Recovery Funds to Support Rental Housing Development
Wednesday, June 24, 2009 | 06:26am
THDA Approved for Two Housing Funds
NASHVILLE – Tennessee Housing Development Agency has received approval for its applications for Section 1602 and TCAP funding under the federal Recovery program. The funds are supporting the development of rental housing.
The American Recovery and Reinvestment Act and the American Recovery and Reinvestment Tax Act included two provisions involving low income housing tax credits (“housing credits”), the Tax Credit Assistance Program (“TCAP”) and a tax credit exchange program under Section 1602 of the Act (the “Section 1602 Program”).
Both the Section 1602 Program and the TCAP funds are designed to fill funding gaps for affordable rental housing developers whose developments are stymied by the change in the nation’s economy. The funding for the Section 1602 Program is $53 million. The funding for the TCAP is $39 million.
Drafts of the program descriptions were posted June 24, 2009 on www.thda.org (http://www.thda.org/Programs/lihtc/cover.html). The Policy & Programs committee of the THDA Board of Directors will meet June 30 to discuss the program descriptions. It is anticipated that applications for the funding will be taken in July.
About THDA
THDA is a political subdivision of the State of Tennessee. THDA is the state’s housing finance agency, responsible for selling tax exempt mortgage revenue bonds to offer affordable mortgage funds to homebuyers of low and moderate incomes through local lenders, and to administer various housing programs targeted to very low-, low- and moderate-income households.
THDA was established in 1973, making its first mortgage in 1974. It has provided affordable fixed rate mortgages to over 100,000 households without using state tax dollars. The total contribution of the THDA-related activities to Tennessee’s economy in 2008 is estimated at $1.173 billion.
THDA issues between $250 and $300 million in mortgage revenue bonds annually for its first-time homebuyer program.
In the year 2006, THDA created the Tennessee Housing Trust Fund using state, THDA and locally-generated match to support programs for the very-low income, elderly and special needs populations.
More information about THDA is available on-line at www.thda.org.
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Contact: Patricia M. Smith, Director of Public Affairs, (615) 815-2185