2026 HOME Rental Housing Development
Forecasted
2026 HOME Rental Housing Development supports housing developers in building, acquiring, and rehabilitating permanent rental housing to expand and preserve affordable homes for low-income Tennesseans.
Funder: Tennessee Housing Development Agency
Due Dates (Anticipated): July 2027 (Application deadline)
Funding Amounts: $300,000–$1,500,000 per project; maximum three-year grant/loan term
Summary: Supports the production and preservation of affordable, permanent rental housing for low-income households in Tennessee.
Key Information: Applicants must provide a documented 25% non-federal match and remain the project's final owner.
Description
The Tennessee Housing Development Agency (THDA) administers this competitive funding activity through the federally funded HOME Investment Partnerships Program. It supports new construction and acquisition and/or rehabilitation of affordable, permanent rental housing in Tennessee. Eligible costs include acquisition, development hard costs, related soft costs, and relocation costs.
The program serves households earning no more than 80% of area median income (AMI), with additional targeting requirements at initial lease-up. Urban developments may contain no more than 11 total units and cannot combine HOME funds with Low-Income Housing Tax Credits (LIHTC). Rural developments may be larger but cannot exceed 11 HOME-assisted units, and may combine HOME funding with LIHTC. Projects must remain rent- and income-restricted for five to 20 years.
