The American Recovery and Reinvestment Act of 2009 (ARRA)

Overview of the ARRA

The Recovery Act signed into law by President Obama on February 17th, 2009 includes measures to modernize our nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.

Implementing the ARRA

THDA has several opportunities to implement ARRA provisions.

First-time Homebuyer tax credit - First-time buyers are eligible for a tax credit of 10% of the purchase price of their home, up to $8,000. Tennessee Housing Development Agency has designed a second mortgage program to borrow up to 3 1/2% for downpayment and closing costs with a 0% second mortgage that can be paid off with the tax credit. The program is available through participating lenders. Loans must be closed by November 30, 2009. THDA offers a Stimulus Loan to use the credit for downpayment and closing costs.

Homelessness Prevention - Through the Homelessness Prevention and Rapid Re-Housing Program (HPRP), funds are available only for homeless prevention activities. The State of Tennessee has been allocated $13,467,433 to provide financial assistance and services to either prevent individuals and families from becoming homeless or to help those who are experiencing homelessness to be quickly re-housed and stabilized. Local participating jurisdictions will receive their own appropriations. The Substantial Amendment to the Consolidated Plan and Program Description was submitted to HUD on May 15, 2009. THDA received the award letter July 17, 2009 noting acceptance of the amendment.  THDA is required to pass these funds through to local governments and private non-profit entities. THDA has selected sub-grantees and has developed required program implementation materials.  THDA is required to execute all local sub-grantee contract agreements by September 30, 2009, and expects an effective local program start date of October 1, 2009.

Low Income Housing Tax Credits - Program Descriptions for the TCAP funding and Section 1602 funding are posted. Below are links posted on July 10, 2009 for the application package for both programs and the current status update:

November 6, 2009 – Section 1602/TCAP loan closing checklist
November 6, 2009 – List of Section 1602/TCAP developments in first group of closings
November 6, 2009 – Forms to be completed for disbursement of Section 1602/TCAP fund
October 31, 2009 - Modification to Deadline for Disbursement of Section 1602 Funds
October 12, 2009 – Specimen TCAP Loan Documents
October 12, 2009 – Specimen Section 1602 Loan Documents
October 8, 2009 – Modifications to 10% Test Requirements for 2008 competitive LIHTC Recipients
October 8, 2009 – TCAP Affirmative Marketing Policy and Procedures
October 1, 2009 – TCAP Application (third round)
September 25, 2009 – Additional information regarding TCAP (second round)
September 21, 2009 – TCAP Application (second round)
September 1, 2009 - TCAP Environmental Review Forms
August 28, 2009 - Memo Regarding Developments Combining MTBA, LIHTC, and TCAP
August 27, 2009 - Regarding Reservation Fees and Building Permits
August 27, 2009 - Regarding Modification to TCAP/Section 1602 Conditional Commitment Letter
August 24, 2009 - Regarding TCAP Environmental Requirements
August 24, 2009 - Regarding TCAP Davis-Bacon Requirements
August 24, 2009 - Handout Regarding TCAP/Section 1602 Reporting Requirements
August 21, 2009 - Recap of August 20 TCAP/Section 1602 Workshop
August 13, 2009 - August 13 – Notice Regarding TCAP/1602 Workshop and 2010 QAP Developer Forum
July 29, 2009 - ARRA / ARRTA First Round Applicants List
July 10, 2009 - TCAP & Section 1602 Application Package
July 10, 2009 - ARRA/ARRTA Status Update
The following memos present information current on each date.
June 9, 2009 - ARRA/ARRTA Status Update
June 5, 2009 - ARRA/ARRTA Status Update
May 22, 2009 - TCAP Program Outline
March 19, 2009 - Guiding Principles for Use in Developing Program Details for ARRA

Neighborhood Stabilization Program, Version 2 (CDBG Non-entitlement) - NSP 2 is a competitive program from the Department of Housing and Urban Development. (NSP, Version 1 allocated funds from HERA to Tennessee and local jurisdictions. The purpose of NSP 1 is to provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.) Guidance for NSP2 was released May 4, 2009. Applications were due July 17, 2009 for both the program and technical assistance rounds. Please see the Notice of Fund Availability for further information. When grants have been allocated, the information will be posted here.

Weatherization - The Weatherization Assistance Program (WAP) is 100% federally-funded through a grant from the Federal Department of Energy. The program provides funds to the states to assist with the weatherization of the homes of low income elderly and disabled adults and families.