The Tennessee Housing Development Agency recently posted a set of talking points in preparation for updating the Bond Program Description. NH&RA’s Tennessee Developers Council is meeting Thursday, October 19, to discuss the document and will be submitting comments to THDA. A redline draft of the 2018 Bond Program Description will be available with THDA’s November Board of Director’s materials. Proposed changes and updates for the Bond Program include the following:

  • THDA will initially request $210 million in bond authority for 2018
  • Maintain the $20 million developer cap, but implement a $58 million annual developer and related parties cap
  • Waivers of the development cap may be issued for acquisition/rehab projects
  • Implementation of conditional commitment. Applicants with a conditional commitment letter must provide THDA with 45 days notice before requesting a firm commitment. Applicants will also have the ability to apply initially for a firm commitment letter.
  • Firm commitment letters are issued with a 90 or 120 day expiration term depending on the financing utilized.
  • Bond Return Policy: For applicants unable to meet their commitment letter deadline, THDA is encouraging speedy return of bond authority with the following return schedule:
    • 1-30 days: incentive fee eligible for return; applicant can withdraw and reapply in same year
    • 31-60 days: half of incentive fee eligible for return; applicant can withdraw and reapply in same year
    • 61-89 days: incentive fee ineligible for return; applicant can withdraw and reapply in same year
    • 90-119 days (after 30-day extension): incentive fee ineligible for return; applicant can withdraw and reapply in same year
    • Committed Authority allowed to expire without issuance: incentive fee is ineligible for return and applicant is deemed unable to participate in the MTBA and competitive 9% program for the following two years