NASHVILLE– The National Council of State Housing Agencies has
recognized a partnership between the Tennessee Housing Development
Agency (THDA) and the Tennessee Department of Revenue with an award for
Tennessee’s Community Investment Tax Credit.

The award recognized the partnership for innovation and creativity in
engaging the private sector in affordable housing. The special
achievement category award was announced at the National Council’s
annual conference in October.

“I’d like to congratulate the Tennessee Housing Development Agency
for this achievement and thank the revenue employees who have helped
make this project a success,” said Commissioner Reagan Farr. “We are
all very pleased with the results of this partnership.”

The THDA program, which is administered in cooperation with the
Department of Revenue, allows financial institutions to receive a tax
credit when qualified loans, investments, grants or contributions are
offered to support low income housing activities.

THDA and Revenue developed the innovative program to provide incentives
for the private sector to invest in affordable housing with minimal
impact on the state budget. Private lending institutions have invested
more than $81 million in affordable housing efforts, and have received
nearly $8 million in credits against their franchise and excise fees in
return. As a result, 2,764 affordable housing units have been produced.
The 145 projects and initiatives, which were funded at an average of
$559,200 per investment, have leveraged approximately $50 million in
additional funding from other sources.

Ted R. Fellman, executive director of THDA, said, “The clear measure
of success of any new program is the impact it has on local
communities.”

Listed below are quotes and comments from some of the non-profit
agencies and financial institutions that have participated in the
Community Investment Tax Credit Program:

“In early 2008, Foothills Community Development Corporation (FCDC)
began development of a 2.2 acre property in the city of Maryville,
Tenn.This property became a 10-home subdivision for low income families.
It was built and sold out by June 2009. The CITCfunding saved us austere
building funds, due to the lower interest rate, and vastly improved the
time required to complete the subdivision. It allowed Foothills CDC to
divert other funds to begin development of a follow-on subdivision.”
Kelly Spears, Executive Director, Foothills CDC,Maryville, Tenn.

“The Community Investment Tax Credit has helped us enormously here at
Urban Housing Solutions.  We have been able to refinance our existing
loans on our properties at a reduced rate…as low as 1.25 percent…and
this has allowed us to keep our rents at a below market rate and still
provide the support services that our residents need.  The CITCprogram
has often been more useful to us than grant funding.  It allows us to
pursue new projects without having to find a grant to help subsidize the
costs of the project.” Rusty Lawrence, Executive Director, Urban
Housing Solutions,Nashville, Tenn.

“The Frayser Community Development Corporation has bought and renovated
40 houses in recent years. We have used the Community Investment Tax
Credit as a critical tool in this its reinvestment efforts. CITChas
helped provide convenient, low cost funds by offering incentives to our
banking partners to lend to us for housing redevelopment. Frayser CDC is
proud to be distinguished as having used the CITCmore than any other
agency.” Steve Lockwood, Executive Director, Frayser CDC, Memphis,
Tenn.

The Department of Revenue is responsible for the administration of
state tax laws and motor
 vehicle title and registration laws established
by the legislature and the collection of taxes and fees associated with
those laws. The Department of Revenue collects approximately 92 percent
of total state tax revenue. During the 2008-2009 fiscal year, the
department collected $10.2 billion in state taxes and fees. In addition
to collecting state taxes, $1.9 billion of local sales tax was collected
by the department for local governments during the 2008-2009 fiscal
year. Besides collecting taxes, the department enforces the revenue laws
fairly and impartially in an effort to encourage voluntary taxpayer
compliance. The department also apportions revenue collections for
distribution to the various state funds and local units of government.
To learn more about the department, log on to www.TN.gov/revenue.

For more information about THDA, visit http://thda.org/.