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STATE LIHTC RESEARCH

Minnesota
QAP scoring guide.

Minnesota Housing (Minnesota Housing Finance Agency) · 2026-2028 QAP

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● Verified guideChecked Sep 12, 2026View source QAP ↗
THE POINT TABLE

Competitive scoring

24 categories

Not stated in the QAP, Self-Scoring Worksheet, or Methodology Guide, and no published historical award data was located during this review. Only the minimum eligibility thresholds are stated: 80 points for competitive 9% credit-ceiling requests, 30 points for the RD/Small Projects set-aside, and 40 points for 4% HTCs paired with tax-exempt bonds. In practice, MN's process is not a strict highest-score-wins ranking alone — Chapter 5.C states MH "will first rank proposals" by score and then applies further review (feasibility, funding amount requested, available resources, geographic distribution, timely-completion ability) to select among top-ranked proposals, so realized winning scores likely run above the 80-point floor but no specific figure is documented in the sources reviewed.

Select a category to read its scoring criteria.

01

Large Family Housing

15 pts
Family housing not restricted to age 55+, with owner agreeing to market to families with minor children: 12 points if ≥75% of units have 2+ bedrooms (with ≥1/3 of those 3+ bedrooms); plus 3 additional points if ≥1/3 of the required 3+BR units are 4+ bedrooms.
02

Senior Housing

8 pts
Housing restricted to age 55+: 2-4 points scaled by the % of units age-restricted (80% to 100%), plus 1-4 additional points if a share of those units is further restricted to ≤30% MTSP income (5% to 100% of units); this income-restriction sub-criterion cannot be combined with the Rental Assistance further-restriction criterion for the same units.
03

Permanent Supportive Housing for Households Experiencing Homelessness

37 pts
High Priority Homeless (HPH) units set aside via the Coordinated Entry System: 7-30 points scaled by % of units (5-9.99% min 4 units = 7 pts, up to 50-100% min 20 units = 30 pts). Plus 5-7 additional points for 'Other Homeless' units (institution leavers/non-CES-referred) layered onto a qualifying HPH project. Cannot be claimed for the same units as People with Disabilities.
04

People with Disabilities (PWD)

19 pts
Tier 1 (general PWD set-aside, ≥5% of units at ≤30% MTSP income): 7-10 points by %. Tier 2 (PWD units using HUD Section 811 Project-Based Rental Assistance, capped at 11 units and a 25% total-supportive-housing-unit cap): 15-19 points by %. Cannot be claimed for the same units as Permanent Supportive Housing/HPH.
05

Preservation

45 pts
Requires meeting one of three risk-of-loss thresholds (market-rate conversion risk, critical physical needs, or ownership-capacity/program-commitment risk). Tier 1 (existing project-based federal rental assistance ≥15 years old): 20-40 points by % of units assisted. OR Tier 2 (other existing federal/state/local rent-restricted units, no rental assistance, ≥15 years old, ≤60% MTSP rents on ≥50% of units): 15 points. Plus 3-5 additional points for severity of documented critical physical needs (>$15,000 or >$25,000 per unit).
06

Rental Assistance

26 pts
Project-based rental assistance commitment (new, or a transfer executed within 15 years): 6-19 points scaled by % of units covered. Plus 3-7 additional points ('Further Restricting Rental Assistance') for further restricting those units to ≤30% MTSP income for a 15-year period. Cannot be claimed if the project is a Preservation Tier 1 type.
07

Serves Lowest Income Tenants/Rent Reduction

20 pts
Rent-only restriction (no added income restriction) to ≤50% MTSP on 50-100% of units: 8-13 points. Plus 4-7 additional points for further restricting a share of those units to ≤30% MTSP rent. Cannot be combined with units carrying rental assistance, HUD 811 PRA, or Preservation Tier 1/2 status.
08

Long-Term Affordability

9 pts
Extending the LURA (or deferred loan declaration) term beyond the standard 30 years and waiving Qualified Contract rights: 8 points for a 40-year term, 9 points for a 50-year term.
09

Access to More Affordable Housing

6 pts
Project location scored on a 3-tier methodology based on the share of cost-burdened renters and relative scarcity of affordable rental housing in the community (2-6 points); Tribal Reservations/Dakota Communities/Tribal trust lands automatically qualify as Tier 1 (6 points).
10

