Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Updates to the Amended and Restated 2026-2027 Housing Tax Credit Qualified Allocation Plan (QAP) and Procedural Manual (RCA-2025-01206)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Housing & Zoning Committee | October 28, 2025 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Housing | Authorizing changes to the Amended and Restated 2026-2027 Housing Tax Credit Qualified Allocation Plan (QAP) and Procedural Manual. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | All Wards |
Background Analysis
On July 4, 2025, the passage of H.R.1: One Big Beautiful Bill Act reduced the amount of Tax-Exempt Bond Volume Cap required for multifamily housing rental projects using 4% Housing Tax Credits (HTCs) from 50% to 25% of the project's aggregate basis for projects placed in service on or after January 1, 2026. This change intends to allow states and tax-exempt bond entitlement issuers the flexibility to stretch their bond allocations, which are over-subscribed in many states. To maintain consistency with this new legislation, CPED and Saint Paul PED staff are recommending updates to change the 50% test to 25% in the 2026-2027 Housing Tax Credit Qualified Allocation Plan (QAP) and Procedural Manual.
In addition, the City of Saint Paul proposes changes in the QAP and HTC Manual to exempt HTC projects located in downtown Saint Paul from an extended affordability commitment. This policy change would apply to Saint Paul projects only and not Minneapolis projects.
CPED staff assists the Minneapolis/St. Paul Joint Housing Finance Board (the Joint Board) with allocating HTCs. The Joint Board is scheduled to meet on November 19 to approve these proposed updates to the QAP and Procedural Manual. The Joint Board meeting includes a public hearing. Staff sent the proposed changes to the QAP and Procedural Manual out for public review, with comments to be returned no later than October 27.
FISCAL NOTE
- No fiscal impact anticipated