Conduit financing for affordable housing development
Conduit financing for affordable housing uses pass through funding from other entities. It does not involve county funding but directs state bonding authority to projects in Hennepin County that are approved by the Housing and Redevelopment Authority (HRA).
Conduit financing helps to expand the supply of affordable housing by allowing private developers, both for-profit and non-profit, to work with public entities to secure capital via tax-exempt bonds to fund large-scale projects that benefit the general public. A principal benefit of conduit financing for affordable residential rental projects is that it may allow a project to qualify for 4% low-income housing tax credits. Outside of affordable housing, other projects can include hospitals, airports, industrial projects, public facilities, and schools.
Conduit financing includes various forms of public financing available to the HRA that:
provide financing to eligible applicants for projects that are determined to be in the public interest and,
are not dependent upon County property tax dollars. Examples include: housing revenue bonds, industrial revenue bonds, and 501 (c)(3) bonds.
Conduit financing is undertaken by the Authority pursuant to the provisions of Minnesota Statutes, Chapters 462C and 469.
Read more about conduit financing, and the application process, in Hennepin County’s Conduit Financing Guide. To request an initial meeting or application materials, contact the Multifamily Housing Development Manager.