Workforce Housing Communities

6 pts
Location in or near (within 5 miles Metro / 10 miles Greater MN) a community with strong job growth: Top Job Center or 5-year net job-growth community (6 pts), Individual Employer Growth community with 100+ net new jobs in 5 years (6 pts), or Long Commute community (3 pts).
11

Transit and Walkability

9 pts
Composite of Access to Transit (2-7 points depending on transit type, frequency, and distance) plus Walkability (1-2 points based on Walk Score), with separate methodologies for the Metro Area (Minneapolis/St. Paul vs. suburban) and Greater Minnesota urbanized areas.
12

Community Development Initiative

3 pts
Project supports active implementation of a documented, stakeholder-driven local Community Development Initiative (a neighborhood/city/county plan naming affordable housing as a key strategy, with defined target area, implementation plan, and stakeholder roles); additional non-housing investment documentation required if the project is in a QCT.
13

Equitable Development

3 pts
Project responds to the needs of a defined 'Community Most Impacted' (CMI) by housing disparities via meaningful participation of an independent 'Qualified Stakeholder Group' (QSG): requires a documented CMI/QSG relationship, at least two prior engagement sessions, QSG involvement in design/services/community-benefits decisions, and a signed QSG support letter.
14

Rural/Tribal

8 pts
Location in a Rural/Tribal Designated Area outside the Metro Area, tiered inversely by community population: ≤2,000 population (incl. Tribal Reservations/Dakota Communities/Tribal trust lands) = 8 pts; 2,001-5,000 = 6 pts; 5,001-10,000 = 5 pts; >10,000 = 4 pts.
15

Qualified Census Tracts/Community Revitalization or Tribal Equivalent Areas

3 pts
3 points for location in a Qualified Census Tract that is part of a concerted community-revitalization plan, OR location in a Tribal Equivalent Area (geography-only qualification, no additional plan required).
16

Multifamily Award History

4 pts
4 points if the project is located in a community that has not received a Minnesota Housing Consolidated RFP/HTC award (or a 4% HTC award tied to MMB tax-exempt bonding authority) in the last five years; LMIR-only-financed communities are excluded from disqualifying a location.
17

Black-, Indigenous-, People of Color-owned or Women-owned Business Enterprises (BIPOCBE/WBE)

20 pts
Layered points across three sub-criteria: (a) Ownership/Sponsorship by a Tribe/Tribal entity or BIPOCBE (8 pts), WBE (5 pts), or nonprofit BIPOCBE/WBE (4 pts); (b) development-team roles (GC, architect, developer, service provider, mgmt agent) held by BIPOCBE/WBE firms, scaled 1-7 points by number/type of firms; and/or (c) documented capacity-building partnerships with a BIPOCBE/WBE entity, 1-4 points by ownership stake or scope of work.
18

Local Actions to Support Housing

2 pts
New for the Amended 2026-2028 SSW (effective 2026 Consolidated RFP/2027 HTC round and after): 2 points if the project's local jurisdiction has adopted at least one of eight listed zoning/land-use reforms reducing barriers to housing (e.g., by-right multifamily in commercial zones, missing-middle housing in single-family zones, reduced parking mandates, smaller minimum lot sizes, fewer aesthetic mandates, density bonuses for affordable housing, or inclusionary zoning).
19

Financial Readiness to Proceed/Leveraged Funds

16 pts
Points scaled to the percentage of Total Development Cost covered by committed, non-amortizing-first-mortgage, non-current-HTC-syndication capital sources (grants, TIF, deferred loans, GP cash, seller loans, deferred developer fee, etc.): 4 points at 1.51-3.0% of TDC, rising to 16 points at ≥10.51% of TDC.
20

Other Contributions

10 pts
Points scaled to the percentage of Total Development Cost from non-capital contributions (land donation/write-down, in-kind work/materials, local fee waivers, discounted long-term land leases, TIF/PILOT used as an operating subsidy, etc.): 2 points at 0.01-1.49% of TDC, rising to 10 points at ≥6.00%.
21

Intermediary Costs

4 pts
Points scaled inversely to third-party intermediary service costs as a percentage of Total Development Cost: 4 points at 0-15%, down to 1 point at 25.1-30%.
22

