Multifamily Housing News: Consolidated Request for Proposals Updates and Reminders, 2024-2025 Qualified Allocation Plan Public Comment Period and Other Multifamily News

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Multifamily Housing eNews

June 23, 2022

Multifamily Housing News:

Consolidated Request for Proposals Updates and Reminders, 2024-2025 Qualified Allocation Plan Public Comment Period and Other Multifamily News

In this eNews:

Intent to Apply Overview

Legislative Update: Housing Development Resources for Consolidated RFP

Estimated 9% Housing Tax Credits and Deferred Loan Resources in the 2022 Consolidated RFP/2023 HTC Round 1

Important Multifamily Consolidated RFP Dates

2022 Consolidated RFP Market Study Requirement Update

Reminder: St. Paul Public Housing Agency Project-Based Vouchers

Intent to Apply Overview

Minnesota Housing received 85 Intent to Apply (ITA) submissions in May 2022 for the 2022 Consolidated RFP/2023 HTC Round 1. The final number of complete applications submitted to the 2022 Consolidated RFP in July 2022 may be different than the ITA. The preliminary information submitted in the May 2022 ITA indicates more than 67 projects with interest in 9% HTCs (with or without deferred funding) and nearly 52 projects with interest in 4% HTCs with deferred funding. There were also 36 projects that identified as being eligible for Housing Infrastructure Bonds (HIBs). The anticipated amount of funding requests will exceed available resources.

For comparison, there were 105 ITA submissions in the 2021 Consolidated RFP/2022 HTC Round 1. Minnesota Housing received 64 applications, of which 22 applications were selected for funding based on available resources. This included eight 9% HTC selections and 11 HIB selections.

Legislative Update: Housing Development Resources for Consolidated RFP

Governor Walz and Lieutenant Flanagan’s state and capital budget recommendations for Minnesota Housing in the 2022 legislative session included $719.5 million over three years to create and preserve housing, make homeownership more accessible and provide housing stability resources. The requests for state appropriations and bonding resources included several programs that are typically included in the Consolidated RFP including the Economic Development and Housing Challenge program (recommended $25 million increase) and Housing Infrastructure Bonds (recommended $250 million). These are typically the largest sources of state capital in the Consolidated RFP and would have been included in this year’s funding process.

At the end of May 2022, the Minnesota regular legislation session adjourned without passing additional housing development resources into law. Without a special session, Minnesota Housing will allocate remaining available resources from the 2021 legislative sessions. Please contact Minnesota Housing’s Legislative Director, Dan Kitzberger at dan.kitzberger@state.mn.us if you have any questions.

Estimated 9% Housing Tax Credits and Deferred Loan Resources in the 2022 Consolidated RFP/2023 HTC Round 1

The total estimated amount of 9% HTCs available for the 2022 Consolidated RFP/2023 HTC Round 1 can be found on this document. The Internal Revenue Service calculates the amount of competitive 9% HTCs available for each state based on population. The amount of credits distributed to suballocators, the seven-county metropolitan area, and Greater Minnesota are calculated based on the provisions in Minnesota Statutes section 462A.222.

The chart below includes the amount of competitive 9% HTCs anticipated to be administered by Minnesota Housing in the 2022 Consolidated RFP/2023 HTC Round 1. The amount of 9% HTCS administered by the city of Minneapolis, city of St. Paul, Dakota County and Washington County are excluded.

Chart of competitive 9% HTCs anticipated to be in 2022 Consolidated RFP/2023 HTC Round 1

For contextual purposes only, Minnesota Housing selected three metropolitan area projects and five Greater Minnesota projects to receive 9% HTCs in the 2021 Consolidated RFP/2022 HTC Round 1.

The amount of state-wide deferred loan resources anticipated to be available in the 2022 Consolidated RFP/2023 HTC Round 1 is a function of several variables, including, but not limited to:

Appropriations: The funding for deferred loans available in the annual Consolidated RFP is primarily from Minnesota legislative and federal appropriations.
Gaps: When a project selected in a prior Consolidated RFP experiences a new funding gap, any additional funds that can be provided by Minnesota Housing reduces the amount of funds available to select new projects.
Withdrawn Projects: If a project selected in a prior Consolidated RFP rescinds their selection or is otherwise unable to move forward, those funds generally remain available for new project selections.
Deferred Loan Repayments: When a project repays a deferred loan to Minnesota Housing, those funds are generally recycled into new deferred loans.

