The Tennessee Housing Development Agency (THDA) issued a memo clarifying that nine percent projects can meet the financial feasibility requirements if the initial application includes the following elements:

  1. Letter of Intent, including lender contact information, an estimated amount, an estimated term and an estimated rate for construction and permanent financing; or
  2. An estimated amount, term and rate for construction and permanent financing, including lender contact information, is reflected in THOMAS; and
  3. Uses of funds as reflected in THOMAS do not exceed sources of funds as reflected in THOMAS.

This guidance does not apply to initial applications seeking an allocation of noncompetitive LIHTCs in conjunction with an allocation of THDA Multifamily Tax-Exempt Bond Authority.