Minnesota Housing is accepting pre-applications for an allocation of 2022 Four Percent Only Housing Tax Credits (HTC) for projects expected to be financed with tax-exempt volume limited bonding authority from Minnesota Management and Budget (MMB). 

The optional, but strongly encouraged, pre-application process assists developers with requirements associated with requesting four percent only HTC (42M). Through this process, Minnesota Housing provides the following information before a request for tax-exempt volume limited bonding authority is submitted to MMB: 

  1. Preliminary predictive cost model determination (to determine if total development costs are within the model’s acceptable range as required by the applicable year’s QAP and/or 
  2. Preliminary scoring determination (to determine if the project reaches the minimum score of 40 points on Minnesota Housing’s Self-Scoring Worksheet in order to move forward in the application process). 

For projects that receive an allocation of tax-exempt bonds from MMB in 2022, a full and complete application must be submitted to Minnesota Housing at least 60 days prior to bond issuance. Full applications will be accepted after Jan. 11, 2022. Plan to include at least 60 days in your schedule for Minnesota Housing to complete its review after the complete application package is submitted in the Portal. 

Minnesota Housing will host an informational training session on Nov. 29, 2021 from 1 to 2:30 p.m. CT 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 four percent only HTC. This training will provide information on Minnesota Housing’s review process and an overview of requirements of the 2022-2023 QAP and new Tenant Selection Plan Guidelines. Register here. 

There is still time to submit applications for a Carryover Allocation of the 2021 HTC Program. Section 42 of the Internal Revenue Code requires all nine percent HTC projects to carryover or be placed in service by the end of the HTC year. A project that received a 2021 reservation of HTCs is eligible to apply for a Carryover Allocation of 2021 HTCs. A Carryover Allocation allocates the HTCs to the project, provided that all requirements of the Carryover Allocation Agreement are met in a timely manner. A Carryover Allocation Agreement allows qualified buildings to be placed in service up to two years after the year in which an allocation is received. Applications are due on Monday, Nov. 1, 2021 by noon CT. To the extent permissible, allocation late fees will be imposed on Carryover applications submitted after the submission deadline, as outlined in the 2021 HTC Program Procedural Manual. A project that has not received a Carryover Allocation or is not placed in service and has been issued its appropriate 8609s by Dec. 31, 2021 will lose its entire allocation of 2021 HTCs.