Initial Capitalization Funds — Surcharge

1. Law
2. Tennessee Code
3. Public Planning and Housing
4. Housing Development Agency
5. Homebuyers' Revolving Loan Fund Pool
6. Initial Capitalization Funds — Surcharge

1. Funds for the initial capitalization of the loan fund pool created by this part shall be used for loans to qualified low and moderate income persons and shall derive from the following sources in the following distribution, and payable at the rate of interest, if any, as herein provided:
   1. State portion — Seventy percent (70%) of the loan fund pool shall consist of a two million five hundred thousand dollar ($2,500,000) appropriation for the state portion established by this part; and
   2. Local portion — Thirty percent (30%) of the loan fund pool shall derive from appropriations, reserves or dedications by any county where the property is located which has agreed to participate in the project. Any county desiring to participate in the loan fund pool shall appropriate, reserve or dedicate revenues to fund its respective local portion prior to its acceptance by THDA to participate in the loan fund pool created by this part.
2. 1. Any county so participating may, by ordinance or resolution, levy a surcharge of one dollar ($1.00) per residential permit and five dollars ($5.00) per commercial permit issued by the county agency or department of codes administration.
   2. Such surcharge may be levied on construction, plumbing, electrical, mechanical, moving, demolition, sign, use and occupancy, sand and gravel extraction, extension, trailer space and mobile home space, curb cut, driveway entrances and exits, sidewalks, automatic sprinklers, standpipes, and excavation and grading permits, as well as any other permit which may be issued by the county agency or department of codes administration.
   3. All surcharges collected pursuant to this subsection (b) shall be reserved, dedicated, or appropriated to fund, in whole or in part, the local portion of the homebuyers' revolving loan fund program.
   4. If state portion funds are not available, then surcharges collected pursuant to this subsection (b) may be used as the sole source for funding the county's homebuyers' revolving loan fund program or may be used in combination with such other funding sources as may be available.
   5. This subsection (b) applies only to counties of the first and second classes as classified in § 8-24-101; and to counties having a population of:

      not less than  nor more than

      21,575 21,675

      37,000 37,100

      according to the 1980 federal census or any subsequent federal census.

Download our app to see the most-to-date content.