THDA has authorized the allocation of Multifamily Tax-Exempt Bond Authority to local issuers to finance multifamily housing units in Tennessee under Section 142(d) of the Code. The private activity bond authority can be used only for tax-exempt private activity bonds issued to finance qualified residential rental projects through new construction of multifamily rental units, conversion of existing properties to multifamily rental units through Adaptive Reuse, or acquisition and rehabilitation of Existing Multifamily Housing.
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 and commitment letter fee along with a partially refundable incentive fee is required with each application. Subject to the requirements of the Program Description, part of these fees may be returned.