Multifamily Gap Loan Program

Program Goals

  • Increase production of quality rental housing for low- and moderate-income families throughout Greater Minnesota.

  • Provide more affordable housing opportunities to stabilize the workforce in communities experiencing economic vitality.

Eligible Programs

  • New construction, including modular and manufactured construction.

  • Priority will be given to permanent housing designed for families with children.

  • Limited funding is available for rehabilitation of affordable rental housing and preservation of federally-subsidized rental housing. For more information about this funding, please refer to the GMHF Rehabilitation Program Guidelines.

  • Limited funding is available for new construction or rehabilitation of permanent supportive housing or transitional housing. For more information about this funding, please refer to the GMHF Supportive Housing Program Guidelines.


Links
:: MHFA Multifamily Housing

::Minnesota Multifamily Rental Housing Common Application
:: Affordable Housing
Design Advisor

:: LISC Online

:: Neighborhood Reinvestment Corporation

:: Enterprise Foundation
Featured Projects
:: Brownstones
St. Cloud, Minnesota
:: Tanglewood Apartments,
Montevideo, Minnesota

Eligible Applicants

Non-profit and for-profit developers and local government agencies.

Minimum Project Requirements

  • Assisted units must be restricted to households with a gross household income that does not exceed 80% of the statewide median income, adjusted for family size.

  • Community must have a demonstrated need for affordable rental housing, documented through a recent housing needs assessment or a market study.

  • Leveraging of additional funds from other agencies such as local governments, state agencies, or other funding agencies.

  • Local participation from organizations such as local governments, businesses and/or lenders through financial contributions or in-kind assistance.

  • Project must support the local community's comprehensive plan and be consistent with the region's EVHI guidelines. For more information about your EVHI region, see: http://www.mhfa.state.mn.us/about/EVHI.pdf.

  • Project must demonstrate sound financial structuring according to established underwriting criteria.

  • Design of project must be attractive, functional, cost-effective, complementary to existing neighborhood design, energy-efficient and able to maintain value over the life of the funding commitment and beyond.

  • The development team must possess the expertise and technical capacity sufficient to complete the project in compliance of all codes and requirements of all funders, including GMHF.

  • All other sources of funding must be committed prior to GMHF approval of funding.

Additional Project Selection Priorities

In addition to meeting the minimum eligibility requirements, projects will be awarded priority points based upon demonstration of the following:

  • Employer involvement ranging from planning (low priority) to in-kind assistance (medium priority) to cash assistance (high priority).

  • Reduced fees for developer.

  • Mixed-income development, offering units for a variety of incomes. (However, GMHF will only fund that portion of the project that is affordable to the target population.)

  • Project site located near neighborhood amenities, e.g. schools, parks, libraries and retail.

  • Integration of the new rental development with the surrounding area.

  • Use of innovative building techniques that reduce costs or improve livability.

  • Rental units constructed with materials that lower energy and maintenance costs.

  • Inclusion of common public space to promote resident interaction.

Funding Cycles

Applications for funding are accepted twice a twice a year in the Spring and Fall through Minnesota Housing Finance Agency's Super Requests For Proposals (RFP) process.

MHFA and its RFP funding partners have developed a Common Application that can be used for Multifamily funding applications. This application includes the proforma, narratives and submittals and eliminates duplication to simplify the process for applicants applying for multiple sources of funds through MHFA, it’s funding partners and collaborating partners.