The HOME Investment Partnership Act (HOME) enables the City to provide affordable housing to low- and moderate-income persons. The HOME Program provides federal funds to state and local governments to carry out multi-year housing strategies through acquisition, rehabilitation, and new construction of housing units in addition to tenant-based assistance.

HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. The purpose of the program is to expand the supply of decent, safe, sanitary, and affordable housing for citizens comprising the lowest income earning households.

The City of Chattanooga makes HOME funds available for any HOME-eligible activity which assists the City in addressing the housing needs outlined in the 2020-2024 Consolidated Plan, which includes homeownership, homeowner acquisition, rehabilitation, and/or new construction of rental housing projects.

The City's HOME projects are carried out primarily through partnerships with local non-profit housing organizations, for-profit developers, homeless services providers, and other housing assistance partners.

Applications for these funds are accepted on a continuous basis. 

HOME Affordable Rental and Homeowner Housing

The City accepts applications from qualified non-profit and for-profit developers to produce and/or preserve affordable housing using HOME funds. 

Funding for a project can be 50% of project costs, up to a maximum of $40,000 per unit. Higher funding limits can be considered for entities using CHDO set-aside funds in a project. 

Periodically, the City hosts workshops to provide an overview of housing programs, features, and requirements. Check out the most recent presentation.

CHDO Set Aside

HUD requires a 15% set aside of HOME funds to be earmarked for Community Housing Development Organizations (CHDOs). These funds are for the development of affordable housing by an agency meeting a specific set of requirements that qualify them as a CHDO. CHDO status must be established prior to applying for HOME CHDO set-aside funds.

Before an application can be considered, the City must certify that an applicant is a qualified Community Housing Development Organization (CHDO), based on HUD requirements. This is required each time an entity applies for set-aside funds. If you are interested in applying for or recertifying CHDO status, please submit the documents below to hci@chattanooga.gov.

CHDO Proposal Description and Information 

Application for CHDO Status

CHDO Checklist

CHDO Board Makeup