Applicability, Scope And Purpose

(1) This program shall apply to privately-owned rental units which are in need of rehabilitation. The owner will agree to rehabilitate his property and will be guaranteed participation in the Section 8 housing assistance payments program. This will guarantee a rent not to exceed 120 percent of the existing MODERATE REHABILITATION PROGRAM CHAPTER 0770-3-1 housing fair market rents for a period not to exceed 15 years, provided an eligible family is living in the property and the property is maintained in a safe and sanitary condition. (2) The Moderate Rehabilitation Program is designed to be used to achieve one or more of the following objectives: (1) freedom of housing choice and spatial deconcentration of assisted housing into areas outside of low income and minority concentrations; (2) prevention of displacement of lower-income families in areas undergoing private rehabilitation; and (3) neighborhood preservation and revitalization. Applicants must indicate in their applications which of these objectives they propose to promote. (3) The Tennessee Housing Development Agency will participate in the Moderate Rehabilitation Program in two distinct ways. First, the Agency will provide financing for the rehabilitation of units which will receive rent assistance through a program administered by local public housing agencies or local city governments. Second, the Agency will finance the rehabilitation of units which will receive assistance through a program administered by the Agency. These rules are rules which affect the actual operation of the rental assistance program and which effect tenants apply only when the Agency is administering the rental assistance.