One of the most highly anticipated new programs in THDA history is now active and accepting loan applications. The Blight Elimination Program is open to nonprofits and land banks in six Tennessee counties where abandoned homes are bringing down property values and creating safety issues.
The HHF Blight Elimination Program provides zero-interest loans up to $25,000 to qualified nonprofit groups to purchase an abandoned home and demolish the home into a green space, affordable housing, or other approved end uses to help stabilize local housing markets.
Program participants will receive funding in two stages.
First, THDA will provide up to $25,000 in the form of a short-term loan for the acquisition and demolition of the property. Then, once the work has been verified, THDA will use Treasury funds to provide a second loan that will be used to repay the original THDA loan. The Treasury loan will be tied to a lien against the lot that can be modified or forgiven immediately if the lot is transformed into affordable housing. Otherwise, the loan is forgiven at a rate of 33.3% per year over the next three years, provided the property remains in compliance with the program requirements.
Only properties in approved counties qualify for the HHF Blight Elimination Program. There are six approved counties within Tennessee: Davidson, Hamilton, Knox, Montgomery, Rutherford, and Shelby.
The original deadline for all program funding to be allocated has been extended from Dec. 31, 2017, to Dec. 31, 2020.
For the Blight Elimination Program guidebook and application procedure, visit THDA.org or contact Cynthia Peraza at BEP@thda.org.