STATE LIHTC RESEARCH

Tennessee
QAP scoring guide.

Tennessee Housing Development Agency (THDA) · 2026 QAP

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● Verified guideChecked Sep 12, 2026View source QAP ↗

THE POINT TABLE

Competitive scoring

27 categories

Real 2026 award data (THDA "2026 Competitive LIHTC Awards," updated 7/7/2026): New Construction General Priority winners scored a uniform 94.0000 across all 6 regional pools (West TN, Middle TN, Southeast TN, East TN, Northeast TN, Rural/Balance of State) — i.e., essentially the practical ceiling under the ~95-point achievable cap. Existing Multifamily Housing (Rehabilitation) winners scored 83.2195-85.0598 (5 awardees) against a 60-point minimum and ~93-point achievable ceiling. PHA General Priority Category winners scored 72.0000 and 80.0000 (min. 52 required). The sole Permanent Supportive Housing for Homeless Set-Aside awardee scored 63.8935 (single applicant, not a competitive threshold in that narrow pool).

Select a category to read its scoring criteria.

New Construction: Housing Credit Development Location

4 pts

Points for developments sited in areas with the greatest Regional Housing Needs Score per the 'Proposed Siting Model for New Construction' map; does not apply within the PHA General Priority Category. QAP Section 17.A.1.

New Construction: Meeting Housing Needs

6 pts

Up to 5 points for setting aside additional units below the elected minimum set-aside test's income line (extra units at 50% AMI under the 40/60 Test, or at 40% AMI under the 20/50 Test, per Table 17-1), plus up to 6 points if at least 10% of units are at 30% AMI; Average Income Test electors are ineligible. Section 17.A.2.

New Construction: Development Characteristics

23 pts

Menu of physical amenities (exterior materials, anti-fungal roofing, pet park, in-unit washer/dryer hookups, gazebo, secure delivery area, flex/case-management office, community building, pre-wired internet, stove fire-suppression, security cameras, walking trail, perimeter fencing, pergola, veranda, pavilion, historic-register status), each worth 1-6 points, capped at 23 total. Section 17.A.3.

New Construction: Sponsor Characteristics

7 pts

Up to 2 points for the Development Team's most recent prior Tennessee Housing Credit allocation (Table 17-2), plus up to 5 points for Development Team Track Record based on cumulative 'Minor SAEs' since 2020 (Table 17-3, inverse scale — fewer SAEs score higher). Section 17.A.4.

New Construction: Water & Sewer

4 pts

2 points if public water/sewer (or a financed on-site system) is approved and planned to the site; 4 points if installed/available or TDEC-approved. Table 17-4, Section 17.A.5.

New Construction: Financial Readiness to Proceed

4 pts

Scaled 1-4 points based on the percentage of non-equity dollars committed via signed/conditional commitment letters or loan/grant agreements (deferred developer fee does not count). Table 17-5, Section 17.A.6.

New Construction: Design Development

4 pts

1-4 points based on conceptual design progress: schematic site plan, + floor plans, + elevations, + construction drawings begun. Table 17-6, Section 17.A.7.

New Construction: Planning & Zoning Process

4 pts

0/2/4 points based on whether local zoning/PUD approval has not begun, is in process, or is already by-right/approved. Table 17-7, Section 17.A.8.

New Construction: Public Housing Waiting List / HCV Holder Preference

1 pts

Flat 1 point for documenting a leasing preference for households on a Public Housing waiting list or holding a Housing Choice Voucher. Section 17.A.9.

New Construction: Serving Special Housing Needs OR Children

5 pts

Single combined 5-point item (applicant elects one path): serve Special Housing Needs populations (service-provider MOA + dedicated space + an on-site amenity) OR serve households with children (≥20% 3BR units + playground + an on-site amenity). Section 17.A.10.

New Construction: Eventual Resident Ownership

1 pts

1 point for offering qualified residents a right of first refusal to purchase at the end of the 15-year Compliance Period, with a funded rent set-aside plan; mutually exclusive with the Qualified Contract waiver and Recapitalization Waiver points. Section 17.A.11.

New Construction: Energy Efficiency

10 pts

Menu of ENERGY STAR features (HVAC 3pts, tankless water heater 2pts, dishwasher 2pts, refrigerator 2pts, windows 2pts, ceiling fans 1pt, ventilation fans 1pt), development-wide at placed-in-service, capped at 10. Section 17.A.12.

New Construction: Tennessee Growth Policy Act

5 pts

Flat 5 points if the development is wholly within a county/municipality with an approved growth plan under the TN Growth Policy Act. Section 17.A.13.

New Construction: Waiver of Qualified Contract Process

9 pts

9 points for waiving Qualified Contract rights, extending the LURC Compliance Period to 30 years (15 years if an approved PILOT exists); mutually exclusive with the Resident Ownership item. Section 17.A.14.

New Construction: Extended Recapitalization Waiver

8 pts

2 or 8 points depending on how many years (17 or 20) the applicant defers eligibility to request a new Housing Credit allocation for recapitalization, measured from last building placed-in-service. Table 17-8, Section 17.A.15.

Rehabilitation: Housing Credit Development Location

2 pts

2 points if the development site is wholly within a HUD-defined QCT covered by a Concerted Community Revitalization Plan (CCRP). Section 17.B.1.

Rehabilitation: Meeting Housing Needs

13 pts

Composite of up to 4 points for years elapsed since last placed-in-service (Table 17-9, PHA vs. other schedule), up to 3 points scaled to the 3-year average physical occupancy rate, up to 3 points scaled to 'per-door' rehab hard costs above $25,000 (Table 17-10), and up to 3 points scaled to the development's share of the county's existing + pipeline affordable/Housing Credit unit inventory being rehabbed. Section 17.B.2.