Without new resources from the 2022 legislative session, the total amount of deferred loan resources available for the 2022 Consolidated RFP will be less than prior years. We anticipate there may be a small amount of HIBs available from prior year authorizations. In conjunction with higher construction costs and interest rates, the total number of projects that can be selected is anticipated to decrease.

For contextual purposes only, the number of projects and amount of funding from the 2021 Consolidated RFP is provided below for comparison.

2021 Consolidated RFP number of projects and funding amounts

The estimated HTCs and deferred loan resources are subject to change and do not constitute a commitment or guarantee of funding availability for the 2022 Consolidated RFP/2023 HTC Round 1. The total amount of deferred loans in the 2022 Consolidated RFP may be lower, higher, or zero due to several factors including the variables described above.

Important Multifamily Consolidated RFP Dates

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.
Thursday, December 15: Minnesota Housing Board meeting to approve selections.

2022 Consolidated RFP Market Study Requirement Update

Minnesota Housing will allow an update to the market study if all the following apply to the project:

The effective date of the original market study was within 18 months of the Minnesota Housing application due date.
There were no material changes to the project between Consolidated RFP rounds and tax credit years.
A letter is submitted from the market analyst of the original market study stating any updated figures for achievable rents.

Questions?

Email mhfa.app@state.mn.us.

Reminder: St. Paul Public Housing Agency Project-Based Vouchers

St. Paul Public Housing Agency (PHA) is offering 40 Veteran Affairs Supportive Housing (VASH) Project-Based Vouchers (PBVs). Applications will be accepted through Minnesota Housing’s Multifamily Customer Portal.

How to Apply:

After logging into the Multifamily Customer Portal, select the “2022 St. Paul PHA Voucher Application” funding round to create the application checklist and to complete the 2022 PHA Voucher Application.
New to the Multifamily Customer Portal or need a refresher? Please review the Multifamily Customer Portal Resources webpage.
Application are due by noon on Thursday, July 14.

What You Need to Know about Applying:

Applicants do not need to apply for capital funding through the Consolidated Request for Proposals (RFP) to be eligible for vouchers. The 2022 St. Paul PHA Voucher Application may be submitted independently.
Applicants who are applying for capital funding in conjunction with a voucher request must submit the 2022 St. Paul PHA Voucher Application in the Multifamily Customer Portal as a checklist item. PBVs are contingent on Minnesota Housing funding.

Questions?

For information on PBVs, visit the St. Paul PHA website or contact Dominic Mitchell, St. Paul PHA Housing Choice Voucher Programs Director at 651.292.6191 or dominic.mitchell@stpha.org. For technical assistance from Minnesota Housing, email mhfa.app@state.mn.us.

Staying in Touch

Questions about the Consolidated RFP/HTC Round 1?

Systems Questions: Email mhfa.app@state.mn.us
All Other Questions: Complete and submit the Technical Assistance Request Form

Sign Up for Consolidated RFP Updates

Stay up to date on Consolidated RFP news and updates by signing up for our eNews list.

Reminder: 2024-2025 Qualified Allocation Plan Public Comment Period Open Until 5:00 p.m. CT on Wednesday, June 29, 2022

The proposed 2024-2025 Qualified Allocation Plan (QAP), Self-Scoring Worksheet, and Methodology Guide are now available for review on Minnesota Housing’s QAP webpage and the formal comment period for the QAP is open through 5:00 p.m. CT on Wednesday, June 29, 2022. The 2024-2025 QAP sets the overall funding priorities for the 2023 and 2024 Multifamily Consolidated Request for Proposals (RFP) and all 2024 and 2025 Housing Tax Credit (HTC) funding rounds. Read our June 6 eNews for more information.

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.