The Minnesota Legislature provided $80 million of HIB proceeds in the 2018 bonding bill. Minnesota Housing is targeting roughly $60 million in HIB proceeds for the 2019 Request for Proposal (RFP)/2020 Qualified Allocation Plan (QAP). The remaining amount has either been allocated in the 2018 RFP, or will be set aside for preservation, community land trusts, and manufactured home park improvements.

Minnesota Housing has created a new framework for the selection of projects eligible for HIB proceeds to balance funding between the eligible uses of HIB and meet unique community needs. Projects will be reviewed and scored within each eligible use (i.e. senior projects will be evaluated against other senior projects) where they will compete for set-asides in each of the following areas:

  • Affordable housing for seniors age 55 and older (approximately $20 million)
  • Permanent supportive housing (approximately $40 million, with targeting as prioritized by the Legislature):
    • for people with behavioral health needs
    • for people or families at risk of or experiencing homelessness (could also include housing for people with behavioral health needs)

Selection Process

Projects applying for an HIB eligible use will be required to meet RFP eligibility and feasibility requirements. Minnesota Housing will score and rank projects competitively in each of the areas listed above, and projects will be further evaluated based on:

  • Overall project feasibility
  • Applicants’ organizational capacity
  • Use of 4% housing tax credits to leverage equity
  • Reasonableness of deferred loan request

If additional proceeds are available or proceeds remain in the respective target areas after initial awards, these funds will be available for other eligible HIB projects, including preservation, community land trusts and manufactured home park improvements.

With this new process, we invite feedback and comments from our partners and stakeholders. We will conduct a comment period on the new HIB Selection Framework from Thursday, November 29 through Friday, December 14, 2018.

How to Submit Feedback

Review the HIB selection materials at www.mnhousing.gov.

Written public comments on the HIB selection process must be submitted by December 14, 2018 via:

  • Mail: Minnesota Housing
    Attn: William Price
    400 Wabasha Street North, Suite 400
    St. Paul, MN  55102
  • Email: william.price@state.mn.us with “HIB Selection Framework” in the subject line

Questions?

Contact William Price at 651.296.9440