HOME Homeowner Rehabilitation Program

The HOME Homeowner Rehabilitation Program is administered by the Tennessee Housing Development Agency (THDA), which serves as the state’s housing finance agency and distributes federal housing funds to support affordable housing initiatives. The program is funded through the federal HOME Investment Partnerships Program, which is designed to expand the supply of affordable housing for low-income households. THDA receives an annual allocation of HOME funds from the U.S. Department of Housing and Urban Development and distributes those funds through competitive grant rounds to eligible applicants across Tennessee. The primary purpose of the Homeowner Rehabilitation Program is to preserve and improve existing single-family housing occupied by low-income homeowners. The program supports rehabilitation and, where necessary, reconstruction of housing units to ensure they meet applicable building codes and safety standards. Eligible activities are limited to homeowner rehabilitation projects, including reconstruction when rehabilitation costs exceed certain thresholds. All funded projects must benefit low-income households, defined as those earning no more than 80 percent of the area median income, with encouragement to prioritize very low-income households. Funding is provided in the form of reimbursement-based grants to eligible applicants, which include cities, counties, and nonprofit organizations. Applicants must be located outside designated local participating jurisdictions, although nonprofits within those jurisdictions may apply for projects outside their boundaries. Award amounts range from a minimum of 250000 dollars to a maximum of 750000 dollars per grant. Funds must be committed to specific housing units within a defined timeframe and are subject to compliance periods depending on the scope of rehabilitation. Assistance to homeowners is structured as forgivable, zero-interest loans that are forgiven over time if program conditions are met. The application process is competitive and requires submission through THDA’s online system. Applicants must demonstrate organizational capacity, including financial accountability, relevant housing experience, and compliance with federal and state requirements. Nonprofit applicants must meet specific criteria such as IRS tax-exempt status, operational history, and governance documentation. Applications are evaluated based on a scoring matrix that considers program design, demonstrated need, prior funding distribution, disaster designation, matching contributions, and compliance history. A minimum threshold score is required for funding consideration. The application timeline for the 2026 funding round opened on May 4, 2026, and closed on June 11, 2026. THDA anticipates notifying successful applicants by early August 2026, with contracts beginning October 1, 2026, and extending through September 30, 2029. The program operates on an annual funding cycle, with recurring opportunities expected each year. Applicants may also attend optional workshops hosted by THDA prior to submission to better understand application requirements and expectations. Compliance requirements are extensive and include adherence to federal regulations, environmental reviews, procurement standards, and fair housing laws. Projects must meet property standards, including building codes and energy efficiency requirements, and must undergo inspections and monitoring throughout the grant period. Matching contributions are not required but may improve application competitiveness. THDA provides the federal match but encourages applicants to include additional non-federal resources to strengthen proposals. For questions or assistance, applicants may contact THDA directly via email or phone. The agency provides program materials, application instructions, and updates through its official website. Overall, the program represents a significant opportunity for eligible entities to secure funding for improving housing conditions for low-income residents across Tennessee while contributing to long-term community development goals.

Strong program design and readiness are critical; demonstrate prior housing experience and compliance; prioritize serving very low-income households; include match contributions to improve scoring