Housing Infrastructure Program
The Housing Infrastructure Program includes Housing Infrastructure Bond (HIB) and Housing Infrastructure Appropriations (HIA) funding.
- The Housing Infrastructure Bond (HIB) program was established in Minnesota Statute 462A.37 in 2012. Housing Infrastructure Bonds (HIB) are limited obligation tax-exempt bonds issued by Minnesota Housing and authorized by appropriations from the General Fund of the Minnesota Legislature. The proceeds of HIBs may be used to fund loans that finance specific multifamily housing development purposes.
- In 2023, Minnesota Statute 462A.37 was amended to expand the eligible uses and to utilize Housing Infrastructure Appropriations (HIA), which are the direct state appropriations not associated with the issuance of bonds and the state and federal requirements associated with tax-exempt bonds.
Projects must meet one of the following eligible uses:
- Permanent supportive housing for individuals and families experiencing homelessness
- Affordable housing for seniors 55 and older with a preference for serving seniors at the lowest incomes
- Preservation of federally assisted rental housing
- Foreclosed properties to be used for affordable rental housing
- Rent restricted properties with units affordable to households at 50% of the area median income
Applying for Housing Infrastructure
Housing Infrastructure resources are typically awarded once per year through the Multifamily Consolidated Request for Proposals (RFP). Projects applying for funding are required to meet at least one strategic priority and Multifamily Consolidated RFP eligibility and feasibility requirements.
At the Intent to Apply stage of the Multifamily Consolidated RFP application process, applicants must indicate the intent to apply for Housing Infrastructure resources and itemize the number of units in the project that will meet the specific requirements of the eligible use being applied for.
Loans funded with Housing Infrastructure can be structured either with volume-limited private activity bonds, potentially qualifying the development for 4% tax credits, or as deferred only loans. As volume-limited bonds are limited, having the flexibility to structure loans without 4% tax credits allows Minnesota Housing to deploy more funding during the Multifamily Consolidated RFP. Applicants are encouraged, where feasible, to leverage 4% tax credits with a request for Housing Infrastructure resources.
Eligible Uses and Requirements
Contact
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Song Lee
