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Affordable Housing Exemption

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To qualify for the exemption (Minnesota Statutes 287.04 (f)):

  • The principal amount of the loan must be authorized under a low and moderate income or other affordable housing program
  • A governmental entity must be either one of the following:
    • the mortgagee at the time of recording
    • the grantee of an assignment of the affordable housing mortgage
For purposes of the exemption, governmental entities include, but are not limited to those listed in Revenue Notice 01-05.
 
A governmental entity must be the holder of the mortgage lien. In addition, the assignment does not need to be presented at the same time as the mortgage in order to claim the exemption.
 
Qualifying Example: A affordable housing mortgage granted to ABC Bank and subsequently assigned to “Minnesota Housing Finance Agency.” Minnesota Housing Finance Agency is a Governmental Entity.
 
Non-Qualifying Example: A deed restriction granted to ABC Bank requiring the buyer to maintain ownership for a period of five years. The deed restriction secures the amount of the grant given to the buyer. ABC Bank is not a Governmental Entity.
 

Required Documentation
You must add a statement on the face of the mortgage claiming exemption under Minnesota Statutes 287.04 (f), or attach and record Mortgage Registry Tax Form MRT-1 along with the document. 

Contact Info

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