by JEFF FARRELL
SEVIERVILLE — Dozens of homeowners who could never have afforded improvements to their homes have refurbished or have completely new houses, thanks to city officials taking advantage of a special funding program.
The HOME program is paid for with federal funds that make their way to municipalities in Tennessee through the Tennessee Housing Development Agency. They provide money for the renovation of substandard homes, or for the construction of entirely new homes where necessary.
Over the past 20 years, Sevierville has obtained almost $2 million in funds through the program, paying for the rehabilitation of 18 homes and remodeling of 32. The city must first apply for the funding, and homeowners can then apply to the city.
Codes Enforcement Officer Butch Stott oversees the program for the city of Sevierville, and over the years the program has become a source of pride for him. It’s rare that any program can really offer people something for nothing, but the HOME grants are an exception.
“I had one lady say it’s like winning the lottery,” Stott said.
At times, he’s had to recruit people to use the grants. Often, they don’t want to believe it when he tells them that a government program can help them fix up their homes at no cost.
“I have to go out and beg people to apply sometimes,” he said.
He’s hoping to get the word out now, as a new funding cycle is getting set to begin in March.
There are some rules: Applicants must be able to prove they have low or very low income, as determined by the THDA, and must have owned the property for at least a year.
It’s a competitive process, and THDA uses a scoring system to rate applicants. They award extra points for homeowners who are 62 years old or older, handicapped or disabled, veterans or single parents, as well as on the condition of the dwelling.
THDA places a lien on the houses for the cost of the work, and the liens remain for five years in the case of renovations and 15 years for rebuilt houses; at the end of that time the owners would once again have it free and clear. If they die, the lien is removed; it isn’t passed on to their children.
If they move, a family member who meets the same qualifications can move into the house with no penalty. They have to maintain the property, keeping the yards mowed and clean.
Samuel Kidd, who works with the firm of Barge, Waggoner, Sumner and Cannon to help cities like Sevierville administer the program, describes it at as a forgivable loan. As long as homeowners meet the terms, the liens are reduced for each year they remain in the house.
The only time the lien comes into play is if they try to sell the home.
“It’s a good program. I’ve been doing it since 1992, working with THDA. We’ve helped a lot of people all through East Tennessee," Kidd said,
He said he often encounters the same challenge as Stott — people don’t want to believe in it.
“A lot of people get afraid because there’s that old saying if it’s too good to be true it probably is, but this is a free program,” he said. “The state doesn’t want their house or their property. ... The lien is just to protect the money spent on it.”
In the last round of funding, the city focused its efforts on the Burden Hill area, which includes a number of homes in need of major repair or rebuilding.
Those efforts also led to the addition of water and sewer in the neighborhood.
THDA had previously turned down applications for some homes in that area, Stott said, because the homes must have approved means for disposing of waste — sanitary sewer from the city, or an approved septic tank. Some homes had neither, and the state health department couldn’t approve installation of new septic tanks or drain fields on the properties due to the lay of the land and to lot sizes.
When Stott told officials at Mountain National Bank, the bank decided to help — so now the neighborhood has water and sewer as well.
“That’s a really big improvement in these people’s lives,” Stott said.
The HOME program is paid for with federal funds that make their way to municipalities in Tennessee through the Tennessee Housing Development Agency. They provide money for the renovation of substandard homes, or for the construction of entirely new homes where necessary.
Over the past 20 years, Sevierville has obtained almost $2 million in funds through the program, paying for the rehabilitation of 18 homes and remodeling of 32. The city must first apply for the funding, and homeowners can then apply to the city.
Codes Enforcement Officer Butch Stott oversees the program for the city of Sevierville, and over the years the program has become a source of pride for him. It’s rare that any program can really offer people something for nothing, but the HOME grants are an exception.
“I had one lady say it’s like winning the lottery,” Stott said.
At times, he’s had to recruit people to use the grants. Often, they don’t want to believe it when he tells them that a government program can help them fix up their homes at no cost.
“I have to go out and beg people to apply sometimes,” he said.
He’s hoping to get the word out now, as a new funding cycle is getting set to begin in March.
There are some rules: Applicants must be able to prove they have low or very low income, as determined by the THDA, and must have owned the property for at least a year.
It’s a competitive process, and THDA uses a scoring system to rate applicants. They award extra points for homeowners who are 62 years old or older, handicapped or disabled, veterans or single parents, as well as on the condition of the dwelling.
THDA places a lien on the houses for the cost of the work, and the liens remain for five years in the case of renovations and 15 years for rebuilt houses; at the end of that time the owners would once again have it free and clear. If they die, the lien is removed; it isn’t passed on to their children.
If they move, a family member who meets the same qualifications can move into the house with no penalty. They have to maintain the property, keeping the yards mowed and clean.
Samuel Kidd, who works with the firm of Barge, Waggoner, Sumner and Cannon to help cities like Sevierville administer the program, describes it at as a forgivable loan. As long as homeowners meet the terms, the liens are reduced for each year they remain in the house.
The only time the lien comes into play is if they try to sell the home.
“It’s a good program. I’ve been doing it since 1992, working with THDA. We’ve helped a lot of people all through East Tennessee," Kidd said,
He said he often encounters the same challenge as Stott — people don’t want to believe in it.
“A lot of people get afraid because there’s that old saying if it’s too good to be true it probably is, but this is a free program,” he said. “The state doesn’t want their house or their property. ... The lien is just to protect the money spent on it.”
In the last round of funding, the city focused its efforts on the Burden Hill area, which includes a number of homes in need of major repair or rebuilding.
Those efforts also led to the addition of water and sewer in the neighborhood.
THDA had previously turned down applications for some homes in that area, Stott said, because the homes must have approved means for disposing of waste — sanitary sewer from the city, or an approved septic tank. Some homes had neither, and the state health department couldn’t approve installation of new septic tanks or drain fields on the properties due to the lay of the land and to lot sizes.
When Stott told officials at Mountain National Bank, the bank decided to help — so now the neighborhood has water and sewer as well.
“That’s a really big improvement in these people’s lives,” Stott said.
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