THDA to pilot project‑based vouchers at 5% to ease placement for voucher holders

The Tennessee Housing Development Agency (THDA) told the joint Government Operations Committee on July 23 that it will begin using project‑based vouchers (PBVs) for an initial 5% of its Housing Choice Voucher (HCV) allocations as a way to create housing opportunities for voucher holders who cannot find willing landlords.

"THDA administers the housing choice voucher HCV program to more than 6,200 families in 72 Tennessee counties," Pascual McLeod, THDA assistant director for Section 8, said, adding that "HUD allows us to project base up to 20% of our housing choice voucher allocations to project based vouchers. We plan to start with an initial 5% with the hope to increase up to the 20%."

Jeremy Hyde, THDA director of government affairs, told committee members that the change is intended to address a placement problem: "Right now, we have approximately 600 voucher holders across the state who cannot find a landlord to take the voucher," he said, describing project‑basing as a way to attach vouchers to specific units so eligible families do not have to locate a willing landlord on their own.

Committee members pressed THDA staff on details. Representative McKenzie asked whether the change would reduce the total number of vouchers; THDA staff said the rule does not cut voucher counts. Representative Hardaway asked whether the change affects Memphis Light, Gas and Water (MLGW) or large employers such as BlueOval; THDA said local utility or employer operations are unaffected but that the board’s jurisdiction could apply to government‑owned water systems’ finances in limited circumstances. Members also asked about Davis‑Bacon wage rules, vacancy‑payment policies (THDA said it did not adopt vacancy payments and landlords will manage waiting lists), and whether federal funding could be clawed back; THDA staff said they were not aware of an ‘‘ironclad’’ federal protection against future appropriations changes and offered to follow up with additional details.

THDA said it will use an application process for developments seeking PBV allocations and that families currently on THDA’s HCV waiting list will be eligible to apply for project‑based waiting lists. Staff said the agency plans an initial allocation round (an initial set of 350 units was discussed) and will seek HUD approval to raise the cap toward the 20% statutory maximum as interest grows.

The committee moved the rule package forward with a positive recommendation after questions and public‑comment checks; the presenter said no public comment was received during the agency’s rulemaking hearing. The committee record shows a roll call vote in the Senate and a voice vote in the House resulting in a positive recommendation to advance the rule.