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Housing Tax Credit Compliance
& Monitoring
Overview HTC Compliance Monitoring
Section 42 (m)(i)(B)(iii) of the Internal Revenue Code requires housing credit agencies to include in their Housing Tax Credit Allocation Plan a procedure to monitor all tax credit projects for compliance with the requirements of Section 42, the Housing Tax Credit Program (HTC), throughout the compliance period.
In Minnesota, Minnesota Housing has been designated by the Legislature as the primary apportionment agency for the state. The Legislature also has designated the following cities and counties as suballocators: Dakota County, Duluth, Minneapolis, Rochester, St. Cloud, St. Paul, and Washington County.
An allocating agency must have a procedure for monitoring compliance with the provisions of the Code and notifying the Internal Revenue Service (IRS) of any noncompliance of which it becomes aware whether or not it is corrected. The monitoring requirements became effective on January 1, 1992, were amended on January 14, 2000, and apply to all tax credit projects, even if the projects received an allocation prior to 1992. The IRS has issued final regulations, Income Tax Regulation 1.42-5 ("1.42-5"), relating to the requirements for compliance monitoring.
Important Information
What's New and Upcoming Events!
Minnesota Housing's Fair Housing Web Page
Forms and Services
Compliance Manual, Inspection Standards, Guidelines for Correction
Owners Sample Letter of Interest
Accountants Report for Qualified Contracts Sample Letter
HTC National and Local Trainers
Tax Credit Properties
Minnesota HTC Properties - Updated 4/3/09
For a list of sub-allocators’ tax credit properties and monitoring information (for sub-allocators Dakota County, Washington County, St. Paul,
Apply for HTC Allocation
Housing Tax Credit Allocation Information
Compliance Contacts
HTC compliance monitoring Staff Contacts
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