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Less than one month to the 2024 Multifamily Consolidated Request for Proposals (RFP)/2025 Housing Tax Credits (HTC) Round 1 application deadline! This eNews includes legislative updates and funding information for this RFP, tips for application submission, and more.
In this eNews
In Case You Missed It (ICYMI)
State Legislative Update: Housing Development Resources for Consolidated RFP
The historic 2023 legislative session provided $200 million in Housing Infrastructure appropriations and $121 million for the Economic Development Housing Challenge (EDHC) Program. These two programs are central components of the annual Minnesota Housing Consolidated RFP. Due to incredibly high application demand and critical housing needs across the state, approximately 75% of that funding was committed in 2023 for affordable multifamily rental production and preservation, single family home ownership activities, and manufactured housing community preservation.
The 2024 legislative session that ended in May provided an additional $50 million for Housing Infrastructure Bonds and reallocated $7 million of the remaining EDHC balance to another program. The legislature also increased funding and made changes to other multifamily programs, notably the Community Stabilization Program that will have funds awarded outside of the 2024 Consolidated RFP.
Questions?
Contact mhfa.consolidated.rfp@state.mn.us.
Estimated 9% Housing Tax Credits and Deferred Loan Resources in the 2024 Consolidated RFP/2025 HTC Round 1
The Internal Revenue Service calculates the amount of competitive 9% HTCs available for each state based on population. The following chart includes the estimated amount of competitive 9% HTCs to be administered by Minnesota Housing in the 2024 Consolidated RFP/2025 HTC Round 1. Refer to the Distribution of Housing Tax Credits in Minnesota document for additional details.
 The amount of 9% HTCs anticipated to be available is approximately the same as the 2023 Multifamily Consolidated RFP/2024 HTC Round 1. For comparison purposes only, Minnesota Housing was able to select four metropolitan area projects and six Greater Minnesota projects to receive 9% HTCs in last year’s Multifamily Consolidated RFP/ HTC Round 1.
Deferred Loan Resources
The amount of state-wide deferred loan resources available in the Consolidated RFP is a function of several variables, including:
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Appropriations: The funding for deferred loans available in the annual Consolidated RFP is primarily from state and federal appropriations which vary from year to year.
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Gaps: When a project selected in a prior Consolidated RFP experiences a new funding gap, additional funds provided by Minnesota Housing reduces the amount of funds available to select new projects. Since the start of 2022, Minnesota Housing has approved more than 50 funding modifications across multiple programs to close project gaps due to changing construction costs, interest rates and other factors.
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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.
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Deferred Loan Repayments: When a project repays a deferred loan to Minnesota Housing, those funds are generally recycled into new deferred loans.
Between the federal appropriations and the historic level of new state appropriations, Minnesota Housing committed over $205 million of deferred loan resources in the 2023 Multifamily Consolidated RFP/2024 HTC Round 1 for 28 projects!
As previously noted, approximately 75% of the Housing Infrastructure and EDHC resources from the 2023 legislative session were committed in the 2023 multifamily, single family and manufactured housing RFPs. Additionally, federal resources are lower in 2024 compared to 2023. We anticipate committing the remaining Housing Infrastructure and EDHC resources from 2023, the available federal resources and the new $50 million of Housing Infrastructure Bonds in the 2024 Consolidated RFPs administered across the Agency.
 The estimated HTCs and deferred loan resources are subject to change and do not constitute a commitment or guarantee of funding availability for the 2024 Multifamily Consolidated RFP/2025 HTC Round 1. The total amount of deferred loans in the 2024 Consolidated RFP may be lower or higher due to several factors including the variables described above.
Questions?
For deferred loan resources, contact mhfa.consolidated.rfp@state.mn.us. For HTC, contact htc.mhfa@state.mn.us.
State Prevailing Wage
For multifamily rental projects applying in the 2024 Multifamily Consolidated RFP, state prevailing wage requirements under Minnesota Statute 116J.871 generally apply to all new construction projects that receive loans from Minnesota Housing that exceed $500,000. In addition, a separate state prevailing wage statute, Minnesota Statute 177.41-.43, may apply if funds are used for a building that is publicly owned or leased.
Questions?
Contact the Minnesota Department of Labor, Division of Labor Standards and Apprenticeship, at 651.284.5091 or by email at dli.prevwage@state.mn.us.
