ABC`s of Housing Assistance in Tennessee

The ABC’s of Housing Assistance in
July 18, 2013
… provide the communities an overview of
housing programs available in Tennessee:
Tennessee Housing Development Agency
Community Development Block Grant program
USDA—Rural Development
 Tennessee Housing Development Agency
 1973
 The Tennessee General Assembly, under
Acts of 1973, Chapter 241
“Leading Tennessee Home by creating
safe, sound, affordable housing
THDA's goal is to provide housing assistance to
those in need by offering a variety of housingrelated programs.
TCA 13-23-101 thru 133
 Board of Directors
 Officers and delegation of duties
 General Powers
 Energy use considered in making loans
 Issuance of bonds and notes
 Making
A Positive Impact on
Tennesseans…and Tennessee’s Economy!
› Provided mortgage financing to over 100,000
first-time homebuyers in Tennessee
› Helped create/preserve 47,000 affordable,
rental units
› Provides monthly rental assistance to over
35,000 Tennessee households
› THDA’s total economic impact in 2011 was
$728.6 million
› THDA receives no state appropriations to
fund operations, but does receive
administrative fees to service some federal
› Generates annual earnings through its
Single Family Mortgage program ($18
million in FY2012)
› THDA’s earnings are used to cover
operational expenses and fund several
critical THDA housing initiatives
 High-Performing
› THDA bonds rated AA+ by Standard & Poor’s
and Aa1 by Moody’s
› Holds over 26,000 mortgages in its portfolio,
assets valued at $2.1 billion
› $557 million in total Net Assets
› Recognized for program and operational
excellence by the National Council of State
Housing Agencies
The Divisions
Community Programs
o Rental Development
Section 8 Rental Assistance
o Single Family
Community Investment Tax Credit (CITC)
 Emergency Shelter Grant (ESG)
 HOME Program
 Housing Trust Fund (HTF) Competitive
Financial institutions may obtain a credit against the sum
total of taxes for low-income housing activities engaged
by eligible housing entities
 Administered in collaboration with the TN Dept. of
 THDA certifies the eligibility of the housing entity and the
low income housing activity
 TN Dept. of Revenue awards the tax credits to the
financial institutions
Eligible Housing Entities:
› Tennessee nonprofit organizations
› Development Districts
› Public Housing Authorities
Eligible Activities:
› Activities that create or preserve affordable housing
for low-income Tennesseans*
› Activities that assist low-income Tennesseans in
obtaining safe and affordable housing
› Activities that build the capacity of an eligible nonprofit organization to provide housing opportunities for
low-income Tennesseans
› Any other low-income housing related activity by the
THDA Executive Director and the Commissioner of
*Low-income Tennesseans are defined as those who are at or below
80% of the area median income adjusted for family size
Application Process
Applications may be secured from the THDA website.
Upon receipt of the completed application and
supporting documentation, THDA will certify the housing
entity and the low-income housing activity as eligible for
participation in the program.
THDA will forward the application to the TN Dept. of
Revenue and the department will award the tax credits.
Emergency Solutions Grant (ESG) provides services,
emergency shelter and rapid-rehousing to the
homeless and to assist individuals and families at risk
for homelessness through prevention assistance
ESG funding is allocated to areas outside the CDBG
entitlement communities that receive their own
funding directly from HUD
ESG activities are focused on helping meet the
needs of emergency homeless shelters and other
agencies who provide services to the homeless or
those at risk for homelessness
THDA assists with developing and expanding services
in rural areas that lack ready access to other
homeless assistance funds, placing a priority on
maintaining and securing permanent housing
THDA administers the HOME program to help
meet the housing needs of low and very low
income individuals and families
HOME funds are awarded through an annual
competitive application process to cities,
counties and eligible nonprofit organizations
Local governments in TN that receive HOME
funds directly from HUD are not eligible to apply
Eligible Activities
• Homeowner Rehabilitation Programs: designed to
owner-occupied, dilapidated houses in order to bring the
structure up to local building code. Program beneficiaries
receive the funds as a forgivable grant with a compliance
period (5 yrs on rehab houses, 15 yrs on new-built houses)
• Rental Housing Programs: designed to provide affordable
rental units for low income households through new
construction of rental units or acquisition and/or
rehabilitation of rental units. Program beneficiaries receive
funds as a grant with an affordability period of 5 to 20 years.
