 This eNews addresses the following items. All changes are effective on and after January 1, 2022.
- Revised Impact Fund Program Procedural Manual
- Revised Fund Request for Funds
- Revised Certificate of Administrator - Bond Proceeds
- Revised Eligibility Income Worksheet
- Forms and Documents Reminder
Revised Impact Fund Program Procedural Manual
Minnesota Housing has released clarifications to program policies and procedures through its Community Homeownership Impact Fund Program (“Impact Fund”) Procedural Manual.
Changes to program policies and procedures include:
- Chapter 2: Fraud, Misuse of Funds, Conflict of Interest, Suspension, and Disclosure and Reporting
- Expanded Uses of Housing Infrastructure Bond (HIBs) Proceeds Requirements
- 8.01 General – Clarification to what eligible activities and costs are allowed for HIBs funding.
- 8.02 Properties Eligible to be Financed with Bond Proceeds Loans – Clarification that costs must be incurred no earlier than the date specified on the Certificate of Administrator as to Expenditure of Bond Proceeds provided by Minnesota Housing to be eligible for reimbursement.
- 8.03 Additional Documentation Required – Clarification on what documentation is required for each eligible use of HIBs.
- 8.04 Disbursements of Bond Proceeds Loans – Clarification when requesting funds to provide additional required documentation for each eligible use as noted in the Additional Documentation Required.
- Appendix A: Definitions – Clarification to the Bond Proceeds definition to include the eligible activities and expanded uses.
The following revisions clarify, but do not substantively change, policies and procedures contained in prior versions of the Impact Fund Procedural Manual.
- Consistency with other Agency programs with the language used for the Lead-Based Paint Guide (instead of Guidebook).
- Clarification of what required documentation is needed for Acquisition, Rehabilitation, and Resale activities as it relates to lead-based paint documentation.
- Clarification to distinguish which definition, either Property or Qualified Dwelling Unit or both, is applicable throughout the manual.
- Removal of the Community Land Trust (CLT) Project definition since this was not used anywhere in the manual.
This revised Impact Fund Procedural Manual is effective for all activity occurring on or after January 1, 2022.
Revised Request for Funds Form
The updated Community Homeownership Impact Fund Request for Funds form includes the expanded uses for Bond Proceed funds for value gap and owner-occupied rehabilitation projects and the additional documentation required for disbursements for these activities. Please use the updated Request for Funds form for all disbursement requests moving forward.
Revised Certificate of Administrator - Bond Proceeds
In 2020, the Minnesota State Legislature expanded the eligible uses of Housing Infrastructure Bonds (HIBs) to include certain single-family housing activities. This resulted in an expansion of the eligible activities and the eligible entities.
Minnesota Housing has updated the Impact Fund Certificate of Administrator as to Expenditure of Bond Proceeds Awarded in 2020 for Land Acquisition, Demolition and Utility Connections and added the Impact Fund Certificate of Administrator as to Cost of Bond Proceeds Awarded in 2020 for Value Gap or Owner-Occupied Rehabilitation to reflect the expanded activities. Both documents are available on the Impact Fund web page.
The revised Certificate of Expenditure of Deferred Loan – Bond Proceeds are effective immediately to all activity awarded funding during and after the 2020 Single Family Request for Proposals. Administrators must use the updated Certificates for all Bond Proceeds requests moving forward.
Please review the Impact Fund Procedural Manual to become familiar with the new process for HIBs disbursement, documentation and reporting.
Revised Eligibility Income Worksheet
All Administrators are required to use the Eligibility Income Worksheet in determining a household’s eligibility for Impact Fund assistance. Additional guidance is provided in the worksheet for whose income needs to be included, how to calculate different types of income, and what income is included and excluded.
Forms and Documents Reminder
As a best practice, please always use the most recent version of Impact Fund documents posted to the Impact Fund web page. Avoid using versions of forms you have downloaded and saved.
eNews Subscriptions and Archive
Do you have colleagues or employees who should receive future Impact Fund administrator notifications? Please send their email addresses to us at impact.fund.mhfa@state.mn.us so we can add them to our distribution list.
Wondering if you’ve missed an eNews, or looking for some information sent months or years ago? Check out our eNews Archive. This link can be accessed from the “Quick Links” in any “Lenders and Homeownership Partners” section of our website.
Questions?
Contact the Impact Fund team:
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