Tennessee Low-Income Housing Tax Credit Rental Guide

Finding affordable housing in Tennessee can be challenging, especially as rent prices rise. The Low-Income Housing Tax Credit (LIHTC) program offers income-based apartments in communities across Tennessee, helping qualifying renters secure safe, affordable homes. If you're worried about high rent, maintenance, or possible eviction, understanding LIHTC properties and your rights as a Tennessee renter can help you stay protected and informed—without legal jargon.

Understanding LIHTC Properties in Tennessee

The LIHTC program is a federal initiative administered in Tennessee by the Tennessee Housing Development Agency (THDA). It encourages developers to build or rehabilitate affordable rental housing by providing them with tax credits. In return, these properties must reserve a certain number of units for low-income tenants at reduced rents.

• Available in cities and rural areas across Tennessee
• Rent amounts are limited based on local median incomes
• Units are open to individuals and families who meet income guidelines
• Tenants have rights and responsibilities under state laws, just like those renting market-rate units

Who Qualifies for LIHTC Apartments?

Eligibility is determined by household income and size. To qualify, your total income must usually fall below a specific percentage of the Area Median Income (AMI).

• Most LIHTC properties are set aside for those earning less than 60% of the AMI
• Your local LIHTC property manager can confirm their exact requirements
• You do not need to have children or be a senior—eligibility is based on income, not family type

How to Find and Apply for LIHTC Properties in Tennessee

There isn't a centralized state application; you apply directly with each property manager. Most communities require a rental application, proof of income, and identification.

• THDA's Find Affordable Apartments tool lists LIHTC units by city and county
• Each property manager uses their own application, which may include a background and credit check
• Waiting lists are common—ask about timelines and required documentation

What to Expect After Applying

If your application is approved and you move into an LIHTC apartment, your rent will be calculated based on the program's rules, not market rates. The property manager will verify your income every year to make sure you stay eligible.

All standard renter protections under Tennessee law apply, including rules on rent increases, repairs, and eviction.

Key Renter Rights in LIHTC Properties

• The right to a safe and habitable home (your landlord must maintain the unit)
• Protections against unfair eviction—a landlord must follow the proper legal process
• Right to reasonable notice before most rent increases

Tennessee's renter protections are primarily governed by the Uniform Residential Landlord and Tenant Act (URLTA) (for major cities and urban counties). URLTA sets rules for things like security deposits, repairs, and eviction procedures.

Important Forms for LIHTC Renters in Tennessee

• Tenant Application (no universal form): Used at each LIHTC property. Submit when interested in a unit; typically requires income, identity, and household details. Obtain this from the property’s leasing office.
• Annual Income Certification (Tenant Income Certification, TIC): Verifies continued eligibility each year. The property manager provides the form and instructions. Sample template and more details are at THDA Tenant Income Certification.
• Notice of Complaint (if you have an issue): Notify your landlord in writing if repairs aren’t made. For serious unresolved issues, you may send a formal “Notice to Landlord of Breach” letter describing the problem and a request for action.
• Detainer Warrant (eviction notice): If served, this means your landlord is seeking eviction through court. More details on this court process can be found at the Tennessee Courts Landlord/Tenant Issues Help Center.

Who Oversees Renters’ Rights and Evictions?

Evictions and rental disputes are decided by your local General Sessions Court in Tennessee. This official court system handles landlord-tenant conflicts, including those involving LIHTC properties.

Frequently Asked Questions About LIHTC Housing in Tennessee

1. How do I know if I qualify for a Low-Income Housing Tax Credit unit?
   You qualify if your household income is below the maximum limit set for your area. The property manager will determine your eligibility during the application process by verifying your income and household size.
2. Is there a waiting list for LIHTC apartments?
   Many LIHTC properties in Tennessee do have waiting lists. It’s a good idea to apply to several properties and check regularly on your application status.
3. Can I be evicted from an LIHTC property for any reason?
   No. Your landlord must have a legal reason (such as not paying rent or violating the lease) and must follow Tennessee law and proper notice procedures to evict you.
4. Do I have to renew my income verification every year?
   Yes. Each year, you’ll be asked to complete the Tenant Income Certification (TIC) so the property can confirm you still qualify for the program.
5. Where can I file a complaint if my LIHTC landlord isn’t addressing repairs?
   You should first notify your landlord in writing. If there’s no response, you can contact the Tennessee Housing Development Agency or bring the matter to your local General Sessions Court for resolution.

Conclusion: Key Takeaways for Tennessee LIHTC Renters

• LIHTC apartments offer affordable rents to tenants meeting income requirements
• Apply directly at each property; annual documentation is required
• Tennessee law protects your rental rights—know them and seek support when needed

Being informed about how LIHTC works in Tennessee, what forms you’ll use, and where to turn for help can empower you as a renter looking for stable, affordable housing.

Need Help? Resources for Renters

• Tennessee Housing Development Agency Affordable Housing Listings
• Tennessee Courts Landlord/Tenant Issues Self-Help Center
• THDA Tenants’ Rights and Local Resources
• HUD: Tennessee Renting Resources

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1. Tennessee Housing Development Agency - LIHTC Program
2. Uniform Residential Landlord and Tenant Act (URLTA)
3. Tennessee General Sessions Court - Landlord/Tenant
4. THDA: Find Affordable Apartments in Tennessee
5. Tenant Income Certification Sample (THDA)

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