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THDA urges committee to keep $30M starter‑home revolving loan in governor’s budget
Summary
Tennessee Housing Development Agency executive director Ralph Perry asked the committee to support a proposed one‑time $30 million appropriation to create an interest‑free construction loan revolving fund for small 'starter' homes sold to owner‑occupants, emphasizing outreach to rural lenders and reuse of funds.
Ralph Perry, executive director of the Tennessee Housing Development Agency (THDA), urged the committee to preserve a governor‑proposed, one‑time $30,000,000 appropriation to establish a starter‑home revolving loan fund.
Perry said the fund would provide interest‑free construction loans to hometown builders who agree to sell modest starter homes—roughly 1,200–1,500 square feet—to owner‑occupants rather than investors. He said the money would revolve as loans are repaid, and THDA would work through local construction lenders to underwrite and administer the loans. "Governor Lee has proposed a 1 time $30,000,000 appropriation to THDA for the creation of a starter home revolving loan fund," Perry said.
Committee members asked about outreach to rural counties and timing; Perry said THDA would ensure lenders statewide participate and expects the program to begin at the start of the fiscal year if appropriated. The committee voted to advance the THDA budget package to finance, which will consider inclusion of the $30 million appropriation in its work.
What’s next: Finance committee deliberations will determine whether the starter‑home loan fund is funded in the final budget.
