Tennessee Statewide Affordable Housing Coalition

It's not news there's not enough affordable housing in Tennessee to meet the need. Some families are living in cramped quarters. Some households pay more than 30% of their income for housing costs, leaving insufficient money for medicine, food, clothes. Some people live on the street.

There's important work being done in affordable housing in Tennessee - house by house, apartment by apartment, block by block. Not-for-profits are maintaining and creating housing for those with special needs. Lenders are offering a variety of mortgages. Developers are offering abodes of various shapes. A statewide coalition is forming because significant benefits can be realized by sharing those success stories, communicating about new initiatives, presenting funding opportunities, describing creative partnerships and more. Quarterly meetings are anticipated.

The goals of the coalition are as follows:

1. To speak with a single voice to represent consumers of affordable housing
2. To encourage the development and preservation of affordable housing through the development of more tools and elimination of impediments
3. To assist with the expansion of the Governor's Summit
4. To encourage the simplification of blending funding sources and
5. To educate the public, housing providers and decision makers about the value of affordable housing

Blending funding sources is a prime example of the benefits of working together. A subdivision is being developed in Mountain City by the Eastern Eight Community Development corporation (E8CDC) for buyers of low to moderate incomes. The funding is a carefully constructed puzzle.

• E8CDC received a $500,000 HOME 2005 grant from the Tennessee Housing Development Agency (THDA) for the construction financing.
• A $90,000 SHOP grant from the Housing Assistance Council through HUD was secured to acquire the property. The SHOP funds uniquely allow for the homebuyers to contribute "sweat equity" towards their new homes.
• A $300,000 BUILD loan was made by THDA for subdivision pre-development costs.
• Affordable mortgages will be provided through USDA-Rural Development to qualified low income homebuyers.
• Eligible borrowers could benefit from THDA's New Start mortgage program, providing a mortgage with a 0% interest rate.

Retha Patton of the First Tennessee Development District is one of the architects of the Shady Meadows subdivision. A member of the coalition, she can serve as a resource for other affordable housing developers.

HUD, the federal Housing and Urban Development department, has nation-wide resources and a long history from which to offer guidance and programs. Learning from case studies from other parts of the country can help remove impediments to Tennessee's housing development.

The coalition will be kept to a nimble size. Members of the coalition are being asked to represent interests and views of their type of organization, offering a free exchange of ideas with the coalition and reporting to their wider group for the benefit of all. Please see Tennessee Housing Coalition on THDA's website: www.thda.org to identify your industry's representative.

The Governor's Housing Summit in October will highlight the coalition's progress for the larger affordable housing community.

The coalition will be chaired in its first year by Don Alexander of the Crossville Public Housing Authority. Additional leadership will be offered by Tennessee Housing Development Agency. For more information, send an e-mail to da@crossvillehousing.org or Lorrie Shearon, Chief Strategy Officer.