Tax Credit Exchange Program (Exchange)
Office of Affordable Housing
Section 1602 - Tax Credit Exchange Program (Exchange) was enacted under the American Recovery and Reinvestment Act of 2009. It authorizes the US Department of the Treasury to make cash assistance available to State housing credit agencies for subaward to owners of qualified buildings. State housing credit agencies can exchange eligible low income housing tax credit with Treasury for cash at the rate of $.85 per credit dollar. The State uses the funds to make sub-awards subject to the same requirements (including rent, income, and use restrictions) as the low-income housing tax credit allocations. The purpose of the cash assistance is to pay the developer’s costs for new construction or acquisition and rehabilitation of rental housing for low-income families and individuals. The purpose of this program is to temporarily fill the gap left by a diminished demand for low-income housing tax credits. The program will allow construction or acquisition and rehabilitation of low-income housing projects to continue where developers were unable to proceed due to insufficient financing. As of today, DCA, via the Georgia Housing and Finance Authority, has received $195,000,000 in Exchange funds. Any Exchange funds not expended or disbursed by December 31, 2011 must be returned to the Treasury by January 1, 2012.
Selected Exchange Projects
Georgia Application and Award Process for Sec. 1602 Tax Credit Exchange Program
Sec. 1602 Quarterly Reporting
Forms for the 30% Test for Sec. 1602 Tax Credit Exchange Program
Section 1602 Program 30% Test Memo (pdf) - 5/20/10
Section 1602 Program 30% Test - Independent Auditor's Report (doc) - 5/20/10
Section 1602 Program 30% Test Certification (xls) - 5/20/10
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