Federal Resources
The Home Investment Partnerships Program (HOME) and National Housing Trust Fund (NHTF) are a key part of Minnesota Housing’s deferred funding resources. Projects selected to receive HOME and/or NHTF funds are subject to several federal cross-cutting requirements, including:
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Davis Bacon: Required for HOME funding. Under certain circumstances, a project may also be subject to state prevailing wage, in addition to Davis Bacon, and subject to a dual wage decision. Refer to page 9 of the Multifamily Request for Proposals Standards for more detail.
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The United States Department of Housing and Urban Development (HUD) Section 3 Rule: will be in effect for projects selected for HOME and/or NHTF funding in the 2024 Multifamily Consolidated RFP. The labor hour benchmark for Section 3 workers is set at 25% or more of the total number of labor hours worked by all workers on a project. The labor hour benchmark for Section 3 targeted workers is set at 5% or more of the total number of labor hours worked by all workers on a project. Developers and contractors must also follow HUD’s prioritization of effort in directing employment, training and contracting opportunities to low- and very low-income individuals and businesses that employ them.
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HUD Part 58 Environmental Review: 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.
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Site and Neighborhood Design Standards: Applies 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.
Questions?
Contact Aaron Keniski at aaron.keniski@state.mn.us.
2024 Multifamily Consolidated RFP/2025 HTC Round 1 Application Deadline is Thursday, July 11, 2024
The deadline to submit 2024 Multifamily Consolidated RFP/2025 HTC Round 1 applications is Thursday, July 11 by noon Central Time. This deadline also includes submission of the application fee(s), and qualification forms with the financial information.
The Minnesota Housing board or directors anticipates holding its recommendations for selection meeting in December 2024.
Questions?
For general questions, contact mhfa.consolidated.rfp@state.mn.us.
Last Chance to Request Technical Assistance
Technical Assistance is an opportunity for prospective applicants to meet with Minnesota Housing staff to discuss the applicant’s proposal(s), the Multifamily Workbook(s), and Self-Scoring Worksheet. Technical Assistance for this 2024 Multifamily Consolidated RFP/2025 HTC Round 1 will not be available after the application deadline, Thursday, July 11.
Questions?
For all technical assistance requests, complete and submit the Technical Assistance Request Form.
For general questions, contact mhfa.consolidated.rfp@state.mn.us.
Tips for On-Time Application Submission
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Visit the Multifamily Consolidated Request for Proposals/Housing Tax Credits Funding Rounds webpage to find application information, materials and trainings.
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Review Portal Resources to learn more about the Multifamily Customer Portal (Portal) and view trainings to help guide you through the submission process.
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Update the Project Snapshot and Application fields with the latest information. When applicants create a project in the Portal, some high-level detail about the project, including proposal type(s), number of units and estimated construction and development costs, is provided. Update these fields under the Details tab to match the current project characteristics.
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Scoring Wizard. Applicants must submit their Customer Final Version scoresheet in the Scoring Wizard by the application deadline. Select the “Verify and Submit” button in the Scoring Wizard for the application to be considered submitted. An email confirmation will be automatically sent from the Portal.
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Use the 2024 Multifamily Workbook. Applicants for the 2024 Multifamily Consolidated RFP/2025 HTC Round 1 must use the 2024 Multifamily Workbook. The workbook version date is located on the Instructions tab and is labeled 2024 03 18 Ver 1.0. Download the latest version from the Portal.
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Include the Property Number (D#) and Project Number(s) (M#) on applicable forms. On many Minnesota Housing forms, applicants are asked to provide a D# and an M#. Refer to the Multifamily Request for Proposals Standards for guidance on D# and M# numbers.
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Upload files as you go. The Portal requires applicants to upload a file to the corresponding checklist item. Do not wait until the last minute to upload the documents. The Portal and Scoring Wizard will not accept submissions after 12:00 p.m. Central Time on Thursday, July 11, 2024.
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Select “Submit” when you are finished with your application checklist. Documents must be uploaded into every checklist item or indicate “Opted Out” if the checklist item is optional. Applicants must select the “Submit” button in the Portal for the application to be considered submitted.
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Development team qualification forms. All qualification forms 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
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Application fee. All applications must submit the $800 application fee per the Multifamily Fee Remittance Form. There is additional delivery information in the 2024 Multifamily Consolidated RFP/2025 HTC Round 1 Fees and In-Person Delivery section.
