The preservation of properties with federal project based rental assistance is one of Minnesota Housing’s key strategic priorities. Federal project-based assistance allows more than 60,000 lower income rental households to spend no more than 30% of their income on housing. Most of these Section 8, USDA Rural Development, NAHDSDA, public housing units, and other units were built in the 1970s and 1980s and are in need of recapitalization.
Minnesota Housing is prioritizing properties for preservation that are at risk of losing federal rental assistance due to poor physical condition, diminished owner capacity, or at risk of conversion to market (opting out of the rental assistance program).
Projects applying for 9% tax credits that intend to claim preservation points under the 2017 QAP must participate in a mandatory technical assistance meeting with Minnesota Housing staff and submit a preservation pre-application. For 2017 HTC Round 1, the meeting must take place and the application must be submitted on or before 5:00 pm on Monday, May 2, 2016. For 2017 HTC Round 2, the deadline is December 16, 2016.
Following the technical assistance meeting, the preservation pre-application must be submitted in its entirety, with all required documentation. No subsequent submissions will be considered in determining whether the project meets the preservation criteria. Applications that are determined to meet the preservation criteria will receive a Determination of Preservation Eligibility, that will be submitted as part of the RFP application. If it is determined that a project does not meet the preservation criteria, submits an incomplete pre-application, or does not complete the pre-application process, it will not be eligible to claim preservation points.
Projects that have received a Preservation Determination letter in 2017 HTC Round 1 do not need a new letter if they resubmit in 2017 HTC Round 2.
Please note that if you are apply for 9% credits and claiming preservation points, and the property has 40 or more units, a dual 4% application must also be submitted.
Schedule your Mandatory Preservation Pre-Application Session with Minnesota Housing staff for further guidance on preservation eligibility. This meeting must take place by May 2, 2016.
In order to make the technical assistance meeting productive, it is recommended that applicants submit the Multifamily Workbook and the information on the selected Risk of Loss at least five business days before your scheduled session to firstname.lastname@example.org.
Contact Preservation Manager Anne Heitlinger at 651.296.9841.