Housing Tax Credits Statement of Election of Gross Rent Floor (Volume Limited Tax-Exempt Bond-Financed Building)
Instructions: Owners of qualified Housing Tax Credit (HTC) projects (volume limited tax-exempt bond-financed building) must complete this form to notify Minnesota Housing of the date the gross rent floor in Section 42(g)(2)(A) of the Internal Revenue Code (IRC) takes effect.

IRS Revenue Procedure 94-57 allows the owner to fix the date of the gross rent floor to be either: 
1.	The date of the initial award for HTC projects (the preliminary determination), or 
2.	The placed-in-service date.

In past years, some county median incomes have decreased during the years between these dates, thereby reducing the maximum allowable rent. Note, however, that the Housing and Economic Recovery Act of 2008 also holds HTC projects harmless against certain decreases in allowable rent. Before making this election, consult with a knowledgeable tax professional.

For a bond-financed building, the Internal Revenue Service (IRS) will treat the gross rent floor in IRC Section 42(g)(2)(A) as taking effect on the first option above: the date an agency initially awards an HTC dollar amount to the building under IRC Section 42(h)(4). This is the default.

However, if the owner designates it as such on the Gross Rent Floor Election Form, the IRS will treat the gross rent floor as taking effect on the second option: a building's placed-in-service date. To choose this option, the owner must make the election by submitting the Gross Rent Floor Election Form to the agency that issued the Preliminary Determination Letter no later than the building’s placed-in-service date.

Submission
Minnesota Housing must receive this election form by the date the project is placed-in-service. If no election is made, or if the election form(s) are not received by that deadline, then the gross rent floor date will automatically default to the date that Minnesota Housing initially issued its Preliminary Determination Letter.

The statement should be submitted electronically via the Multifamily Customer Portal. 

Election 
The owner hereby irrevocably elects, pursuant to IRS Revenue Procedure 94-57, to fix the gross rent floor for the building(s)at the allowable rents on the elected date identified below. The owner acknowledges that this election is binding upon the owner and all successors in interest to the owner.

The owner elects the gross rent floor for the building(s) described as:

Project Name _____________________________________

BIN (Building Identification Number)	Address
     	     
     	     
     	     
     	     
     	     
     	     
     	     
     	     

(Attach separate sheet if more space is required.)

To be fixed as taking effect on the elected date of (check only one option): 

  The date Minnesota Housing initially issued the Preliminary Determination Letter
  The Placed-In-Service date

Acknowledged, agreed, and accepted this       day of      ,      .

Owner:	     

By:		
Signature

	     
Type/Print Name and Title

STATE OF      	)
	)  ss
COUNTY OF       )

	Subscribed and sworn to before me, a notary public, this       day of                         , 20__ by ________________________________________of ________________________________ on behalf of said partnership.
																			_____________________________________
										Notary Public