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Application signatures. Minnesota Housing will accept electronic signatures on application materials. Refer to the Multifamily RFP Standards for more information.
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Withdrawing applications. If applicants decide not to submit an application, they must select the “Withdraw Project” button in the Portal. The button is located on the project page in the upper right corner of the screen. Applicants may withdraw their application in the Portal any time before the application deadline.
- Submit the application early if it is complete!
Questions?
Email mhfa.app@state.mn.us with questions about the Portal, Scoring Wizard or Multifamily Secure Upload Tool.
For general questions, contact mhfa.consolidated.rfp@state.mn.us.
2024 Multifamily Consolidated RFP/2025 HTC Round 1 Fees and In-Person Delivery
The preferred method to receive 2024 Multifamily Consolidated RFP/2025 HTC Round 1 fees is via USPS mail. The Multifamily Fee Remittance Form includes our mailing address, contact information and fee amounts. Minnesota Housing will accept mailed checks postmarked by the application deadline of July 11, 2024.
The Multifamily Division will also have staff available to accept checks delivered in-person to our office at the following dates and times:
- Wednesday, July 10 between 9 a.m. and 4 p.m. Central Time
- Thursday, July 11 between 9 a.m. and noon Central Time
Minnesota Housing address: 400 Wabasha St. N (Treasure Island office building), Suite 400, St. Paul, MN 55102. Use the elevator to access the 4th floor.
To arrange an in-person delivery outside of these dates and times, contact htc.mhfa@state.mn.us, as indicated in the Multifamily Fee Remittance Form.
Questions?
Contact htc.mhfa@state.mn.us.
2024 Multifamily Consolidated RFP Funding Partners Applications Due Thursday, July 11
Minnesota Housing has two funding partners who’ve made available funding or project-based vouchers through the 2024 Multifamily Consolidated RFP, Metropolitan Council and Saint Paul Public Housing Agency (PHA).
Each funding partner and their resources have their own parameters and are subject to the funding partner’s respective evaluation and approval process. Prospective applicants also interested in the funding partners’ resources may apply for funding to either compliment their Multifamily Consolidated RFP application or for the funding partner’s project-based vouchers. Applications are due by noon Central Time on Thursday, July 11, 2024.
Metropolitan Council Local Housing Incentives Account Funds
The Metropolitan Council announced a total of $2.5 million was approved for the Local Housing Incentives Account (LHIA). These dollars will be available in the multifamily deferred pool of financing in the 2024 Multifamily Consolidated RFP. Only projects located in participating cities that have enrolled in the Metropolitan Council’s LHIA program are eligible for these funds.
What You Need to Know
- LHIA may be awarded without Minnesota Housing funding. However, a complete 2024 Multifamily Consolidated RFP/2025 HTC Round 1 application must be submitted in the Portal to be considered.
- LHIA funds require that the local government entity (city or county) in which the project is located serve as the applicant for the LHIA portion of the funding. This is achieved by the local government completing a Receptivity Form on behalf of the developer/sponsor. The local government entity will serve as the grant recipient (Grantee) for the LHIA Funds.
- Grantees (local government entity) must match LHIA awards on a dollar-for-dollar basis with a source of funding that is either directly from, or is designated by, the participating city or development authority; sources include CDBG, HOME, TIF, Housing Trust Fund dollars, tax abatements, local housing revenue bonds and the appraised value of donated land.
- LHIA grants support primarily hard costs related to the construction and rehabilitation of affordable housing. Land acquisition costs may be an eligible use of grant funds. LHIA grants do not pay for work done before the grant is awarded with the exception of reimbursement of qualifying land acquisition costs incurred no more than 12 months prior to the date of award.
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Eligible Uses for LHIA Grants
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Ineligible Uses for LHIA Grants
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Gap financing costs, including land acquisition
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Soft costs, or administrative overhead
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Property (structure) acquisition
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Bonds and insurance
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Demolition
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Legal fees
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Site preparation (e.g., water, sewer, roads)
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Permits
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General construction/structural additions
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Travel
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Alterations and rehabilitation
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Grant/bid preparation costs
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Interior and exterior finishing
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Cleanup/abatement costs
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Roofing
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Resident services and/or operations
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Electrical, plumbing and/or heating and ventilation
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How to be Considered for LHIA
- Create a project within the 2024 Consolidated RFP/ 2025 HTC Round 1 funding round in the Multifamily Customer Portal; go to the Characteristics tab and select the “Met Council’s LHIA Funds” characteristic. This will add the General: Met Council LHIA Receptivity Form to your application checklist.
