THDA has noticed a virtual, public hearing for the draft 2026 QAP to take place on August 8 at 10:30 AM CDT.

Please send any feedback by COB on Friday, August 8 to Ilana Morof.

If you would like to make oral comments, please notify THDA by email at [email protected] no later than 4:30 PM CDT, August 6, 2025 of your intent to speak. Oral comments are limited to five minutes.

Written comments will be accepted if sent by email to [email protected] no later than 10:30 AM CDT, August 15, 2025.

Draft 2026 QAP Changes 

Significant changes to the 2026 draft include: 

  • Removes the following set-asides: 
    • Nonprofit; (THDA expects to be able to meet the federally required ten percent nonprofit minimum through the regular scoring framework); 
    • Economic development area; and 
    • Permanent supportive housing. 
  • Sets New General Priority Categories: 
    • 68 percent for new construction; and 
    • 16 percent each for rehab and PHAs. 
  • Sets New Construction Regional Areas (see map below): 
    • West TN Urban Area (up to two developments); 
    • Middle TN Urban Area (up to two developments); 
    • Southeast TN Urban Area (one development); 
    • East TN Urban Area (one development); 
    • Northeast TN Urban Area (one development); 
    • Rural/Balance of State (up to two developments); and 
    • In the event credits remain in the Total Credit Ceiling after awards have been allocated as outlined above, THDA will make an allocation of credits to the next highest scoring Initial Application, regardless of location in the state, for which sufficient credits remain to make a full award. 
  • Adopts Standard Deviation Approach for Total Development Costs: 
    • THDA will determine which new construction proposals show total development cost (TDC) per unit amounts outside one standard deviation from the average TDC per unit of development proposals within each of the six regional housing needs areas outlined in this section and require applicants for all such proposals to provide explanations for the deviation; 
    • Inability to explain the costs satisfactory to THDA staff, in its sole discretion, may result in disqualification of the application; and 
    • The Authority will evaluate total development costs and may adjust costs for reasonableness, necessity, and eligibility or disqualify applications not reflecting an efficient use of Housing Credits. 
  • Scoring Changes: 
    • Decreases (-18 points total): 
      • Location from 20 points to four points (-16 points); 
      • Waiver of QC Process from ten points to nine points (-one point); and 
      • Development Intended for Eventual Resident Owners from two points to one point (-one point). 
    • Increases Development Characteristics from 21 points to 23 points (+two points): 
      • Adds points for dog parks, secure delivery areas, flex/case management office space; 
      • Adds (+16 points total): 
        • Water & Sewer Category (+four points); 
        • Financial Readiness to Proceed Category (+four points); 
        • Design Development Category (+four points); and 
        • Planning and Zoning Category (+four points). 
  • Modifies: 
    • Adds an option to restrict at least ten percent of units at 30 percent of AMI for six points in the Meeting Housing Needs category; 
    • Shifts five points from the Serving Resident Populations with Special Housing Needs category to the Permanent Supportive Housing for the Homeless/ELI category; and 
    • Adds Serving Resident Populations with Special Housing Needs back in as an option under Serving Resident Populations with Special Housing Needs OR Serving Resident Populations with Children.