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State Housing Tax Credit Program and Contribution Fund

The State Housing Tax Credit Program and Contribution Fund (SHTC Contribution Fund) is a new way to help finance housing that is affordable throughout the state of Minnesota. Eligible Minnesota taxpayers can contribute to the contribution fund and, in return, receive a state Tax Credit Certificate (TCC). Contributions will provide funding for loans for eligible housing projects in communities through the state. The loans provided through the program are funded entirely by taxpayer contributions. There are no state appropriations or other funding sources for the program. This program does not mirror the Federal Low Income Housing Tax Credit program.

Request for Proposals

Minnesota Housing is now accepting applications for the 2024 SHTC Contribution Program Request for Proposals (RFP), established pursuant to Minnesota Statutes, sections 462A.40 and 290.0683, collectively. Applications are due Thursday, September 19, 2024, by noon Central Time.

Contributions to the General Contribution Pool received between September 1, 2023, and August 31, 2024, will be made available for rental housing projects through the SHTC Contribution Program RFP and for single-family housing through the Community Homeownership Impact Fund RFP. Currently, there is approximately $1.8M in the General Contribution Pool. The amount in the General Contribution Pool may change if more contributions are received.

The General Contribution Pool is subject to the following set-asides:

  • At least 10% will be set-aside for housing units located in a township or city with a population of 2,500 or less that is located outside of the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2;
  • At least 35% will be set-aside for housing for people and families whose income is 50% or less of the area median income as published by the United States Department of Housing and Urban Development (HUD), as adjusted for household size; and
  • At least 25% will be set-aside for single-family housing.

In 2024, the set-aside for single-family housing will be used as a funding source for the Community Homeownership Impact Fund RFP. The SHTC Contribution Program RFP will not accept applications for homeownership projects in 2024. If Minnesota Housing does not receive applications that qualify for the set-asides, the set-aside funds may be used for other Qualified Projects selected through the SHTC RFP, Multifamily Consolidated RFP or Community Homeownership Impact Fund RFP. 

The SHTC Contribution Program RFP is intended for proposals that have not received and/or will not apply for affordable housing resources from the Multifamily Consolidated RFP or federal low-income tax credits. Proposals that need additional affordable housing resources must apply through the Community Homeownership Impact Fund RFP or Multifamily Consolidated RFP. Proposals with federal low-income housing tax credits must apply through the Multifamily Consolidated RFP. Proposals with attributes that make qualifying for awards through the Multifamily Consolidated RFP difficult are encouraged to apply to the SHTC RFP.

Applicants must submit all required items on the Application Checklist and all other required materials using the Multifamily Secure Upload Tool, which can be found on Minnesota Housing’s Partner Login webpage. Follow the prompts and use the email address mhfa.app@state.mn.us.

Eligibility

Minnesota Housing may award loans to a city, federally recognized American Indian Tribe, Tribal housing corporation, private developer, nonprofit organization, housing and redevelopment authority, public housing authority, or the owner of the housing.

Use of Funds

Eligible uses of funds include new construction, acquisition, rehabilitation, and demolition or removal of existing structures (in conjunction with new unit development or rehabilitation; not a standalone use).

Application Materials

Information Session: Minnesota Housing held an informational session on July 16, 2024. The session included an overview of the program, eligibility requirements, timelines, and other important RFP information.
Watch the recording (00:17:28) | Presentation Slides

Program Contributions Now Being Accepted

The contribution process for 2024 is as follows:

  • Eligible taxpayers complete the online application
  • Minnesota Housing reviews the application; if the application is accepted, Minnesota Housing will email a form for the taxpayer to sign with payment instructions
  • Taxpayer submits and Minnesota Housing receives signature document and contribution funds within the timeframe provided in the email
  • Minnesota Housing issues TCC to the taxpayer within 30 days of receiving the signature document and funds

Minnesota Housing encourages all contributors to review the program guide to understand how their contribution will be used. Contributions are irrevocable. If a Designated Contribution cannot be used as intended, it will be added to the General Contribution Pool to fund eligible projects across the state. Minnesota Housing cannot provide tax advice and recommends consulting with a tax professional.

Get the word out about the contribution fund!

If someone in your community may be interested in supporting housing for Minnesotans, help us spread the word. You can download and share the following marketing material about the program:

Program Guide and Frequently Asked Questions

Additional Resources

New Construction Rehabilitation Due Diligence Checklist: for Qualified Projects with Designated Contributions requesting disbursements during construction or rehabilitation. 

Program End Loan Due Diligence Checklist: for all other Qualified Projects with Designated Contributions.

Homeownership Interim Construction Due Diligence Checklist: for homeownership Qualified Projects with Designated Contributions requesting interim construction financing.

Homeownership Interim Loan Funds Workbook (xlsx) - Workbook for Homeownership projects with Designated Contributions.

SHTC Certification Business:  Certification that recipient is not a Disqualified Business.

SHTC Certification Individual: Certification that recipient is not a Disqualified Individual - Version 2 coming soon

SHTC Qualifications Attestation: RTF Fillable | PDF Fillable - Attestation that project qualifies for State Housing Tax Credit program funds

Minnesota Department of Revenue State Housing Tax Credit web page

Tax Credit Contribution Application (for reference purposes only)

Taxpayer Certification and Signature Form (for reference purposes only)

Minnesota Housing Tax Credit Contribution Account (Minnesota Statutes 462A.40)

Minnesota Housing Tax Credit [290.0683]

State Housing Tax Credit Program Contribution Page

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