The Community Programs Division administers the federally-funded HOME program to assist families across the state of Tennessee, who need help with affordable housing and who meet the requirement of being considered low or very low income. In 2001, $16,000,000 was awarded competitively to cities, counties, and non-profit organizations to offer programs for rental housing, homeowner rehabilitation and homeownership.

Community Programs continues to administer and to monitor projects funded under the state HOUSE program and the THDA-funded Local Match and Great Place programs. The Community Programs Division also administers two special programs, the Bicentennial Neighborhood Initiative (BNI) and the Creating Homes Initiative (CHI), the latter being a joint effort with the Tennessee Department of Mental Health and Developmental Disabilities (TDMHDD) to provide community-based housing for persons with mental illness. The supportive services are provided by mental health agencies and funded through TDMHDD.