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Mark your calendars because the 2023 Multifamily Consolidated Request for Proposals (RFP)/Housing Tax Credits (HTC) funding round is just around the corner! Keep scrolling down for important 2023 Multifamily Consolidated RFP/2024 HTC funding round reminders, updates, and more.
In this eNews:
Intent to Apply Overview
The Intent to Apply deadline for the 2023 Multifamily Consolidated Request for Proposals (RFP)/2024 Housing Tax Credits (HTC) Round 1 was on May 11, 2023. Minnesota Housing received 140 Intents to Apply. The final number of complete applications submitted in July 2023 may be lower than the ITA number, as some applicants may decide to withdraw or not submit a full application.
The preliminary information submitted in the May 2023 ITA indicates:
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91 projects with interest in 9% HTCs with or without deferred funding
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65 projects with interest in 4% HTCs with deferred funding
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21 projects with interest in deferred only funding
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98 projects that identified as being eligible for Housing Infrastructure Bonds (HIBs).
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8,800 total units will either be newly built or preserved.
The number of projects exceeds the 140 Intents to Apply because most projects anticipate submitting a dual application to be considered for 9% HTCs, deferred with 4% HTCs, or deferred only funding options.
For comparison, there were 85 ITA submissions during the 2022 Multifamily Consolidated RFP Funding Round/2023 HTC Round 1. Minnesota Housing received 57 applications, of which 17 were selected for funding based on available resources in 2022.
2023 Multifamily Consolidated RFP/2024 HTC Round 1 Application Deadline is Thursday, July 13
The deadline to submit 2023 Multifamily Consolidated RFP/2024 HTC Round 1 applications is Thursday, July 13 by noon Central Time. This deadline also includes submission of the application fee(s), qualification forms and financial information.
The Minnesota Housing board anticipates holding its selection meeting in December 2023.
Multifamily Income and Rent Limits
The United States Department of Housing and Urban Development (HUD) published the Section 8 Program and Multifamily Tax Subsidy Projects (MTSP) fiscal year 2023 (FY2023) income limits for Housing Tax Credits and Tax-Exempt Bond financed properties. Per HUD, these limits have an effective date of May 15, 2023. Where required by state or federal statutes, Minnesota Housing uses the HUD published limits to compute income and rent limits for its loan programs.
In addition, HOME and National Housing Trust Fund (NHTF) income limits were released by HUD on May 17, 2023. However, these limits are not effective until June 15, 2023. Owners must continue to use FY2022 HOME and NHTF limits until the effective date of June 15, 2023.
We will post the FY2023 limits on our Multifamily Rent and Income Limits webpage and send an eNews as soon as we are able. Be sure to sign up for our Multifamily Compliance Alerts eNews list to receive timely compliance related updates and reminders.
Energy Tax Credits
The Inflation Reduction Act of 2022 (IRA) amended Internal Revenue Code Section 45L to provide the New Energy Efficient Home Tax Credit to taxpayers with eligible new or substantially reconstructed homes that meet applicable ENERGY STAR home program or DOE Zero Energy Ready Home (ZERH) Program requirements.
Eligibility has been expanded to include all residential buildings. Tax credit amounts have increased to up to $2,500 per unit for Energy Star New Construction certification and up to $5,000 per unit for DOE’s Zero Energy Ready Homes Certification if all requirements are met. The updated amounts for this tax credit are available to properties acquired after December 31, 2022, and before January 1, 2033, and does not reduce HTC basis. More information can be found on the Department of Energy website and the Energy Star website.
Eligible entities pursuing these tax credits should also be prepared to disclose them as a source in the Consolidated RFP application. Eligible entities can use Form 8908 to claim a credit for each qualified energy efficient home that is to be used as a residence and which is sold or leased to another person during the tax year. Reference the full instructions for Form 8908 for additional information about how to claim the credit.
Questions?
Contact Katherine Teiken at katherine.teiken@state.mn.us.
Multifamily Loan Programs and Housing Tax Credits Fee Schedule
Minnesota Housing updated its fee schedule, which is effective for all projects funded after March 16, 2023, including the current 2023 Multifamily Consolidated Request for Proposals (RFP) Funding Round/2024 Housing Tax Credits (HTC) Round 1. Note that two documents outline loan programs and HTC fees:
- The Multifamily Loan Programs and Housing Tax Credits Fee Schedule and Remittance Form is for applicants to complete and submit when applying for funding from Minnesota Housing. This document is included as a checklist item in the Multifamily Customer Portal and generally accompanies the fees sent to Minnesota Housing.
