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Council reviews proposed changes to homeowner rehab and affordable-housing assistance
Summary
Staff presented a workshop on proposed tiered lien policy, raised maximum assistance from $10,000 to $50,000, and recommended phasing out lifetime liens; council asked about HUD income limits, lead-paint remediation and program capacity. Item will return as an action item in January.
City staff briefed Murfreesboro City Council on Dec. 11 on proposed changes to the homeowner rehabilitation and affordable housing assistance programs and asked for feedback ahead of an action item expected in January.
Jessica (community development staff) described a shift from the city’s current mix of lien terms (1-year, 5-year and lifetime liens) to a tiered structure: assistance up to $15,000 would carry a five-year lien, $15,000–$40,000 a 10-year lien, and assistance over $40,000 a 15-year lien. Staff proposed releasing lifetime liens that are 20 years or older immediately (about 11 liens totaling roughly $34,000) and phasing out remaining old lifetime liens over time. Jessica said the policy change would also allow the city manager to sign closings under $50,000 to speed up transactions.
"The lifetime liens we currently have — we monitor 157 liens annually and 90 of those are lifetime with a maximum of $10,000 — we're proposing to go back and release those that have been 20 years or longer," Jessica said. Staff said the tiered approach aligns with common practice in other jurisdictions.
Council members asked whether HUD income limits and lead-based-paint testing would affect program access. Staff confirmed HUD sets the maximum income thresholds used for eligibility and that houses built before 1978 require a lead test, with clearance testing paid by the program when remediation is completed by the buyer or seller. On program capacity, staff said last year, outside the Habitat partnership, the city processed five applicants and closed two purchases; staff estimated budget constraints limit how many high-level ($50,000) awards can be made.
Several council members expressed concern that HUD-defined maximum income levels exclude many residents who nonetheless struggle with housing costs. Staff acknowledged those concerns but said the city's program must operate within HUD income rules for the applicable funding stream. The workshop is informational; staff will return with the revised policy as an action item on Jan. 8.