Eligible Activities
Homeownership Programs: designed to promote
homeownership opportunities for low and very low income
individuals and families.
Restricted to a down payment assistance program in which
funds are awarded to program beneficiaries as a soft second
mortgage not to exceed $14,999 with an affordability period
of 5 years.
Application Process
Application workshop in January in each Grand Division of the state
Applications are due in mid-March
Successful applicants are notified at the end of May
HOME contracts begin on July 1st for a 3-year term
HOME Program Requirements
Income Limits: Households with incomes of 80% or less of area
median income, adjusted for family size. For rental projects, 90% of
the households must have incomes below 60% of area median
income and adjusted for family size
Subsidy Levels: Levels for units range from a minimum of $1,000 per
unit to a maximum of $108,523 for a unit with 4 or more BR’s
Property Standards: Housing must meet all applicable local codes,
rehabilitation standards and zoning ordinances at project
New construction projects must be Energy Star qualified and certified
by an independent Home Energy Rating System rater.
Purpose: Establish a pool of funds that would be
allocated to local entities to meet the housing
needs for very low income, elderly, and special
needs citizens.
 General Program Uses: Assistance to those
person of very low income (those earning 50% or
less of the area median income.)
Competitive HTF grants support the chronically
homeless, persons with mental retardation or
mental illness, developmental disabilities, single
mothers recovering from substance addiction or
physical abuse, veterans with multiple needs and
ex-offenders reentering society
Emergency Repair Fund: The dollars are
allocated to the state’s 9 development
districts specifically to repair a home to keep
it livable for its elderly homeowner
USDA/Rural Development has an established
home repair fund
United Cerebral Palsy partners with THDA to
construct ramps for the disabled
Project Requirements
› Serve the targeted populations: very low income,
very low income elderly, or very low income with
special needs
› Match grant funds with new local funds
› Extra consideration given for projects that use the
funds as loans as opposed to grants (to create a
local revolving fund for future use)
Low-Income Housing Tax Credits (LIHTC)
 Multifamily Tax-Exempt Bonds
LIHTC: a credit against federal income tax liability each
year for 10 years for owners & investors in affordable
rental housing. Amount of tax credits is based on
reasonable costs of development, as determined by
THDA, and the number of qualified affordable units.
A development must have a minimum of either:
- 20% of its units occupied by households with incomes no
greater than 50% of area median income, or
- 40% of its units with incomes no greater than 60% of area
median income.
-Income limits are adjusted for household size
-Max. rents are established for each size of unit, not to exceed
30% of the area maximum income for specified household
-All requirements of the relevant qualified allocation plan
developed by THDA and approved by the Governor must be
Developments must remain income and rent
restricted for as long as 30 years. Tenants of low
income are protected against eviction or large
rent increases under certain circumstances.
THDA allocates tax credits to eligible
developments through a competitive process or
through a non-competitive process in
conjunction with use of tax-exempt financing, all
subject to the relevant qualified allocation plan.
THDA authorizes the allocation of Multifamily TaxExempt Bond Authority to local issuers for multifamily
Bonds must be issued by a local board or other
issuing entity with jurisdiction in the area of the
proposed development
Some units must be occupied by households of low
› 20% of the units must be occupied by households with
income no greater than 50% of area median income, or
› 40% of the units with household incomes no greater than
60% of area median income
› 75% of the units must be occupied by households with
incomes no greater than 115% of the area median income
Per development limits involving new
construction and for developments involving
conversion and/or acquisition rehabilitation
 Multifamily Tax-Exempt Bond Authority will be
allocated only to eligible applications on a
first come, first served basis.
