Housing Development

Affordable Apartment Rental Additional Unit Allowance

Apply an additional 50% revenue allowance over MLGW’s standard policy

The developer must submit documentation proving that the particular apartment development is recognized as a low income development by the appropriate nonprofit or government agency. The builder must also enroll the apartment development in MLGW’s EcoBuild program.

Promote development of apartments for affordable rental housing.

Affordable Homes Waiver of Connect Fees Incentive

Connect fees may be waived or refunded to the home builder

The Builder must submit proof of the home’s certification from a non-profit or government agency that the home is eligible for “affordable” incentives at the time the service request is made; The builder must enroll the home in MLGW’s EcoBuild program; The home must be an individual single-family home or duplex; The maximum sale price shall be $140,000.

Promote non-profit and governmental agency efforts to produce affordable dwelling units.

Affordable Housing Additional Lot Allowance Incentive

Apply an additional 50% lot allowance over MLGW’s standard policy

The developer must submit documentation proving that the particular development is recognized as a low income development by the appropriate nonprofit or government agency; At least fifty percent (50%) of the homes in the development must meet affordable housing criteria; The homes must meet EcoBuild criteria; The homes shall not exceed $140,000 in price.

Promote development of lots for affordable housing.

BUILD Loan Program

Low interest short term loans available to nonprofit organizations that help meet the housing needs of low and very low income households

The loans may be secured or unsecured depending on the proposed activity. BUILD Loan funds must be used for operating and program expenses incurred to create affordable housing opportunities for low and very low-income households. Eligible activities may include: 1) Development of single and multi-family units for homeownership or rental, 2) Construction, 3) Land Acquisition, 4) Site Preparation, 5) Pre-Development.

The purpose of the BUILD Loan Program is to promote the production, preservation, and rehabilitation of housing for low and very low income households.

Community Investment Tax Credit

Provides a tax credit to financial institutions when loans, qualified investments, grants or contributions are made to organizations involved in developing low income housing

Eligible Activities are as follows: 1) Activities that create or preserve affordable housing for low income Tennesseans, 2) Activities that assist low income Tennesseans in obtaining safe and affordable housing, 3) Activities that build the capacity of an eligible non-profit organization to provide housing opportunities for low-income Tennesseans, and 4) Any other low-income housing related activity approved by the THDA Executive Director and the Commissioner of Revenue. Eligible Housing Entities are as follows: 1) Tennessee based non-profit organizations with an Internal Revenue Code 501 (C)(3) status, 2) Public Housing Authorities, 3) Development Districts, and 4) Tennessee Housing Development Agency.

Developed to increase low income housing development.

Health, Education and Housing Facility Board PILOT

Property tax freeze for new or rehabilitated affordable housing units

To be eligible for a PILOT, the value of the building renovations, site improvements or new construction must be equal to or greater than 50% of the property acquisition cost. 20% of the Applicant?s units must be occupied by individuals whose income is 50% or less of the median gross income or 40% or more of the units must be occupied by individuals whose income is 60% or less of the median gross income. The project's primary use must be affordable multi-family residential within the limits of the City of Memphis containing a minimum of 24 units. The total project cost for new construction must be at least $1,000,000; and for acquisition/ rehabilitation projects must be at least $750,000. Priority is given to development projects located in Target Areas, as defined by the City, at the time of the application.

Created to encourage new construction and substantial rehabilitation of affordable multi-family housing.

Health, Educational and Housing Facility Board Bonds

Bonds for the building and rehabilitation of affordable housing

Project must consist of the acquisition of land or the acquisition, rehabilitation, construction or improvement of affordable housing, typically multifamily residential units. Either at least 20% of the units in the Project must be rented to individuals whose income is 50% or less of the Median Gross Income for Memphis, or at least 40% of the units in the Project must be rented to individuals whose income is 60% or less of the Median Gross Income. Except for those Units rented to the elderly or handicapped, units must be rented either to tenants earning less than 150% of the Median Gross Income, or at a rental rate less than 30% of 150% of the Median Gross Income for Memphis.

Created to encourage new construction and substantial rehabilitation of affordable multi-family housing.

HOME Program

Provides funds to cities and community housing development organizations for the construction, aquisition, rehabilitation, or financing of affordadble housing

HOME funds are awarded through a competitive application process to cities, counties and non-profit organizations outside local participating jurisdictions. Memphis is a participating jurisdiction. An applicant must apply for at least $100,000 and may apply for a maximum HOME grant of $500,000. There is a $750,000 limit on the amount of HOME funds that can be awarded to any one county. Eligable activities include homeowner rehabilitation programs, homeownership programs, and rental housing programs.

Created to promote the production, preservation and rehabilitation of housing for low-income households.

Investment Tax Credit

Provides a tax credit for the rehabilitation of historic buildings

There are two types of ITCs available: 20% for a certified historic structure or 10% for a non-historic structure. The historic property must be income producing. To qualify for the 20% credit, the building must be listed on the National Register of Historic Places, or listed as a contributing structure within a National Register Historic District. The rehabilitation project must meet the "substantial rehabilitation test," which means the owner must spend the adjusted value of the building or $5000, whichever is greater.To qualify for the 10% credit, the structure must have been built before 1936 and must not be listed or eligible for listing on the National Register of Historic Places, the structure must retain 50-70% of external walls and 75% of internal walls, the rehabilitation must meet the "substantial rehabilitation test" as in the 20% credit, and the structure must be used for five years as an income producing property but not as housing.

Created to encourage the rehabilitation of historic buildings.

Low-Income Housing Tax Credit

Offers a credit against federal income tax liability each year for 10 years for owners of and investors in affordable rental housing

An indirect Federal subsidy used to finance the development of affordable rental housing for low-income households. To be eligible for consideration under the LIHTC Program, a proposed project must: 1) Be a residential rental property, 2) Commit to one of two possible low-income occupancy threshold requirements, 3) Restrict rents, including utility charges, in low-income units, 4) Operate under the rent and income restrictions for 30 years or longer, pursuant to written agreements with the agency issuing the tax credits.

Created by Congress to generate equity capital for the construction and rehabilitation of affordable rental housing.

Multifamily Tax-Exempt Bond Authority Program

THDA is making Multifamily Tax-Exempt Bond Authority available to local issuers for financing for multifamily housing units in Tennessee

The Multifamily Tax-Exempt Bond Authority can be used only to provide financing for new construction of affordable rental housing units, for conversion of existing properties through adaptive reuse, or for acquisition and rehabilitation of rental units. The development must be: 1) New construction, 2) A conversion of an existing property not being used for housing, or 3) Acquisition and rehabilitation.

Created to ensure the development of low-income housing.

Solar Energy Systems Tax Credit

Businesses are eligible for tax credits for qualified solar water heating and photovoltaic systems, and for certain solar lighting systems; The tax credits are for 30% of the cost of the system

The tax credits go to businesses that install solar equipment for their use, and to individuals who install qualifying systems on homes they use as a residence (unlike other consumer incentives, the dwelling does not have to be the taxpayer's primary residence - second homes are eligible, although rental properties are not); Note: The credits are available for systems "placed in service" between January 1, 2006 and December 31, 2016;

Developed to encourage energy efficient consumers, businesses and practices.