 Multifamily Housing News:
Consolidated Request for Proposals Intent to Apply Deadline, 2024-2025 Qualified Allocation Plan Update and Other Multifamily News
In this eNews:
Intent to Apply Deadline for the 2022 Multifamily Consolidated RFP/2023 HTC Round 1
Important Multifamily Consolidated RFP Dates
Register for 2022 Consolidated RFP/2023 HTC Self-Scoring Worksheet Training
Metropolitan Council Approves Local Housing Incentives Account Funding
Federal Funding in the 2022 Multifamily Consolidated RFP
Development Team Qualification Forms
Dual Applications and Project Numbers (M Numbers)
LMIR Rates
First Mortgage Interest Rate Reminder
Application Reminders
Staying in Touch
2024-2025 Qualified Allocation Plan: Summary of Proposed Changes
and Register for Engagement Opportunities
Looking to Rehab a Property Outside of the Multifamily Consolidated RFP?
Training Opportunity: Mental Health Awareness and De-escalation
for Property Management Staff
Intent to Apply Deadline for the 2022 Multifamily Consolidated Request for Proposals/2023 Housing Tax Credits Round 1
The Intent to Apply (ITA) deadline for the 2022 Consolidated Request for Proposals (RFP)/2023 Housing Tax Credits (HTC) Round 1 is this Thursday, May 19, 2022 by noon CT. The ITA is required for all Multifamily applications and projects that do not meet this deadline will not be able to submit a full application.
To meet the ITA deadline by noon CT this Thursday, May 19, you need to create a project and setup your project’s characteristics in the Multifamily Customer Portal. Unlike previous years, there are no checklist items associated with the 2022 ITA. No other action is required by the ITA deadline.
Note: Applicants can change their project’s characteristics up until the full application deadline of noon CT on Thursday, July 14.
Other Important Dates
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Thursday, July 14 by noon CT: Multifamily application deadline including site control, qualification forms and financials.
NOTE: The application fee is also due by this date.
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Thursday, December 15: Minnesota Housing Board meeting to approve selections.
Register for 2022 Consolidated RFP/2023 HTC Self-Scoring Worksheet Training
Minnesota Housing is committed to providing training on the Self-Scoring Worksheet (SSW). In addition to one-on-one and project-specific technical assistance, a live training opportunity will be hosted on Tuesday, May 24, 2022 from 10:00 – 11:30 a.m. to provide an in-depth look at the scoring sheet and supporting documentation requirements.
The SSW training will be recorded and posted in the Training section on the Multifamily Application Resources webpage.
Metropolitan Council Approves Local Housing Incentives Account Funding
The Metropolitan Council announced a total of $3.5 million was approved for the Local Housing Incentives Account (LHIA). These dollars will be available in the multifamily deferred pool of financing in the 2022 Consolidated RFP. Only projects located in participating cities that have enrolled in the Metropolitan Council’s LHIA program are eligible for these funds.. Visit the LHIA website for more information about the program, including matching requirements, eligible uses and more.
Federal Funding in the 2022 Multifamily Consolidated RFP
Minnesota Housing is pleased to announce the estimated federal investment levels for the HOME and National Housing Trust Fund (NHTF) capital programs:
- HOME: $8.5 million
- NHTF: $8.3 million
HOME and NHTF sources are a key part of the Agency’s deferred funding resources. Please note the following federal cross-cutting requirements that must be met to be eligible for these resources:
- Davis Bacon is applicable to HOME funding only. Under certain circumstances, the project may also be subject to state prevailing wage, in addition to Davis Bacon, and subject to a dual wage decision. See page eight of the Multifamily Application Instructions: Multifamily Consolidated RFP, HTC Round 1 and HTC Round 2 for more detail.
- The new U.S Department of Housing and Urban Development (HUD) Section 3 Rule will be in effect for projects selected for funding in the 2022 Consolidated RFP. For housing and community development financial assistance projects, the benchmark for Section 3 workers is set at 25% or more of the total number of labor hours worked by all workers on a Section 3 project. The benchmark for targeted Section 3 workers is set at 5% or more of the total number of labor hours worked by all workers on a Section 3 project. This means that the 5% is included as part of the 25% threshold. Developers and their contractors will be strongly urged to meet this goal, and reporting will take place along with weekly payroll reporting for Davis Bacon.
