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 homes or substantially rehabilitate homes in THDA identified 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 is currently available in Chattanooga, Memphis and Oak Ridge.
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.