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F. Tax Exempt Credit Preliminary Determination Fee <br />A Preliminary Determination Fee must be submitted to Minnesota Housing prior to issuance of a Preliminary <br />Determination letter. For projects for which Minnesota Housing is the allocating agency, the developer must <br />submit a fee equal to three and one-half percent (3.5%) of the requested annual tax credit amount. This fee is <br />non-refundable. <br />G. Tax Exempt Credit 8609 Fee <br />An 8609 Fee must be submitted at the time of application to Minnesota Housing for Form 8609. For projects for <br />which Minnesota Housing is the allocating agency, the developer must submit an 8609 fee equal to three and <br />one-half percent (3.5%) of the requested annual tax credit amount. This fee is non-refundable. <br />H. Monitoring Fee <br />Minnesota Housing will charge an annual monitoring fee of $25 per unit, based on the total number of units, <br />with a minimum of $50 except for projects covered by the memorandum of understanding (MOU) between <br />Minnesota Housing and the U.S. Department of Agriculture, Rural Housing Service. The compliance monitoring <br />fee will be $15 per unit per year for projects covered by the MOU. This fee may be increased depending upon <br />the requirements of the U.S. Treasury, IRS, or increased costs of Minnesota Housing. The fee will be due in a <br />manner and time as prescribed by Minnesota Housing. Failure to pay the fee will result in Minnesota Housing <br />notifying the IRS that the project is out of compliance. <br />During the extended use period required by Internal Revenue Code Section 42(h)(6), Minnesota Housing will <br />charge a monitoring fee of $15 per unit per year. No HTC monitoring will be required during this time for <br />properties with project -based Section 8, Rural Development or HUD Contract Administration since these <br />properties are already subject to monitoring and consequences under those programs are in place, and no HTC <br />monitoring fee will be charged. However, if a property is no longer subject to monitoring for HUD and/or Rural <br />Development programs, then the owner must notify Minnesota Housing Tax Credit compliance staff <br />immediately so that the property can be placed back on the monitoring schedule. At that time, the property will <br />be subject to the $15 per unit per year monitoring fee. <br />Transfer of Ownership Fee <br />A non-refundable transfer of ownership fee of $2,500 must be submitted to Minnesota Housing along with <br />updated materials of the new owner/management team for each project in which 50 percent or more of the <br />ownership entity is new since reservation or carryover allocation. Prior to 8609, changes in ownership must be <br />approved by Minnesota Housing. See Chapter 3.G. Unacceptable Practices for further details on Transfer of <br />Ownership. <br />J. Check Cashing Procedure <br />Applicant's payments for fees (in the form of checks) will be held pending verification of the accuracy of the <br />amount tendered and submitted materials. <br />K. Right to Adjust Fees <br />Minnesota Housing reserves the right to adjust fees due to changing circumstances in order to cover its costs <br />associates with producing and delivering Minnesota's Housing Tax Credit Program. <br />53 12012 Housing Tax Credit Procedural Manual <br />Rev. 04/2011 <br />