Housing Tax Credit Program updates

We are seeking input on updates to the Housing Tax Credit (HTC) program.

Deadline for comments

The deadline to submit comments is Monday, Oct. 27, 2025, at 4 p.m. (Central Time).

Overview

The HTC program helps finance the construction and preservation of affordable rental housing in Minneapolis. These updates aim to make better use of available funding and respond to local housing needs.

We’re updating the Qualified Allocation Plan (QAP) and Procedural Manual for the 2026–2027 Housing Tax Credit (HTC) program. These updates reflect recent changes in federal law and a local proposal from the City of Saint Paul.

Read about Housing Tax Credits

What to know

Comments are due by Monday, Oct. 27.

Read the draft document

What's changing

Federal Legislation

On July 4, 2025, Congress passed H.R.1: One Big Beautiful Bill Act, which:

  • Reduces the amount of tax-exempt bonds required for 4 percent HTC projects
  • Lowers the bond requirement from 50 percent to 25 percent of the project’s total cost
  • Applies to projects placed in service on or after January 1, 2026
  • Gives states more flexibility to fund affordable housing by stretching limited bond resources

Local proposal from Saint Paul

The City of Saint Paul proposes a change to:

  • Remove the extended affordability requirement for HTC projects located downtown Saint Paul only
  • This change would apply only to projects in that specific area.

Updates

2026-2027 Housing Tax Credit Qualified Allocation Plan (QAP)

  • Article VII F: For Saint Paul projects only – allows projects in downtown Saint Paul to have shorter affordability requirements.
  • Article VIII: Lowers the bond requirement from 50% to 25% for projects using tax-exempt bonds starting Jan. 1, 2026.

2026-2027 Housing Tax Credit Procedural Manual

  • Section III L: Lowers the bond requirement from 50% to 25% for projects using tax-exempt bonds starting Jan. 1, 2026.
  • Section IV K: For Saint Paul projects only – allows projects in downtown Saint Paul to have shorter affordability requirements.

Read the draft document

You can view the HTC documents for Public Review.
See draft document

Contact us

Emily Carr

Community Planning & Economic Development (CPED)

Email Emily Carr

Phone

612-258-3065

Address

Public Service Building
505 Fourth Ave. S., Room 320
Minneapolis, MN 55415