Low Income Housing Tax Credits & Preservation in Tennessee, 2015

Tennessee's 2015 Qualified Allocation Plan (QAP) sets-aside 30% of its Low Income Housing Tax Credits for the preservation of affordable multifamily housing. 

Set-Aside: Tennessee’s 2015 QAP sets aside no more than 30% of tax credits for preservation and rehabilitation projects.

Applicants must propose a development that involves preservation of a development with existing income and rent restrictions through programs such as the Low-Income Housing Tax Credit, Multifamily Tax-Exempt Bonds, or programs administered by USDA or HUD. The Initial Application must include documentation, acceptable to THDA, in its sole discretion, verifying the existing income and rent restrictions. 

Points: Tennessee also awards points to developments involving preservation or rehabilitation.

  • 10 points -Developments involving substantial preservation or rehabilitation, with hard costs no less than the greater of 30% of building acquisition cost or $11,000 per unit.
  • 8 points- Projects involving moderate preservation or rehabilitation, with hard costs no less than the greater of 25% of building acquisition cost or $7,000 per unit. 
  • 6 points - Projects involving limited preservation or rehabilitation with hard costs no less than the greater of 20% of building acquisition cost or $6,000 per unit.

Extra points are awarded to projects that commit to extended use periods.  Projects that commit to at least five years of extended use may earn up to 5 points, and fewer years can earn less.

Contributed By: 
National Housing Trust

Other Items of Interest