Low-Income Housing Tax Credit & Supportive Housing in Minnesota, 2014-15

Minnesota’s 2014-15 Qualified Allocation Plan (QAP) offers supportive housing projects potential competitive scoring advantages. Additionally, supportive housing projects meet Minnesota’s threshold requirement for project type. 

Threshold Criteria

For applications submitted in Round 1, all applicants must meet one of five threshold housing types. Among the threshold types are: 1) metropolitan developments in which at least 75% of the total Housing Credit units are single room occupancy units affordable to households whose income does not exceed 30% of Area Median Income (AMI); 2) developments that are not restricted to persons of a particular age group and in which, for the term of the extended use period, a percentage of units are set aside and rented to persons with serious and persistent mental illness, developmental disability, drug dependency, brain injury, or permanent physical disabilities that substantially limit major life activities.

Set-Asides

Minnesota's 2014-15 QAP awards 100 bonus points to developments until a total of $1,922,000 (estimated 25% of Minnesota Housing’s administered credit authority) in tax credits are awarded for providing permanent housing for households experiencing long-term homelessness selected in the 2015 Housing Tax Credit competitions. Qualifying proposals must submit the Supportive Housing application materials and agree to pursue and continue renewal of rental assistance, operating subsidy, or service funding contracts for as long as the funding is available.

Scoring Incentives

Minnesota's 2014-15 QAP also awards 10 points to developments in which at least 50% of the total Housing Credit units are single room occupancy (one bedroom or less with rents affordable to households whose incomes do not exceed 30% of AMI). 

10 points awarded to developments in which at least 25% of total units, or 3 points for 10% of units, are set aside and rented to special populations, including persons with serious and persistent mental illness, developmental disability, drug dependency, brain injury, or permanent physical disabilities that substantially limit major life activities.

10 points awarded to developments in which 50 to 100% of total units, 7 points for 10-49% of units, and 5 points to 5-9% of units, are set aside and rented to household experiencing long term homelessness.

Up to 13 points awarded to developments restricting 100% of units, or 8 points for 50% of units, to households whose incomes do not exceed 30% of AMI. All 30% rent restricted units must meet the 30% AMI rent for a minimum of five years.

17 points awarded for setting aside 100% of units for project based rental assistance and an additional 4 points for a plan to collaborate with a public housing authority to provide other Rental Assistance.

Contributed By: 
CSH

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