Housing Tax Credit Round 2

The 2026 Housing Tax Credit Round 2 is now closed.

The application period for the 2026 Housing Tax Credit Round 2 closed on Thursday, February 12, 2026. Selection recommendations for this round are anticipated to be presented at Minnesota Housing's board meeting on May 28, 2026. We will notify all applicants directly of the outcome.

Round 2 makes available for allocation any 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 approximately $2.9 million in 9% HTC to be available for the 2026 HTC Round 2. Of this amount, there is $74,334 remaining in the small cities/rural development set-aside which carries over to Round 2. The HTC Round 2 also establishes a waiting list for eligible applications that were not selected or that were selected to receive a partial Allocation in the event that additional HTC become available. Minnesota Housing will pull projects from this list  to evaluate for further allocations. New funding opportunities will be posted as additional HTC become available.

Refer to the Amended 2026-2028 Qualified Allocation Plan 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. Closed application resources and materials are for reference only.

We encourage you to stay informed about Round 2 and other funding opportunities by subscribing to our eNews.

Status of Other Funding for Round 2

• HUD Section 811 Project-Based Rental Assistance Program (HUD Section 811 PRA)

• Low and Moderate Income Rental (LMIR) First Mortgage Financing
• Additional deferred loan resources

Supplemental Priority

Projects that have previously received HTCs 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.

State Prevailing Wage Requirement

In the 2024 legislative session, the state prevailing wage statutes (Minnesota Statute 116J.871) were amended to include new reporting requirements and to broaden prevailing wage applicability for multifamily rental housing projects that receive funding from Minnesota Housing.

Projects selected for an award or allocation of federal low-income housing tax credits (Housing Tax Credits) on or after January 1, 2025: For purposes of an award, selection is defined as the issuance of the 42M preliminary determination letter by Minnesota Housing. For purposes of an allocation, selection is defined as Minnesota Housing board action to select a project for future reservation and allocation of LIHTC through Round 1 or Round 2.

Visit Minnesota Housing’s Prevailing Wage webpage and review the Frequently Asked Questions document for more information on the prevailing wage requirements, applicability, and reporting.

Technical Assistance

We offer, and strongly encourage, a technical assistance (TA) session to discuss your project with Minnesota Housing staff. To make the TA session productive, we recommend applicants begin by completing the Multifamily Workbook and preliminary scoring of the project. These items can be submitted to the TA team advance of the scheduled TA session. If you would like TA as you complete your funding application, complete, and submit the Technical Assistance Request Form to begin the process.

Questions regarding technical assistance should be directed to TechnicalAssistanceRequest.MHFA@state.mn.us.