most current version when completing your application. 2020 HTC and 2019 Deferred Scoring Tips Quick Reference Underwriting Standards (revised 2.2020) - Effective for applications submitted after 4.2.2020 Underwriting Standards (revised 4.2019) - Effective for applications submitted after 4.4.2019 2020 Design and Construction Standards 2020 Cost Containment Thresholds 2020 Final Point Ranges 2020 HTC Declaration of Land Use Restrictive Covenants (LURA) 2020 HPH Rider - The HPH Rider must accompany the HTC Declaration as an additional requirement

Additional HTC Application Reference Materials

HTC Scoring Materials Community Development Initiative Narrative HTC Sample Threshold Letter HTC Scoring Calculation Worksheet HTC Scoring TIF Resolution and Letter Eventual Tenant Ownership Guide Eventual Tenant Ownership (ETO) Guide - Allows property owners to convert housing tax credit rental units to homeownership units following the initial 15-year compliance period. For information on ETO, please contact a member of the tax credit team at htc.mhfa@state.mn.us. Market Analyst List   The Internal Revenue Code Section 42(m)(1)(A)(iii) requires Housing Tax Credit (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 submit market studies for the 2021 Multifamily Consolidated RFP/2022 HTC Round 1, HTC Round 2, and 4% only funding rounds.    Current authorized analysts must renew their application every three years. If your organization is currently on the Market Analyst List, refer to the renewal date on the list. Market Analyst Requirements and Application - updated January 2021 Market Study Guidelines Market Analyst List NOTE: Minnesota Housing is not currently accepting applications to be added to the Market Analyst List. This application process and its related list are closed until December 2021.   Questions? Contact the Housing Tax Credit Team at htc.mhfa@state.mn.us.   Census Data HUD Qualified Census Tracts To determine the census tract number for a particular address, visit the HUD User GIS Service - Low Income Housing Tax Credit Qualified Census Tract (QCT) Locator. Current Applicable Percentage Council for Affordable and Rural Housing Affordable Housing Resource Center (Novogradac & Co. LLP.) Minnesota Statutes Tax Credit Allocation Statute - Minnesota Statutes Section 462A.222 et setqua Tax Exempt Bond Statute - Minnesota Statutes Section 474A.047 et setqua Local Tax Credit Suballocators Tax Credit Allocation Authorities Contact List Tax Credits with Tax Exempt Bonds Summary of Tax Exempt Bonds Procedures Current Applicants and Previous Awards Current list of Applicants, and Previous Funding Awards

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, contact Minnesota Housing’s Request for Action (RFA) team for more information. To contact the RFA team, visit the Servicing Requests webpage.