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About THDA

Our Mission:
Leading Tennessee Home by creating safe, sound, affordable housing opportunities.

Who We Are:
The Tennessee Housing Development Agency (THDA) is Tennessee’s housing finance agency, created by the General Assembly in 1973 (TCA 13-23). As an instrumentality of the state, THDA is accountable to both the executive and legislative branches of state government, both of which are represented on its 16-member Board of Directors. The Commissioner of Finance & Administration, State Comptroller, Secretary of State, and the State Treasurer all serve as ex-officio board members. The Governor designates one of his staff members to serve on the board and appoints 12 other positions including the Board Chair. The House and Senate Speakers also appoint one board member each.

What We Do:
THDA was created to promote the production of more affordable new housing units for very low, low and moderate income individuals and families in the state, to promote the preservation and rehabilitation of existing housing units for such persons, and to bring greater stability to the residential construction industry and related industries so as to assure a steady flow of production of new housing units.

In addition to serving as the primary administrator for numerous federal and state housing programs, THDA has been granted the authority to issue tax-exempt Mortgage Revenue Bonds to support financing opportunities for first-time homebuyers and veterans. THDA is not a direct mortgage lender. THDA purchases qualified mortgages originated through its private-sector lending partners. All THDA mortgages have 30-year, fixed-rate terms and offer a maximum grant of 4% in down-payment assistance. All homebuyers receiving down-payment assistance must complete an eight-hour, pre-purchase counseling course.

Our Goals:
Identified as one of the basic human needs, housing has profound impacts, both social and economic, on individuals and communities. Research has shown safe, sound, affordable housing is essential to a healthy household, educational achievement, successful employment, and the stability and safety of the neighborhood. Both housing rehabilitation and the construction of new homes generate jobs and income in the community and produce additional tax revenue.

THDA is:

    Making A Positive Impact on Tennesseans…and Tennessee’s Economy!
  • Provided mortgage financing to over 100,000 first-time homebuyers in Tennessee 
  • Helped create/preserve 47,000 affordable, rental units
  • Provides monthly rental assistance to over 35,000 Tennessee households
  • THDA’s total economic impact in 2011 was $728.6 million
  • THDA receives no state appropriations to fund operations, but we do receive administrative fees to service some federal programs.
  • Generates annual earnings through its Single Family Mortgage program ($18 million in FY2012)
  • THDA’s earnings are used to cover operational expenses and fund several critical THDA housing initiatives:
    • $57 million - Down-payment assistance grants
    • $42 million - BUILD Loan program, offering 0% construction loans to non-profit housing organizations such as Habitat for Humanity
    • $43 million - Housing Trust Fund, targeting the housing needs of Tennessee’s special-needs populations
    • $2.4 million - Homebuyer Education

  • THDA bonds rated AA+ by Standard & Poor’s and Aa1 by Moody’s
  • Holds over 26,000 mortgages in its portfolio, assets valued at $2.1 billion
  • $557 million in total Net Assets
  • Recognized for program and operational excellence by the National Council of State Housing Agencies

Our Financial and Regulatory Oversight:
In addition to THDA’s own Internal Audit division, a number of federal agencies, including HUD and the US Treasury, conduct annual evaluations to monitor program compliance. A team of auditors from the Department of Finance & Administration are housed full-time at THDA’s central office.

The State Comptroller’s office serves as THDA’s external auditor. For the past 10 years, THDA has earned a clean opinion letter from the State Comptroller’s office regarding its audit of THDA’s Financial Statements. In addition, THDA has achieved seven consecutive years with no findings in its Financial and Compliance Audit report.