Minnesota Housing is now accepting pre-applications for an award of 2025 four percent Housing Tax Credits (HTC) for projects expected to be financed with tax-exempt volume limited bonding authority from Minnesota Management and Budget (MMB).
For information on the four percent HTC process, including webinar resources, visit the four percent Housing Tax Credits webpage.
Four Percent HTC Only Pre-Application Process
The optional, but strongly encouraged, pre-application process assists developers with requirements associated with requesting four percent HTC. The pre-application allows developers to receive the following information before submitting a request to MMB for tax-exempt volume limited bonding authority:
- Preliminary predictive cost model determination to determine if total development costs are within the model’s acceptable range as required by the applicable year’s Qualified Allocation Plan (QAP). The new state prevailing wage requirements may impact projects that are submitting preliminary predictive cost model determination through the four percent only HTC application process. See below for additional details; and/or
- Preliminary scoring determination to determine if the project reaches the minimum score of 40 points on Minnesota Housing’s Self-Scoring Worksheet in order to move forward in the application process.
The pre-application must be submitted at least 30 days prior to the submission of the full application.
Four Percent HTC Only Application Process
For projects that receive an award of tax-exempt bonds from MMB in 2025, a full and complete application must be submitted to Minnesota Housing at least 60 days prior to bond issuance. Full applications will be accepted beginning Tuesday, Jan. 14, 2025.
New State Prevailing Wage Requirement
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 LIHTCs on or after Jan. 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 our October 24 New State Prevailing Wage Requirements eNews for more information on the prevailing wage requirements, applicability, and reporting.
Questions?
For project specific questions, contact the assigned Minnesota Housing staff listed in the Portal. For HTC program questions, contact the HTC team at htc.mhfa@state.mn.us.
