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Chapter 2 — Role of the Suballocators <br />Suballocators were authorized by the 1990 legislature to allocate and monitor tax credits to eligible projects in their cities <br />or counties. The suballocators award their allotted tax credits in Round 1 of competition. <br />A. Round 1 <br />During Round 1, for -profit applicants must apply directly to the suballocator for a credit allocation if the project <br />falls within a suballocator's jurisdiction. Nonprofit applicants may apply to the Minnesota Housing nonprofit set - <br />aside or the suballocator individually or concurrently. Any unused tax credits are returned to Minnesota <br />Housing prior to Round 2. <br />B. Round 2 <br />In Round 2, projects located in suballocator jurisdictions may apply directly to Minnesota Housing. <br />C. Joint Powers Agreement <br />A suballocator may elect to enter into a Joint Powers Agreement with Minnesota Housing. Under a Joint Powers <br />Agreement, Minnesota Housing shall perform certain functions related to the credit allocation and compliance <br />monitoring in exchange for the transfer of the suballocators' tax credits to Minnesota Housing. <br />D. Subsidy Layering Review <br />Suballocators are responsible for entering into an agreement with the U.S. Department of Housing and Urban <br />Development (HUD) to perform subsidy layering reviews. <br />E. Suballocator Reporting <br />As the primary and lead housing credit agency for the state of Minnesota, Minnesota Housing is responsible for <br />collecting and filing the required form with the IRS each year on the last day of February. The local suballocators <br />have agreed to submit the following information to Minnesota Housing no later than January 31st for all tax <br />credit activity that has occurred in the preceding year: <br />1. A completed Minnesota Multifamily Rental Housing Common Application form for each development <br />receiving an allocation through a reservation, carryover, or issuance of 8609 for tax credits issued from <br />volume cap and through tax-exempt bonds. <br />2. A copy of the Reservation/Binding Agreement, original Carryover Agreement, a completed IRS Form <br />8610 Schedule A for each development receiving a Carryover Allocation, and copies of the IRS Form <br />8609s. <br />3. A Suballocator Compliance Activity Report containing the results of inspection activity conducted during <br />each monitoring year with copies of any forms 8823 filed with the Internal Revenue Service. <br />4. From time to time there may be other requests for information for federal and state reporting <br />purposes. <br />3 12012 Housing Tax Credit Procedural Manual Rev. 04/2011 <br />