Types of HUD special Claims

Types Of HUD Special Claims

Created by U.S. State Legislature Tennessee Housing Development Agency (THDA) began its business in 1974. Its main purpose is to ensure people that housing is available and affordable for everyone in every county of Tennessee. Therefore THDA provides home loans to thousands of people every year. They also fund local non-profit and municipal agencies. Not only this, but they also administer a number of federal housing programs at the state level. THDA also offers rental assistance and also assists in creating and maintaining rental housing. For providing Tennessee people with affordable housing, they run several programs for homeowners, homebuyers, renters, house ownership partners, and several other people. 


Section 8 Contract Administration Division


In August 2000, THDA was awarded a Performance-Based ACC Contract with the U.S. Department of HUD for oversight of properties with Project-Based Section 8 Housing Assistance Payment Contracts. The Section 8 Contract Administration Division has responsibility for the majority of HUD’s Performance-Based Section 8 properties in Tennessee and is also a traditional contract administrator for a small portfolio of Section 8 properties for which THDA is the mortgage holder.


One of the Contract Administration services includes the processing of special claims. Special claim is a property owners’ request to the THDA for reimbursement of losses due to unpaid rent by the tenant, tenant damages or vacancy. They request the claim when the losses exceed the limited security deposits allowed by HUD that an owner can collect from his tenant. 


The types of special claims that an owner can request to THDA are listed below.


  • Vacancy Claim: This is a HUD special claim that an owner makes for losses due to the vacant property. The owner makes claim for the amount of rent that he could not earn because the property was vacant due to circumstances beyond his control. 
  • Damages Claim: An owner makes this special claim when the ex-tenants cause much damage to the property beyond normal wear and tear. They make claims for major damages that he cannot repair without THDA’s assistance. He also claims for unnecessary expenses made by him to make the house livable for the next tenant that is beyond normal expenses.
  • Unpaid Rent Claim: Some tenants when it fails to pay rent amount the owner incurs losses of rental income. Therefore the owner makes a special claim for loss of rental income due to the tenant not paying the full amount of rent due under the lease.


The types of special claims that must be processed by HUD are listed below.

  • Rent-up Claim: This is a special claim to assist owners of newly subsidized properties who have incurred a loss of rental income on the un-leased property during the initial lease-up period. 
  • Debt Service Claim: This is a special claim to assist owners who have sustained a loss of rental income that resulted in the owner’s inability to meet their financial obligations on their FHA-Insured or HUD-Held mortgage loan.



THDA is working for the betterment of their Tennessee counting. They are providing all types of assistance to the people of every county so that nobody lives without a roof on his head. Thus these special claim processing is one of the examples of how THDA is supporting its people.


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