THDA Programs for Homeowners

Low- and moderate-income families may face unique challenges with homeownership. While a few hundred dollars in repairs or expensive winter heating bills may not dramatically affect homeowners who enjoy a higher income, it can spell disaster for their lower-income counterparts.

The Tennessee Housing Development Agency (THDA) promotes affordable housing to very low- and moderate-income families as well as long-term homeownership. THDA isn’t a lender, but the organization purchases qualified homes from the lender. In addition, it offers programs to lower-income Tennessee homeowners to assist with certain aspects of homeownership. Specifically, THDA offers six key programs:

Weatherization Assistance
This program helps low-income Tennessee families reduce the cost of heating and cooling their homes by making them more energy efficient. A certified energy auditor conducts an audit, and the weatherization measures are chosen based on the findings. Some common uses of the program are duct and air sealing, and adding insulation to the ceiling, walls, and floors. The program is instrumental in increasing a property’s energy efficiency, decreasing wasted energy, and increasing client education. Households with elderly members or small children are given funding priority.

Low-Income Home Energy Assistance Program (LIHEAP)
Low-income homeowners who pay a high percentage of their income to energy bills may qualify for this program. LIHEAP is a one-time assistance program granted from one of 19 agencies across the state to help offset the cost of utility bills. There is an application process that recipients must complete. To qualify, the homeowners’ income must fall below 60% of the median state income. A person who participates or has family members who participate in other benefit programs such as SNAP may be automatically eligible. LIHEAP payments aren’t sent to the homeowner but are made directly to the utility company.

Emergency Repair
THDA’s Emergency Repair Program allocates funds to complete essential home repairs for elderly or disabled homeowners. Senior citizens 60 or over can take advantage of this program. The program is administered statewide by eight development districts and one human resource agency. Its goal is to make homes more livable. While it doesn’t cover broad renovations, it does include important updates like roofing, electrical and plumbing systems, septic tanks, wall and door repair, window replacement, and other high dollar repairs.

Home Modifications and Ramps
Inaccessible homes are a real problem to Tennesseans with disabilities. The Home Modifications and Ramps Program provides funding to construct ramps and make other home modifications to assist persons with disabilities gain better access to their homes. This program is administered statewide through United Cerebral Palsy of Middle Tennessee. Any disability that creates mobility impairment is eligible for assistance.

Foreclosure Prevention
Homeowners who get behind on their mortgage payments can end up facing foreclosure. Lower- and middle-income families have a more difficult time “catching up” once they’re behind than those with more leeway in their budgets. THDA trains organizations across Tennessee to provide free and confidential counseling to homeowners facing foreclosure. THDA maintains a list of certified foreclosure prevention counselors on its website. The best advice is to reach out as soon as you begin having trouble paying your mortgage rather than waiting until it’s already a few months past due.

Tennessee Repair Loan Program
Becoming a homeowner doesn’t guarantee that a person will be able to stay a homeowner. The Tennessee Repair Loan Program (TRLP) helps sustain homeownership across the state by providing loans for repairs or improvements to maintain safe and sound housing for those with low income, veterans, seniors, and homeowners with special needs. Owners of one to four units stick built, or single or double-wide, can qualify if they’ve owned the property at least five years. THDA offers loan amounts up to $25,000 with 0% interest. Keep in mind commercial or multi-family properties are ineligible.

Understanding your options when it comes to maintaining homeownership and keeping your property up to date is vital to taking care of your family and your finances. By proactively seeking out assistance with expensive items that could wreck your budget, you’re able to keep your family safe and secure. If you’re a Tennessee homeowner who needs assistance, one of THDA’s programs could be your best solution.