Minnesota Revises Building Standards Dealing with Cost Containment

To help ensure construction costs are reasonable and requirements are generally consistent across funding programs, effective April 2019, for the 2019 Consolidated RFP/2020 Housing Tax Credits (Rounds 1 and 2 and 4% HTC Only), a Construction Cost Certification will be required whenever there’s an identity of interest (IOI) between the owner and contractor (as defined in Chapter 2 of the Contractor’s Guide). Currently a Contractor’s Certification of Actual Cost is required for end loan deferred funded projects and projects with HUD Risk Share when there’s an IOI. In April 2019, it will be required for all funding sources including Housing Tax Credits when there’s an IOI.

When it becomes effective, the contractor must submit a Contractor’s Certificate of Actual Cost HUD Form 92330A audited by an independent public account in accordance with requirements established by HUD, as follows:

• At the end of construction after final contractor payment, but before the final draw close-out for projects with:
  a) HUD Risk-sharing Program
  b) Minnesota Housing’s end loan
  c) Minnesota Housing’s deferred funding
  d) Minnesota Housing’s first mortgage
• At the end of the project and before IRS Form 8609 issuance for 4% and 9% Low Income Housing Tax Credits projects.