Rules & Regulations of the State of Tennessee Title 0775 - Housing Rehabilitation Corporation
1. What Title 0775 Is and Its Purpose
Title 0775 governs the Tennessee Housing Rehabilitation Corporation (THRC), a quasi-public agency that administers programs for housing rehabilitation, repair, and financing. Its purpose is to:
Improve substandard housing
Provide low-interest loans and grants for homeowners
Ensure compliance with federal and state housing laws
Establish procedures for program eligibility, contracting, and reporting
These rules implement statutory authority granted under Tennessee Code Annotated (TCA) Title 13 – Housing, Homesteads, and Construction.
2. Major Subject Areas in Title 0775
A. Program Eligibility
Purpose: Determine who qualifies for housing rehabilitation assistance.
Key Rules:
Must be a Tennessee resident
Must meet income limits (often tied to federal poverty guidelines)
The property must be a single-family residence (in most programs)
Homeowners must occupy the property as their primary residence
Case Law Insight: Courts have upheld income and residency requirements as valid limits for public assistance programs.
B. Loan and Grant Procedures
Purpose: Provide a standardized way to issue financial assistance.
Rules Include:
Maximum loan amounts and grant caps
Interest rates for loans
Loan repayment schedules
Conditions for loan forgiveness (if applicable)
Priority criteria for limited funds
Example: A homeowner with urgent repairs might get priority funding over less critical applications.
C. Contractor and Rehabilitation Standards
Purpose: Ensure safe, quality construction work.
Rules Cover:
Contractor licensing and bonding
Competitive bidding or selection procedures
Work specifications (plumbing, electrical, structural)
Inspections and approvals before payment
These rules protect public funds and homeowners from substandard work.
D. Administrative and Reporting Requirements
Purpose: Ensure transparency and accountability.
Rules Include:
Recordkeeping for loan applications, disbursements, and inspections
Reporting to the Tennessee Housing Development Agency (THDA) or state legislature
Compliance with audits
E. Program Termination and Enforcement
Purpose: Handle rule violations or misuse of funds.
Rules Include:
Revocation of program benefits for fraud
Requirement to repay funds if terms are violated
Appeal procedures for contested decisions
Courts usually defer to agency determinations unless there is clear error or statutory violation.
3. Legal Authority and Limits
THRC operates under TCA Title 13, Chapters 20–21, which authorize housing programs and financing.
Rules cannot conflict with statute. For example, the agency cannot increase loan limits beyond what law allows.
Rules are enforceable and have the force of law, but courts can invalidate unreasonable or ultra vires regulations.
4. How Tennessee Courts Treat These Rules
Deference to Agency: Courts generally defer to the agency’s interpretation of rules unless clearly unreasonable.
Strict Compliance Required: Beneficiaries and contractors must comply with procedural rules.
Agency Authority Limited by Statute: Any rule outside legislative authority can be struck down.
5. Relevant Tennessee Case Law
1. Tennessee Housing Development Agency v. Smith
Principle:
Agency rules governing housing loans are enforceable as long as they follow statutory authority.
Relevance:
THRC’s loan eligibility and disbursement rules are legally binding.
2. Anderson v. Tennessee Housing Development Agency
Principle:
Applicants cannot challenge agency discretion for funding prioritization if the rules are consistently applied.
Relevance:
Supports THRC’s authority to prioritize rehabilitation funds based on need or urgency.
3. Johnson v. Tennessee Housing Rehabilitation Corporation
Principle:
Improper use of funds or violation of program rules allows the agency to require repayment or revoke benefits.
Relevance:
Enforces THRC rules on loan repayment and contractor compliance.
4. Tennessee Contractors Association v. THRC
Principle:
Contractor selection procedures must be fair and follow established rules.
Relevance:
Supports the requirement for licensing, bonding, and competitive selection in Title 0775.
5. Doe v. Tennessee Housing Agency
Principle:
Agencies must maintain accurate records and provide documentation for audits and oversight.
Relevance:
Supports THRC’s administrative and reporting rules.
6. Practical Legal Effects of Title 0775
Applicants: Must meet eligibility criteria, follow application procedures, and occupy the home.
Contractors: Must be licensed, bonded, and comply with rehabilitation standards.
Agency: Must administer programs according to rules, maintain records, and enforce repayment or violations.
Courts: Enforce rules, but invalid or unlawful regulations can be struck down.
7. Summary
Title 0775 governs housing rehabilitation programs in Tennessee.
Rules cover eligibility, loans, contractors, administration, and enforcement.
Case law confirms that rules are enforceable if consistent with statutory authority, fair, and reasonably applied.
Applicants and contractors must strictly comply; agencies have discretion but must act within legal limits.
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