Tennessee Housing Development Agency

Homeowners Assistance Fund Program (HAF)

Summary Guideline

Phase 1

1. Program Overview The Tennessee Housing Development Agency (THDA) 

Tennessee Homeowner Assistance Fund (TNHAF) will provide 

assistance to homeowners for the purpose of preventing 

homeowner mortgage delinquencies, defaults, foreclosures, and 

displacements of homeowners experiencing financial hardship 

after January 21, 2020. 

HAF funds will be used to eliminate or reduce past due payments 

and other delinquent amounts, including payments under a 

forbearance plan.

HAF funds may be used to bring account fully current, with no 

remaining delinquent amounts, and to repay amounts advanced by 

the lender or servicer on the borrower’s behalf for property charges, 

including property taxes, hazard insurance premiums, flood or wind 

insurance premiums, ground rents, condominium fees, cooperative 

maintenance fees, planned unit development fees, homeowners’ 

association fees or utilities that the servicer advanced to protect lien 

position. Payment may also include any reasonably required legal 

fees.

HAF funds may be used to provide payment assistance to 

homeowners unable to make full mortgage payments due to a 

continuing financial hardship associated with the Coronavirus 

pandemic. 

HAF funds may be used to supplement other loss mitigation options 

offered by the servicer under investor requirements or where, 

without HAF funds, the homeowner would not qualify for that loss 

mitigation option.

2. Maximum Amount of 

Assistance Per Homeowner

Each Homeowner will be eligible for up to $40,000 through this 

program to be used only for the homeowner’s primary residence.
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3. Target Population /Areas This program will be available in all Tennessee counties. Not 

less than 60% of available TNHAF funds must be used for 

homeowners having incomes equal to or less than 100% of the 

median income of the United States. Any amount not made 

available to homeowners that meet this income-targeting 

requirement must be prioritized for assistance to socially 

disadvantaged individuals, with funds remaining after such 

prioritization being made available for other eligible 

homeowners.

4. Program Funds • Total Allocation $168,239,035

• Program Funds for Phase 1 $106,179,276 plus any remaining 

funds initially allocated to the Pilot.

• Reserved for counseling fees/legal aid assistance $8,411,952

• Administrative Funds $25,235,855 (Total for all program 

phases)

5. Homeowner Eligibility 

Criteria and Documentation 

Criteria

In order to be eligible for assistance under the TNHAF Program, 

homeowners must meet the following criteria:

• Homeowner has experienced an eligible financial hardship 

(lasting at least 30 days), related to the Coronavirus 

Pandemic, of involuntary loss of income equal to or greater 

than 10% due to a death of a spouse/domestic partner or 

occupying co-borrower, temporary loss of wages or an 

eligible increase in expenses related to the Coronavirus 

Pandemic (as defined in the program guidelines) which 

occurred after the purchase of the home and occurred or was 

ongoing after January 21, 2020.

• Homeowner is required to complete and sign a financial 

hardship affidavit with appropriate documentation as to the 

cause of the hardship, as specified in the program guidelines.

• Homeowner is required to sign program specific documents 

as listed in the program guide. 

• Homeowner is required to complete housing education/ 

counseling before funds are released. Type of counseling 

required will be determined by the type of assistance 

provided.

Eligibility for program assistance will be determined by THDA in its 

sole discretion, based on the criteria stated above and as otherwise set 

forth in the program guidelines. The TNHAF funds will be allocated 

as dictated by Treasury requirements.
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6. Mortgage Eligibility Criteria Eligible mortgage means any credit transaction (1) that is secured by 

a mortgage, deed of trust, or other consensual security interest on a 

principal residence of a borrower that is (a) a one to four unit 

dwelling, or (b) a residential real property that includes a one to four 

unit dwelling; and (2) the unpaid principal balance(s) of which was at 

the time of origination, not more than the conforming loan limit.

Tennessee owner-occupied, primary residences only.

7. Program Exclusions • Non-arm’s Length Land contracts

• Ownership Structures other than a “Natural Person” (i.e., 

LLP, LP or LLC.)

****See HAF Program Guide for additional exclusions.

8. Duration of Assistance Funds will not be provided past December 1, 2026.

9. Estimated Number of 

Participating Households

Approximately 4,800 Households

10. Program Inception/ Duration Program launch January 4, 2022

HAF applications will end September 30, 2026 or until funds are 

fully reserved, whichever comes first.

Funding completed by December 1, 2026. 

11. Program Interactions with 

Other HFA Programs

No Restrictions.

12. Program Leverage with Other 

Financial Resources

No Restrictions.