Tennessee State Housing Trust Fund

Tennessee's State Housing Trust Fund was created in 2006.

The Housing Trust Fund, financed by profits in the mortgage loan program, targets assistance to persons of low and very low income. The fund supports several initiatives:

  • Appalachian Renovation Loan Program: In a joint program with the Appalachian Regional Commission (ARC), THDA provides funding in 31 counties for home repairs through grants to nonprofit organizations designated by THDA as a Program Participant. 
  • Competitive Grants Program: These grants support rental housing activities for households at or below 80% of area median income, including the homeless and chronically homeless; persons with mental, physical or developmental disabilities; individuals recovering from substance addiction; victims of domestic violence; veterans with multiple needs; youth aging out of foster care; and ex-offenders re-entering society. 
  • Emergency Repair Program: Funds are allocated to eight development districts and one human resource agency specifically to repair essential systems of homes to keep them livable for elderly or disabled homeowners. 
  • Housing Modification and Ramp Program: The Housing Modification and Ramp Program provides funding to United Cerebral Palsy of Middle Tennessee to construct ramps and make other modifications to assist persons with disabilities with access to their homes throughout Tennessee. 
  • Habitat for Humanity of Tennessee: The nonprofit organization has received annual funding since July 2014 to provide construction funding to local affiliates for new construction of single family homes. 
  • Rebuild & Recover: The Rebuild & Recover program helps communities that have been hit by a natural disaster, but do not qualify for Federal Emergency Management Agency (FEMA) or Tennessee Emergency Management (TEMA) funds. Grants are made to the city or county. 

The THDA Board approved allocations of $7.5 million to the Housing Trust Fund in FY 2015 and FY 2106. In July 2015, the Emergency Repair for the Elderly Program was expanded to include individuals with disabilities of any age, and the USDA Rural Repair Program was discontinued. Beginning in FY 2015, an annual allocation of $500,000 has been set-aside for Habitat for Humanity of Tennessee for re-distribution to local Habitat affiliates.

For questions about the Housing Trust Fund, contact Don Watt, Director of Community Programs, 615-815-2032.

Funding for these programs comes from state appropriations, THDA funds, private sector investment, and matching funds from local grantees. The purpose of the Housing Trust Fund is to serve the needs of very low income, elderly and special needs Tennesseans. The Housing Trust Funf targets assistance to persons of very low income, those earning 50% or less of the area median income.

The Competitive Housing Trust Fund Grants supports the acquisition, rehabilitation, and new construction of affordable rental housing. Since 2007, the program has assisted over 1,500 households. 

Contributed By: 
National Housing Trust

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