- A HUD Part 58 environmental review is applicable to HOME, while a project receiving NHTF must meet all NHTF environmental provisions. Some provisions align with the requirements of a Part 58 environmental review, but not all. Please contact Aaron Keniski at aaron.keniski@state.mn.us if you have specific questions about site suitability, timing or choice limiting actions.
- Site and Neighborhood Design Standards apply to new construction projects. Projects located within a census tract with a minority concentration above 50%, a poverty concentration above 50% or is within a Racially or Ethnically Concentrated Area of Poverty (R/ECAP) will undergo further review to determine eligibility.
Development Team Qualification Forms
Each RFP funding round and/or year-round funding application requires the submission of a qualification form from ALL development team members if any of the following apply:
- Minnesota Housing does not have the required qualification form on file.
- The information on a previously submitted qualification form has significantly changed.
- The qualification form has been on file with Minnesota Housing longer than 12 months from the date submitted.
Submission Instructions and More Information
All qualification forms, including the Qualification of Sponsor and/or Guarantor and Schedules A-E, must be submitted to mhfa.app@state.mn.us via the Multifamily Secure Upload Tool. For more information, visit the Development Team Qualification Forms webpage.
Dual Applications and Project Numbers (M Numbers)
Applicants can submit dual applications that include a primary and secondary finance structure. Detailed information can be found in the Multifamily Application Instructions: Multifamily Consolidated RFP, HTC Round 1 and HTC Round 2. Generally, dual applications include one of two structure combinations:
- 9% HTC Request (primary)/4% HTC with Deferred Request (secondary)
- 4% with Deferred Request (primary)/Deferred-Only Request (secondary)
The primary structure will use the primary M number. The secondary structure will use the secondary M number. The primary workbook should be uploaded in the Multifamily Customer Portal to the Multifamily Workbook checklist item with the primary M number information entered. The secondary workbook should be uploaded in the Multifamily Customer Portal to the Dual Multifamily Workbook checklist item, with the secondary M number information entered.
In limited circumstances outlined in the Multifamily Application Instructions: Multifamily Consolidated RFP, HTC Round 1 and HTC Round 2 , projects eligible for Housing Infrastructure Bonds (HIBs) who intend to submit a dual application are encouraged to submit a third HIB Deferred-only Multifamily workbook. This should be uploaded in the Multifamily Customer Portal under the HIB Deferred-only Multifamily Workbook checklist item. The secondary M number should be used on this workbook. Minnesota Housing does not assign three M numbers to projects.
LMIR Rates
For the 2022 Consolidated RFP, we encourage using the following rates for initial underwriting purposes when requesting a Minnesota Housing Low and Moderate Income (LMIR) first mortgage:
LMIR Permanent Loan:
- 40 year term/amortization – 6.00%
- 35 year term/amortization - 5.75%
- 30 year term/amortization - 5.50%
- Plus 0.125% for HUD Risk Share MIP
Rates are as of May 12, 2022 and are subject to change based on actual market conditions. Actual rates will be determined during the Consolidated RFP feasibility review.
The above rates are only for submitting to the 2022 Consolidated RFP. If you are interested in current refinancing rates, visit our Interest Rates for Multifamily Products and Programs webpage.
LMIR Bridge Loan (funded with tax-exempt bonds):
- 4.0% interest rate for underwriting purposes
- Term of 18 months
- Not insured under HUD Risk-Share/no MIP
- Actual rate will float and will be based on the price of the bonds + 1.0%.
- Bonds will be sold two weeks prior to loan closing
LMIR Bridge Loan (funded with Agency resources, not tax-exempt bonds):
- 4.0% interest rate for underwriting purposes
- Term of 18 months
- Not insured under HUD Risk-Share/no MIP
- Actual rate will float and will be locked for 90 days prior to final Minnesota Housing approval (subject to change)
For questions about LMIR rates, please contact Susan Thompson at susan.thompson@state.mn.us.
First Mortgage Interest Rate Reminder
In a changing interest rate environment, we want to remind borrowers that if the interest rate hold period for a Minnesota Housing first mortgage expires on a project selected for funding, Minnesota Housing may adjust the first mortgage interest rate for end loan closings and refinance closings. In order to hold an interest rate for a longer period of time, Minnesota Housing may charge additional fees. If you have questions, please contact your assigned underwriter.
