Workforce Housing
2027 COMMUNITY WORKFORCE HOUSING INNOVATION PILOT PROGRAM
The General Assembly of the State of Tennessee in 2026 amended the Tennessee Code Annotated, Title 13, Chapter 23, Part 1 to create the Community Workforce Housing Innovation Pilot Program (“Pilot Program”) to be administered by the Tennessee Housing Development Agency (“THDA”).
2027 Community Workforce Housing Innovation Pilot Program Income Limits
Program Purpose
The Pilot Program aims to provide construction loans that finance projects in whole or in part to acquire and/or construct or rehabilitate affordable rental and homeownership community Workforce Housing Projects for persons affected by the high cost of housing, using regulatory incentives and State and local funds to promote local public-private partnerships and leverage government and private resources.
“Workforce Housing” means housing affordable to natural persons or families whose total annual household income is more than eighty percent (80%) but does not exceed one hundred fifty percent (150%) of area median income, adjusted for household size, as provided in Attachment A (“Workforce Households”). This funding is intended to be used with other public and private resources.
Who Can Apply
Eligible for-profit and non-profit developers qualified to do business in the state of Tennessee who can demonstrate a Public-Private partnership for the project(s).
Eligible activities
- Acquisition and/or New Construction or Rehabilitation/Reconstruction of Single-Family Units for Sale to Eligible Workforce Households or;
- Acquisition and/or New Construction or Rehabilitation/Reconstruction of Multi-Family Units for Rent to Eligible Workforce Household.
What Type of Funds are available
The State of Tennessee has allocated $20,000,000 for the pilot program to be distributed as low interest development loans in all three Grand Divisions of Tennessee, according to specific language in the authorizing statute:
East Tennessee: $7M
Middle Tennessee: $10M
West Tennessee: $3M