Housing Infrastructure Bonds

Housing Infrastructure Bonds (HIB) are limited obligation tax-exempt bonds issued by Minnesota Housing and authorized by appropriations from the General Fund of the Minnesota Legislature.  The proceeds of HIBs may be used to fund loans that finance specific multifamily housing development purposes including:
  • Permanent supportive housing for individuals and families experiencing or at risk of homelessness
  • Permanent supportive housing for people with behavioral health needs
  • Housing affordable to Seniors
  • Preservation of federally subsidized rental housing

Applying for HIB

HIBs are typically awarded once per year through the Multifamily Consilidated RFP. Projects applying for HIBs are required to meet at least one strategic priority and Request for Proposal (RFP) eligibility and feasibility requirements.  For the 2019 RFP, HIB eligible projects must apply to one of the following set-asides: 
  • Permanent supportive housing for individuals and families experiencing or at risk of homelessness
  • Permanent supportive housing for people with behavioral health needs
  • Housing affordable to Seniors
Although a set-aside is not identified this funding round for projects that preserve federally subsidized rental housing, HIB proceeds may be awarded to projects meeting the preservation strategic priority and application requirements.
 
At the Intent to Apply stage of the RFP application process, applicants must indicate the intent to apply for HIBs and itemize the number of units in the project that will meet the specific requirements of the set-aside being applied for.
 
Loans funded with HIB proceeds can be structured either with volume-limited private activity bonds, potentially qualifying the development for 4% tax credits, or as deferred only loans. Applicants are encouraged, where feasible, to leverage 4% tax credits with a request for HIB proceeds. Projects eligible for HIB proceeds may also score competitively under a 9% tax credit structure. Where feasible, applicants are encouraged to submit a dual application under 4% and 9% structures to maximize opportunities for funding

More Information

For more information on the eligible uses and requirements of HIB, see the following:

Contact

William Price at 651.296.9440