Multifamily Housing News: 2022 4% HTC Only Application Process, 2021 HTC Carryover Application Deadline and New HIB Self-certification Forms
Please see below for the latest round-up of Multifamily news and updates.
In this eNews:
2022 4% Housing Tax Credits with Private Activity Bonds (4% Only) Application Process 2021 Housing Tax Credit Program Carryover Allocation Application Deadline Reminder New Self-certification Forms for Housing Infrastructure Bonds
2022 4% Housing Tax Credits with Private Activity Bonds (4% Only) Application Process
Minnesota Housing is now accepting pre-applications for an allocation of 2022 4% Only Housing Tax Credits (HTC) for projects expected to be financed with tax-exempt volume limited bonding authority from Minnesota Management and Budget (MMB).
Pre-Application Process
The optional but strongly encouraged pre-application process assists developers with requirements associated with requesting 4% 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:
- 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 Qualified Allocation Plan (QAP), and/or
- 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)
4% Only HTC (42M) 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 January 11, 2022. Plan to include at least 60 days in your schedule for Minnesota Housing to complete its review after complete application package is submitted in the Portal.
4% Only HTC 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% Only HTC. This training will provide information on Minnesota Housing’s review process and an overview of requirements of the 2022-2023 HTC Qualified Allocation Plan (QAP) and new Tenant Selection Plan Guidelines.
When: Monday, November 29, 2021 from 1:00 - 2:30 p.m. CT
For more information on the 4% Only HTC process:
Questions?
Contact William Price at william.price@state.mn.us or 651.296.9440
REMINDER: 2021 Housing Tax Credit Program Carryover Allocation Applications Due Monday, November 1 by 12:00 p.m. (noon) CT
There is still time to submit your application for a Carryover Allocation of the 2021 HTC Program. Section 42 of the Internal Revenue Code requires all 9% 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, November 1, 2021 by 12:00 p.m. (noon) CT (refer below). 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 December 31, 2021 will lose its entire allocation of 2021 HTCs.
Pre-Construction Due Diligence
Certain pre-construction due diligence checklist items must be submitted prior to the earlier of the start of construction or November 1, 2021. The requirements are outlined in your Reservation Agreement and relate to the design/construction, management, and homelessness checklist items. Refer to the Pre-Construction Due Diligence checklist items in the Multifamily Customer Portal for additional information.
Contact the assigned Minnesota Housing architect, supportive housing officer, or housing management officer listed in the Portal for additional direction and to establish timelines for required submissions.
Application Instructions
Submit all Carryover applications through the Multifamily Customer Portal. The Portal allows you to submit documents and collaborate with Minnesota Housing staff throughout the application process.
Critical Carryover Application Tips for On-Time Submission
Review the following Multifamily Customer Portal submission tips to make sure you meet the Carryover application deadline of Monday, November 1, 2021 at 12:00 p.m. (noon) CT.
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Review Portal Resources: Learn more about the Multifamily Customer Portal, and view training tutorials to help guide you through the submission process.
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Multiple HTC Awards: If you received additional HTCs via the 2021 HTC Round 2 funding round, submit your Carryover application via the 2020 RFP/2021 HTC Round 1 funding round in the Portal.
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Use the 2020 Version of the Multifamily Workbook: Customers submitting a Carryover application for the 2021 HTC allocation year are required to use the 2020 version of the Multifamily Workbook. To avoid errors in the submission process, be sure to download the correct version from the Carryover application checklist in Portal.
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Include the Property Number (D#) and Project Number (M#) on all Applicable Forms: On many Minnesota Housing forms, applicants are asked to provide a D# and an M#. A D# is a four-digit number (preceded by a D) assigned by Minnesota Housing that represents the property. An M# represents the funding award. The D# and M# assigned to your project are listed in your selection letter and Reservation Agreement.
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Upload Files as You Go: The Portal requires applicants to upload a file to the corresponding checklist item. Do not wait until the last minute to upload these documents! It is best to upload files immediately after you complete them.
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Click "Submit" When You Are Finished: The Portal requires you to upload all checklist items (or indicate “opted out”) before you can submit your Carryover application. After the Portal verifies the checklist item, the "Submit" button appears. You must click the "Submit" button in order to complete and properly submit your application. If you do not click Submit, Minnesota Housing will not receive your application.
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Do Not Submit Hard Copies: Submit your application via the Multifamily Customer Portal; no hard copy applications will be accepted. Fees are the only exception to hard copy submittals. Fees must be received by mail or delivered to Minnesota Housing no later than 12:00 p.m. (noon) CT on Monday, November 1, 2021 along with a hard copy of the Fee Remittance Form. The Fee Remittance form can also be downloaded from the Carryover application checklist in Portal.
Mail or drop off fees and the Fee Remittance Form to:
Minnesota Housing ATTN: Tamara Wilson 400 Wabasha Street North, Suite 400 Saint Paul, MN 55102
Mailing the fee and Fee Remittance Form is strongly encouraged, but if you need to hand deliver them to Minnesota Housing, please email the HTC team at htc.mhfa@state.mn.us to coordinate.
Questions?
For project specific questions, contact the assigned Minnesota Housing staff listed in the Multifamily Customer Portal.
For Portal questions, contact mhfa.app@state.mn.us.
For HTC questions, visit our HTC webpage or contact the HTC team at htc.mhfa@state.mn.us.
New Self-certification Forms for Housing Infrastructure Bonds
Minnesota Housing received questions about how to document eligibility to comply with the eligible populations established in Minn. Stat. 462A.37 for units set aside for households with behavioral health needs and units for homeless households not referred by Coordinated Entry in properties financed with Housing Infrastructure Bonds (HIB). In response, we are releasing two self-certification forms:
These forms provide the respective definitions of Households with Behavioral Health Needs and Other Homeless. Each form includes a separate page that contains eligibility details. To remove barriers for any household that may be unable to self-certify eligibility, the forms also contain a section for certification by a service provider.
Before a new household moves into an assisted unit, owners should have the head of household (or service provider, if needed) complete the self-certification along with the Initial Occupancy Statement by Tenant or other initial income certification.
For HIB loans that have already closed and assisted units are occupied, obtain the certification at lease renewal or the next available opportunity. For properties with existing households that have not yet closed on their HIB loan, owners must certify eligibility prior to closing. Refer to slides 17-25 of the Compliance and Monitoring General Information Training Tutorial for more details on certifying tenant eligibility for Minnesota Housing’s deferred loans.
To access these forms, training tutorials and other compliance related resources, visit Minnesota Housing’s compliance webpage.
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