HOME Homeownership Development Program

The HOME Homeownership Development Program is administered by the Tennessee Housing Development Agency, a state-level housing finance authority responsible for implementing federally funded housing initiatives within Tennessee. This program operates under the HOME Investment Partnerships Program, which is funded by the U.S. Department of Housing and Urban Development and designed to expand the supply of affordable housing for low- and moderate-income households. Through this initiative, THDA allocates federal funds to qualified organizations to support the development of single-family housing units that will ultimately be sold to eligible homebuyers. The primary objective of the program is to facilitate the construction or rehabilitation of modest, single-family homes that can be sold to low-income individuals and families. Eligible activities include new construction or the acquisition and substantial rehabilitation of substandard housing. The program emphasizes long-term affordability and requires that funded projects support sustainable homeownership opportunities. Grant recipients must not only develop housing but also guide homebuyers through the purchasing process and maintain ongoing engagement, including counseling and compliance monitoring. Funding is provided through a competitive application process and is restricted to nonprofit organizations that meet the designation of a Community Housing Development Organization. Applicants must demonstrate at least two years of experience in affordable housing development or related services and must meet extensive organizational and governance requirements, including nonprofit status, financial accountability, and community representation. Importantly, eligible applicants must not be governmental entities, and they must serve low-income populations within Tennessee. The program requires applicants to submit proposals within a defined application window and through a specified online system. Applications must include comprehensive documentation demonstrating organizational capacity, financial stability, project feasibility, and compliance with federal and state requirements. THDA evaluates applications based on threshold eligibility and a detailed scoring matrix that considers factors such as project readiness, organizational capacity, leveraged funding, and community impact. Funding amounts range from a minimum request of 250000 dollars to a maximum of 1000000 dollars for program costs, with additional operating assistance available up to 7 percent of the requested amount. Awards are issued as reimbursement grants secured by legal agreements, and funds must be committed and expended according to strict timelines. Successful applicants are expected to begin project implementation shortly after award notification, with funding terms extending through a multi-year period ending in 2029. The program does not require a formal match; however, applicants may receive scoring advantages for including eligible matching contributions or leveraged funds. These contributions can include donated land, waived fees, or non-federal funding sources. Additionally, recipients must comply with federal regulations related to environmental review, fair housing, labor standards, and procurement, ensuring that all projects meet rigorous compliance standards. Applications for the 2026 funding round opened in mid-June and must be submitted by late July. THDA anticipates notifying successful applicants in early September, with funding agreements beginning in October. The program is offered annually, with separate funding rounds for Community Housing Development Organizations. Interested applicants are encouraged to participate in optional workshops and to review detailed program descriptions to ensure compliance with all eligibility and application requirements.

Ensure strong demonstration of organizational capacity, project readiness, and pipeline of eligible homebuyers as these are heavily weighted in scoring criteria