Multifamily Rental Production

The Missouri Housing Development Commission (MHDC) provides funding to qualified nonprofit organizations and for-profit developers for the acquisition and rehabilitation or new construction of affordable rental housing for low and moderate income families in the form of below market interest rate construction and permanent financing. MHDC funds are typically combined with Low-Income Housing Tax Credits (LIHTC) and other federal U.S. Housing and Urban Development (HUD) Programs administered by MHDC to fund affordable multifamily and senior housing developments.

Developers are eligible to apply for financing. Applicants must demonstrate prior successful housing experience and engage the services of housing professionals; such as, architects, appraisers, attorneys, accountants; contractors and property managers with demonstrable multifamily housing experience. Developers must have the financial capacity to successfully complete and operate the proposed housing development. Proposed housing developments must meet a demonstrated housing need; provide housing for low and moderate income individuals and families; demonstrate local support; and leverage MHDC funds with tax credits, other equity and/or rental assistance. In addition, all developments must be economically feasible.

The Commission sets the rental production application schedule annually and a Notice of Funding Availability (NOFA) is published.

The Commission approves the Qualified Allocation Plan (QAP), which governs the use of MHDC resources, including LIHTC, and associated Notice of Funding Availability on an annual basis. 

• 2025 Qualified Allocation Plan (QAP)
• 2025 Supplemental Data
• Developer's Guide

Previous QAPs and NOFA and Approval Lists

• Previous QAP Documents
• NOFA and Approval Lists

Low-Income Housing Tax Credits

The Low-Income Housing Tax Credit (LIHTC) provides federal tax credit to investors in affordable housing. The LIHTC can be used each year for 10 years and is allocated to the owner of an affordable housing development. Investors take an ownership interest in the development to utilize the tax credits, thereby generating equity to construct or acquire and rehabilitate the development. Funding is determined annually by the IRS and is dependent on the population of the state of Missouri.

Each year, MHDC prepares a Qualified Allocation Plan (QAP) which sets forth the process MHDC will use to administer both the federal and state LIHTC. The federal and state housing tax credit can be sold to investors to generate equity for the proposed development.

Congress has delegated the administration of the LIHTC to state agencies to ensure good, quality housing is available where it is most needed. MHDC is charged not only with the allocation of credit but also with assuring compliance with all LIHTC statutes and regulations. This includes, but is not limited to, the performance of physical inspections of all affordable developments and reviews of management and occupancy procedures during the Compliance Period (as such term is defined in Section 42 of the Internal Revenue Code) and the extended use period.

The LIHTC is limited to a percentage of the Qualified Basis, based on depreciable basis and the percentage of affordable units in the development. The minimum number of units a development must have to qualify for LIHTC is:

1. 40 percent of the total number of units affordable to persons at 60 percent of the area median income; or
2. 20 percent of the total number of units affordable to persons at 50 percent of the area median income; or
3. 40 percent of the total number of units affordable to persons from a range of 20 percent to 80 percent of the area median income, so long as the average unit designation averages no higher than 60 percent of the area median income.