Minnesota Housing is now accepting applications for a Carryover Allocation of the 2022 LIHTC Program. Section 42 of the Internal Revenue Code requires all nine percent LIHTC projects to carryover or be placed in service by the end of the LIHTC year. A project that received a 2022 reservation of LIHTCs is eligible to apply for a Carryover Allocation of 2022 LIHTCs. A Carryover Allocation allocates the LIHTCs to the project, provided that all requirements of the Carryover Allocation Agreement are met in a timely manner. A Carryover Allocation Agreement allows qualified buildings to be placed in service up to two years after the year in which an allocation is received. The Carryover checklist found in the Multifamily Customer Portal is due on November 1 by noon CT.
A project that has not received a Carryover Allocation or is not placed in service and has been issued its appropriate 8609s before Dec. 31, 2022, will lose its entire allocation of 2022 LIHTCs. To the extent permissible, late fees will be imposed on Carryover Applications submitted after the submission deadline, as outlined in the 2022-2023 QAP.
