13-23-103 - Definitions. - Tennessee Statutes

13-23-103. Definitions.

As used in this part, unless the context otherwise requires:

     (1)  “Agency” means the Tennessee housing development agency created by this part;

     (2)  “Average Tennessee household” means the Tennessee household of average size and median gross annual household income based on the most recent federal census;

     (3)  “Bonds” or “notes” means the bonds and notes respectively authorized to be issued by the agency under this chapter;

     (4)  “Eligible political subdivision” means a county, metropolitan government, municipality receiving community development block grant funds directly from the United States department of housing and urban development, a municipality in a county not otherwise applying, or a consortium of such eligible political subdivisions;

     (5)  “Energy-saving improvement” means an improvement to a residential housing unit through the installation of insulation, heating or cooling systems conservative of energy, or other fixtures to the structure capable of reducing its total energy needs;

     (6)  “Governmental agency” means any department, division, public agency, political subdivision or other public instrumentality of the state, the federal government, and other state or public agency, or any two (2) or more thereof;

     (7)  “Housing cost index” means an index of specific housing cost factors to the average Tennessee household calculated monthly or at such times as the agency may require, based on the following formula:

The median gross monthly household income divided into the sum of:

          (A)  The monthly mortgage payment for the average Tennessee household based on a thirty-year mortgage, at the prevailing mortgage interest rate on a mortgage amount sufficient to purchase a standard housing structure that will meet minimum property standards as established by the federal housing administration, including an amount representative of the average yield in discount points and servicing fees to the lender on such mortgage, based on the average discount paid at the latest Federal National Mortgage Association mortgage auction sale;

          (B)  A monthly cost factor for mortgage insurance based on the mortgage insurance premium that would be required on the mortgage at the prevailing interest rate; and

          (C)  An average monthly cost factor for taxes and fire insurance incurred by the average Tennessee household on a standard housing structure as required by federal housing administration minimum property standards based on data compiled by the federal housing administration;

     (8)  “Insured construction loan” means a construction loan for land development or residential housing which is secured by a federally insured mortgage or which is insured or guaranteed by the United States or an instrumentality thereof, or for which there is a commitment by the United States or instrumentality thereof to insure or guarantee such a loan, or a construction loan which is secured by a policy of insurance or guarantee issued by any private mortgage insurer qualified to issue such insurance or guarantee in Tennessee and approved by the agency, or for which there is a commitment to insure or guarantee such loans made by any private mortgage insurer qualified to do business in Tennessee and approved by the agency, or a construction loan insured or guaranteed by an agency or instrumentality of the state authorized by law to issue such insurance or guarantee, or for which there is a commitment to insure or guarantee such loan made by such agency or instrumentality of the state;

     (9)  (A)  “Insured mortgage” or “insured mortgage loan” means a mortgage loan for residential housing insured or guaranteed by the United States or any instrumentality thereof, or for which there is a commitment by the United States or instrumentality thereof to insure or guarantee such a mortgage, or a mortgage loan which is secured by a policy of insurance or guarantee issued by any private mortgage insurer qualified to issue such insurance or guarantee in Tennessee and approved by the agency, or for which there is a commitment to insure or guarantee such loan made by any private mortgage insurer qualified to do business in Tennessee and approved by the agency, or a mortgage loan insured or guaranteed by any agency or instrumentality of the state authorized by law to issue such insurance, or for which there is a commitment to insure or guarantee such loan made by such agency or instrumentality of the state;

          (B)  “Insured mortgage” or “insured mortgage loan” also means a loan made on a qualified residential property in which the borrower owns, or is prepared to own by use of a cash down payment, at least twenty-five percent (25%) of the equity in the property based on its appraisal value or the sale price, whichever is the lesser amount;