 Applicants must meet THDA and federal tax
requirements and all other applicable
federal, state, and local laws or ordinances
Rental Assistance Voucher Program
A rental assistance program funded through HUD
• Assistance for affordable, decent, safe and sanitary
housing in the private market for very low-income
families, the elderly, and the disabled.
• The program is federally funded but run by a network of
about 2,300 state and local housing agencies
 THDA administers the Housing Choice Voucher program in 72
Tennessee Counties (see THDA’s Rental Assistance Housing
Voucher link for listing of Rental assistance field offices)
Who is eligible for Vouchers?
How Does a Family Apply for a Voucher?
How Long will a Family wait for Assistance?
BUILD Loan Program
 Foreclosure Prevention Initiative
 Homebuyer Education
 Homeownership Choices
 Homeownership Choices – New Start
 Homeownership for the Brave
Purpose: promote the production,
preservation, and rehabilitation of housing
for low and very low income households by
making low interest short term loans
available to eligible non-profit organizations
that help meet their housing needs.
Eligible Participants
Eligible Activities
BUILD Program Loan Options
Launched in Fall 2007 through the partnership
efforts of the Statewide Affordable Housing
Coalition and THDA.
Major Components of this Initiative:
 Public Awareness Campaign
 Counseling Grant Funds
 Certification Training
 Great Save Loan
“The First Step towards Successful Homeownership”
THDA maintains a list of certified homebuyer
education trainers who can help consumers
considering the purchase of a home.
Trainers address the following basic areas:
Budgeting and Credit
Shopping for a Home
Getting a Mortgage Loan
Keeping Your Home and Managing Your Finances
THDA’s Homeownership programs are designed for
low-and moderate-income borrowers.
3 programs offering these choices:
 Great Rate Program
 Offers a below-market interest rate loan secured by a
first mortgage
Great Advantage Program
 Offers a loan at a slightly higher interest rate, secured
by a first mortgage, but offer assistance with down
payment and closing costs.
Great Start Program
 Same as Great Advantage Program, except interest
rate and closing cost percentage is higher
Designed to promote the construction of new
homes for low and very low income
Delivered through non-profit organizations with
established programs for the construction of
single-family housing for this income level
The program selects the homebuyer,
determines eligibility, constructs the home,
provides homebuyer education
What is this? It’s a ½ percent reduction off THDA’s
30-year fixed mortgage interest rates
Who is eligible? Active duty members of the
armed forces and National Guard, veterans
discharged under conditions other than
dishonorable, reservists with at least 180 days of
active duty service, spouses of service members
and qualified veterans as well as their surviving
Homeownership Choice Rate
Great Start: 4.2%/1.25+.25/4.40%APR
Homeownership for
the Brave Rate
My TN Home
* effective October 1, 2013
Mortgage assistance for struggling Tennessee
Assists with payments on mortgage and
mortgage-related expenses such as property
taxes, homeowners insurance, homeowners
association due, and past-due payments
that accumulated during an unemployment
For more information on how to apply:
› or call 1-855-890-8073
› Online brochure--
100% federally-funded through a grant from
the U.S. Department of Energy
Provides funds to states to assist with the
weatherization of homes of low income
elderly and adults and families
For more information, contact Coralee Holloway
(THDA) Director of Community Programs at 615815-2030 or
For more information:
› THDA: Coralee Holloway, Director of Community
Programs at (615) 815-2030 (
› MDHA: Phil Ryan, Executive Director or Rhonda Sweat,
Community Development Program Mgr. at (615) 2528500 (
› MCCAA: Kevin Davenport, Executive Director or
Andrea Stanley, Coordinator at (615) 742-1113 or 1137
Assists households of low income -- particularly
those who pay a high proportion of household
income for home energy bills -- in helping them
meet their immediate home energy needs
Households are served on a priority point system
specifically targeted toward persons who are
elderly, disabled and/or under the age of six
Payments made directly to utility provider
For more information:
› For more information on LIHEAP and to view a list
of LIHEAP agencies, please visit
CDBG dollars are available to communities with a
population of fewer than 50,000 residents for the purpose of
attracting new or expanding existing companies, as long
as the projects align with one of three objectives:
Principally benefit low and/or moderate income people.
