Housing Tax Credit Round 2

The 2025 Housing Tax Credit Round 2 is now closed.

The application window for the 2025 Housing Tax Credit (HTC) Round 2 has closed as of Thursday, February 13, 2025, at noon Central time. Selection recommendations for this round will be presented at Minnesota Housing's May 2025 board meeting. We will notify all applicants directly of the outcome.

Important Note: The HTC Round 2 establishes a waiting list for projects that do not receive an initial allocation. If additional HTCs become available, Minnesota Housing will pull projects from this list for a feasibility review to evaluate further allocations. Currently, Minnesota Housing has $874,000 in HTCs available. New funding opportunities will be posted as additional HTCs become available.

• During Round 1, 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 of allocating the remaining available HTCs for the year.

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

Closed application resources and materials are for reference only. Visit the Multifamily Consolidated Request for Proposals/Housing Tax Credits Funding Rounds webpage.

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.

The HUD Section 811 PRA Program is designed to expand the supply of supportive housing that promotes and facilitates community integration for people with significant and long-term disabilities. HUD Section 811 PRA Program funds will be available for units for people with disabilities through the 2025 HTC Round 2.

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.

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.