Rehabilitation: Development Characteristics

23 pts

Similar amenity menu to New Construction, plus 5 points specifically for rehabbing in a CCRP-covered area; capped at 23 total. Section 17.B.3.

Rehabilitation: Sponsor Characteristics

10 pts

Up to 5 points for the Development Team's most recent prior TN Housing Credit allocation (Table 17-11) plus up to 5 points for Development Team Track Record based on cumulative Minor SAEs since 2019 (Table 17-12). Section 17.B.4.

Rehabilitation: Serving Special Housing Needs

7 pts

7 points for a documented special-needs residency preference with service-provider MOA and dedicated space; mutually exclusive with 'Serving Children' below (only one may be claimed). Section 17.B.5.

Rehabilitation: Public Housing Waiting List / HCV Holder Preference

1 pts

Flat 1 point, same as the New Construction track. Section 17.B.6.

Rehabilitation: Serving Resident Populations with Children

7 pts

7 points for a children residency preference with ≥20% 3BR units, playground, and an on-site amenity; mutually exclusive with 'Serving Special Housing Needs' above. Section 17.B.7.

Rehabilitation: Eventual Resident Ownership

4 pts

4 points for the same right-of-first-refusal structure as New Construction (higher point value in this track); mutually exclusive with the QC waiver and Recapitalization Waiver items. Section 17.B.8.

Rehabilitation: Energy Efficiency

10 pts

Menu of ENERGY STAR features (HVAC 3, tankless water heater 2, refrigerator 2, windows 2, ventilation fans 1), capped at 10. Section 17.B.9.

Rehabilitation: Tennessee Growth Policy Act

5 pts

Same as New Construction. Section 17.B.10.

Rehabilitation: Waiver of Qualified Contract Process

10 pts

10 points (vs. 9 for New Construction) for waiving QC rights. Section 17.B.11.

Rehabilitation: Extended Recapitalization Waiver

8 pts

Same 2/8-point, 17-year/20-year structure as New Construction (Table 17-13). Section 17.B.12.

Scoring source

2026 QAP (THDA), Board-approved 9/23/25, Governor-approved 12/17/25, Section 17 "Initial Application Scoring": Part A "New Construction Only" (document pages 49-56) and Part B "Rehabilitation of Existing Multifamily Housing" (pages 57-63). Minimum eligible scores (65 pts New Construction / 60 pts Rehabilitation, PHA General Priority Category 52 pts) stated in the Section 17.A and 17.B introductory paragraphs, which also state neither track is "intended to allow an Applicant to claim the maximum 100 points." Final ranking order and tie-breakers in Section 19.E and 19.F (both p.67); set-aside/priority-category rules in Sections 11-16 (pp.41-48).

WHEN SCORES ARE CLOSE

Tie-breakers

Review the agency’s tie-breaker rules alongside the scoring criteria.

New Construction: priority to the application requesting the least Housing Credit per unit
New Construction, if still tied: priority to the development located wholly within a QCT and covered by a CCRP
Rehabilitation (Existing Multifamily Housing): priority to the application requesting the least Housing Credit per unit -- this track has no secondary QCT/CCRP fallback

MODEL ASSUMPTIONS

Underwriting parameters

2026 QAP (THDA, approved by Governor 12/17/2025), Section 6.B.3-4 "Financial Feasibility"/"Financial Pro-forma" threshold requirements (p.44); Section 11.F-J "Total Development Costs," "Developer Fees and Consultant Fees Limits," "Limit on Contractor Fees" (pp.74-77); Section 22.C-E "Total Development Cost Limits" and contractor fee limits for MTBA/noncompetitive deals (pp.134-136). THDA does not publish a standalone "Underwriting Standards" section or appendix in the QAP. The typical numeric underwriting inputs (vacancy, DCR, reserves, expense escalation) were also checked against THDA's companion documents — 2026 Market Study Guidance, 2026 Appraisal Guidance, and 2026 Physical Needs Assessment Guidance (all on the THOMAS Documents Page, thda.org/rental-housing-partn/thomas-documents) — and are not fixed there either; THDA instead evaluates feasibility case-by-case "as determined by THDA, in its sole discretion."

OPERATING ASSUMPTIONS

Utility allowance

Preferred method: local_pha

THDA County-Based Utility Allowance Schedules (calculated via the HUD Utility Schedule Model where THDA is the local PHA), plus the "2025 Utility Allowance Methodology" and "2025 Instructions for Utility Allowances" documents ↗

2026 QAP, Part I, Section 10.M "Determination of Utility Allowance" (THDA LIHTC QAP pp. 63-68)

YOUR NEXT STEPS

Development guides for Tennessee

PHASE 1Site sourcing and screening PHASE 2Site control and due diligence PHASE 3Entitlement pathway election PHASE 4Program election (9% vs. 4% vs. hybrid)PHASE 5Rents, income limits, and the operating pro forma PHASE 6Cost, construction type, and the labor package PHASE 7A capital stack with one credit still stuck in a Senate subcommittee PHASE 8One deadline, one shot, and a self-score THDA will re-derive from scratch PHASE 9A carryover clock the QAP won't print a number for — and an Evaluation Notice cadence that only gets shorter PHASE 10Construction monitoring, cost certification, and the path to Form 8609 PHASE 11Compliance, Year 15, and THDA's 30-year extended-use floor

Use the LIHTC feasibility checklist →