NASHVILLE, Tn. (June 18, 2025) — The Tennessee Housing Development Agency (THDA) awarded $599,200 to Volunteer Behavioral Health Care System (VBH) from the Tennessee Housing Trust Fund (THTF) on Wednesday, June 18.
“Our mission at THDA is to help create safe, sound and affordable housing opportunities across the state,” said Ralph Perry, Executive Director of THDA. “Partnering with VBH for the development of a supportive and affordable residential program ensures that we are carrying out our mission to its fullest extent. We are proud to be able to help fund this project.”
The National Alliance on Mental Illness (NAMI) reports that 937,000 adults in Tennessee live with a mental health condition. This number is significant, exceeding five times the population of Knoxville. THTF grants are awarded to eligible non-profit partners, public housing authorities, development districts and local communities to address the housing needs of the most underserved Tennesseans.
Funding from the THTF will support development and construction expenses for a 16-bed residential program on VBH property in Dayton, providing permanent housing and supportive services for low-income adults aged 18 and up with severe mental health disorders and co-occurring conditions.
“Volunteer Behavioral Health is honored to have this opportunity to bring high-quality supportive living services to Dayton, building on our long history of offering responsible, client-focused and responsive care in the Rhea County area.” said Phyllis Persinger, President and CEO of VBH. “Partnering with THDA has been pivotal to finalizing this development opportunity. We look forward to demonstrating to our community that supportive living facilities, when operated with our high standards, enhance the lives not only of their residents but also of their neighbors.”
Individuals who qualify for the upcoming residential program are those who are unable to live safely in the community without medication management, symptom management and some activities of daily living (ADLs) assistance. The facility will include universal and ADA standards for accessible design to ensure individuals who use wheelchairs, walkers, canes and those with visual and hearing impairments are served to the utmost extent.
VBH received an additional award through the Creating Affordable Housing grant from the Tennessee Department of Mental Health and Substance Abuse Services. In total, the project received over $1 million dollars to bring an affordable and responsive support program for Tennesseans in need in the Rhea County community.
