In response to the devastating tornado damage that hit Lincoln County April 28, Tennessee Housing Development Agency has awarded $400,000 in Rebuild & Recover funds.
THDA Executive Director Ralph M. Perrey toured affected areas May 15 with Mayor Peggy Bevels and other officials. At the THDA Board Meeting May 20 Perrey announced the Rebuild & Recover Program grant to assist homeowners.
“We sympathize with the families whose homes were damaged,” said THDA Executive Director Ralph M. Perrey. “There is a lot of work ahead for these communities to be revived. We are glad to have some funding to assist the effort.”
The Rebuild & Recover Program is an element of THDA’s Housing Trust Fund. Severe damage to a concentrated area of Dry Creek in Washington County in August 2012 alerted THDA to needs in communities whose weather damage does not rise to the level of a TEMA or FEMA response, but may overreach homeowners’ insurance coverage. Since 2013, Rebuild and Recover has provided $825,000 in assistance to counties across the state, including Marion, McNairy, Stewart and Sullivan.
“We have resilient people in Lincoln County,” said Mayor Peggy Bevels. “Our recovery started immediately. These funds will make a big difference in our success.”
The Rebuild and Recover funds are administered through THDA’s self-financed Housing Trust Fund, and are intended to be the “first money in the deal”, a catalyst for other funding. Eligible homeowners at 80% of less of the area median income, adjusted for family size, may be assisted to a maximum of $40,000.
In addition, all THDA lenders and community banks serving the affected community may originate and service second mortgages at 4% interest to eligible homeowners to finance allowable repairs in excess of what’s covered by insurance. These loans will be eligible for purchase by THDA. HUD 203H loans made to eligible homeowners are also eligible for purchase by THDA.
THDA will increase the availability of 0% loans to help eligible homeowners rebuild destroyed homes. If in a federally designated target area or if an eligible veteran is involved, THDA can waive first-time buyer requirements.