Housing Finance Programs
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CDA Housing Finance Policy

2014 Procedural Manual for
Low Income Housing Tax Credits

2014 Qualified Allocation Plan for
Low Income Housing Tax Credits

HOPE Program Receives
National Award


Questions? Call 651-675-4478

 

Resources

Minnesota Housing
(State housing finance agency)

Minnesota Housing Policy Toolbox (HousingPolicy.org)

 

     

 

 

 

 

 

 
 
  

Financing Tools for Housing Developers  

The CDA has several programs available to assist in the development and preservation of affordable housing in Dakota County.

Housing Opportunities Enhancement (HOPE) Program
Low Income Housing Tax Credits

Multifamily Housing Revenue Bonds
Tax Increment Financing
Home Investment Partnership Program (HOME)

Housing Opportunities Enhancement
(HOPE) Program
Dakota County created the HOPE Program in 2001 to provide a local source of gap financing to encourage and assist in the development and preservation of affordable housing throughout the County.  Funding is provided in the form of a deferred loan, and requires a 2:1 match of other public or private funding sources.  HOPE funds must be used to provide rental housing opportunities for households at or below 50% of area median income or homeownership opportunities for households at or below 80% of area median income. 

Eligible uses of HOPE funds include new construction, acquisition, rehabilitation, preservation, and indirect or direct assistance with homeownership opportunities.

HOPE Funding Application - Word Document
HOPE Funding Application - PDF Document

For more information about the HOPE Program, please refer to the CDA Housing Finance Policy.

HOPE Reporting
HOPE recipients are required to annually submit a Use Certification, an Income & Rent Certification, a HOPE Income & Rent Report (or an HTC-13 specifying the HOPE funded units) per the Loan Agreement. 

  1. Use Certification
  2. Income & Rent Certification
  3. Income & Rent Report
  4. HTC-13 Report from Minnesota Housing

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Low Income Housing Tax Credits
The CDA has been designated as an allocating agency for Low Income Housing Tax Credits by the state legislature. These tax credits are allocated to developments on a competitive basis based on guidelines and selection criteria set forth in the CDA’s Qualified Allocation Plan. Once allocated, these tax credits are sold to an investor to generate equity for construction. The investor becomes a limited partner in the project and uses the tax credits to receive a reduction in federal tax liability each year for 10 years.

Developments receiving low income tax credits must have a minimum of either 20% of its units occupied by households with incomes at or below 50% of area median income or 40% of its units occupied by occupied by households with incomes at or below 60% of area median income. Maximum rents are set at 30% of applicable maximum income level, as determined by the U.S. Department of Housing and Urban Development.

Applications for Low Income Housing Tax Credits are due in June of each year. Application files will be posted on this webpage when they are available. For more information about Low Income Housing Tax Credits, please refer to the CDA Housing Finance Policy.

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Multifamily Housing Revenue Bonds

501(c)(3) Bonds for Residential Rental Housing
The CDA has the authority to issue tax exempt housing revenue bonds to finance the acquisition, rehabilitation and development of rental housing that is owned by a non-profit 501(c)(3) organization, if the provision of such housing is within the mission of the charitable organization.

For more information about 501(c)(3) Bonds, please refer to the CDA Housing Finance Policy.

Multifamily Housing Revenue Bond Application

Qualified Residential Rental Revenue Bonds
The CDA receives an annual entitlement allocation of private activity bonding authority from the State of Minnesota. Benefits of these tax-exempt bonds include lower interest rates, the ability to finance projects owned by private for-profit entities and an allocation of low-income housing tax credits to eligible projects.

Developments financed with these bonds must have either a minimum of either 20% of its units occupied by households with incomes at or below 50% of area median income or 40% of its units occupied by occupied by households with incomes at or below 60% of area median income. Maximum rents are set at 30% of applicable maximum income level, as determined by the U.S. Department of Housing and Urban Development.

For more information about Qualified Residential Rental Revenue Bonds, please refer to the CDA Housing Finance Policy.

Multifamily Housing Revenue Bond Application

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Tax Increment Financing
Tax Increment Financing (TIF) is used to promote economic development, housing, redevelopment, renewal and renovation in areas where it would otherwise not occur. TIF is a mechanism whereby an authority can “capture” the property taxes generated by new development or redevelopment and use it to pay a portion of the cost of development.

Developments financed with TIF must meet the income and rent requirements of the low income housing tax credit program. All CDA TIF districts must be approved by the Dakota County Board of Commissioners, following a public hearing.

For more information about Tax Increment Financing, please refer to the CDA Housing Finance Policy.

Tax Increment Financing Application

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Home Investment Partnership Program
The HOME Program is a flexible federal grant program that gives participating jurisdictions the ability to decide how the funds will be used to provide affordable housing for persons at or below 80 percent of median income. Eligible activities under HOME include new construction of affordable units, rehabilitation of owner and rental properties, homebuyer assistance, rent assistance and acquisition.

For more information about the HOME Program, contact Kathy Kugel at 651-675-4478.

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