Important Deadlines for the 2021 Consolidated Request for Proposals and Section 811 Project-based Rental Assistance Program
The 2021 Multifamily Consolidated Request for Proposals (RFP) Intent to Apply (ITA) and Section 811 Project-based Rental Assistance (PRA) pre-application deadlines are coming up and we want to make sure you know what you need to do to meet each deadline.
In this eNews you will also find the latest round-up of Consolidated RFP updates, reminders and guidance as well as some general Multifamily information. 
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2021 Consolidated RFP ITA Deadline
To meet the ITA deadline by noon this Thursday, May 20, you need to create a project and setup your project’s characteristics in the Multifamily Customer Portal. Unlike previous years, there are no checklist items associated with the 2021 ITA unless you are requesting Section 811 PRA. No other action is required by the ITA deadline. 
Note: Applicants can change their project’s characteristics up until the full application deadline at noon on Thursday, July 15. 
Section 811 PRA Pre-application Deadline
As a reminder, Section 811 PRA are anticipated to be available for units for people with disabilities through the 2021 Consolidated RFP. Applicants must submit an 811 pre-application by noon this Thursday, May 20 in the Multifamily Customer Portal to determine eligibility for the program prior to submitting a full Consolidated RFP application. Applicants will be notified about eligibility for the program prior to the application due date.
IMPORTANT: Existing developments with or without Section 811 PRA units cannot apply for Section 811 PRA funding through the 2021 Multifamily Consolidated RFP. Minnesota Housing anticipates sharing our plan for how existing developments can apply for funding this summer. Please sign up for our eNews list to be notified when this funding is announced and how to apply.
Tips for Successfully Submitting Your Section 811 PRA Pre-application in the Multifamily Customer Portal:
  • Upload files to all checklist items. At least one file must be uploaded to all checklist items before a ‘Submit’ button will appear.
  • Hit ‘Submit’ before noon on May 20. You must hit the submit button for Minnesota Housing to receive your pre-application.
Picture of Multifamily Customer Portal screen showing applicants how to successfully submit a Section 811 PRA pre-application
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Other Important Dates
  • Thursday, June 10: Applicants will be notified of Section 811 PRA program eligibility
  • Thursday, July 15 by noon: Multifamily application deadline including site control, qualification forms, and financials. Applicants must submit their application checklist in the Multifamily Customer Portal and submit their scoresheet in the Scoring Wizard by this deadline.
    Note: the application fee is also due by this date.
     
Metropolitan Council Approves Local Housing Incentives Account Funding
The Metropolitan Council is pleased to announce another year of record funding levels. A total of $8 million was approved for the Local Housing Incentives Account (LHIA). These dollars will be available in the multifamily deferred pool of financing in the 2021 Consolidated RFP. Interested applicants do not need to do anything other than submit an application that includes a deferred request to the Consolidated RFP. Visit the LHIA website for more information about the program, including matching requirements, eligible uses and more.
Federal Funding in the 2021 Consolidated RFP
Minnesota Housing is pleased to announce the estimated federal investment levels for the HOME and National Housing Trust Fund (NHTF) capital programs: 
  • HOME: $8.5 million
  • NHTF: $8.3 million 
HOME and NHTF sources are a key part of the Agency’s deferred funding resources. Please note the following federal cross-cutting requirements that must be met to be eligible for these resources: 
  • Davis Bacon is applicable to HOME funding only. Under certain circumstances, the project may also be subject to state prevailing wage, in addition to Davis Bacon, and subject to a dual wage decision. See page seven of the Multifamily Application Instructions: Consolidated RFP and HTC Rounds 1 and 2 for more detail.

  • The new U.S Department of Housing and Urban Development (HUD) Section 3 Rule will be in effect for projects selected for funding in the 2021 Consolidated RFP. For housing and community development financial assistance projects, the benchmark for Section 3 workers is set at 25% or more of the total number of labor hours worked by all workers on a Section 3 project. The benchmark for targeted Section 3 workers is set at 5% or more of the total number of labor hours worked by all workers on a Section 3 project. This means that the 5% is included as part of the 25% threshold. Developers and their contractors will be strongly urged to meet this goal, and reporting will take place along with weekly payroll reporting for Davis Bacon.

  • Environmental Review is applicable to both HOME and NHTF. Please contact Jennifer Wille if you have specific questions about site suitability, timing or choice limiting actions. 