- The Multifamily Loan Programs and Housing Tax Credits Fee Schedule is a standalone document for informational purposes only that outlines Minnesota Housing fees associated with loan programs and housing tax credits. This document is not a checklist and does not need to be submitted when applying for funding.
Questions?
Contact mhfa.consolidated.rfp@state.mn.us.
Metropolitan Council Local Housing Incentives Account Funding Available through the 2023 Multifamily Consolidated RFP Funding Round/2024 HTC Round 1
The Metropolitan Council announced a total of $2.5 million for the Local Housing Incentives Account (LHIA). These dollars will be available in the multifamily deferred pool of financing in the 2023 Multifamily Consolidated RFP/2024 HTC Round 1 funding round. Only projects located in participating cities that have enrolled in the Metropolitan Council’s LHIA program are eligible for these funds. Applications for LHIA funds must be submitted alongside a 2023 Multifamily Consolidated RFP/2024 HTC Round 1 application in the Multifamily Customer Portal and are due on Thursday, July 13, 2023, by noon Central Time.
Questions?
For more information about the program, including how to apply, matching requirements, eligible uses and more, refer to the Multifamily Consolidated Request for Proposals/Housing Tax Credits Funding Rounds webpage, visit Metropolitan Council's Local Housing Incentives Account (LHIA) webpage or contact Ashleigh Johnson at ashleigh.johnson@metc.state.mn.us.
For technical assistance from Minnesota Housing, email mhfa.app@state.mn.us or complete the Technical Assistance Request Form.
St. Paul Public Housing Agency Project-Based Vouchers
The Saint Paul Public Housing Agency (PHA) is offering 125 Project-Based Vouchers (PBV), plus an additional 25 HUD Veteran Affairs Supportive Housing (HUD-VASH) PBV. The available 125 PBV may be used for the Family Unification Program (FUP), mixed-income, senior, and/or supportive housing projects. HUD-VASH PBV will be available for veteran housing. Applications will be accepted only through the 2023 Saint Paul PHA Voucher Application funding round in the Multifamily Customer Portal (Portal), and are due by noon Central Time on Thursday, July 13, 2023.
Questions?
Additional information on PBVs can be found on the Multifamily Consolidated Request for Proposals/Housing Tax Credits Funding Rounds webpage, the Saint Paul PHA website, or you may contact Corina Serrano at corina.serrano@stpha.org.
For Portal questions, email mhfa.app@state.mn.us.
In Case You Missed It: Market Study Guidelines Released
Minnesota Housing’s Market Study Guidelines have been updated and published on the HTC webpage and are ready to use with the 2023 Multifamily Consolidated RFP/2024 HTC Round 1 funding round.
Minnesota Housing will allow an abbreviated update to an existing market study if all of the following conditions are met:
- The effective date of the original market study is within 18 months of the Minnesota Housing application due date.
- There were no material changes to the project between Consolidated RFP rounds and housing tax credit years.
- A letter is submitted from the analyst of the original market study outlining an updated project concept, any changes to the occupancy and rent structure, and any other factors that may have a significant impact on the proposed development.
Refer to the complete Market Study Guidelines here.
Questions?
Email mhfa.app@state.mn.us.
In Case You Missed It: 2023 Multifamily Consolidated RFP/2024 HTC Round 1 Application Information
Our May 9 eNews has a lot of helpful information pertaining to the 2023 Multifamily Consolidated RFP Funding Round/2024 HTC Round 1, including:
In Case You Missed It: 2023 Building Standards Documents Released
Minnesota Housing’s 2023 Rental Housing Design/Construction Standards, guides and documents have been updated and published on the Building Standards webpage and are ready to use with the 2023 Multifamily Consolidated RFP/2024 HTC Round 1 funding round. Development teams are required to incorporate the 2023 versions of these documents when submitting this year’s applications.
Refer to the April 28 Building Standards eNews for a summary of changes and to learn more.
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. Please refer to the project Term Letter or Letter of Engagement. If you have questions, please contact your assigned underwriter.
Shopping for a First Mortgage or Thinking about Refinancing?
 Minnesota Housing wants to work with you for all your multifamily first mortgage needs! Our Low and Moderate Income Rental (LMIR) first mortgages have terms up to 40 years for new construction or 35 years for rehabilitation or refinance. Our first mortgages are available year-round.
View our current interest rates and terms to learn more about what we offer.
Contact Mike Tobias, First Mortgage Program Manager, at michael.tobias@state.mn.us to get started.
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