Tax Credit Exchange Program (Exchange)
Office of Affordable Housing
General Program Description
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.
Treasury Sec. 1602 Program webpage
Treasury’s Sec. 1602 Questions and Answers
Treasury's Section 1602 Recapture Guidance
Selected Exchange Projects
2008AR-030 Dogwood View
2008AR-044 Mallard Lake
2008AR-056 Camellia Lane
2008AR-076 Skyline
2008AR-072 Friendship Crossing
2008AR-020 Rosewood Estates
2008AR-019 Waterford (fka Shannon) Estates
2008AR-075 Landing at Southlake
2008AR-006 Terrace at Edinburgh
2008AR-093 Potemkin Senior Village
2008AR-073 West Haven Senior Village
2008AR-054 Galleria Manor at Smyrna
2009AR-058 Park Place of Carrollton II
2009AR-047 Heritage at Madison Point
2009AR-027 Columbia Townhomes at Edgewood
2009AR-023 Sustainable Fellwood III
2009AR-066 Lakewood Hills Senior Village
2009AR-042 Antioch Villas and Gardens
Draw Procedures
Georgia Application and Award Process for Sec. 1602 Tax Credit Exchange Program
Cost Analysis and Energy Efficiency Review Procedures
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
Related Links
USDOL Employment Standards Administration Wage and Labor Division
OAH Funding Round Web Pages
Neighborhood Stabilization Program
Recovery Zone Economic Development Bonds
Contact Information
Email for Recovery Questions.
Georgia Department of Community Affairs
60 Executive Park South, N.E.
Atlanta, Georgia 30329-2231
