Cities accepting applications for 9% housing credits

It’s that time of year again: Nonprofit developers in Minneapolis, set your alarms for Monday, July 8 at 4 p.m. because that is the latest that the city of Minneapolis will accept your applications for the 9% Housing Tax Credit Program.

St. Paul, on the other hand, has applications due Monday, July 8 at 4 p.m.

The program provides financial assistance to construct new or renovate existing rental buildings and allow for units in benefiting buildings to be rented at a rate that is affordable in the area.

Sometimes the program is referred to as Section 42 housing because the program is regulated under section 42 of the Internal Revenue Code, according to the nonprofit HousingLink.

According to a study released in January from the Joint Center for Housing Studies of Harvard University, over 50% of renters in the Twin Cities metro are cost-burdened, meaning they pay between 30% and 50% of their income on rent and utilities and the median renter’s cost of housing is $1,340.

The same study says 26.7% of renters are severely cost burdened, where they pay over 50% of their income on housing. According to the Northmarq multifamily report, reported on Wednesday by Finance & Commerce , there has been a drop in both multifamily deliveries and permitting, indicating that rent is likely to increase in the long term.

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