THDA has authorized the allocation of Multifamily Tax-Exempt Bond Authority to local issuers for multifamily developments. Multifamily Tax-Exempt Bond Authority is available for developments which will close permanent financing by the date specified in the Commitment Letter. Initially one third of the authority will be available in each of Tennessee’s Grand Division. Any unused, recaptured or released amounts after the first deadline will be available first to any remaining eligible applications from that same Grand Division. If there are no remaining eligible applications from that same Grand Division, then the authority will be available to the next highest ranking application regardless of Grand Divisions until the end of the application submission period.
Bonds must be issued by a local board or other issuing entity with jurisdiction in the area of the proposed development.
Some units must be occupied by households of low-income: 20% of the units must be occupied by households with incomes no greater than 50% of area median income, or 40% of the units must be occupied by households with incomes no greater than 60% of area median income. 75% of the units must be occupied by households with incomes no greater than 115% of the area median income.
Per development limits involving new construction and for developments involving conversion and/or acquisition apply. The application submission period extends until the earlier of (i) the date upon which all Multifamily Tax-Exempt Bond Authority made available hereunder is fully committed or (ii) the first date applications will be accepted under a Multifamily Tax-Exempt Bond Authority Program Description as may be adopted by THDA for a particular year.
Multifamily Tax-Exempt Bond Authority will be allocated only to eligible applications on a first come, first served basis. If THDA receives multiple applications on the same day that, in the aggregate, request more Multifamily Tax-Exempt Bond Authority than is available, those applications will be ranked according to the Multifamily Tax-Exempt Bond Authority Program Description for a particular year.
Applicants must meet THDA and federal tax requirements and all other applicable federal, State, and local laws or ordinances.
A non-refundable application fee is required with each application. If a Commitment Letter is issued, the applicant must submit a commitment fee and separate incentive fee. Subject to the requirements of the Program Description, part of these fees may be returned.