     (10)  “Land development” means the process of acquiring land primarily for residential housing construction for persons and families of lower and moderate income and making, installing or constructing nonresidential housing improvements, including water, sewer and other utilities, roads, streets, curbs, gutters, sidewalks, storm drainage facilities and other installations or works, whether on or off the site, which the agency deems necessary or desirable to prepare such land primarily for residential housing construction within this state;

     (11)  “Lender” or “qualified lender” means any bank or trust company, federally approved mortgagee, insurance company, mortgage banking institution, federally insured savings and loan association or insured state building and loan association, which is located and authorized to do business in the state, and which is approved by the agency, or the federal national mortgage association;

     (12)  “Low income household” means an individual or family unit whose income does not exceed eighty percent (80%) of the area or state median income, whichever is greater, adjusted for family size;

     (13)  “Mortgage” includes deeds of trust, mortgages, building and loan contracts or other instruments conveying real or personal property as security for bonds and conferring a right to foreclose and cause a sale thereof;

     (14)  “Obligations” means any bonds or notes authorized to be issued by the agency under the provisions of this part;

     (15)  “Persons and families of lower and moderate income” means persons and families irrespective of race, creed, national origin, age or sex deemed by the agency to require such assistance as is made available by this chapter on account of insufficient personal or family income based upon the income limits established by the board of directors. In establishing these income limits, the board of directors shall be required to take into consideration, without limitation, such factors that will ensure for the citizens of the state the equal opportunity to live in equal quality housing relative to their needs, including the following:

          (A)  The amount of the total income of such persons and families available for housing needs;

          (B)  The size of the family;

          (C)  The cost and condition of housing facilities available, including consideration of the following:

                (i)  Cost of a typical dwelling lot;

                (ii)  Cost of materials;

                (iii)  Cost of labor;

                (iv)  Cost of real estate taxes; and

                (v)  Cost of home owners' or renters' insurance;

          (D)  The eligibility of such persons and families for federal housing assistance of any type predicated upon a lower income basis; and

          (E)  The ability of such persons and families to compete successfully in the normal housing market and to pay the amounts at which private enterprise is providing decent, safe and sanitary housing, and deemed by the agency to be eligible to occupy residential housing constructed and financed, wholly or in part, with insured construction loans or insured mortgages, or with other public or private assistance;

     (16)  “Qualified sponsors, developers, builders or purchasers” means any person, corporation, profit or nonprofit, public or private, licensed general contractor or any other person or entity deemed by the board of directors to be qualified in providing housing for low and moderate income families; however, the Tennessee housing development agency shall not be deemed to be included in the definition herein;

     (17)  “Qualifying not-for-profit corporation” means a not-for-profit organization that qualifies as such under the Internal Revenue Code § 501 (C)(3) and chartered by the state or a nonprofit affiliate of such organization. Such qualifying organization must have substantial experience in providing low and moderate income households with housing. Specific experience and other qualifying criteria shall be set by the agency through rule and regulation;

     (18)  “Residential housing” means a specific work or improvement within this state undertaken primarily to provide dwelling accommodations for persons and families of lower and moderate income, including the acquisition, construction or rehabilitation of land, buildings and improvements thereto and such other nonhousing facilities as may be incidental or appurtenant thereto;

     (19)  “Servicing fees” means that sum paid for the reasonable value of services rendered to the agency for the servicing of mortgages it acquires;

     (20)  “Servicing of mortgages” means the collection and payment of all principal and interest and all reasonable fees and charges by the lender for mortgages acquired by the agency;

     (21)  “Solar hot water heater” means an appliance or system capable of producing most or all of the hot water needs of an average Tennessee household through the use of natural sunlight;

     (22)  “State” means the state of Tennessee; and

     (23)  “Very low income household” means an individual or family unit whose income does not exceed fifty percent (50%) of the area or state median income, whichever is greater, adjusted for family size.

[Acts 1973, ch. 241, § 3; 1974, ch. 702, § 1; 1978, ch. 884, § 1; T.C.A., § 13-2303; Acts 1988, ch. 900, § 12; 1991, ch. 466, § 2.]