Overview

Developers can use housing tax credits (HTCs) to help finance affordable housing projects in Minneapolis.

The funds must be used to:

• Produce more affordable rental housing.
• Preserve existing affordable rental housing.

The City's role

As one of the governing bodies of the Minneapolis-St Paul Housing Finance Board, we:

• Review housing tax credit applications.
• Allocate the credits.

How it works

We award the HTCs to owners of approved affordable rental housing projects.

The project must follow the rules in the Qualified Allocation Plan.

These federal tax credits:

• Reduce the project's tax liability for ten years.
• Are sold to investors to raise money for building affordable housing.
• Can be used for new construction or rehabilitation of affordable rental housing.

Allocation process

We allocate the 9% HTCs once a year through a competitive Notice of Funding Availability process.

The 4% HTCs are available year-round. The City allocates 4% HTCs when we issue housing revenue bonds.

• See Housing Revenue Bonds
• Request HTC application