- Created: Monday, 31 October 2016 06:39
During its October meeting, the board of the Minnesota Housing Finance Agency (MHFA) covered several critical topics, including $80 million in funding awards from the 2016 Consolidated RFP and proposed changes to the allocation of 4 percent federal housing tax credits.
In her opening remarks, Commissioner Mary Tingerthal informed the board that prior to its November meeting board members were encouraged to participate in a tour of the nearly completed Catholic Charities Higher Ground project. After the tour, Agency staff provided an overview of housing plus services programs related to Hunger and Homelessness Awareness week.
Proposed changes to 4 percent tax credit allocation
Join MHP's discussion on these proposed changes on Thursday, Nov 10, at 3 p.m. by calling 800-220-9875, ID 72658579
One of the weightier topics before the board in October was the board’s approval to open a public comment period for a set of proposed amendments to the Agency’s 2017 and 2018 Qualified Allocation Plans (QAPs), which establish the criteria for awarding federal Low Income Housing Tax Credits. The approval also included a temporary moratorium on accepting applications for 4 percent federal housing tax credits until the board can consider comments on the proposed amendments because the proposed amendments would revise the criteria for awarding such credits. Tingerthal told the board that a combination of market factors has recently made 4 percent credit projects a very viable development alternative. Tingerthal said she is concerned that, if the proposed changes are not made, federal tax exempt bond authority will not be available next year for projects that meet a higher level of state housing priorities. (To access federal 4 percent credits, which are not limited by the federal government, a project must have at least 50 percent of its development cost paid by tax exempt bond financing, which is limited in the amount allocated to the state by federal statute).