Tennessee Housing Development Agency

Homeowners Assistance Fund Program (HAF)

Summary Guideline

Phase 2

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 provide a principal reduction of 

amortizing secondary liens which were originated by an eligible 

non-profit agency as down payment assistance. The homeowner 

must meet the program eligibility criteria for a qualifying hardship 

and fall below 60% of the national AMI.

Homeowners who have already received assistance for 

reinstatement of first mortgage liens and other qualifying 

assistance may receive principal reduction of up to any remaining 

funds up to the program limit of $40,000.

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.

3. Target Population /Areas Homeowners with incomes at or below 60% national AMI, who 

have an amortizing second lien used as down payment assistance.

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

• Program Funds $20,000,000

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

program phases)
B-5-2

 

5. Homeowner eligibility 

Criteria and documentation 

criteria

In order to be eligible for assistance under TNHAF Principal 

Reduction, homeowners must meet the following criteria:

• Have an amortizing second mortgage lien originated 

through an eligible non-profit agency as down payment 

assistance.

• Homeowner’s income is at or below 60% United States 

Median Income.

• 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.

6. Mortgage Eligibility Criteria • Must be an amortizing second mortgage lien originated 

through an eligible non-profit agency as down payment 

assistance.

• 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.
B-5-3

 

9. Estimated Number of 

Participating Households

Approximately 500 Households

10. Program Inception/ Duration Phase 2 will launch on April 1, 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.