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Renovations

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.


Commercial Office Grant Program for Tenant Improvements

Offers eligible tenants matching grants for up to 50% of the cost of tenant improvements

The property or lease space must be located within the Central Business Improvement District; The Tenant must be classified as and determined as being an office tenant with an office use and with employees who work within the leased premises or within the CBID; The Tenant must employ at least three (3) full-time employees/equivalents (FTEs) at the eligible location; The Tenant must apply prior to entering into a lease; The Tenant’s current lease (if applicable) must be due to expire within 12 months of the application date; and, The Tenant must sign a lease that includes a term of at least five (5) years. *Note: Retail tenants are ineligible for the Program.

This program is designed to stabilize and strengthen the Downtown office market by increasing the number of full-time employees/equivalents within the area.


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.


Data Center Tax Credit

Tax credit for the purchase of materials related to the construction of a data center

Applies to buildings housing high technology computer systems and related equipment in which the taxpayers had made a minimum capital investment of $250 million and has created 25 new jobs paying at least 150% of the state's average occupational wage. Investments must be made during a 3 year period, but can be extended to 7 years at the discretion of the Commissioner of Economic and Community Development; The purchase of computers, computer systems, computer software and repair parts for a qualified data center are considered purchases of industrial machinery and qualify for a minimum 5% Industrial Machinery Tax Credit against F&E liability. Computers, computer systems, computer software and repair parts used in qualified data centers are classified as industrial machinery and exempt from sales and use taxes. Qualified data centers also pay reduced sales taxes on the purchase of electricity (1.5% vs. the previous rate of 7%).

Created to assist expanding and emerging tech companies with expansion.


Development Loan Program

Offers low-interest loans to finance building renovations in downtown area

Low-interest loan program offers up to $90,000 for building renovations based on established project evaluation criteria. The loan is amortized over a 20 year period at a three percent (3%) interest rate with a balloon payment due at the end of the tenth (10th) year. The Development Loan Program is offered for redevelopment projects within the Memphis Central Business Improvement District (CBID), which is bound by Crump Boulevard on the south, Danny Thomas Boulevard on the east, the Wolf River on the north and the Mississippi River on the west. The CBID extends through the Medical Center which is bound by Linden Avenue on the south, Watkins Street on the east, Poplar Avenue on the north and Danny Thomas on the west.

Designed to encourage commercial real estate development within the Central Business Improvement District.


Downtown Storefront Improvement Grant

The Storefront Improvement Grant provides businesses in the Central Business Improvement District (CBID) with financial assistance in the procurement of façade upgrades that will enhance the appearance and functionality of business storefronts

Limited to businesses that occupy first-floor space with an active street presence and maintain regular daily business hours. The grant can only be used for exterior improvements and approved accessories that are visible from the public right-of-way.

This matching grant is designed to create more attractive, inviting Downtown storefronts in order to improve the public realm and pedestrian experience Downtown.


Economic Development Funds

Offers below-market-rate financing for capital-intensive industrial and nonprofit construction and renovation projects

The maximum loan amount varies according to the type of project. In most instances, TVA funds should be used for the acquisition of fixed assets. Loans are typically below market rate, with specific rates to be determined on a case-by-case basis after consideration of the loan evaluation criteria. Program guidelines require that each TVA loan dollar leverage additional funding from other sources. The loan funds are primarily available to manufacturing companies and local nonprofit economic development entities. Loans can be used to fund the construction of new manufacturing facilities, expansion of existing facilities, and development of publicly owned industrial sites or buildings.

Established to stimulate economic development and leverage capital investment in the TVA power service area.


Energy Efficiency Loan Program

Provides below market rate loans to help implement projects that reduce energy use, improve cash flow and provide a new opportunity for growth

Financing is available for up to 100 percent of the costs for installing energy efficient technology, energy retrofits and renewable energy systems that will help them reduce energy consumption. Loans are offered up to 5 million dollars. Eligible projects include: Lighting, HVAC, Building Retrofits, Industrial Systems, Co-Generation, and Renewable Energy/Solar Projects.

Created to help businesses and industries become more energy efficient, so that they may increase their competitiveness and strengthen Tennessee’s economy.


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.


Industrial Machinery Tax Credit

Tax credit of up to 50% of franchise and excise tax liability for purchasing, installing, or repairing industrial machinery

The credit applies to the purchase, installation and repair of industrial machinery as defined in T.C.A. 67-6-102. The credit also applies to the purchase and installation of computer, computer software and certain peripheral devices purchased in order to meet the capital investment thresholds of the Job Tax Credit. Any unused Industrial Machinery Tax Credit may be carried forward for up to 15 years. The percentage of Industrial Machinery Credit allowed is dependent upon the investment made during the investment period, from 1% to 10%.

Created to encourage capital investments in industrial machinery.


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.


New Markets Tax Credit Program

Allows individual and corporate investors to receive a tax credit for making equity investments in Community Development Financial Insitutions

The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. Equity investment must be made in Community Development Entity certified by the US Treasury. CDIs provide investment capital for low-income communities or low-income persons.

Established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities.


PILOT (Payment-In-Lieu-of Tax) or Tax-Freeze Program

Financial incentive that freezes property taxes at the predevelopment level for a predetermined period of time

The PILOT Program is offered for redevelopment projects within the Memphis Central Business Improvement District (CBID) which is bounded by Crump Boulevard on the south, Danny Thomas Boulevard on the east, the Wolf River on the north and the Mississippi River on the west. The CBID extends through the Medical Center, which is bounded by Linden Avenue on the south, Watkins Street on the east, Poplar Avenue on the north and Danny Thomas Boulevard on the west. To be eligible for a PILOT, the value of the proposed building renovations, site improvements or new construction must be equal to or greater than at least sixty percent (60%) of the total project cost (property & building acquisitions costs or value, soft costs, proposed building renovations, site improvements and/or new construction). See application here: http://www.downtownmemphiscommission.com/documents/PILOT_Application.pdf)

The PILOT program is a financial incentive that is designed to encourage commercial real estate development in and around the Central Business Improvement District.


Pollution Control Equipment Tax Credit

Tax credit for the purchase of government-mandated pollution control equipment

Purchases of pollution control equipment that is mandated by state, federal or local law and that results in the reduction of water and/or air pollution or the elimination of hazardous waste qualify for tax credits such as exemption from franchise and sales and use taxes among other incentives. Tax credit applies to purchases of pollution control equipment for manufacturers.

Created to alleviate the burden of pollution regulations on industry.


Special Opportunities Counties Fund

Provides economically distressed counties with loans for industrial expansion, relocation, retention, and infrastructure development

Only counties with the lowest per capita personal income, the highest percentage of residents below the poverty level, and the highest annual average unemployment rates are eligible for this program. SOC loans are made for buildings, plant equipment, infrastructure, or real estate based on the capital investment leveraged and the number of jobs created by a venture. SOC loans can also be made to local economic development entities for capacity-building projects such as sites or buildings. View a map of the Special Opportunities Counties, here (http://www.tvaed.com/pdf/soc_counties.pdf).

Created to spur growth in economically distressed counties.