  • Site and Neighborhood Design Standards apply to new construction projects. Projects located within a census tract with a minority concentration above 50%, a poverty concentration above 50% or is within a Racially or Ethnically Concentrated Area of Poverty (R/ECAP) will undergo further review to determine eligibility.
Revised Multifamily Underwriting Standards and Underwriting Standards Release Notes
An administrative correction has been made to the Supportive Housing Standards section (see section 2.02 - page 10) in the 2021 Multifamily Underwriting Standards and Underwriting Standards Release Notes. The correction is in red font in each document and both can be found on our website. We apologize for any inconvenience.
Qualification Forms
Each RFP funding round and/or year-round funding application requires the submission of a qualification form from ALL development team members if any of the following apply:
  • Minnesota Housing does not have the required qualification form on file.
  • The information on a previously submitted qualification form has significantly changed.
  • The qualification form has been on file with Minnesota Housing longer than 12 months.
How to Submit
Consolidated RFP and Housing Tax Credits Rounds 1 and 2:
Where to Find Qualification Forms:
  • The Qualification of Sponsor and/or Guarantor and Schedules A-E can be found on Minnesota Housing’s website
  • All other qualification forms are linked in the checklist items in the Multifamily Customer Portal and on Minnesota Housing’s website.
Dual Applications and Project Numbers (M Numbers)
Applicants can submit dual applications that include a primary and secondary finance structure. Detailed information can be found in the Multifamily Application Instructions: Consolidated RFP and HTC Rounds 1 and 2. Generally, dual applications include one of two structure combinations:
  • 9% HTC Request (primary)/4% HTC with Deferred Request (secondary)
  • 4% with Deferred Request (primary)/Deferred-Only Request (secondary)
The primary structure will use the primary M number. The secondary structure will use the secondary M number. The primary workbook should be uploaded in the Multifamily Customer Portal to the Multifamily Workbook checklist item with the primary M number information entered. The secondary workbook should be uploaded in the Multifamily Customer Portal to the Dual Multifamily Workbook checklist item, with the secondary M number information entered.
In limited circumstances outlined in the Multifamily Application Instructions: Consolidated RFP and HTC Rounds 1 and 2, projects eligible for Housing Infrastructure Bonds (HIBs) who intend to submit a dual application are encouraged to submit a third HIB Deferred-only Multifamily workbook. This should be uploaded in the Multifamily Customer Portal under the HIB Deferred-only Multifamily Workbook checklist item. The secondary M number should be used on this workbook. Minnesota Housing does not assign three M numbers to projects.
LMIR Rates
For the 2021 Consolidated RFP, we encourage using the following rates for initial underwriting purposes when requesting a Minnesota Housing Low and Moderate Income (LMIR) first mortgage:
LMIR Permanent Loan:
  • 40 year term/amortization – 5.00%
  • 35 year term/amortization - 4.75%
  • 30 year term/amortization - 4.50%
  • Plus 0.125% for HUD Risk Share MIP
  • Rates are as of May 12, 2021 and are subject to change based on actual market conditions.
  • Actual rates will be determined during the Consolidated RFP feasibility review.
The above rates are only for submitting to the 2021 Consolidated RFP. If you are interested in current refinancing rates, please contact Caryn Polito.
LMIR Bridge Loan (funded with tax-exempt bonds): 
  • 3.0% interest rate for underwriting purposes
  • Term of 18 months
  • Not insured under HUD Risk-Share/no MIP
  • Actual rate will float and will be based on the price of the bonds + 1.0%.
  • Bonds will be sold two weeks prior to loan closing
LMIR Bridge Loan (funded with Agency resources, not tax-exempt bonds): 
  • 4.0% interest rate for underwriting purposes
  • Term of 18 months
  • Not insured under HUD Risk-Share/no MIP
  • Actual rate will float and will be locked for 90 days prior to final Minnesota Housing approval (subject to change)
For questions about LMIR rates, please contact Susan Thompson.
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In Case You Missed It: Check Out the Multifamily Customer Portal’s New Features
Minnesota Housing recently rolled out several new features in the Multifamily Customer Portal. Read this eNews to learn more. 
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Consolidated RFP Reminders
Application Instructions
The Multifamily Application Instructions: Multifamily Consolidated RFP and HTC Rounds 1 and 2 provide essential information and important details for submitting an application and the required supporting documentation for all application types. It also includes information about applying for Section 811 PRA.
You can also visit our application resources webpage and review this eNews sent on May 7 for a comprehensive source of application information.
Request Technical Assistance
If you have not already requested technical assistance, please complete and submit the Technical Assistance Request Form and you will be connected with a staff person.
Training
Training is available on our website for specific application submission and scoring topics (scroll down to the training section). Remember to check out the new Scoring Wizard and Scoring recordings if you couldn’t attend the live trainings and/or need a refresher. 
Projects with Existing Minnesota Housing Debt
If a preservation project has existing Minnesota Housing debt that you want counted under Financial Readiness in the Self-Scoring worksheet, contact the Request for Action (RFA) team no later than Friday, May 28, 2021. If you don’t contact us by this date, Minnesota Housing staff may not have time to process your request which could impact scoring.
Staying in Touch
Questions about the Consolidated RFP/HTC Round 1?
Sign Up for Application Updates
Stay up to date on 2021 RFP/2022 HTC Round 1 news and updates by signing up for our eNews list.
Click here to sign up for eNews
Image of person holding a pen and using a calculator to determine interest rates
First Mortgage Interest Rate Reminder
In a changing interest rate environment, we want to remind borrowers that if the interest rate hold period expires, Minnesota Housing may adjust the first mortgage interest rate for end loan closings and refinance closings. In order to hold an interest rate for a longer period of time, Minnesota Housing may charge additional fees. If you have questions, please contact your assigned underwriter. 
Looking to Rehab a Property Outside of the Consolidated RFP?
Minnesota Housing offers amortizing first mortgages year-round with terms up to 35 years. You can refinance and/or rehab properties of any age by using the proceeds of a LMIR loan. Did you know that equity cash-out is permitted with refinances? Fix up your existing properties or invest in other housing opportunities by refinancing today.  
Contact Caryn Polito to learn more and get started. 
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