Multifamily Consolidated Request for Proposals Updates and Reminders
Please see below for the latest round-up of 2020 Consolidated Request for Proposals (RFP)/2021 Housing Tax Credits (HTC) Round 1 updates and reminders.
Intent to Apply Summary
Minnesota Housing received tremendous interest with 102 Intent to Apply (ITA) submissions in May. Demand exceeds resources with close to 70 projects anticipated to compete for 9% Housing HTCs, 59 projects potentially applying for deferred funding with 4% HTCs, and 39 projects reported to be eligible for Housing Infrastructure Bonds (HIBs). The level of support, need, and interest in developing housing that is affordable is the strongest it has ever been in the state.
Upcoming Multifamily Consolidated RFP Deadlines
Thursday, June 18 by noon:
Thursday, July 16 by noon:
  • Complete application including all signatures. We encourage applicants to submit their full application prior to the deadline if possible.
  • Fee remittance forms and $800 application fee for all applications, regardless of type of request (must be postmarked by July 16)
Multifamily Consolidated RFP Application Reminders
Filling Out the Funding Request Tab in the Multifamily Workbook
The Multifamily Workbook is found as a checklist item in the Multifamily Customer Portal. Please keep the following tips in mind when filling out the funding Request Tab of the Multifamily Workbook:
Requesting a Minnesota Housing First Mortgage and/or Deferred Loan
  • Minnesota Housing First Mortgages: Check the 'Minnesota Housing First Mortgage' box to request an amortizing first mortgage from Minnesota Housing. The Request Amount will populate based on data entered on the Mortgage Calculation tab and the Workbook will automatically calculate the origination fees based on the combined mortgage (including TIF if applicable).
First Mortgage/Deferred Loan Request
  • Deferred Loan(s): Check the 'Deferred Loan(s)’ box to request deferred funds from Minnesota Housing and/or its funding partners (this includes a request for Metropolitan Council Local Housing Incentives Account (LHIA)). The total amount being requested (including funding partner amounts) must be entered in cell G21 on the Sources tab. 

  • Requests for Housing Infrastructure Bonds (HIB) are considered a deferred loan request. Check ‘Deferred Loan(s)’ and enter the amount in cell G21 on the Sources tab.
Multifamily Deferred Loan
Requesting Tax Exempt Bonds
  • Long Term Bonds: Check the box next to ‘Tax Exempt Bonds – Long Term’ and enter the request amount and issuer.
Tax Exempt Bond Request
  • Short Term Bonds: Check the box next to ‘Tax Exempt Bonds – Short Term’. The amount requested amount will populate from cell G7 on the Sources tab.
Short Term Tax Exempt Bond Request
Requesting Housing Tax Credits
  • 9% Housing Tax Credits: Check the boxes next to ‘Housing Tax Credits – 9%’; the applicable tax credit pool, the tax credit request type, the tax credit set-aside, and whether or not you are applying to a suballocator. 

  • Deferred with 4% Housing Tax Credits: Check the box next to ‘Housing Tax Credits – 4%’. 
NOTE: For dual applications, make sure to check the box next to ‘This is part of a dual 4%/9% application’. The Funding Request tabs of the workbooks for the 4% and 9% structures should be completed as listed above.
Housing Tax Credit Request
Selecting the Appropriate Proposal Type on the Multifamily 2021 HTC Self-Scoring Worksheet and 2020 Deferred Loan Priority Checklist
The 2021 HTC Self-Scoring Worksheet and 2020 Deferred Loan Priority Checklist can be found as a checklist item in the Multifamily Customer Portal. Note that dual applicants will have a dual worksheet checklist item. Please make sure you select the correct proposal type on the Self-Scoring Worksheet. If submitting a dual application, each Self-Scoring Worksheet should reflect the proposal type of the applicable application. 
Instructions
Information Gathering: How Economic Conditions Impact Your Application
We are interested in the ways in which you may be changing your assumptions and calculations in light of the current economic conditions. If you anticipate changes in your standard development approach or cost impacts due to the current situation, please submit a letter and any other supporting documentation in the Other Supporting Documentation in the Multifamily Customer Portal explaining modifications to your approach. This information is not required to submit an application, but will help Minnesota Housing understand how the current situation may be impacting our development partners. Examples of items to consider:
Scope of Work and Construction Timeline 
  • Impacts on General Contractor operations and protocols 
  • Accommodations for temporary relocation or in-place rehab 
Operating Budget
  • Relationship of proposed rents relative to rent limits
  • Impact if rent limits are flat for several years
Development Budget
  • Impact to relocation budget
  • Construction period interest
  • Capitalized reserves
Syndication
  • Syndicator process; is LOI firm or preliminary?
  • Syndicator comfort with financial structure, particularly important for mixed use, mixed-income, income-averaging and 4% structures 
  • Additional syndicator requirements
Tutorials and Trainings
Tutorials are available on our website for specific application submission and scoring topics. View pre-recorded training tutorials (scroll down to the training tutorials section). Remember to check out our new scoring training that we are making available for the first time ever!
Request Technical Assistance
If you have not already requested technical assistance, please contact TechnicalAssistanceRequest.MHFA@state.mn.us and you will be connected with a staff person.
Questions specific to application rents and maintenance and operating (M&O) numbers can be also be directed to TechnicalAssistanceRequest.MHFA@state.mn.us. Preliminary M&O reviews and ballpark estimates can be provided to the applicant upon request. The last day Minnesota Housing staff will take any new preliminary M&O review requests is Thursday, July 9, 2020.
Appraisals
Appraisal fees will not be collected at this time. Appraisals will be commissioned only after notification of selection.
LMIR Rates
In the current economic environment, it is difficult to predict where interest rates will be for permanent mortgages in the future. For the upcoming Consolidated RFP, we recommend using the following rates:
  • 40 year term/amortization  -  4.50%
  • 35 year term/amortization  -  4.45%
  • 30 year term/amortization  -  4.40%
  • Plus 0.125% for HUD Risk Share MIP
Questions about LMIR rates? Please contact Susan Thompson.
Questions
Shopping for a First Mortgage or Thinking about Refinancing?
Minnesota Housing wants to work with you for all of your multifamily first mortgage needs! Our Low and Moderate Income Rental (LMIR) first mortgages have terms up to 40 years for new construction or 35 years for rehab or refinance. Our first mortgages are available year round.
View our current interest rates and term sheets to learn more about what we offer.
Contact Caryn Polito to get started. 
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