The Tennessee Housing Development Agency (THDA) board of directors voted to increase the 2021 bond cap by $65 million from $310 to $375 million. THDA expects that an additional increase will be available mid-year, pending additional funds from the Tennessee Department of Economic & Community Development.
The board of directors also voted to amend the 2021 qualified allocation plan (QAP) to create an additional allocation round for the disaster credits approved by Congress in the 2020 year-end spending package. The application will open at midnight on April 1 and close at 11:59 pm CT on June 11. THDA expects that the credits will fund five new construction developments, one in each of the declared disaster areas (Bradley, Davidson, Hamilton, Putnam and Wilson). Notable amendments to the QAP for the disaster housing credit (DHC) round include:
- Exclude the County Needs Score component of the scoring system;
- Allow new construction in a Qualified Census Tract;
- Initial applications will be eligible for the Basis Boost of up to 30 percent;
- Allow a ten percent increase in the applicable Total Development Cost Limit;
- Reservations of DHC will not count against the limits described in Section 3.H of the QAP; and
- No applicant, developer, owner or related parties will receive more than one Reservation for DHC.