Excerpted from Minnesota Housing ENews May 31, 2018
The 2018 legislative session has officially concluded and the Governor has signed the bonding bill which includes the authorization for Minnesota Housing to issue additional Housing Infrastructure Bonds (HIBs). A portion of this new authority will be made available for applicants submitting proposals as part of the 2018 Consolidated RFP.
Projects eligible for proceeds from HIBs include both previously eligible uses and new uses authorized in the bonding bill. Previously eligible uses include:
- Preserve federally subsidized rental housing
- Build permanent supportive housing for persons or families experiencing or at risk of homelessness
- Acquire land by community land trusts for single family homes for home ownership
- New use - Affordable housing for seniors age 55 and older earning approximately $24,000-$40,000 per year
- New use – Manufactured home park improvements and infrastructure
- New priority - $30 million for permanent supportive housing for people with behavioral health needs
Minnesota Housing expects to make up to $60 million in proceeds from HIBs available with the 2018 RFP. In addition to proposals for projects under previously eligible uses, proposals serving seniors and people with behavioral mental health needs will be eligible for consideration in the 2018 RFP funding round, but only based on competitiveness under the existing scoring criteria.
Proposals for projects seeking financing for manufactured home park infrastructure and improvements will not be accepted as a part of the 2018 RFP. We expect to provide additional guidance for potential applicants for this new eligible use later this year.
We will not allocate proceeds from all of the additional HIB authority in the 2018 Consolidated RFP, and expect that proceeds from the additional HIBs will be available in the 2019 Consolidated RFP. We encourage potential applicants to reach out to Susan.Thompson@state.mn.us in the fall to pursue technical assistance on proposals eligible for HIB funding for consideration in the 2019 Consolidated RFP.
Senior Projects and Permanent Supportive Housing for People with Behavioral Health Needs
Senior projects are now eligible for the proceeds of HIBs and will be available for request through the 2018 Consolidated RFP. Senior proposals that meet the HIB eligibility requirements outlined below and that competitively score under our existing scoring criteria must apply by the extended ITA deadline of June 5, 2018 and the application deadline of June 14, 2018. The new language in the HIB statute sets forth specific requirements for senior projects:
- Projects serving seniors 55 years of age or older with annual incomes not greater than 50% of the metropolitan median income for persons in the metropolitan area or 50% of the statewide median for persons outside the metropolitan area. Minnesota Housing will update the Multifamily Rent and Income webpage as soon as this information is available.
- Eighty percent of units must be occupied by at least one senior per unit.
- There is a priority for senior projects serving households at 30% of Metropolitan median.
To better accommodate proposals applying under the senior HIB eligibility, a required Senior Housing Narrative Form with more detailed eligibility criteria must be submitted by the applicant, and is available in the online Portal in addition to all other required application materials. Note that there is a required market study addendum specific to projects serving seniors for Housing Tax Credit applications structured as a 4% project.
Minnesota Housing is still assessing eligibility considerations for projects that serve people with behavioral health needs. Because these are new provisions of the statute, we may need to request additional information after the submission deadline from applicants proposing permanent supportive housing and/or senior development projects.
Intent to Apply (ITA) Deadline Extension to June 5, 2018
Minnesota Housing has extended the ITA deadline to accommodate changes in HIB eligibility, with ITAs due by 5:00 pm on Tuesday, June 5. If you already submitted your ITA and want to submit the senior housing materials, please email email@example.com to get access to the ITA checklist items. The application due date is by 5:00 pm on June 14, 2018. All applicants are required to submit an ITA by the deadline in order to continue to be eligible for the application due date.
If you are on track to submit your ITA by the original May 31 deadline, we encourage you to do so. This helps ensure efficient application processing, including ordering appraisals. Your help is appreciated!
We want to help you submit strong proposals. Please take advantage of the technical assistance opportunities below.
- If you would like technical assistance as you put your application together, please contact Susan Thompson at 651.296.9838 and she will connect you with a staff person.
- View pre-recorded training tutorials (scroll down to training tutorials).
- View pre-recorded Technical Assistance webinar