MN Housing board update: HAVEN proposal, partially funded bond projects, and falling value of housing tax credits
- Created: Monday, 06 March 2017 10:22
- Written by Gabriela Norton
During it's February board meeting, the Minnesota Housing Finance Agency (MHFA) discussed the possibility of allocating Agency resources to “top off” partially funded bond projects, the drop in value of housing tax credits, how the HAVEN proposal could change the way the state’s tax exempt bonding authority is allocated, potential administrators for the Bridges rental assistance grants, and amendments to the 2018 tax credit Qualified Allocation Plan (QAP).
Partial bond allocations
Housing Commissioner Mary Tingerthal began by explaining that the Agency was not yet moving forward on a proposal to make available tax exempt bond financing to developers whose projects received partial allocations through MMB (the state budget office). Because a developer had obtained a temporary restraining order against MMB regarding a bond allocation, MMB was holding back on allocating the contested bond amount until the court acts. Minnesota Housing would not know whether projects need more funding until the court action has concluded and the Agency learns what MMB does with the held back allocation.