TCAP and Section 1602
The American Recovery and Reinvestment Tax Act (collectively, the Act) which were signed into law on February 17, 2009, included two provisions involving low income housing tax credits (tax credits), the Tax Credit Assistance Program (TCAP) and a tax credit exchange program under Section 1602 of the Act (the Section 1602 Program).
TCAP amounts are expected to fund “capital investments” and fill the gap caused by lack of investor interest for tax credits. TCAP amounts can be used for developments that have or are expected to receive an award of tax credits, as specified further in the Program Description. The TCAP Program is no longer accepting new applications.
The Section 1602 Program amounts are expected to temporarily fill the gap caused by lack of investor interest for tax credits. Section 1602 Program amounts can be used for developments that have or are expected to receive an award of tax credits and may also be used for developments that do not have an award of tax credits, as specified further in the Program Description. The Section 1602 Program is no longer accepting new applications.
THDA is responsible for the asset management of all properties that received Section 1602 - Grants to States for Low-Income Housing Projects in Lieu of Low-Income Housing Credits (Section 1602) or Tax Credit Assistance Program (TCAP) funds from the 2009 American Recovery and Reinvestment Act. THDA’s asset management guidelines for those properties can be found below.
If you have questions or need additional information, please contact TNCompliance@thda.org
