Leading Tennessee Home by creating safe, sound, affordable housing opportunities.
What We Do:
The Tennessee Housing Development Agency (THDA) is Tennessee’s housing finance agency, created by the General Assembly in 1973. 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 is authorized to issue tax-exempt Mortgage Revenue Bonds to support financing opportunities for first-time homebuyers and veterans. THDA is not a direct lender. THDA purchases qualified home loans originated through its private-sector lending partners. All THDA loans have 30-year, fixed-rate terms and offer a maximum grant of 5% in down-payment assistance. All homebuyers receiving down-payment assistance must complete a homebuyer education course.
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.
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 eight other positions including the Board Chair and a Housing Choice Voucher consumer. The House and Senate Speakers also appoint one member each.
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. The State Comptroller’s office serves as THDA’s external auditor. THDA is proud to note that the third-party auditors who regularly monitor our finances have found zero potential issues to report with THDA programs or financial statements for more than a decade.