Housing Tax Credits

The Low Income Housing Tax Credit (HTC) Program awards and allocates federal tax credits to owners of qualified affordable rental housing projects. These HTCs, which offer a 10-year reduction in tax liability, are sold to investors in exchange for capital to build eligible affordable rental housing units in new construction, rehabilitation, or acquisition with rehabilitation.

Minnesota Housing offers two types of HTCs: 9% and 4% with Tax-Exempt Volume-Limited Bonds

The 9% HTCs are allocated twice a year through a competitive process:

During Round 1, also known as the annual Multifamily Consolidated RFP/HTC Round 1, when much of our other funding is also available, and
During Round 2, which is generally a smaller round allocating the remaining available HTCs for the year.

Funding for the 2023 Multifamily Consolidated RFP/2024 HTC Round 1 is available. Applications are due July 13, 2023 at 12:00 PM Central Time. Visit the 2023 Multifamily Consolidated RFP/HTC Funding Rounds webpage for more information about important dates, application materials and how to submit.

4% HTCs with Tax-Exempt Volume-Limited Bonds are available year-round. Minnesota Housing is currently accepting pre-applications and full applications for an award of 2023 4% Only HTCs (42M) for projects anticipated to be financed with tax-exempt volume limited bonding authority from Minnesota Management and Budget (MMB) Learn more about the 4% Housing Tax Credit (4% Only) program.

Applicants for HTCs must apply using our Multifamily Customer Portal. Resources and relevant documents are listed below and on the 2023 Multifamily Consolidated RFP/HTC Funding Rounds webpage. To receive notification of application updates and reminder via email, sign up to receive our eNews publications.

2024-2025 HTC Documents

The following documents set forth the overall funding priorities for all the HTC funding rounds and the annual Multifamily Consolidated Request for Proposals (RFP).

2024-2025 Qualified Allocation Plan (QAP) (pdf)
2024-2025 Self-Scoring Worksheet (pdf)
2024-2025 Methodology Guide (pdf)
Visit our Community Profiles Webpage for an interactive geographic scoring map.
Scoring Guide: 2023 Consolidated RFP/2024 HTC
2024 Estimated HTC Distribution

2023 HTC Documents

2022-2023 QAP
2022-2023 Self-Scoring Worksheet
2022-2023 Methodologies:
- Methodology Table
- Need for More Affordable Housing Options
- Opportunity Zones
- Transit and Walkability
- Multifamily Award History
- Rural/Tribal Designated Areas
- Qualified Census Tracts, Tribal Equivalent Areas
- Workforce Housing Communities
- Continuum of Care (CoC) Priorities
- Visit our Community Profiles webpage for an interactive geographic scoring map.

HTC Application Reference Materials

Eventual Tenant Ownership Guide

Eventual Tenant Ownership (ETO) Guide - Allows property owners to convert HTC rental units to homeownership units following an initial 15-year compliance period. For information on ETO, contact a member of the Housing Tax Credit Team at htc.mhfa@state.mn.us.

Market Analyst List

The Internal Revenue Code Section 42(m)(1)(A)(iii) requires HTC projects to select an authorized market analyst to complete a market study when submitting an HTC project proposal for funding. Market analysts must be authorized by Minnesota Housing before developers can submit market studies for the 2023 Multifamily Consolidated RFP/2024 HTC Round 1, HTC Round 2, and 4% Only funding rounds.
Authorized market analysts must renew their application every three years. Refer to your organization's renewal date on the Market Analyst List.
The application period is for analysts is currently closed. Minnesota Housing will accept new applications in December 2023 for the 2024 Consolidated RFP/2025 HTC Round 1 funding round.
Application materials and more information can be found at the following links:

Market Analyst Requirements and Application
Market Study Guidelines - Revised March 2023 PDF Version | Fillable Word Version
Market Analyst List - revised March 2023

Questions? Contact the Housing Tax Credit Team at htc.mhfa@state.mn.us.

Average Income Test (AIT)

The Consolidated Appropriations Act of 2018 established an Average Income Test (AIT) as a third minimum set-aside election for new Housing Tax Credits (HTC) projects. Under appropriate circumstances, this option can be elected by owners in lieu of the existing minimum set-aside elections of 40% of the units at 60% of Multifamily Tax Subsidy Project (MTSP), and 20% of the units at 50% of MTSP.

Census Data

To determine the census tract or census tract number for a particular address, visit the following:

Minnesota Statutes

Local Housing Tax Credit Suballocators

Tax Credit Allocation Authorities Contact List

Current Applicable Percentage

Council for Affordable and Rural Housing
Affordable Housing Resource Center (Novogradac & Co. LLP.)

Other HTC Information

Archived Procedural Manuals and Documents
Compliance Monitoring - Overview, Dates, Manual, Owner and Tenant Certification Forms
Multifamily eNews - Previous editions of eNews are available upon request. Contact htc.mhfa@state.mn.us.

Changes in Ownership or Proposed Development

Minnesota Housing strongly discourages the transfer of ownership or any material project or building design changes for developments that have been awarded tax credits. Any unapproved transfers or changes could be penalized by the complete or partial loss of tax credits as well as the assessment of penalty points. If an owner wishes to change or transfer ownership, visit the Minnesota Housing's Request for Action (RFA) webpage.

Qualified Contract

The Internal Revenue Code, Section 42(h)(6)(E)(i)(II) created a provision that housing credit agencies respond to the request for presentation of a qualified contract for HTC projects with expiring compliance periods. The request for presentation of a qualified contract is a request that the housing credit agency find a buyer (who will continue to operate the property as a qualified low-income property) to purchase the property for a qualified contract price pursuant to IRS regulations.

If the housing credit agency is unable to find a buyer within one year, the extended use period is terminated, subject to a three-year period following its termination. During this three-year period following termination, existing low-income tenants cannot be evicted or tenancy terminated for other than good cause and rents cannot exceed the allowable HTC rent limits.