Tennessee Housing Development Agency

Homeowners Assistance Fund Program (HAF)

Summary Guideline

Pilot

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 • Pilot Allocation $16,823,903

• Program Funds $8,411,952

• Administrative Funds of $8,411,952 included in the 

administrative allocation total of $25,235,405.

5. Homeowner eligibility 

Criteria and documentation 

criteria

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

homeowners must meet the following criteria:

• Have a mortgage loan serviced by Volunteer Mortgage 

Loan Services.

• 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

Up to 550 Households

10. Program Inception/Duration Pilot program will launch August 16, 2021 or sooner.

HAF Pilot applications will end when Phase one opens. Any 

remaining program funds allocated to the Pilot will be transferred 

to the Phase one allocated funds.

Funding completed by December 1, 2026.

11. Program Interactions with 

Other HFA Programs

No Restrictions.

12. Program Leverage with 

Other Financial Resources

No Restrictions.