From City of Minneapolis:
The City of Minneapolis is preparing the 2024-2025 Housing Tax Credit (HTC) Qualified Allocation Plan (QAP) and Procedural Manual for release later this spring. The program’s purpose is to help finance the production, preservation, or stabilization of affordable rental housing projects located in Minneapolis, through the Federal HTC program. The draft QAP and Procedural Manual can be found here: https://www2.minneapolismn.gov/government/departments/cped/items-for-public-review/. The proposed changes are listed below and are noted in “track changes” mode in the draft documents.
Changes to the 2024-2025 Housing Tax Credit Qualified Allocation Plan (QAP)
General: A two-year QAP is proposed
Attachment 1 - Selection Criteria - 9% Tax Credits:
A8: Clarify funding source requirements for Supportive Services Commitments
A10: Clarify Intermediary Costs language at time of IRS Form 8609 submission
A13: Revise Equitable Development point language to align with Minnesota Housing scoring. The language updates relate to the documentation required for points.
Attachment 3 - Selection Criteria - 4% Tax Credits:
1: Delete language regarding projects with no gap financing from the Capital Funding Commitment criterion.
3. Clarify Intermediary Costs language at time of IRS Form 8609 submission
New 10: Create a new scoring criterion to incentivize non-smoking policies. This new scoring criterion is consistent with the existing 9% HTC scoring.
Changes to the 2024-2025 Housing Tax Credit Procedural Manual:
General: A two-year update is proposed
Section III – E: Clarify language that displacement and relocation requirements apply to new construction projects.
Section III – K: Delete this section about 2021 census tract boundary updates – no longer applicable.
Section IV – D3: Update Average Income Test (AIT) language to align with Minnesota Housing’s QAP regarding unit parity, AMI tiers, floating units, and other AIT set-aside requirements.
Section IV – J: Delete language about floating 4% Applicable Percentage – no longer applicable.
Section VI – B: Add language about market study effective dates.
Section VII – Submission Requirements: various updates to 4% and 9% HTC application requirements.
Section VIII – C: Add language that a project receiving HTCs apportioned from Minnesota Housing must pay an allocation fee to the City of Minneapolis for projects in Minneapolis or the Saint Paul HRA for projects located in Saint Paul.
Comments regarding these proposed changes are being accepted until May 3, 2023 at 4:00 p.m., CDT. Deliver written comments or e-mail to:
City of Minneapolis – CPED Residential Finance
Attn: Emily Carr
505 4th Avenue South, Suite 320
Minneapolis MN 55415