Last week, NH&RA reported on Tennessee’s amendments to extend the initial application deadline to May 1, 2017 for 9% competitive applications (except those applying for the innovation set-aside) and additional LIHTCs allocated for Sevier County Disaster Relief. As NH&RA Executive Director Thom Amdur attended the meeting in Nashville, more color can be provided:

The Sevier County Disaster Relief proposal was adopted unanimously. The returned credits that will fund this special round were the result of PILOTs falling through in at least two deals, making them no longer viable.

The extension of the Initial Application Deadline from Feb. 1 to May for the 9% round was adopted over the objection of Director Kim Brown. The committee heard several remarks from the public in support and opposition of the change.

THDA staff also observed that several other HFAs around the country have delayed their rounds too (note several developers made remarks observing that other HFAs in the region had not delayed their application rounds). THDA believes they can accelerate the selection process by four to six weeks. This will still delay announcements by approximately two months from the previous schedule and THDA acknowledges that this will be disruptive for some developers with option agreements.

THDA has also issued supplemental guidance that relates to the deadlines and cure schedule for the Innovation Set-Aside as well as the revised schedule for 2017 Competitive Cycle which also addresses Additional guidance relating to the Sever County Disaster Relief, Innovation Set-Aside applications deadlines and cure schedule (which was not extended), as well as guidance relating to the age of Market Studies that were issued prior to the application date change.

Innovation Round Schedule:

Feb. 1: Innovation Set-Aside Applications Due

Feb. 17: Innovation Set-Aside Cure Notices Issued

March 28: Innovation Round Relief Hearing (if necessary)

March 29: Innovation Round presentations to the Selection Group

March 30: Innovation Round Selection Announced

2017 Competitive Cycle Schedule:

May. 1: Applications Due

June 21: Cure Notices Issued

July 24: Relief Hearing (if necessary)

Early August: Allocations Announced

Please Note: THDA’s recommends that due to the extension of the competitive round, staff will be extremely busy in May, June and July and urges owners seeking IRS Forms 8609 in September to submit requests by March 15, 2017. The Multifamily Programs team will be monitoring capacity during 2017 and is committed to meeting all of our obligations in a timely manner.  However, final applications received between April and July will experience review delays.