HOME funds are awarded annually through a competitive application process to cities, counties and non-profit organizations outside the local participating jurisdictions. Community Housing Development Organizations (CHDOS) are eligible to apply for State HOME funds only if the proposed project is outside most HOME participating jurisdictions. THDA anticipates an allocation of $15-$17 million in Fiscal Year 2011. THDA will accept applications from CHDOS for FY2012 HOME funding on May 31, 2013.  There will be a webinar application workshop on April 30, 2013.  Click here to download webinar powerpoint presentation, 2012 HOME CHDO Application Workshop.

Eligible Applicants - CHDO Round
CHDOS with previous HOME grants must meet draw down requirements by April 30, 2013 to be eligible to apply. Applicants with 2011 HOME grants must have requested at least 50% of their grant; applicants with 2010 HOME grants must have requested at least 75% of their grant; and applicants with 1992 through 2009 HOME funds must be 100% drawn down.

Grant Amount
The maximum HOME grant is $500,000. Applicants must apply for at least $100,000. There is a $750,000 maximum that can be awarded to any one county if there are multiple grant applications from that county.

Highlights for 2012

• Allocation of funding
  • 10% for Administration 
    • 6% for Grantee administration 
    • 4% for THDA administration 
  • 15% for CHDOs 
  • 10% Supportive Housing Development 
  • 44% for eligible applicants from Urban Areas 
  • 56% for eligible applicants from Rural Areas
• New Need Scores
• Not-Proportionately Served Scores measure HOME assistance to a county from 1992-2011
• Supportive Housing Development replaces Special Needs Set-aside 
  • Restricted to HOME rental projects 
  • Requires on-site supportive services
• Reconstruction has been eliminated as an eligible activity for 2012 
  • Rehabilitation hard costs are capped at $40,000 
  • Unit must meet codes at completion
• The 25% cap on the use of CHDO proceeds for administration on the third use is eliminated.
• Homeownership and rental projects must demonstrate an adequate need for the project based on neighborhood market conditions.
• CHDOs must have paid staff with housing development experience.
• Homeownership units which have not been sold to an eligible homebuyer within 6 months of completion of construction or rehabilitation must be converted to a HOME rental unit and rented to an eligible tenant. Affordability requirements of rental project would apply (i.e., 20 years for new construction).
• Grantees will be required to repay funds expended on projects that are not completed and ready for occupancy within 4 years of the date the Working Agreement is executed.

2012 Proposed HOME Rule
A new Proposed HOME Rule has been published for public comment. The new Rule includes significant changes throughout the regulations, including:

• Repayment of HOME funds invested in a rental unit that has not been leased to initial tenants within 18 months of the completion of construction.
• FHA 203(b) Single Family Mortgage Limit (203(3)(b)) eliminated from regulations. Grantees must use the HUD-published 95% area median purchase price as after rehabilitation value limit.
• Substantial changes to 92.251 Property Standards
• Changes to definition of a Community Housing Development Organization
• CHDO funds must be committed to a specific activity within 24 months or will be recaptured by HUD.

Because the proposed Rule includes significant changes and HUD does not anticipate publishing a Final Rule until the Spring of 2013, THDA will not be accepting 2012 HOME applications for Supportive Housing Development or the Urban/Rural Rounds until the new rule is published. A new application deadline will be established once there is a Final Rule and any required changes have been incorporated into the Tennessee HOME Program Description.

For more information, you may contact Coralee Holloway, Director of Community Programs at 615-815-2030.