HOME Rental Housing Development Program

The HOME Rental Housing Development Program is administered by the Tennessee Housing Development Agency, a state entity responsible for allocating federal housing resources to support affordable housing initiatives across Tennessee. The program is funded through the federal HOME Investment Partnerships Program, which is designed to expand the supply of safe, affordable housing for low-income households. Through this program, THDA distributes funds competitively to eligible recipients to support the development, acquisition, and rehabilitation of rental housing that serves individuals and families with limited incomes. The primary purpose of the program is to increase the availability of affordable rental housing units for households earning no more than 80 percent of the area median income. Projects funded under this initiative may include new construction or acquisition and rehabilitation of existing housing, with strict limitations on the number of HOME-assisted units per development. Urban projects are capped at eleven total units, while rural projects may exceed eleven total units but are limited to eleven HOME-assisted units. The program emphasizes long-term affordability, requiring compliance periods ranging from five to twenty years depending on the level of investment and type of activity. Funding is awarded through a competitive application process, with applicants required to request a minimum of 300000 dollars and allowed to request up to 1500000 dollars per project. The total funding allocation for the program is derived from federal appropriations, with a portion reserved for administrative costs and community housing development organizations. Applicants must also provide a mandatory 25 percent match using eligible non-federal sources. Funds may be awarded as grants or low-interest loans depending on whether the project is combined with Low-Income Housing Tax Credits. Eligible uses of funds include construction costs, acquisition, rehabilitation, and certain related soft costs, while prohibited uses include refinancing debt, developing public housing units, or funding non-residential components. Eligibility for the program includes Community Housing Development Organizations, nonprofit housing developers, public housing authorities, and certain for-profit entities structured as single-purpose ownership entities for rural housing projects. All applicants must demonstrate at least two years of relevant housing development and management experience, financial capacity, and compliance with federal and state housing regulations. Applicants must also be legally authorized to operate in Tennessee and must not be debarred from receiving federal assistance. Additional eligibility considerations include performance on prior grants, compliance with spending requirements, and demonstrated capacity to complete and manage the proposed project. The application process requires submission through THDA’s online system during a defined application window. For the current cycle, applications open on June 15, 2026, and must be submitted by July 30, 2026 at 4:00 PM Central Time. Applicants are encouraged to attend virtual workshops offered prior to submission to better understand program requirements. The application includes detailed documentation such as development budgets, proformas, environmental review materials, and evidence of market need. Projects are evaluated based on a scoring system that considers project design, applicant capacity, community need, leverage of additional funding, and alignment with program priorities. Following submission, THDA reviews applications for threshold eligibility before scoring and ranking them competitively. Awards are expected to be announced around September 1, 2026. Successful applicants enter a performance period beginning October 1, 2026, and ending September 30, 2029, during which they must complete development activities and comply with program requirements. Recipients are subject to ongoing monitoring, reporting, and compliance reviews to ensure adherence to affordability, occupancy, and financial standards. The program is offered annually, with funding rounds occurring each year based on federal allocations.

Ensure strong demonstration of market need and financial viability; secure firm commitments for leverage funding; meet minimum match requirement; demonstrate prior housing development experience