In this eNews:
2024-2025 QAP and Consolidated RFP Funding Priorities: Share Feedback and January Engagement Opportunities
Market Analyst List: New Applications and Renewals Due February 1, 2022
Multifamily Programs: Updated Procedure for Part 58 Environmental Review Process
REMINDER: 2022 4% Only HTC with Private Activity Bonds Application Process
2024-2025 QAP and Consolidated RFP Funding Priorities: Share Feedback and January Engagement Opportunities
Minnesota Housing is beginning to develop our 2024-2025 Qualified Allocation Plan (QAP), which is the document that describes the competitive process used to distribute Low Income Housing Tax Credits (HTC) to multifamily rental projects. Because Minnesota Housing forward allocates HTCs, the 2024-2025 QAP will set the overall funding priorities for the 2023 and the 2024 Consolidated Request for Proposals (RFP). The annual Consolidated RFP includes competitive HTCs and deferred loan resources. If you missed our recent information session, please see the recording and slides below, which are also posted on our QAP webpage.
We welcome your participation and feedback as we draft the QAP:
We plan to share a draft QAP in early summer 2022 and you will have an opportunity to provide public comment at that time. See our November 16, 2021 eNews for more information.
Market Analyst List: New Applications and Renewals Due February 1, 2022
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 2022 Multifamily Consolidated RFP/2023 HTC Round 1. Analysts not already authorized, or whose authorization expires March 1, 2022, must apply to Minnesota Housing by 12:00 p.m. CT on February 1, 2022 to be considered for authorization to submit a market study in the Multifamily Consolidated 2022 RFP/2023 HTC Round 1.
Minnesota Housing is now accepting new applications and renewals from analysts who wish to be added to the Market Analyst List. 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. Renewal requests must be submitted by February 1 to allow time to review before the renewal deadline of March 1. Please refer to the materials below to apply:
For more information, visit the Housing Tax Credits webpage, under the “Additional HTC Application Reference Materials” section or email the Housing Tax Credit team at htc.mhfa@state.mn.us.
Multifamily Programs: Updated Procedure for Part 58 Environmental Review Process
Due to an increasing number of projects and to help expedite the review process, Minnesota Housing is updating its Part 58 Environmental Review process. Projects that are selected for federal funding (Low and Moderate Income (LMIR) mortgage with HUD Risk-share insurance, HOME, or National Housing Trust Fund (NHTF)) are required to meet certain federal requirements, including completion of a Part 58 Environmental Review.
What This Means:
- In order to streamline the review process, Minnesota Housing will begin to engage directly with a third party consultant to complete a Phase I Environmental Site Assessment (ESA) that complies with ASTM E1527-13 standards as well as all federal NEPA requirements to help complete the Part 58 Environmental Review.
- This process change is effective for all new construction and substantial rehabilitation projects that are selected for federal funding in Minnesota Housing’s 2021 Consolidated RFP/2022 HTC funding round and after. This excludes LMIR refinance-only projects and projects with a limited rehabilitation scope (estimated rehab costs are less than 75% of total estimated replacement after rehab).
- Phase I ESA engagement will be done by Minnesota Housing staff, who will bid out for Phase I ESA work shortly after project launch meetings. The developer will then be able to select from the eligible bids received. Whether the cost will be paid directly by Minnesota Housing or be part of the project budget will vary based upon the type of federal funding. In some cases, developers will need to remit funds from the project budget to Minnesota Housing as is currently done for appraisals.
Additional details for Phase I ESA requirements will be discussed during project launches and at the 2022 Consolidated RFP Kickoff meeting.
Questions? Contact Aaron Keniski at aaron.keniski@state.mn.us or 651.296.4452.
REMINDER: 2022 4% Housing Tax Credits with Private Activity Bonds (4% Only) Application Process
Minnesota Housing is currently accepting pre-applications, and beginning on January 11, 2022, will begin accepting full applications for an allocation of 2022 4% Only HTC for projects expected to be financed with tax-exempt volume limited bonding authority from Minnesota Management and Budget (MMB).
For more information about the 4% Only process and how to apply, visit the 4% HTC Only webpage.
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 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. 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.
For more information on the 4% Only HTC process:
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