Tennessee Housing Development Agency has awarded a $500,000 HOME Program grant to the Town of Mountain City that will be used to bring substandard homes back up to code.
The HOME program is funded by the U.S. Department of Housing and Urban Development and administered in part in Tennessee by THDA. During the most recent funding round, THDA awarded 16 competitive grants statewide totaling nearly $7.3 million.
“This HOME Program funding is important because it goes to the people that need it most,” THDA Executive Director Ralph M. Perrey said. “This money will allow these homeowners in Mountain City make much needed repairs that would have gone undone without it.”
Mountain City plans to use the funds to renovate or rebuild at least six single-family homes located within the city limits. The project will benefit very low and low income individuals that do not have the financial resources to make much needed improvements to their residences.
The town will hold a public meeting to outline application procedures and grant guidelines. Once applications are received, a priority list will be formed based on the level of rehabilitation work required, as well as each applicant’s socioeconomic factors. Homes that cannot be brought up to code will not be considered for the project.
Each home selected under the program will receive a per-unit subsidy for rehabilitation that will bring it up to code. Efficiency-sized dwellings can receive up to $58,378, while one-bedroom homes can receive up to $66,923, two-bedrooms to $81,377, three-bedrooms up to $105,276 and four or more bedrooms up to $115,560.
Financial assistance for home repairs will be provided in the form of a deferred grant that is forgivable at 20 percent per year if the family remains in compliance.
Johnson City-based First Tennessee Development District will administer the grant on behalf of the town.
THDA previously awarded a HOME grant to Johnson County totaling $500,000 during the 2016 grant round. Those grant funds are being used to provide up to $40,000 to make repairs on substandard housing located within the county.
HOME grants must be used for the production, preservation, or rehabilitation of affordable housing for low and very low income families and individuals.