The Tennessee Housing Development Agency (THDA) administers the Tennessee Housing Trust Fund (THTF) Competitive Grants Program, which provides funding for the development and preservation of rental housing for low- and very-low-income households, elderly individuals, and special needs populations. Special needs groups that qualify for assistance under this program include persons with disabilities, formerly incarcerated individuals, victims of domestic abuse, and youth aging out of foster care. The program is designed to increase affordable rental housing options in Tennessee through a competitive application process that evaluates project feasibility, impact, and sustainability.

The program offers financial support for a range of eligible activities, including new construction of rental housing, acquisition of land for future development, acquisition of existing rental units, rehabilitation of rental properties, and conversion of non-residential buildings into residential units. Funding is made available annually, subject to the approval of THDA’s Board of Directors, and is distributed through a competitive selection process. The program prioritizes projects that effectively address Tennessee’s affordable housing needs while ensuring long-term viability.

Each year, approximately $4 million is allocated to the THTF Competitive Grants Program. Funds are sourced from THDA’s mortgage loan program profits. Grant awards are determined through a rigorous scoring and evaluation process, with a maximum grant amount of $600,000 per grantee per grant round. There is no minimum award amount, allowing flexibility for projects of varying scales. The program ensures that funding is strategically allocated to maximize its impact on housing affordability and stability.

Eligible applicants include nonprofit housing development organizations and public housing authorities operating in Tennessee. These organizations must demonstrate the capacity to successfully develop and manage rental housing projects that serve low-income and special needs populations. The program encourages applicants to develop innovative housing solutions that align with community needs and THDA’s affordable housing priorities.

The application period for the 2025 THTF Competitive Grants Program opens on January 16, 2025, and closes on February 27, 2025. Applications must be submitted within this timeframe to be considered for funding. The competitive selection process involves an extensive review of project proposals, scoring based on key evaluation criteria, and final approval by THDA’s Board of Directors. Prospective applicants are encouraged to review the Notice of Funding Availability (NOFA) and program guidelines to ensure compliance with application requirements.

For further details or assistance with the application process, interested parties can contact the THDA via email at THTF@thda.org. Additional information, including past funding awards and grant administrator resources, is available on THDA’s website. The agency remains committed to supporting the development of high-quality, affordable rental housing across Tennessee through this competitive funding opportunity.