- Reach out to your local government entity (city or county) in which the project is located and request that they serve as the applicant by completing the Met Council LHIA Receptivity Form for the LHIA portion of the funding.
- Upload the completed Met Council LHIA Receptivity Form to your application checklist prior to 2024 Multifamily Consolidated RFP/2025 HTC Round 1 application submission. The General: Met Council LHIA Receptivity Form checklist item is required to be considered for Met Council’s LHIA deferred funding.
Visit Metropolitan Council's Local Housing Incentives Account (LHIA) webpage and Minnesota Housing’s Multifamily Consolidated Request for Proposals/Housing Tax Credits Funding Rounds webpage for more information.
Saint Paul PHA Project-Based Vouchers
Saint Paul PHA is offering up to 150 Project Based Vouchers (PBV). Of the total 150 PBVs, 100 PBVs are available under the “mixed-income” criteria and the remaining 50 are available to the following special populations and circumstances:
- Homeless families, as defined under the McKinney-Vento Homeless Assistance Act
- Veterans, as defined by Saint Paul PHA
- Units that offer supportive housing to persons with disabilities or elderly persons, as defined by Saint Paul PHA
- Units that are located in a census tract with a poverty rate of 20% or less
What You Need to Know
All PBV requests:
- Applicants may mix-match vouchers for each project submitted. However, must request at minimum, 10 vouchers per project. There may be a limit to the number of vouchers requested per project, please see the PBV Program Guide.
- The PBV Program Guide is available on the Saint Paul PHA website
PBV Only requests:
- Applicants do not need to apply for capital funding through the 2024 Multifamily Consolidated RFP to be eligible for vouchers. The “2024 Saint Paul PHA PBV Application” may be submitted by itself through the 2024 Multifamily Consolidated RFP process.
PBV requests with Minnesota Housing Capital Funding:
- Applicants who are applying for capital funding in conjunction with a voucher request must submit the “2024 Saint Paul PHA PBV Application” in the Multifamily Customer Portal as a checklist item. PBV awards are contingent on Minnesota Housing capital funding.
How to Apply
- After logging into the Minnesota Housing’s Multifamily Customer Portal, select the “2024 Saint Paul PHA PBV Application” funding round to create the application checklists.
- A checklist will display, select the checklist, complete and upload the “2024 Saint Paul PHA PBV Application.” The “2024 Saint Paul PHA PBV Application” is where applicants may request one or more PBV options and a provide brief narrative.
Questions?
For Metropolitan Council Local Housing Incentives Account, contact Ashleigh Johnson at ashleigh.johnson@metc.state.mn.us.
For Saint Paul PHA Project-Based Vouchers, contact Corina Serrano at corina.serrano@stpha.org.
Complete the Technical Assistance Request Form for technical assistance from Minnesota Housing.
In Case You Missed It (ICYMI)
Fiscal Year 2024 Rent and Income Limits Now Effective
HUD has released Fiscal Year 2024 (FY2024) rent and income limits. These limits are now available on Minnesota Housing’s Multifamily Rent and Income Limits webpage.
HOME and NHTF Rent and Income Limits
HUD released FY2024 rent and income limits for the HOME Investment Partnerships Program (HOME) and National Housing Trust Fund (NHTF). Per HUD, these limits have an effective date of June 1, 2024.
Refer to our May 22 Multifamily Rent and Income Limits eNews for additional information.
Section 8 Program and MTSP Income Limits Released
HUD published FY2024 Income Limits for the Section 8 Program and the Multifamily Tax Subsidy Projects (MTSP) for Housing Tax Credits and Tax-Exempt Bond financed properties. Minnesota Housing uses the HUD published limits to compute income and rent limits for Multifamily loan programs. Per HUD, these limits have an effective date of April 1, 2024.
Refer to our April 30 Multifamily Rent and Income Limits eNews for additional information.
Questions?
Contact Tere Hopponen at tere.hopponen@state.mn.us or your assigned Compliance Officer.
Be sure to sign up for our Multifamily Compliance Alerts eNews list to receive timely compliance related updates and reminders.
Shopping for a First Mortgage or Thinking About Refinancing?
 Minnesota Housing wants to work with you on 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.
Questions?
Contact Mike Tobias at michael.tobias@state.mn.us to get started.
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