TENNESSEE HOUSING DEVELOPMENT AGENCY
TENNESSEE MANUFACTURED HOUSING ASSOCIATION
TENNESSEE HOUSING FOUNDATION


INTRODUCTION

This is a pilot program in partnership with the Tennessee Housing Development Agency (THDA) and the Tennessee Manufactured Housing Foundation (the “Foundation”) to utilize a grant from the THDA Housing Trust Fund (HTF) to replace substandard, dilapidated mobile homes (pre-1976) and manufactured homes (post-1976) with new HUD-certified Energy Star Qualified manufactured homes. The pilot program will available to all eligible residents of Tennessee, subject to funding limitations. 

Click here for Manufactured Housing Home Replacements Application.
Click here for information on how and where to submit the application.


ADMINISTRATION

The Tennessee Manufactured Home Program (the “Program”) is an existing program administered by the Foundation through the Tennessee Housing Association (the “Association”). The Program uses State and other grant funds to replace current structurally or safety compromised older mobile or manufactured homes, in an effort to increase the supply of new energy efficient, safe and affordable housing within Tennessee. The pilot program with THDA through the Housing Trust Fund would expand the capacity of the existing Program. The THDA funds include 7% for administration.


INITIAL PROGRAM FUNDING

1. $500,000 grant from THDA 
2. $250,000 required matching funds from other sources, foundations and grantors.

Potential sources of matching funds include the Clayton Foundation, the Community Foundation, USDA Rural Development; donated materials; family contributions; and volunteer labor.


PROGRAM REQUIREMENTS

1. Income Limits
   The Program will assist households at or below 60% of area median. The Program will use the income limits established by the US Department of Housing and Urban Development for the HOME Program, and household income as defined by the Section 8 Rental Assistance Program.
   
   
2. Eligible Applicants
   Applicants must be owner-occupants who are at least 50 years of age residing in a substandard mobile home or manufactured home. Preference will be given to qualifying applicants who require replacement of their existing housing to fully utilize that housing due to a disability, including disabled veterans of any age. Applicants must own both the unit which is to be replaced and the land on which it is sitting, and must also have lived in the unit to be replaced for one year prior to application. There must be no current financial encumbrance or lien on the unit.
   
   The Foundation will utilize its current application and process, with some modifications, to determine the eligibility of a Program home replacement. (Appendix A)
   
   
3. Subsidy Limit
   There will be a HTF subsidy limit of $60,000 per manufactured housing unit. Ancillary costs are not included in the unit limit, but are eligible Program costs. The subsidy limit does not apply to funds from other sources, in-kind resources or product donations.
   
   
4. Eligible Costs
   Mobile and manufactured homes must be characterized by issues of structural, safety and/or systems obsolescence. A replacement activity would include the purchase of a new, size-appropriate manufactured home, transportation of the new manufactured home to the site, required site work, set up of the new manufactured home, utility hook-ups, required work permits, removal and disposal of the substandard unit, and ancillary costs, including temporary relocation costs.
   
   
5. Property Standards
   All manufactured housing home replacements must be in compliance with applicable local codes, rehabilitation standards, and zoning ordinances at the time of project completion. In the absence of a local code, replacement manufactured housing must meet the home installation guidelines pursuant to Tennessee Code Annotated [T.C.A] 68-126, Parts 1, 2 and 4; as well as the Rules of Commerce and Insurance Division of Fire Prevention, Chapters 0780-2-4, 0780-2-5, 0780-2-8. Additional federal, state or Federal Emergency Management Agency (FEMA) rules and regulations may be applied. All replacement units must also be Energy Star Qualified manufactured homes.
   
   
6. Form of Assistance
   Assistance to program beneficiaries will be in the form of a grant.
   
   
7. Compliance Period
   Grants for manufactured home replaced shall have a compliance period of seven years which will be forgiven at the end of the seven years. In order to enforce the compliance period, THDA will require that homeowners sign both a grant note and a deed of trust.

MARKETING

The Foundation will utilize the resources and counsel of fellow members of the Tennessee Voluntary Organizations Active in Disaster (TNVOAD), which includes multiple charitable and nonprofit organizations which have an established network that frequently evaluates the living conditions of Tennesseans, both in short term and long term recovery housing needs initiatives. The Foundation will also utilize the state-wide network of the Tennessee Area Agencies on Aging and Disabilities, and THDA’s network of non-profit housing agencies.



PROCUREMENT

As a note, the Foundation will utilize the resources and counsel from state manufactured housing inspectors of the Department of Commerce and Insurance, as well as state licensed installer/transporters to gather related information in the counties in which candidates may reside, to determine location feasibility and final home installation.

The Foundation will utilize the Association’s current manufacturer and retailer network, to identify construction facilities or retailer locations closest to an approved candidate, for a Program home replacement. Bids will be solicited from manufacturer and/or retailer providers, and upon selection of the successful bidder, the Foundation will request the completion of a standard industry manufacturer’s invoice or retailer sales agreement, which will provide a home cost for the appropriate selected home and amenities.

Upon final documentation, authorization and approval of a qualified home initiative, the Foundation will proceed to the Home Replacement - Work Write-up and Expense Review (Appendix C).



WORK WRITE-UP

The Home Replacement – Work Write-up and Expense Review (Appendix C) is the work write-up which itemizes the work to be performed for each eligible applicant. The work write-up identifies the deficiencies in the unit and the estimated associated costs to evaluate the projected replacement cost.

Once a qualified candidate has been identified and the estimated financial assessment is finalized, the homeowner will sign a contract with the successful bidder for the replacement unit, and execute a Grant Note and Deed of Trust to secure the compliance period. The Notice to Proceed will then be issued, and the successful bidder will proceed with the installation of the new unit in accordance with the work write-up.

Once the new unit is completely installed and approved by the appropriate code authority, the Foundation will request payment from THDA for the vendor.



REPORTING

The Foundation will provide status reports to a THDA designee in an agreed upon format, which details the status of each Program home replacement. This reporting will include, but may not be limited to the following components:

1. Candidate name, physical address of home location, contact information.
2. Candidate process participation acceptance or denial.
3. Lead manufacturer and/or retailer name, address, contact information.
4. Lead installer/transporter name, address, contact information.
5. Lead state inspector name, contact information.
6. Home Initiative Guide - Expense Review form completion status.
7. Date of project approval.
8. Date of signed Grant Enforcement Agreement.
9. Home selected.
10. Date home transported from manufacturer to retailer location, if applicable.
11. Date home delivered to candidate’s site location. 
12. Date home installation begins.
13. Date home installation is complete.
14. Date insurance verification received.
15. Date of homeowner key presentation. 
16. Final activity report to include before and after photos.