State Housing Tax Credit Program and Contribution Fund
The State Housing Tax Credit Program and Contribution Fund is a new way to help finance multifamily and single-family 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.
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.
Eligible Recipients
Minnesota Housing may award loans to a city, federally recognized American Indian Tribe, a Tribal housing corporation, a private developer, a nonprofit organization, a housing and redevelopment authority, a public housing authority or the owner of the housing.
Usage of Funds
Eligible uses of funds include gap financing, new construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing and permanent financing.
The program also has set-asides for single family housing, housing in a township or city with a population of 2,500 or less that is outside of the metro area and housing for people earning 50% or less of area median income.
Availability of Funds
Contributions to the General Contribution Pool will be available via a competitive application process. Funding for the program is expected to be offered separately from Minnesota Housing’s 2024 Consolidated RFP. This page will be updated as program development continues.
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
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
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)
eNews Information
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