Impact Fund Procedural Manual Update
The Impact Fund Procedural Manual (Manual) has been updated. The revised Manual is now available under the “Manual” section of the Impact Fund Partner Portal. Both a clean version and a redline version (showing the changes in red) are posted for reference.
While the redlines may appear extensive, many changes are for section reorganization and language consistency throughout the Manual. Overall, the revisions focus on consistency, alignment and clarification of requirements.
The following changes we’d like to highlight:
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Value Gap/Affordability Gap Calculations: Revised the Value Gap definition in Appendix A to use final purchase price (based on appraised value), so both Value Gap and Affordability Gap calculations use the same base number.
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Appraisal Requirements: Removed Fair Market Sales Price as a defined term and incorporated appraisal requirements directly into the Value Gap and Affordability Gap definitions in Appendix A.
When the Administrator is the seller or is affiliated with the seller, an appraisal is required to support the purchase price and demonstrate market value at the time of sale. A variation of up to 10% between the appraised value and final purchase price is allowed to provide flexibility for unanticipated real estate transaction adjustments.
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Total Development Cost (TDC) and Value Gap Financing Definitions: Revised the TDC definition to clarify that pre-development costs incurred prior to the award contract are not eligible costs for value gap reimbursement but may be included in TDC calculation if they are approved in advance by Minnesota Housing.
Added a Value Gap Financing definition to clarify that funding for Value Gap must be reconciled with eligible costs. Value Gap Financing is limited to the lesser of eligible costs or actual Value Gap need.
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Income calculation, Appendix C and waiver requests: Removed detailed income content from the Manual, Section 2.07 and referenced the Income Eligibility Worksheet, replaced Appendix C with the Minimum Required Documents Checklist and incorporated a Change Request form for waiver, amendment and authorization requests. All revised forms are now available on the Impact Fund Partner Portal.
New and Revised Forms
The updated Manual incorporates the following new and revised forms:
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Required Document Checklist: This checklist replaces the previous Manual Appendix C and provides more guidance on documentation requirements.
To improve usability, the checklist is organized to identify minimum documents required for all projects, as well as additional minimum documents required based on activity type. Items are arranged to generally follow the project timeline.
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Change Request Form: The Change Request Form is a new form referenced in the Manual. It establishes a formal process for submitting requests that require Minnesota Housing review and approval, such as waivers, contract amendments, and fee authorizations.
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Income Verification Worksheet: The Income Verification Worksheet was updated to incorporate income-specific information that was removed from Section 2.07 of the Manual. The revised worksheet also now provides clearer guidance on income requirements and documentation. Changes to the detailed instructions in the table starting on page 4 are shown in red.
Virtual Training
The Impact Fund Team will host a virtual training via Microsoft Teams to provide an overview of the Manual updates, review the new and revised forms, and answer questions.
Please share any questions related to the Manual changes or new forms that you would like addressed by emailing impact.fund.mhfa@state.mn.us by January 9, 2025.
Training Details
Tuesday, January 20, 2026
3-4:30 p.m. Central time
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Questions?
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