HOUSING REQUIREMENTS

Subpart 1. Requirements for owner-occupied housing. To be eligible for challenge program funds, owner-occupied housing must be: A. attached or detached, residential in nature, and able to be used profitably for a minimum of ten years after the end of the loan term; B. occupied by an eligible home buyer; C. affordable to the local work force; and D. able to be completed no later than the date that is 20 months after the date on which the successful applicant receives a written loan or grant agreement from the agency. Subp. 2. Requirements for rental housing. To be eligible for challenge program funds, rental housing must satisfy the following requirements: A. the rental housing must be residential in nature, and each rental housing unit must contain a kitchen and a bathroom; B. the rental housing must be permanent housing for which the term of tenancy may be extended indefinitely beyond the initial lease term; C. the rental housing units must be occupied by households that satisfy the income limits provided in Minnesota Statutes, section 462A.33 , subdivision 5, with respect to rental housing projects; D. the rent charged for the rental housing units must be affordable to the local work force; E. if the rental housing includes single-family or duplex properties, these properties must be located in the same city or county and contain a minimum of four units total; and F. the use restrictions in this subpart must remain in effect until the later of: (1) the date on which the loan is repaid or the grant agreement is terminated; or (2) the date that is 15 years from the closing date of the loan or grant. Subp. 3. Eligible contributions. A. An in-kind contribution satisfies the requirements of Minnesota Statutes, section 462A.33 , subdivision 3, clause (1), if it is a quantifiable noncash contribution in support of housing funded from the challenge program. A waiver of fees by a unit of local government constitutes an in-kind contribution. B. A premium paid for federal housing tax credits by an area employer satisfies the requirements of Minnesota Statutes, section 462A.33 , subdivision 3, if the applicant provides evidence to the agency that the price to be paid for the tax credits is higher than the market price for tax credits.