Application Reminders
Application Instructions
The Multifamily Application Instructions: Multifamily Consolidated RFP, HTC Round 1 and HTC Round 2 provides instruction on how to get started with your application, how to set up a Multifamily Customer Portal account, eligibility requirements, guidance for dual applications, guidance for projects eligible for Housing Infrastructure Bonds and much more. You can also learn about Minnesota Housing’s selection framework, including the role of scoring, capacity reviews, deferred loan funding priorities and how they impact decision making.
Create a Portal Account
All multifamily applications are required to be submitted in the Multifamily Customer Portal. The Multifamily Customer Portal facilitates the application and post-selection process for developers seeking funding from Minnesota Housing for rental housing that is affordable.
New to Applying?
Training
Training is available on the Multifamily Application Resources webpage for specific application submission and scoring topics (scroll down to the Training section). Be sure to check out the Consolidated RFP Kickoff and Technical Assistance, Scoring Wizard and SSW recordings if you couldn’t attend the live trainings and/or need a refresher.
Request Technical Assistance
We want to help you submit strong proposals. Check out the technical assistance and training opportunities below.
Staying in Touch
Questions about the Consolidated RFP/HTC Round 1?
Sign Up for Consolidated RFP Updates
Stay up to date on Consolidated RFP news and updates by signing up for our eNews list.
2024-2025 Qualified Allocation Plan: Summary of Proposed Changes and Register for Engagement Opportunities
Minnesota Housing's Qualified Allocation Plan (QAP) is the document that describes how Low-Income Housing Tax Credits (HTC) are distributed to multifamily rental projects. The QAP combines state and federally legislated requirements as well as priorities from the Minnesota Housing Strategic Plan. The 2024-2025 QAP sets the overall funding priorities for the 2023 and 2024 Consolidated Request for Proposals (RFP) and HTC Round 1 and 2.
We plan to release a draft of the 2024-2025 Qualified Allocation Plan and Self-Scoring Worksheet on Monday, June 6, 2022. The public comment period is anticipated to be open from Monday, June 6, 2022 until 5:00 CT on Wednesday, June 29, 2022.
Please save these dates and join us at an upcoming engagement opportunity to learn more about the proposed changes.
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Thursday, June 9, 2022, 9:30 - 10:30 a.m. CT
- Minnesota Housing discussion and webinar
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Tuesday, June 14 , 2022, 2:00 – 4:00 p.m. CT
- Minnesota Housing Partnership/Metropolitan Consortium of Community Developers co-sponsored discussion with Minnesota Housing
- Meeting will be held via Zoom at https://mccdmn-org.zoom.us/j/81376675806
Meeting ID: 813 7667 5806
Dial-in: 312-626-6799
Passcode: 81376675806#
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Tuesday, June 28, 2022, 10:00 – 11:00 a.m. CT
- Public Hearing held virtually
- Registration available on June 6
Look for more information in the coming weeks.
Questions?
Reach out to the HTC team at htc.mhfa@state.mn.us.
Looking to Rehab a Property Outside of the Multifamily Consolidated RFP?
Minnesota Housing offers amortizing first mortgages year-round with terms up to 35 years. You can refinance and/or rehab properties of any age by using the proceeds of a LMIR loan. Did you know that equity cash-out is permitted with refinances? Fix up your existing properties or invest in other housing opportunities by refinancing today.
Contact Anne Heitlinger at anne.heitlinger@state.mn.us to learn more and get started.
Training Opportunity: Mental Health Awareness and De-escalation for Property Management Staff
Minnesota Housing and Minnesota Department of Human Services are pleased to sponsor this free training provided by the People Incorporated Training Institute.
WHO
This training is for affordable housing property management staff, with particular emphasis on management staff at properties that have supportive housing units. Please forward to staff who may want to attend.
WHAT
There are four sessions to choose from:
- Crisis Management Part 1: Mental Health Awareness
- Crisis Management Part 2: De-escalation
- Tenants and Trauma
- Crisis Management: Mental Health Awareness and De-escalation
WHEN AND WHERE
These sessions will be online webinars or in-person as indicated for each course. There is space for 100 individuals in each session.
Registration is now open for sessions in June.
QUESTIONS
Contact training@peopleincorporated.org or 651.288.3465.
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