 Eliminate or prevent slums and/or blight.
 Address imminent health and/or safety problems.
*This is part of the Small Cities CDBG program. Other communities
receive money directly from HUD (see ECD’s website for those
Goal of program: extinguish poverty and
“urban blight.”
 One of the longest running HUD programs
 Has less federal oversight and largely used at
the discretion of state and local governments
 Must be used to benefit low and moderate
income people, preventing or eliminating
blighted areas and slums, and addressing
urgent threats to health or safety
Economic Development
› Grants for industrial infrastructure, buildings,
and equipment
Community Development
› Grants for water and wastewater treatment
› Housing rehabilitation and projects aimed at
improving community livability
Covers owner-occupied housing
Occasional new construction
All activities in the application should be
directly related to housing
 Funds are limited to the renovation of
owner-occupied dwellings
 Funds are limited to grants
 Funds used for rehabilitation will be
dispersed only through competitive bids
 New construction should be minimal
Eligible Projects
CDBG "regular round" projects: anything that is
eligible under the federal legislation, such as
rural fire protection, primary health care, and
other health and safety-related conditions in
the community
Application Requirements
Applications may be submitted only once a year, normally in
Previous projects must be completed before another application
can be submitted
Eligible cities, with the exception of metros, or counties can
submit only one application
Maximum grants are $500,000 for lines, systems and housing
Maximum grants for community livability projects are $300,000.
Regional projects can receive up to $1 million grants.
Grant rates are based on the ability-to-pay of the applicant as
calculated by the Center for Business and Economic Research at
the University of Tennessee.
Measures the program on four factors:
 Need
 Feasibility
 Impact
 Essentialness
Projects are reviewed, scored and ranked
based on evaluation criteria and based on
total number of points earned.
The Governor’s set-aside fund
 2013
 Handbooks
 Title
VI Compliance
For information about the Community Development
CDBG Program, contact Brooxie Carlton at(615) 741-8806
For information about the Economic Development
CDBG Program, contact Jeff Bolton at (615) 253-1909.
For information about the disbursement of funds,
contact Stephanie Burnette at (615) 253-1912.
For additional information and assistance, contact
Charlotte Tugwell with GNRC at (615) 862-8828
The office of Rural Development:
› Runs programs intended to improve
the economy & quality of live in Rural
› Created to administer the former Farmer’s Home
Administration’s non-farm financial programs for
rural housing, community facilities, water and
waste disposal, and rural businesses.
Rural Housing Service (RHS)
› Homeownership options to individuals
› Housing rehabilitation and preservation funding
› Rental assistance to tenants of RHS-funded multi-
family housing complexes
› Farm labor housing
› Assistance to developers of multi-family housing
projects (assisted housing for elderly and
disabled, community facilities such as libraries,
child care centers, schools, municipal buildings)
Has helped more than 650,000 American
families achieve homeownership
 the Rural Refinance Pilot Program – that has
helped more than 5,500 homeowners
refinance their mortgage at lower rates
 This initiative has expanded from 19 to 34
states in an effort to provide assistance for
more families.
Housing Assistance
› Housing for Individuals
•Single Family Direct Homeownership Loans
•Single Family Guaranteed Homeownership Loans
•Rental Assistance Subsidy
› Housing Development Opportunities
•Single Family "Self-Help" Technical Assistance Grants
•Rental Housing Direct Loans
•Farm Labor Housing Loans and Grants
•Housing Preservation Grants
•Housing Application Packaging Grants
•Housing Site Loans
› Lender Opportunities
•Single Family Homeownership Loan Guarantees
• Rental Housing Loan Guarantees
Tennessee—Nashville area
Christopher Westbrook, Area Director
615-783-1359 | 800-342-3149 x 1359
3322 West End Ave, Ste 302
Nashville, TN 37203
Serves all thirteen counties in the GNRC.

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