The Tennessee Housing Development Agency (THDA) Appraisal Gap Pilot program provides gap funding to eligible nonprofit entities to help cover the costs to build new construction or substantially rehabilitate homes in distressed communities where property values still have not recovered. This program will provide up to $20,000 per home to eligible nonprofit entities who build new homes or substantially rehabilitate existing homes and sell them to eligible purchasers if the appraised value of the home is less than the cost of construction. The program will be available in Chattanooga, Memphis and Oak Ridge.
THDA believes this grant program will assist non-profit participants in increasing the availability of new and/or renovated homes at affordable prices without depleting their capital and in stabilizing home values within the focus area.
The maximum grant amount is up to $20,000 per home on a first come, first served basis. An allocation of $500,000 of THDA funds will be available for up to 2 years or until all funds are allocated, whichever comes first.