Governor Walz Approves Minnesota Housing’s Amended Qualified Allocation Plans
Governor Walz approved amendments to the 2024-2025 Housing Tax Credit Qualified Allocation Plan (QAP) and the 2026-2027 QAP, including the 2026-2027 Self-Scoring Worksheet (SSW). The QAP determines the policy priorities and the process by which Minnesota Housing manages the federal Low-Income Housing Tax Credit (HTC) Program. The QAP sets the overall funding selection priorities for the competitive Multifamily Consolidated Request for Proposals (RFP)/HTC funding rounds, which also include deferred loans funded from state and federal funding resources.
The amended QAPs, Self-Scoring Worksheets, and Methodology Guides can be found on the Housing Tax Credits webpage.
The QAPs were amended to include some important changes:
-
QAP Extension: The 2026-2027 QAP was extended by one year, resulting in the documents changing to the Amended 2026-2028 QAP and the Amended 2026-2028 SSW. This Amended 2026-2028 QAP will be used for the 2026 and 2027 Multifamily Consolidated RFPs/2027 and 2028 HTC funding rounds.
-
Federal Law Change: In July 2025, Congress passed H.R. 1, and the President signed it into law. One part of the law (Section 70422) makes it easier for projects to qualify for the 4% HTC. It lowers the requirement for tax-exempt bond financing from covering at least 50% of a project’s eligible HTC costs to only 25%. This reduced bond threshold means that the same amount of tax-exempt bonds can help more projects qualify for the 4% HTC.
- Minnesota Housing updated Chapter 7.A of the 2024-2025 HTC QAP and Chapter 7.A, Chapter 7.B, and Appendix A of the 2026-2028 QAP to allow for the shift from the 50% test to the “Minimum Percent” test on 4% HTC projects to allow access to the change in federal tax law. The QAP language is general to account for any future changes. Our intent is to use as few tax-exempt bonds as necessary to qualify a project for 4% HTCs while supporting the financial viability of a project.
-
State Law Change: In the 2025 Minnesota Legislative session, “Local Actions to Support Housing” was added to session law (Minnesota Laws 2025, chapter 32, article 3, section 13). This law requires Minnesota Housing, where practicable, to award additional point(s) in competitive capital development programs to proposed projects located in jurisdictions that provide certain land use and zoning flexibilities identified in the law, which cannot exceed 5% of the total available points.
- Minnesota Housing added Local Actions to Support Housing as a new two-point selection criterion in the Amended 2026-2028 SSW under the Supporting Community and Economic Development selection category.
Questions?
Contact the Housing Tax Credit team at htc.mhfa@state.mn.us.
REMINDER: 2026 HTC Round 2 Applications Due Next Thursday
Minnesota Housing is currently accepting applications for the 2026 Housing Tax Credit Round 2. Round 2 makes available for allocation any Housing Tax Credits (HTC) remaining or returned since Round 1. All remaining or returned HTC, excluding a return of HTC for projects requesting a reallocation, will be combined into one unified pool for allocation by Minnesota Housing on a statewide basis, without regard to geographic distribution. We anticipate about $2.9 million in 9% HTC to be available. Of this amount available, there is $74,334 remaining in the small cities/rural development set-aside which carries over to Round 2.
2026 HTC Round 2 applications are due via the Multifamily Customer Portal by noon, Central time on Thursday, February 12, 2026.
Refer to the Amended 2026-2028 QAP and the Application Materials webpage for details on Round 2 requirements and how to apply. Policy and guidance documents, including the Multifamily Request for Proposals (RFP) Standards, can be found under the Application Resources section of the Multifamily Consolidated Request for Proposals/Housing Tax Credit Funding Rounds webpage.
Pre-Applications
The pre-application deadline for the U.S. Department of Housing and Urban Development (HUD) Section 811 Project-Based Rental Assistance Program and the Innovative Construction Techniques Selection Criterion has passed. Pre-applications are optional; however, they must have been submitted by the deadline if the applicant is interested in obtaining eligibility for the project-based rental assistance and/or selection criterion for their 2026 HTC Round 2 application. Minnesota Housing will notify applicants of eligibility prior to the full application deadline.
Supplemental Priority in HTC Round 2
Projects that have previously received HTC from Minnesota Housing or a suballocator and have an annual HTC shortfall of at least 5%—but not more than 33.33% of the total qualified annual HTC amount, subject to Minnesota Housing approval—will have priority over other applicants in Round 2 and those on the waiting list.
If more than one project qualifies under supplemental priority, Minnesota Housing will evaluate and rank eligible requests according to points claimed in the Self-Scoring Worksheet.
Technical Assistance
We offer, and strongly encourage, a technical assistance session to discuss your project with Minnesota Housing staff. If you would like technical assistance as you complete your funding application, complete and submit the Technical Assistance Request Form to begin the process.
Questions?
Contact the Housing Tax Credit team at htc.mhfa@state.mn.us.
Updated 2026-2028 QAP Methodology Guide Now Available
The updated 2026-2028 QAP Methodology Guide is now available on the Housing Tax Credits webpage. This Guide is applicable for the 2026 Multifamily Consolidated RFP/2027 HTC funding rounds.
The purpose of the Methodology Guide is to outline several geographic priorities and selection criteria outlined in the Self-Scoring Worksheets and to serve as a reference document for applicants applying for 4% HTCs, 9% HTCs, or deferred funds through the Multifamily Consolidated RFP. The guide is intended to provide additional context and clarity around how these geographic priorities and selection criteria are applied during the application review and selection process.
The Methodology Guide is part of the application materials released with the Multifamily Consolidated RFP and should be reviewed in conjunction with the Self-Scoring Worksheets and other application guidance.
Another update to the 2026-2028 Methodology Guide will be released in April for the 2026 Multifamily Consolidated RFP/2027 HTC Round 1 application period to reflect any additional clarifications or revisions.
Questions?
Contact the Housing Tax Credit team at htc.mhfa@state.mn.us.
About Minnesota Housing
Minnesota Housing, the state’s housing finance agency, works to provide access to safe, stable and accessible housing Minnesotans can afford in a community of their choice. In 2025, we distributed $1.8 billion in resources and served 73,000 households. Visit our website to learn more.
|
