Section 8 Contract Administration is a function historically performed in Tennessee by the Housing Division of the U. S. Department of Housing and Urban Development (HUD) through the Nashville and Knoxville HUD Offices. In May, 1999, HUD issued a Request for Proposals for Contract Administrators for Project-Based Section 8 Housing Assistance Payments (HAP) Contracts. On April 4, 2000, THDA was notified of its selection as Contract Administrator for Tennessee; and on August 9, 2000, the final contract was executed.

By contracting with THDA and other entities across the country, HUD seeks to achieve three primary objectives. HUD's programmatic objectives are to:

1) Calculate and pay Section 8 rental subsidies correctly.
2) Administer project-based Section 8 HAP contracts consistently.
3) Enforce owner obligations to provide decent housing for eligible families.

THDA is assuming responsibility for approximately 350 - 450 project-based Section 8 properties in addition to THDA's historical portfolio of 38 properties. THDA is responsible for performing various tasks associated with contract administration including conducting management and occupancy reviews, adjusting contract rents, processing HAP contract terminations or expirations, paying monthly vouchers from Section 8 owners, responding to health and safety issues, submitting Section 8 budgets, requisitions, revisions and year-end statements, submitting audits of THDA's financial condition, renewing HAP contracts, reporting on plans and progress, and following up on results of physical inspections performed by HUD.