Managing THDA Tax Credit Property

[Michael Hooper]

My partner and I bought a 12 unit apartment complex in Tullahoma, TN (an hour outside Nashville). In the process of buying we learned it was built using Tennessee Housing Development Agency (THDA) Tax Credit dollars many years ago. As a part of the grant it is subject the Land Use Restrictive Covenants (LURC) which limits the amount of rent we can charge and who we can rent to based of the tenants meeting some income qualifications. I checked with my property manager before purchasing, and they said they were good with everything need to manage this property. But now that we've had the property a couple months and they are trying to fill a vacancy, they have told us the THDA has a lot of rule and regulations they weren't prepared for and that they couldn't effectively manage the property. So my question is, does anyone know any property managers that manage THDA properties. Is my current PM making too big of a deal out of the regulations or is it really a huge hassle. The main things they complained about were a supposed Certification they needed to obtain and that they had to do a bunch of paperwork for each tenant verifying their income qualifications. Can anyone point me in the direction of someone that can help with this. The THDA hasn't been very forthcoming when I call. I was kind of relying on my PM for this, but with them backing out, I'm worried I'm in over my head. Any advice is appreciated. Thanks