The Tennessee Housing Development Agency (THDA) Board of Directors approved several changes to its 2019-2020 Qualified Allocation Plan (QAP) as well as its 2018 QAP. The amendment to the 2018 QAP allows LIHTC recipients that do not request a 2018 exchange allocation to request approval for income averaging. If approved, the right to a qualified contract is waived and a compliance fee of $1,200 per LIHTC unit must be paid.
The Board also approved four changes to the 2019-2020 QAP:
- Change the 2019 competitive cycle deadline for initial applications from March 5 to June 4
- Change the tie-breaker to focus on distance from “active housing credit development” for new construction and add a separate rehabilitation tie-breaker that focuses on least housing credit per housing credit unit. In order to determine the distance from an active housing credit development for the new construction tie breaker, a list and map of all active LIHTC properties places in service through 2015 can be found here. For information on 2016, 2017 and 2018 developments, please visit the Competitive Low-Income Housing Tax Credit Preliminary Rankings memorandums.
- Add a section on relief of 2018 allocations which dedicates $3 million from 2019 LIHTC for 2017 and 2018 exchange requests. The $3 million represents about 16% of the estimated $18,659,840 in 2019 LIHTC authority. $1,120,500 of the $3 million has already been requested, leaving $1,879,500. The time frame to request a 2018 exchange is Feb. 15 through Feb. 22.
- Update the number of new construction developments in regional pools to two for the Middle regional pool and one for the West, Cumberland, East and Upper East regional pools.
Finally, the board approved a reallocation of $999,999 in credits to a development that failed to meet its 10% test.
