Tennessee Housing Development Agency plans to enact stronger “green” energy requirements for new multifamily rental properties that hope to qualify for federal tax credits.
WASHINGTON, D.C. – September 1, 2015 – (RealEstateRama) — Under the proposed new rules, developers can earn points on their Low Income Housing Tax Credit (LIHTC) application if the property qualifies for full Enterprise Green Communities certification. In addition, other energy-saving measures that once qualified for points, such as programmable thermostats and ENERGY STAR® certified clothes dryers, will now be mandatory to be eligible for the competitive tax credit program.
Each year, LIHTC applications are judged on a 100-point system. Developers who earn the highest scores are awarded federal tax credits, which can offset most of the construction costs for new apartment buildings for low income households. Historically, many more applications are received than can be approved.
To earn points for full certification under the Enterprise Green Communities program, the developer must include water-conserving fixtures in apartments, high-efficiency lighting controls in common spaces, and an overall minimum energy performance score for the entire building.
The THDA Board of Directors has already approved the new rules, but developers and the general public still have one more chance to voice their concerns or support before the rules go into effect. THDA will host a public meeting on all LIHTC rule changes on Wednesday, September 2, 2015, at 1:00 p.m. in the ground floor Hearing Room at the Andrew Jackson Building, 502 Deaderick Street, in downtown Nashville.
To review the Enterprise Green Communities certification requirements, visit http://www.enterprisecommunity.com/criteria.