Innovative Construction Techniques

3 pts
3 points (via required pre-application) for a novel construction technique projected to cut total construction cost by ≥10% and/or construction time by ≥20%, that is atypical for MH-funded projects, is replicable/scalable, and is followed by a publicly-released lessons-learned report after completion.
23

Universal Design

3 pts
3 points if 100% of units in an elevator building (or at least 10% of units in a non-elevator building) meet the Universal Design Unit definition — all Minimum Essential Universal Design Features plus 8 (new construction/adaptive reuse) or 4 (rehab) Optional Features, or a Type A accessible unit.
24

Enhanced Sustainability

12 pts
Tiered green-building points beyond the mandatory ENERGY STAR Residential New Construction certification: Tier 1 (2x the minimum Minnesota Overlay to EGCC Optional Criteria points) = 2 pts; Tier 2 (3x minimum) = 4 pts; Tier 3 (SB 2030 Energy Standard, DOE Zero Energy Ready Home, or an EGCC 5.1b Performance Pathway ERI threshold) = 6 pts; Tier 4 (Passive House Institute/PHIUS/Living Building Challenge-family certification) = 8 pts. Tiers 1 or 2 may be combined with Tier 3 or 4 for a maximum of 12 points.
Scoring source

Amended 2026-2028 Self-Scoring Worksheet, Housing Tax Credits and Deferred Projects (Last Updated: April 2026) — Instructions and Requirements (pp.1-5), Round 1 Minimum Threshold Requirements (pp.6-7), and "2026-2028 Housing Tax Credit and Deferred Funding Selection Criteria" Sections 1-7 (pp.8-47), read together with the Amended 2026-2028 QAP (Last Updated: December 2025) Chapter 5.A "First Round – Application Requirements" (pp.45-46), Chapter 5.B "Strategic Priority" (p.46), Chapter 5.C "Selection and Preference Criteria" (pp.46-48), and Chapter 5.D "Tie Breakers" (p.48).

WHEN SCORES ARE CLOSE

Tie-breakers

Review the agency’s tie-breaker rules alongside the scoring criteria.

  1. More points on Preference Criteria (income/rent reduction, rental assistance, affordability, QCT, tenant ownership)
  2. Presence of an Eventual Tenant Ownership component
  3. Located in a city, township, or tribal reservation with no HTC allocation in last 2 years
  4. Higher percentage of funds secured/committed under Financial Readiness to Proceed/Leveraged Funds criterion
  5. Lower percentage of intermediary costs under the Intermediary Costs criterion
  6. Determined by lot (random draw)
MODEL ASSUMPTIONS

Underwriting parameters

Minnesota Housing Multifamily Underwriting Standards (Last Updated: April 2025) — Chapter 3 "Income" (3.05 Vacancy Factor, p.14); Chapter 4 "Expenses" (4.01-4.04, pp.16-19); Chapter 5 "Proforma Assumptions" (5.01 Inflation, 5.02 DCR, 5.03 LTV, pp.20-21); Chapter 6 "Fee Limits" (6.01-6.04, pp.22-24); Chapter 7 "Reserves and Escrows" (7.01-7.05, pp.25-27). Incorporated by reference in the Amended 2026-2028 QAP (Last Updated: December 2025) at Chapter 2.K "Minimum Underwriting Standards" (p.17), Chapter 4 "Development Standards" (pp.43-44), and Chapter 5.I "Multifamily Underwriting Standards" (p.50). Fee amounts specifically from the separate "Multifamily Loan Programs and Housing Tax Credit Program Fee Schedule" (effective March 10, 2026), referenced by QAP Chapter 8.

OPERATING ASSUMPTIONS

Utility allowance

Preferred method: None stated among the five owner-choice methods available to "other" (unassisted) buildings. For buildings with RHS financing/assistance, HUD-regulated (project-based Section 8) status, or HUD tenant-based assistance, the corresponding RHS/HUD/PHA utility allowance is mandatory rather than merely preferred.

2026-2028 QAP, Chapter 3.I "Affordable Rents" — Utility Allowance summary (pp. 33-34) and Appendix A "Utility Allowance" checklist item (pp. 72-73, applicable to Carryover, 42M, and Placed-in-Service/8609 applications); detailed operative procedures in Minnesota Housing Housing Tax Credit Program Compliance Guide, Section 5.05 "Utility Allowance" (May 2025 revision, pp. 36-38).

YOUR NEXT STEPS

Development guides for Minnesota

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